Agenda Document Pack - Grampian Valuation Joint Board - 31/01/2025
Moray Council · 31 January 2025
Back to Grampian Valuation Joint Board — 31 January 2025 and its agenda
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Grampian Valuation Joint Board Friday, 31 January 2025 NOTICE IS HEREBY GIVEN that at a Meeting of the Grampian Valuation Joint Board is to be held at Council Chambers, Council Office, High Street, Elgin, IV30 1BX on Friday, 31 January 2025 at 09:30. BUSINESS 1. Sederunt 2. Declaration of Member's Interests 3. Minute of the meeting held 04 October 2024 5 - 8 4. Internal Audit Plan 2025-26 9 - 12 5. External Audit Annual Audit Report for financial year ending 31 March 2024 13 - 58 6. Audited Accounts Report for the year ending 31 March 2024 59 - 132 7. Revenue Budget Monitoring Statement 1 April to 31 December 2024 133 - 142 8. Financial Planning for 2025-26 and Future Years 143 - 152 9. Governance - Accommodation 153 - 154 10. Governance - Policies 155 - 196 11. Valuation Roll and Council Tax Valuation List 197 - 202 12. Electoral Registration 203 - 208 13. Vacancies 209 - 212 Page 1
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14. Public Performance 213 - 218 15. Question Time Watching the Meeting You can watch the webcast live by going to: http://www.moray.gov.uk/moray_standard/page_43661.html Webcasts are available to view for 1 year following the meeting. You can also attend the meeting in person, if you wish to do so, please come to the High Street entrance door and a member of staff will be let into the building. Page 2
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GUIDANCE NOTES * Declaration of Group Decisions and Members Interests - At the beginning of the meeting, immediately following the Sederunt, the Convener will, in terms of Standing Order 25, seek declarations from individuals on any financial or other interests. ** Written Questions - Any member can put one question to the Convener about relevant and competent business not already on the Agenda for a meeting of the Board. No member can put more than one question at any meeting. The member must give notice in writing of their question to the Clerk 4 working days prior to the meeting. A copy of any written answer provided by the Convener will be tabled at the start of the relevant meeting. The member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter but no discussion will be allowed. *** Question Time - At each ordinary meeting of the Board, 10 minutes will be allowed for question time when any member can put one question to the Convener regarding any matter within the remit of the Board. The Member who has put the question may, after the answer has been given, ask one supplementary question directly related to the subject matter, but no discussion will be allowed. In the event of further information/investigation being required in order to answer the question, the Clerk who will arrange for a written answer to be provided within 7 working days. Page 3
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Grampian Valuation Joint Board SEDERUNT Councillor Donald Gatt (Chair) Councillor Stephen Smith (Depute Chair) Councillor Desmond Bouse (Member) Councillor Moray Grant (Member) Councillor Dell Henrickson (Member) Councillor Neil MacGregor (Member) Councillor Marc Macrae (Member) Councillor Ciaran McRae (Member) Councillor Sam Payne (Member) Councillor Mel Sullivan (Member) Councillor Iain Taylor (Member) Councillor Lynn Thomson (Member) Councillor Sonya Warren (Member) Councillor Judy Whyte (Member) Clerk Name: Lindsey Robinson Clerk Telephone: 07966 120593 Clerk Email: committee.services@moray.gov.uk Page 4
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MORAY COUNCIL Minute of Meeting of the Grampian Valuation Joint Board Friday, 04 October 2024 Council Chambers, Council Office, High Street, Elgin, IV30 1BX PRESENT Councillor Desmond Bouse, Councillor Donald Gatt, Councillor Moray Grant, Councillor Dell Henrickson, Councillor Neil MacGregor, Councillor Marc Macrae, Councillor Sam Payne, Councillor Stephen Smith, Councillor Mel Sullivan, Councillor Iain Taylor, Councillor Lynn Thomson, Councillor Sonya Warren, Councillor Judy Whyte APOLOGIES Councillor Ciaran McRae IN ATTENDANCE Mark Adam, The Assessor and ERO; Jim Barron, Depute Assessor and ERO (Aberdeenshire); Linda Smith, Depute ERO; Lorraine Paisey, Treasurer to the Board: Dafydd Lewis, Audit and Risk Manager; and Lindsey Robinson, Committee Services Officer. 1. Chair Councillor Donald Gatt, as Convenor of the Board, chaired the meeting. 2. Pre-Election Period The Convenor reminded the Board of the pre-election period and subsequent restrictions on the Council publishing material showing support for a particular political party and that, as the meeting was webcast, should the debate become political, the Convenor may be required to intervene. 3. Declaration of Member's Interests In terms of Standing Order 25 and the Councillor's Code of Conduct, the Board noted that there were no declarations from Members who were present at the meeting where any item of business in which they have any financial or other interest is to be dealt with. 4. Minutes of meeting of 28 June 2024 The minutes of the meeting of 28 June 2024 were submitted and approved by the Board. Councillor Taylor raised a point of accuracy on item 5 "Appointment of Depute Convenor". He advised that his name was mentioned twice in the vote result and that it should be him and Councillor Thomson. This made no difference to the outcome of the vote. Item 3. Page 5
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5. Written Questions ** The Board noted that no written questions had been received. 6. Internal Audit Annual Report The meeting had before it a report by the Audit and Risk Manager advising the Board of the internal audit work completed on the Assessor's Service for the financial year ended 31 March 2024 and providing an opinion on the adequacy of the control systems reviewed. Following consideration, the Board unanimously agreed to note the satisfactory audit opinion derived from audit work completed. 7. Financial Regulations The meeting had before it a report by the Treasurer to the Board seeking the Board's approval for revisions to the Financial Regulations which control Grampian Valuation Joint Board's financial administration. Councillor Grant sought clarification on section 3.4.2, asking for more information on why expected savings of financing costs could not be utilised. In response the Treasurer to the Board advised that this was not normally an issue for the Board as there was rarely any capital expenditure, but if there was, and there were loan charges incurred, then any savings from this could not be utilised. Following consideration, the Board unanimously agreed to: i. approve the proposed changes to the Financial Regulations as set out in APPENDIX 1; and ii. note that these documents will be reviewed at least every three years and any proposed changes reported to the Board for approval. 8. Revenue Budget Monitoring Statement 1 April to 31 August 2024 The meeting had before it a report by the Treasurer to the Board asking the Board to consider the Revenue Budget Monitoring Statement for the period 1 April to 31 August 2024. During consideration Councillor Taylor sought clarification on why IT maintenance had doubled compared to the forecast. In response, the Assessor and ERO advised that the costing changes were due to the timings of the contracts and payments in relation to the reporting period rather than over the spread of a year. Councillor Smith sought clarification on the Government funding brought in at the General election and how it compared to the actual costs incurred due to the changes in legislation. Page 6
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In response, the Treasurer to the Board advised that the funding was adequate and that she would check the figures and feedback to the Board. Councillor Grant sought clarification on whether the Board had reserves and how underspends are handled. In response the Treasurer to the Board advised that the reserves policy states the maximum that can be carried, and the current reserves are at the maximum. Any underspend would be redistributed back to the constituent authorities following the results for the audit report. Following consideration, the Board unanimously agreed to note the Revenue Monitoring Statement to 31 August 2024. 9. Governance The meeting had before it a report by the Assessor and ERO updating the Board on the review of the Board's Standing Orders. Councillor Warren joined the meeting during discussion of this item. Following consideration, the Board unanimously agreed to note the content of the report and approve the changes to the Standing Orders. 10. Staff Vacancies, Recruitment and Upskilling Existing Staff The meeting had before it a report by the Depute Assessor and ERO (Aberdeenshire) updating the Board on the current level of staff vacancies, recruitment and the upskilling of staff. During consideration, Councillor Thomson sought clarification on where the vacancies were geographically located. In response the Depute Assessor and ERO (Aberdeenshire) advised that they were not tied to a geographical location to be more attractive to applicants and to encourage hybrid working. Councillor MacGregor sought clarification on whether or not information had been sought from the candidate who refused the job offer as to what the reasons were. The Depute Assessor and ERO (Aberdeenshire) advised that it had been discussed but that the reason was unclear. Following consideration, the Board unanimously agreed to note the contents of the report. 11. Question Time Councillor Thomson sought clarification on whether overseas voters had enough time to vote. In response, the Depute ERO advised that they should have their postal vote arrangements in place at the start of the timetable or they may struggle to return them in time. She further advised that the Association of Electoral Administrators Page 7
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was looking at a blueprint of how to move overseas voting forward with voting at embassies or online being considered. Page 8
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 31 JANUARY 2025 SUBJECT: INTERNAL AUDIT PLAN FOR 2025/26 BY: AUDIT AND RISK MANAGER 1. REASON FOR REPORT 1.1 This report advises the Board of the planned internal audit coverage of the Assessor’s Service for the financial year ending 31 March 2025. 2. RECOMMENDATION 2.1 That the Board considers the proposed internal audit coverage, seeks clarification on any points arising, and otherwise notes the report. 3. BACKGROUND 3.1 In terms of the Public Sector Internal Audit Standards applicable to local government and joint boards, an internal audit plan is a requirement for each financial year. The plan takes account of risk and is presented to the Board to enable it to consider and comment on the proposed audit coverage. 3.2 It is recognised that whilst the Assessor’s Service is subject to considerable operational challenges as a consequence of service demands, the costs of the service do not change materially from year to year, with funding predominantly met by requisition from the constituent authorities. The main expenditure continues to relate to staffing costs with other outlays covering annually recurring items including office rentals and service charges, ICT infrastructure and licencing, and postage outlays. 3.3 Additionally, as in prior years, the main financial systems of the Assessor’s Service mirror those of the Moray Council hence audit assurances provided in terms of the controls within the Council systems can be relied upon as being applicable to financial systems relating to the Service. This mitigates the risks associated with the audit and influences the nature and extent of audit work required. Item 4. Page 9
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3.4 It is recognised there will be particular workload pressures for the Service in 2025/26, with a need to review rateable values of non-domestic properties to reflect changes in the property market. In addition, it was also noted that the number of staff vacancies remains a particular concern. As such, the timing of the audit will be flexible and responsive to changing circumstances. 3.5 It is anticipated that the audit work proposed will provide the Assessor and the Treasurer with a ‘complete’ opinion on the adequacy and effectiveness of the internal control systems and procedures without any need for ‘a limitation of scope’ in the audit coverage. A ‘limitation of scope’ arises when Internal Audit is unable to draw on sufficient assurances to issue a ‘complete’ audit opinion in accordance with the Public Sector Internal Audit Standards. This opinion will inform the assurance statement relative to governance matters the Assessor prepares for inclusion in the Board’s annual accounts. 3.6 In this context, it is expected that the work to be undertaken by Internal Audit in relation to the Service’s activities will involve: • Seeking confirmation that the Assessor continues to monitor and evaluate the principal risks facing their Service; • Analytical review of staff payroll costs and non pay expenditure for the current and prior years and review of any material variances, including assessment of procurement issues where applicable; Page 10
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• Verification of other sources of income to include government contributions in support of service delivery and developments; • Confirmation of the controls relative to collection and submission of changes to the valuation rolls and council tax lists to the constituent Authorities; • Review of the draft annual governance statement to ensure compliance with published best practice guidance; • Follow up of any prior year audit recommendations. 3.7 Completion of this work will provide the necessary coverage for internal audit purposes. The work is carried out independently of the external auditor for different but complementary purposes. 4. CONSULTATIONS 4.1 The Assessor has been consulted in the preparation of this report. 5. CONCLUSION 5.1 Audit planning allows management to inform the audit activity to be undertaken and assists the internal audit team to schedule its work. 5.2 This report provides members of the Board with details of the proposed internal audit coverage which will be undertaken to provide independent assurance on the adequacy and effectiveness of the Page 11
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Service’s control environment. Author of Report: Dafydd Lewis, Audit and Risk Manager Background Papers: Internal Audit files Ref:DL/GVJB/ Page 12
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Commercial in confidence Our communication plan Audit Plan Annual Report (our ISA 260 Report) Page 56
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 31 JANUARY 2025 SUBJECT: AUDITED ANNUAL ACCOUNTS FOR YEAR ENDING 31 MARCH 2024 BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 To submit the audited Annual Accounts for the financial year ending 31 March 2024 to the Board for consideration and approval. 2 RECOMMENDATION 2.1 It is recommended that the Board: (i) approves that the Annual Accounts are signed, having regard to the Annual Report from the External Auditor considered earlier at this meeting; (ii) notes the variance of £498,000 for 2023/24; and (iii) if the Annual Accounts are approved for signing, agrees that £447,000 is returned to constituent authorities leaving a balance on the General Fund of £238,000, and an earmarked reserve for Non Domestic Rates Reform of £509,000. (iv) approves the Letter of Representation 3. BACKGROUND 3.1 Joint Boards are required to account for their activities to the communities that they serve and to have the financial effect of those activities audited by External Auditors. 3.2 In accordance with the Local Authority Accounts (Scotland) Regulations 2014, it is a statutory requirement that the Board meets to consider and approve for Item 6. Page 59
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signature the audited Annual Accounts and, following the signing of the Annual Accounts, provides appropriately signed statements to the External Auditor, Grant Thornton. 3.3 A copy of the audited Annual Accounts for 2023/24 are appended to this report as APPENDIX 1. There have been presentational amendments in the accounts which do not affect the amount which falls due to be returned to the constituent authorities. The previous financial year saw the Board recognise a pension asset for the first time following the actuarial valuation of the pension fund that year and, as a result, saw an asset ceiling applied to remove the asset on any funded surplus. Further guidance issued during this year’s audit reduced the effect of the asset ceiling and reduced the pension liability from £0.304m to £0.164m. There was no impact on the Board’s usable reserves or amounts due to constituent authorities. 3.4 The Auditor’s draft Report to the Board and the Controller of Audit is the subject of a separate report to this meeting. The report confirms that there are no unadjusted misstatements in the accounts to report to those charged with governance. The Independent Auditor’s report gives an unqualified opinion, which means that the financial statements give a true and fair view of the Board’s financial position for 2023/24. 3.5 With a total underspend of £674,000, there was no requirement to utilise the budgeted £176,000 from reserves thus giving an overall surplus of £498,000. Of this total, £37,000 was transferred to the NDR Reserve for future commitments, while £14,000 was transferred out of the General Fund Reserve to bring the balance back to the maximum permitted under the Board’s Reserves Policy. The remaining balance of £447,000 is available to return to the constituent authorities. 3.6 The surplus to be returned to the constituent authorities is in proportion to the percentage of requisitions for 2023/24 and is as follows: 2023/24 Proposed Surplus Refund to Authorities % £ Aberdeen City Council 38.78 173,327 Aberdeenshire Council 44.79 200,198 Moray Council 16.44 73,475 Total 100.00 447,000 4 LETTER OF REPRESENTATION 4.1 As part of the completion of the audit, the auditors seek written representations from the Board on aspects of the annual accounts, including the judgements and estimates made. A copy of the Letter of Representation is appended to this report as APPENDIX 2. 5 CONCLUSION Page 60
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5.1 The Board generated a surplus of £498,000 in 2023/24. If the Annual Accounts are approved, £447,000 will be returned to constituent authorities leaving a balance on the General Fund of £238,000 and the earmarked NDR Reform Reserve of £509,000. Author of Report: Audrey Boyd, Accountant Background papers: Held within Accountancy Section, Moray Council Date: 31 January 2025 Page 61
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AUDITED ACCOUNTS ANNUAL ACCOUNTS FOR THE YEAR ENDED 31 MARCH 2024 GRAMPIAN VALUATION JOINT BOARD Item 6. Page 63
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If you need information from the Moray Council in a different language or format, such as Braille, audio tape or large print, please contact: ياروم سلجم لᘘق نم تامولعم ᣠإ ةجاح ᢝᡧᣚ متنك اذإ نوكتو ةغلᗷ وأ ويدوأ ةناوطسأ ،يا ᢔᣂلا لثم فلتخم لᜓش ᣢعوأ ةفلتخم نوكت نأ مط ب لاصّتﻹا ءاجّرلاف ةظᘭلغ فورح لامعتساᗷ ةعوب Jei pageidaujate tarnybos Moray tarybos teikiamą informaciją gauti kitokiu formatu, pvz., Brailio raštu, garso įrašu ar stambiu šriftu, kreipkitės: Jeśli potrzebują Państwo informacji od Rady Okręgu Moray w innym formacie, takim jak alfabet Braille'a, kasety audio lub druk dużą czcionką, prosimy o kontakt: Se necessitar de receber informações por parte do Concelho de Moray num formato diferente, como Braille, cassete áudio ou letras grandes, contacte: Ja Jums vajadzīga informācija no Marejas domes (Moray Council) citā valodā vai formātā, piemēram, Braila rakstā, audio lentā vai lielā drukā, sazinieties ar: اي نابز رگيد یسک ےس لسنوک ےروم وک پآرگاتروص راکرد تامولعم ںيم ﻼثم ںوہ ˝ ،فورح ےڑب اي پيٹ ويڈآ ،ےليرب ہطبار رک امرف ینابرہم وت ںيئامرف: : Treasurer to the Board, Financial Services, High Street, Elgin, IV30 1BX 01343 563125 accountancy.support@moray.gov.uk Page 64
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Contents MANAGEMENT COMMENTARY .......................................................................................... 1 STATEMENT OF RESPONSIBILITIES FOR THE ANNUAL ACCOUNTS ............................ 9 ANNUAL GOVERNANCE STATEMENT ............................................................................. 11 REMUNERATION REPORT ............................................................................................... 20 COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 ................................................................................................................. 27 MOVEMENT IN RESERVES STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 .... 28 BALANCE SHEET AS AT 31 MARCH 2024 ....................................................................... 29 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 ............................ 30 NOTES TO THE ACCOUNTS ............................................................................................. 31 Note 1 Accounting Policies .............................................................................................. 31 Note 2 Accounting Standards That Have Been Issued But Have Not Yet Been Adopted 33 Note 3 Critical Judgements in Applying Accounting Policies ............................................. 33 Note 4 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty ....................................................................................................................... 33 Note 5 Material Items of Income and Expenditure ........................................................... 35 Note 6 Events After The Reporting Period ....................................................................... 35 Note 7 Expenditure and Funding Analysis and Adjustments between Accounting Basis and Funding Basis under Regulations .............................................................................. 36 Note 8 Expenditure and Income Analysed by Nature ...................................................... 38 Note 9 Earmarked Portions of the General Fund ............................................................. 39 Note 10 Financing and Investment Income and Expenditure ............................................ 39 Note 11 Property, Plant and Equipment .......................................................................... 39 Note 12 Short Term Debtors ........................................................................................... 42 Note 13 Cash and Cash Equivalents ............................................................................... 42 Note 14 Short Term Creditors ......................................................................................... 42 Note 15 Financial Instruments ......................................................................................... 42 Note 16 Usable Reserves ................................................................................................ 44 Note 17 Unusable Reserves ............................................................................................ 44 Note 18 External Audit Costs .......................................................................................... 46 Note 19 Cashflow – Analysis of Net Deficit on the provision of services for non cash movements ...................................................................................................................... 47 Note 20 Requisition and Grant Income ............................................................................ 47 Note 21 Leases ............................................................................................................... 48 Note 22 Related Parties .................................................................................................. 48 Note 23 Defined Benefit Pension Scheme ....................................................................... 49 GLOSSARY OF TERMS ..................................................................................................... 58 Independent Auditor’s Report ........................................................................................... 60 Page 65
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1 MANAGEMENT COMMENTARY Strategy and objectives The Assessor & Electoral Registration Officer is responsible for the provision of valuation assessment and registration services across the Aberdeen City Council, Aberdeenshire Council and Moray Council areas. These strictly defined and regulated services are delivered by the Assessor & Electoral Registration Officer, as an independent statutory official, in partnership with the Grampian Valuation Joint Board, an independent local government body established by The Valuation Joint Boards (Scotland) Order 1995 and comprising members from each of the constituent authorities. The Board is required to appoint and resource an Assessor. The constituent authorities are required to appoint and resource an Electoral Registration Officer (ERO) and, by agreement, the Board has undertaken this responsibility on behalf of the local authorities. Costs incurred by the Board are apportioned between the councils based on the respective population of each council area. The priorities for 2023/24 were: Implement a full household canvass; Publish revised registers by 1 December 2023; Implementation of changes brought in by the Elections Act of 2022 and the review of UK Parliamentary constituencies; Maintain a complete and accurate Valuation Roll in terms of the Local Government (Scotland) Act 1975; Manage the introduction of the new two-stage non-domestic proposal and appeal system; Carry out the first annual audit of self-catering accommodation following the amendment of the Council Tax (Dwellings) and Part Residential Subjects (Scotland) Regulations 1992; Dispose of the remaining appeals lodged in respect of the valuation roll in force from 1 April 2017; Maintain a complete and accurate Council Tax Valuation List in terms of the Local Government Finance Act 1992. Monitoring regimes The Electoral Commission has a performance monitoring framework in place for EROs across the UK and statistics are provided annually to the Commission and to the Cabinet Office following the completion of the annual canvass and the publication of revised registers. Quarterly revaluation proposal and appeal resolution returns are made to the Scottish Government that in turn publishes the local and national data. Key performance indicators to monitor performance in relation to the updating of the Council Tax Valuation List and the Valuation Roll are set by the Board and are reported quarterly to the Board and annually to Scottish Government. Page 66
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2 MANAGEMENT COMMENTARY (continued) Business model The organisation delivers the outcomes that are required by statute in a dual strand approach with the Board providing resources and oversight and the Assessor & ERO delivering the specialised independent professional services of valuation assessment and electoral registration. The organisation operates a hybrid home/office working model and has physical offices in Aberdeen, Banff and Elgin. The Assessor & ERO and his staff work closely with the other Scottish Assessors and EROs via the Scottish Assessors’ Association (SAA) to deliver a service across Aberdeen City, Aberdeenshire and Moray council areas that is consistent with that being delivered across all 32 local authority areas in Scotland. The sharing of expertise and representation through the SAA is a good example of shared services across Scotland that includes a national website and data source for a wide range of stakeholders that includes citizens, business, third sector, public agencies, government and research bodies. Appeal outcome data and performance indicators measure the effectiveness of the organisation’s valuation assessment role and the Electoral Commission’s performance framework monitors the registration outcomes. The organisation met the demands placed upon it in terms of its valuation assessment and electoral registration duties during the 2023/24 financial year. A review of the organisation’s priorities and operations Implement a full household canvass The 2023 canvass used the now established method of firstly using a data matching exercise to determine the appropriate approach to be taken on a household-by-household basis. The data matching exercise compared the registration database to government records and the results returned to the registration officer. Where the results suggested that there was no change in the household composition, a canvass communication letter summarising the registration information for the household was issued and the household was invited to only respond if there were changes at the property. Where the results indicated that changes in a household composition may have taken place, a different canvass procedure followed that required a response from the household and follow-up actions by the ERO. All properties which required a personal visit were canvassed by a member of the canvass team. The 2023 canvass saw a successful use of e-communications to over 80,000 households, saving staff resources, the issue of printed material, and ultimately, money. For the 2023 canvass, a total of 375,443 canvass communications were issued by post, a little down compared to 398,367 canvass communications in 2022, and well below the numbers issued prior to the introduction of the reformed canvass model. Publish revised registers by 1 December 2023 Revised registers were published on 1 December 2023 and the table below provides a summary of the last three revised registers for local government and Scottish Parliament elections. The revised registers showed a slight increase in the number of registered electors and small decrease in the number of electors with postal votes. Page 67
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3 MANAGEMENT COMMENTARY (continued) Revised registers Number of electors Number of postal voters 1 December 2021 448,607 119,213 1 December 2022 448,915 119,611 1 December 2023 452,084 117,065 During the period from 1 December 2022 to 30 November 2023, 44,696 additions and 41,601 deletions were made to the registers. During the same period, 43,082 initial invitations to register (ITRs) were issued along with 40,898 first and second reminders. Canvass staff carried out ITR visits to 9,716 properties. Implementation of changes brought in by the Elections Act of 2022 and the review of UK Parliamentary constituencies Prior to the publication of revised registers on 1 December 2023, the new UK constituency boundary changes were applied to our electoral management system. These new boundaries are to be used in the event of a general election, but the previous boundaries require to be retained and to be used in the event of a UK parliamentary by-election should one arise before a general election. This was a complicated project and drew on the skills of IT, technical and administration staff, working together to build knowledge and resilience for future projects. The Elections Act 2022 introduced the UK Government’s manifesto commitments on electoral integrity and the wider democratic system. During 2023/24, elements which were introduced included voter ID, the removal of time limits for the registration of overseas electors and the ability to apply online for an absent vote at UK elections. These changes have been challenging to implement and to manage but early planning and effective communication and training have been key factors in successfully integrating them into our “business as usual” workstreams. Manage the introduction of the new two-stage non-domestic proposal and appeal system The two-stage process involves the ratepayer setting out the details of their challenge to the valuation roll entry made by the Assessor, including an alternative valuation. The Assessor is then required to review the challenge, the “proposal”, and either accept or reject the proposal or implement a different outcome, either by agreement or at his own discretion. Depending on the particular circumstances, the proposer may be able to appeal the decision to the Local Taxation Chamber of the First-tier Tribunal for Scotland. This new system has resulted in a welcome reduction in the number of “appeals” received by the Assessor following a revaluation but is still a challenging workstream for ratepayers, their representatives, and the Assessor’s staff. Carry out the first annual audit of self-catering accommodation following the amendment of the Council Tax (Dwellings) and Part Residential Subjects (Scotland) Regulations 1992 The amended regulations require that the Assessor carries out an audit of self-catering accommodation which appear in the valuation roll at the end of a financial year to determine if they met the revised definition of self-catering accommodation, particularly the requirements that the property had to be made available for let for 140 days or more in the preceding financial year and had to actually be let for 70 days. Given that Grampian had over 1,300 entries in the valuation roll, this was a challenging exercise in terms of resources. As the exercise is carried out retrospectively and the changes that are required to the valuation roll Page 68
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4 MANAGEMENT COMMENTARY (continued) or council tax valuation list are also implemented retrospectively, this had a significant impact on our ability to meet key performance targets. Dispose of the remaining appeals lodged in respect of the valuation roll in force from 1 April 2017 The deadline for disposal of appeals lodged in respect of the valuation roll in force from 1 April 2017 was extended to 31 December 2024 and the First-tier Tribunal Local Taxation Chamber has a program of disposal which has proved to be quite challenging given that the number of outstanding appeals in Grampian still stands at around 3,100. However, the majority of these are material change of circumstances appeals, lodged as a result of the pandemic, and we are now seeing ratepayers withdraw these appeals in bulk without any discussions taking place with our valuers. Maintain a complete and accurate Valuation Roll in terms of the Local Government Scotland) Act 1975 & Maintain a complete and accurate Council Tax Valuation List in terms of the Local Government Finance Act 1992 These two priorities use quantitative target-based performance indicators rather than qualitative measures and, as achieving the targets relies partly on the timeous receipt of information from the owners and occupiers of dwellings and non-domestic properties, the indicators can be misleading. Valuer vacancies have again impacted on the organisation’s ability to meet the timescales suggested by the key performance indicators. The last 3 year’s figures are shown in the tables below. Valuation Roll – number of alterations made to Valuation Roll/time taken from effective date of alteration to Valuation Roll to date of issue of valuation notice Year < 3 months 3-6 months > 6 months Total Number Number % Number % Number % 2021/22 663 39.4 380 22.6 640 38.0 1,683 2022/23 527 30.4 338 19.5 867 50.1 1,732 2023/24 915 36.0 424 16.7 1,206 47.4 2,545 Target 65* 20* 15* Council Tax – number of dwellings entered into Valuation List/time taken from date of entry in Valuation List to date of issue of valuation notice Year < 3 months 3-6 months > 6 months Total Number Number % Number % Number % 2021/22 2,465 83.2 344 11.6 155 5.2 2,964 2022/23 1,938 71.1 623 22.9 164 6.0 2,725 2023/24 1,961 64.7 507 16.7 563 18.6 3,031 Target 94 3 3 Page 69
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5 MANAGEMENT COMMENTARY (continued) Despite the challenges of the year, particularly the level of valuer vacancies, the organisation has performed admirably in fulfilling its statutory requirements to maintain the Valuation Roll and the Valuation List. Although the figures in the council tax table above appears to show a negative trend in performance, the particular circumstances and challenges of each year can provide an additional narrative. As noted earlier, the self-catering audit in 2023 was resource intensive and led to retrospective alterations to the council tax valuation list and the non- domestic valuation roll. If self-catering properties were excluded from the KPI statistics for 2023/24, the figures would have been as follows; 2023/24 < 3 months 3-6 months > 6 months Total Number Number % Number % Number % Valuation Roll 915 39.1 424 18.1 1,002 42.8 2,341 Council Tax 1,961 69.5 507 18.0 354 12.5 2,822 Future challenges As always, the priority for the next year is to continue to fulfil our statutory duties across all three service strands: council tax, valuation for rating, and electoral registration. In relation to council tax, no definite decision has been made by the Scottish Government regarding the reform of the current system, but the situation is constantly monitored by the Assessor and the management team through the Scottish Assessors Association and its Domestic Subjects Committee. The organisation will need to be ready to adapt to meet the challenges any reform might entail. In relation to valuation for rating, preparation for the next general revaluation, the first in the new three yearly cycle, will continue alongside the disposal of the proposals lodged against entries in the valuation roll in force from 1 April 2023. The continuing level of vacancies in the valuation team make these tasks acutely challenging. The difficulty of recruiting suitably qualified professional staff is not unique to the Grampian Assessor and is seen across the surveying profession and the wider public sector. Work is, however, being undertaken to address this issue. Recruitment material has been reviewed by HR colleagues and suggested changes have been implemented. We are also liaising with colleagues at a national level to learn from the experiences of other similar organisations. In the meantime, vacancies remain advertised on our website and on other job specific sites. In relation to electoral registration, the impact of the changes brought in by the Elections Act 2022 is still being experienced. The annual cavass will take place during summer and autumn of 2024 and may be impacted by the general election and publication of the revised registers may be delayed until February 2025. Operational agility and planning will be a key factor in delivering these outcomes. Key performance indicators (KPI) The organisation’s code of corporate governance established a KPI reporting and three-year review regime. They seek to quantify the effectiveness of the organisation’s activities in relation to the Valuation Roll of non-domestic property assessments and the Valuation List of domestic property council tax band allocations. The Assessor & ERO provides performance reports at every meeting of the Board and an annual public performance report is published Page 70
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6 MANAGEMENT COMMENTARY (continued) online at the end of every calendar year. Revised KPI targets for the three years from 2024/25 onwards were agreed by the Board at its January 2024 meeting. The KPI outcomes for 2023/24 are shown in the “A review of the organisation’s priorities and operations” section above. Principal risks and uncertainties The organisation maintains an operational and strategic risk register which is continually monitored and reviewed by the management team. The principal risks and uncertainties relate to dynamic valuation assessment and electoral registration statutory frameworks, challenges in terms of financial resources and, particularly, securing sufficient valuation expertise to deliver our services. Cyber security is an ever-present risk and the provision of IT services by Aberdeenshire Council and the support of their IT team is a key factor in minimising the risk to the Board. Apart from the normal control measures in terms of financial and operational planning, the Assessor & ERO and the management team continue to mitigate risk and uncertainty through partnership working through the Scottish Assessors Association (SAA) and external agencies. The Assessor & ERO is Chair of the Association’s Basic Principles Committee, Secretary to the SAA Domestic Subjects and Electoral Registration committees, and a member of the Electoral Management Board for Scotland. Together with the management team’s representation on all the SAA committees, the organisation is well placed to meet the challenges of any changes to its valuation assessment and registration functions. Financial Performance Revenue Expenditure The Grampian Valuation Joint Board, at its meeting on 27 January 2023, approved the 2023/24 Revenue Budget of £5.210m (2022/23 £4.896m), an increase of 6%. The requisitions to constituent authorities were set at £5.034m (2022/23 £4.749m) with approved use of reserves of £0.176m. The core budget was set at £4.766m, with an additional £0.268m budgeted for NDR Reform. The Joint Board receive quarterly Revenue Monitoring reports during the year in order to keep the board members fully informed as to the latest position, and projected outturn. The actual net expenditure in 2023/24 was £4.536m (2022/23 £4.402m) resulting in an underspend of £0.674m for the year. The budgeted use of General Reserve of £0.176m is not required, thus giving an overall variance of £0.498m. Of this total, £0.037m was transferred to the NDR Reserve for future commitments, while £0.014m was transferred out of the General Fund Reserve to bring the balance back to the maximum permitted under the Board’s Reserves Policy. This balance of £0.447m is available to return to the constituent authorities. The Comprehensive Income and Expenditure Statement shows a surplus of £0.179m on the provision of services for the year. After allowing for the reversal of statutory charges for International Accounting Standard 19 (IAS19) of (£0.113m), and depreciation totalling (£0.017m), this leaves the £0.049m transferred to the General Fund and £0.052m to the NDR Reserve. Page 71
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7 MANAGEMENT COMMENTARY (continued) The following table shows a summary of the figures for the main variances between budget and actual for the year to 31 March 2024. These figures are monitored and reported to the Board throughout the year, and exclude accounting adjustments related to pensions, short- term accumulating absences and depreciation. Actual under/overspends are explained in the detailed variance analysis below. 2022/23 2023/24 2023/24 2023/24 Actual Budget Actual Variance £000 £000 £000 £000 3,333 Employee Benefit Expenses 4,005 3,491 (514) 1,065 Other Service Expenses (including capital financed from current revenue (CFCR)) 1,176 1,118 (58) 65 Support Service Recharges 62 69 7 (33) Interest and Investment Income (4) (76) (72) (28) Government Grants and other Service Income (29) (66) (37) 4,402 Net (Under)/Overspend Against Budget 5,210 4,536 (674) Funded by: (4,749) Requisitions (5,034) (5,034) - - Approved use of Reserves (176) - 176 (347) Outturn for the year - (498) (498) The main variances from budget during the year were: £0.514m underspend for Employee costs, largely due to staff vacancies and difficulties experienced in recruiting suitably qualified staff. There is an underspend of £0.058m on other service expenses, detailed below. Repairs and Maintenance costs are £.0.011m under budget ICT Maintenance and Supports costs are £0.077m under budget. There was an overspend on postages of £0.043m due to the substantial increase in postage costs during the year. Printing and stationery costs had an underspend of £0.011m The £0.039m variance in income is mainly due to the government grant received to cover costs that will be incurred as a result of new duties placed on EROs by the Elections Act 2022. The £0.072m variance in interest income is mainly due to favourable interest rates during the year. Of the £0.037m underspend related to NDR reforms, £0.165m is within the employee costs, £0.035m on other expenditure, and without the budgeted use of the earmarked reserve of £0.0163m, this gives the underspend of £0.037m. Due to the underspend no use of reserves was required. General Reserve In setting the 2023/24 Revenue Budget, the Treasurer clarified that the cumulative balance on the uncommitted part of the General Fund should be calculated on the budget for the Joint Page 72
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8 MANAGEMENT COMMENTARY (continued) Board’s core costs alone and exclude budgets with a separate funding stream e.g. NDR earmarked reserve for implementation of the Barclay Review. The NDR reserve does not go by the same principles, given the nature of funding for NDR reform by the Scottish Government. The General Reserve balance at 31 March 2024 is £0.238m with an additional £0.509m earmarked for the NDR reform Implementation. Going Concern The Balance Sheet at 31 March 2024 shows an excess of assets over liabilities of £1.200m (net asset of £1.151m at 31 March 2023). The North East Scotland Pension Fund is required to carry out actuarial valuations every three years. Future actuarial valuations of the North East Scotland Pension Fund will consider the appropriate employee/employer’s rate to meet the commitments of the Fund and the constituent authorities of the Board are required to fund the liabilities of the Board as they fall due. Accordingly, it has been considered appropriate to adopt a going concern basis for the preparation of these Annual Accounts. Councillor Donald Gatt Convener Mark J Adam MRICS AEA (Cert – Scotland) Assessor & Electoral Registration Officer Lorraine Paisey CA Treasurer Page 73
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9 STATEMENT OF RESPONSIBILITIES FOR THE ANNUAL ACCOUNTS The Board’s Responsibilities The Board is required to: make arrangements for the proper administration of its financial affairs and to secure that the proper officer of the Board has the responsibility for the administration of those affairs (section 95 of the Local Government (Scotland) Act 1973). In the Valuation Joint Board, that officer is the Treasurer to the Board; manage its affairs to secure economic, efficient and effective use of resources and safeguard its assets; ensure the Annual Accounts are prepared in accordance with legislation (The Local Authority Accounts (Scotland) Regulations 2014) and the Local Authority (Capital Finance and Accounting) (Scotland) (Coronavirus) Amendment Regulations 2021, and so far as is compatible with that legislation, in accordance with proper accounting practices (section 12 of the Local Government Scotland Act 2003); approve the Annual Accounts for signature. I confirm that these Annual Accounts were approved for signature by the Board at its meeting on Signed on behalf of the Grampian Valuation Joint Board Councillor Donald Gatt Convener Page 74
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10 The Treasurer’s Responsibilities The Treasurer to the Board is responsible for the preparation of the Board’s Annual Accounts in accordance with proper practices as required by legislation and as set out in the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (the Accounting Code). In preparing these annual accounts, the Treasurer has: selected suitable accounting policies and then applied them consistently; made judgements and estimates that were reasonable and prudent; complied with legislation; complied with the local authority Accounting Code (in so far as it is compatible with legislation); kept adequate accounting records which were up to date; taken reasonable steps for the prevention and detection of fraud and other irregularities. I certify that the financial statements give a true and fair view of the financial position of the Board at the reporting date and the transactions of the Board for the year ended 31 March 2024. Lorraine Paisey CA Treasurer Page 75
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11 ANNUAL GOVERNANCE STATEMENT Scope of responsibility The Board was established in terms of The Valuation Joint Boards (Scotland) Order 1995 and is the valuation authority for Aberdeen City Council, Aberdeenshire Council and Moray Council. The Board is responsible for the provision of valuation assessment services for local taxation purposes. Through an agreement to share services, the Board also provides electoral registration services for the same three constituent authorities. The Board is responsible for ensuring that its business is conducted in accordance with the law and proper standards. It must ensure that public money is safeguarded, properly accounted for, and used economically, efficiently and effectively. The Board is considered to be a local authority in terms of the Local Government etc. (Scotland) Act 1994 and has a duty to deliver continuous improvement as set out in the Local Government in Scotland Act 2003. In discharging this overall responsibility, the Board is responsible for putting in place proper arrangements for the governance of its affairs and facilitating the effective exercise of its valuation and registration functions. This includes arrangements for the management of risk. Responsibility for delivery - members and officers In terms of the above Order, the Board membership comprises 6 members appointed by Aberdeen City Council, 6 members appointed by Aberdeenshire Council and 3 members appointed by Moray Council. To fulfil its operational role, the Board is responsible for the appointment of an Assessor, and deputes as appropriate, in terms of section 27 of the Local Government etc. (Scotland) Act 1994. In practice the Assessor and Deputes manage the provision of valuation assessment and electoral registration services on a day-to-day basis, with the Board providing resources, a governance framework and a monitoring regime for financial and operational performance. The Assessor is also appointed as the Electoral Registration Officer (ERO) for the Board’s three constituent authorities. This too is a statutory position with the ERO and Deputes appointed in terms of section 8 of the Representation of the People Act 1983. The Board has approved and adopted a local code of corporate governance that is reviewed biennially and is available at www.grampian-vjb.gov.uk The purpose of the governance framework The governance framework comprises the systems, processes, cultures and values by which the Board is directed and controlled, and the activities used to engage with the community. It enables the Board to monitor the achievement of its strategic objectives and to consider whether those objectives have led to the delivery of appropriate, cost-effective valuation assessment and registration services. The system of internal control is a significant part of that framework and is designed to manage risk to an acceptable level, and provide reasonable, but not absolute, assurance that the statutory requirements of the Assessor and ERO are met and policies, aims and objectives can be delivered. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to the achievement of the Board’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them efficiently, effectively and economically. Page 76
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12 ANNUAL GOVERNANCE STATEMENT (continued) The governance framework The key elements of the systems and processes that comprise the Board’s governance arrangements are described in terms of the seven principles of good governance defined in the framework and summarised as follows: Governance Principle 1 - behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law. The Board’s code of conduct provides a clear standard in terms of conduct and behaviour, as does the Board’s personnel related policies that deal with mainstreaming equalities into the fabric of the organisation, dignity of the individual, whistleblowing, special leave and personal development. These policies go beyond behavioural matters and reflect the positive approach to workforce development to the extent that career development schemes are in place across all three service strands: non-domestic property valuation assessment, domestic property valuation assessment and electoral registration. As such, career pathways are available to almost all staff. In order to avoid duplication, the Board relies on the registers of interests and gifts maintained by the relevant constituent authorities for elected members. A register of interests has been established for all employees and a register of gifts is also maintained. The Assessor & ERO and Deputes are bound by the policies of the Board and must also adhere to the professional standards regime set by the Royal Institution of Chartered Surveyors (RICS). Issues relating to actions taken or not taken by officials can be addressed through the organisation’s complaints handling procedure. This procedure was updated in 2021 following the revision of the national Complaints Handling Procedures (CHP) scheme by the Scottish Public Services Ombudsman. The organisation maintained its commitment to combatting fraud during the year by assisting with the National Fraud Initiative. The Assessor & ERO also works closely with the Electoral Commission, the Electoral Management Board and Police Scotland. If necessary, suspected fraudulent registration or absent vote applications are referred to the Police Scotland single point of contact. Governance Principle 2 - ensuring openness and comprehensive stakeholder engagement. The Board’s decision-making processes are well established with decisions concerning finance, performance and governance being taken by the Board. Standing orders and regulations govern how decisions are made and appropriate legal, financial and other professional advice is considered as part of the decision-making process. At an operational level, stakeholder involvement falls within the domain of the Assessor & ERO. The ERO and the Principal Admin Officer now attend regular meetings with other ERO colleagues and the Electoral Commission as part of an electoral registration communications and outreach network. One of the principal aims in attending these meetings is to develop best practice in how to engage with underrepresented groups, put relevant information into the consciousness of electors and to learn from the experiences of others. The introduction of Voter ID has been a focus for the ERO this year as it will be required at the forthcoming general election. The online voting information page on the Board’s website continues to be updated so users can easily access information or application forms for the service or action that they require. Page 77
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13 ANNUAL GOVERNANCE STATEMENT (continued) This was particularly important during 2023/24 due to the changes brought in by the Elections Act 2022. The Board’s performance management framework is reviewed regularly to drive continuous improvement and ensure effective monitoring of progress and outcomes against stated objectives. Reporting arrangements include regular updates to the Board, the Electoral Commission, the Electoral Management Board, the Cabinet Office, the Scottish Government, and online publication of annual performance reports. Protocols are in place to meet requests made under the Freedom of Information Act and, through the Scottish Assessors’ Association, Assessors have established procedures to improve the response standards where common requests for information are made. As part of the Equalities mainstreaming regime, progress has been made towards capturing service user feedback that will inform future service design and delivery. Governance Principle 3 - defining outcomes in terms of sustainable economic, social and environmental benefits. The Board, being focussed around delivery of specialised valuation and electoral registration services has a limited role to play in the wider community planning aspects anticipated by the governance framework set out by CIPFA/Solace. The Board is therefore conscious of the need to ensure that its mode of operation and the delivery of the valuation and registration services reflect the responsibilities towards the communities in Grampian in terms of devolved service delivery models that support the sustainability of communities across the whole region and minimise natural resource demands. In terms of the two specialised services the Board delivers, they are foundation stones to local government and democracy at local, national and international levels, as they provide the means to raise local taxation and to conduct elections/referendums. Operational outcomes for these services are essentially driven by statute and it is pertinent to this governance principle to note that legislation has now been laid to reform local taxation1 and electoral registration2 and thus improve sustainability and economic and social benefits. The implementation of local taxation reform has continued to be the subject of scrutiny during the last year and, through the work of the various committees of the Scottish Assessors Association, the Assessor and his team have continued to work with other stakeholders to ensure that the new system is implemented at a local and national level and is sustainable and effective. A dedicated information gathering team and regime is in place for the three yearly revaluations of non-domestic properties. Electoral registration officers, through the SAA Electoral Registration Committee, were represented on various groups involved in the development and implementation of the Elections Act 2022. Governance Principle 4 - determining the interventions necessary to optimise the achievement of intended outcomes. As a specialised outcome-orientated organisation, our activities of producing, maintaining, and defending Valuation Rolls, Valuation Lists and Electoral Registers essentially drive the organisation’s agenda. The Board and the Assessor & ERO recognise the financial challenges they face and through established reporting arrangements ensure that Board members have full detail of resource inputs and performance outputs. Regular and detailed financial reports 1 Non-Domestic Rates (Scotland) Act 2020 (legislation.gov.uk) 2 Elections Act 2022 (leislation.gov.uk) Page 78
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14 ANNUAL GOVERNANCE STATEMENT (continued) are made available to the Board and the outcomes for the organisation that are essentially driven by statute, are monitored in terms of performance. The Management Team focus on these outcomes and work closely with internal and external colleagues to innovate and optimise them. Innovation and agility is a fundamental requirement to maintain service delivery, particularly due to changes in legislation, vacancies and the number of colleagues working on a hybrid home/office basis. Governance Principle 5 - developing the entity’s capacity, including the capability of its leadership and the individuals within it. Roles of elected members and officers are clearly defined and constructive working relationships are achieved to ensure clear relationships between the Board, the Assessor and ERO, corporate stakeholders and the public. Standing orders regulate the form and content of board meetings and the Board’s financial regulations provide a framework for financial decisions. Performance reports are made at each board meeting and the Board’s key performance indicators are subject to regular periodic review. As part of its commitment to lifelong learning and to foster a personal development culture and seek to retain personnel, the organisation operates an internal recruitment procedure that encourages personal development and ultimately improve leadership capacity. New employees receive induction training on arrival and in the majority of cases are able to participate in a career grade development scheme that seeks to promote personal and professional development. Surveyors, who are members of the Royal Institution of Chartered Surveyors (RICS), are subject to additional compulsory continuing professional development training that is monitored by the RICS. The organisation’s training officer is responsible for monitoring training provision and recording progress. The training officer is also responsible for identifying appropriate training opportunities. All colleagues who put themselves forward for the Association of Electoral Administrators Certificate in Electoral Administration in 2022 passed the examination and were awarded the certificate, a considerable achievement given the workloads throughout the year. A member of the management team is undergoing the certificate course in 2024, another welcome development which ensures the organisation has a more qualified and knowledgeable workforce in a very specialised field. Functions and roles of statutory posts including the Clerk, Treasurer and Assessor & ERO are clearly defined and the postholders work closely together to achieve the objectives of the organisation. Governance Principle 6 - managing risks and performance through robust internal control and strong public financial management. The Board’s decision-making process is well established with governance, finance and performance issues being reported at board meetings that take place in public (unless exempt under statutory provision) and the board reports are published online and made available to the media. Rules and procedures govern how decisions are made and appropriate legal, financial and other professional advice is considered as part of the decision-making process. Scrutiny is secured through internal and external audit. Page 79
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15 ANNUAL GOVERNANCE STATEMENT (continued) Decisions of the Assessor & ERO are subject to public scrutiny, scrutiny via appeal and complaint processes to the respective judicial bodies and external stakeholders that monitor performance such as the Electoral Commission and the Electoral Management Board for Scotland. In addition, the Scottish Assessors’ website at saa.gov.uk provides practice notes that provide details on how rateable values are determined and allows individual taxpayers to look up the assessment of every non-domestic and domestic property in Scotland and the valuations of an increasing number of different subject types. The Board and the Assessor & ERO reported on performance to the Electoral Commission, the Cabinet Office, the Scottish Government and the Scottish Information Commissioner during 2023/24. Risk management is a fundamental part of the organisation’s decision-making process and as such is a standing item on the Assessor & ERO’s management team agenda, with the Board reviewing the risk register on an annual basis. To control and mitigate against risk, the Board’s system of internal control is based on a framework of financial regulations that are revised and updated periodically and supplemented by regular management information, administrative procedures, management supervision and a code of corporate governance. Establishing and maintaining an effective system of internal control is a management function. The Board, through its consideration of reports by internal and external auditors, monitors the effectiveness of internal control procedures. Policies to combat fraud, theft, bribery and corruption are in place, not only in order to protect public finance, but also to ensure the veracity of the statutory rolls, lists and registers that the Assessor & ERO is required to provide. The Assessor and ERO has direct contact with Police Scotland at a local and national level through an allocated Single Point of Contact, the SAA and the Electoral Management Board for Scotland. IT resilience and effectiveness continued to be improved during 2023/24. Close collaboration with Aberdeenshire Council’s IT team has seen them taking responsibility for managing the Board’s IT infrastructure and providing IT support to users. A performance management system is in place which calls for reporting of established performance measures to the Board at quarterly intervals throughout the year. An annual Public Performance Report is also published. The Board’s governance arrangements have been developed and maintained to comply with the core functions of various good framework guidelines including Code of Practice on Managing the Risk of Fraud and Corruption, Public Sector Internal Audit Standards (incorporating the principles of the Role of the Head of Internal Audit), Audit Committees: Practical Guidance for Local Authorities and Police, etc. Strong financial management procedures are secured through the work of the Treasurer appointed in terms of s95 of the Local Government (Scotland) Act 1973. This officer provides advice to the Board and the Assessor & ERO on all financial matters and ensures the timely production and reporting of budget estimates, budget monitoring reports and annual accounts. Governance Principle 7 - implementing good practices in transparency, reporting, and audit to deliver effective accountability. Board business is conducted through an established cycle of quarterly meetings. These meetings were held in hybrid form during 2023/24 with some members attending in person and others attending via a video link. Meeting dates are published in advance and reports follow a corporate style and include: the purpose of the report, information relevant to the matter under consideration, a conclusion and recommendations. Minutes of meetings are Page 80
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16 ANNUAL GOVERNANCE STATEMENT (continued) prepared by a member of Moray Council’s Committee Services team on behalf of the Clerk to the Board and are made available on Moray Council’s website with links also available via the Board’s website. Information is disseminated in many forms and targeted at different audiences for different purposes, ranging from statutory returns that follow prescribed layouts, through to media releases and presentations which may be focussed on specific groups of service users. The organisation’s website is regularly updated with news items to ensure that the Grampian community is kept up to date with pertinent information. Assurance and accountability oversight is a key role for the Board which comprises members from a variety of political backgrounds. The Board receives reports on the work of the internal auditor and the external auditor placing particular focus on recommendations arising from audit work and on the corrective actions proposed by the officials of the Board. Review of effectiveness of governance arrangements The review of effectiveness of the governance framework including the system of internal control is pursued throughout the year by various means involving: The Board In practice, governance arrangements are monitored over the year with Board meetings taking place four times during each year. The Board consists of members from each of the three councils and from across the political spectrum and considers reports on financial and operational performance and governance matters. It also examines the annual public performance and audit reports. The management team The management team which has overall responsibility for good governance arrangements, currently comprises the Assessor & ERO, two Depute Assessors & EROs, four Assistant Assessors and the Principal Admin Officer. The Assessor and ERO The Assessor & ERO has the statutory responsibility for the Valuation Rolls, Valuation Lists and Electoral Registers. The Assessor is essentially the chief executive for the organisation and has a wide range of financial, personnel, governance and reporting responsibilities. The Treasurer The Treasurer has statutory responsibility for the Board’s financial affairs in terms of Section 95 of the Local Government (Scotland) Act 1973. This officer provides relevant financial advice and support to the Assessor and ERO and elected members at meetings of the Board and otherwise as required. The Board’s financial management arrangements generally conform to the governance requirements of the CIPFA statement on the role of the chief financial officer, and whilst the Treasurer is not a member of the management team, she is actively involved in, and is able to influence, decision-making processes. The Treasurer is responsible for ensuring that an effective system of internal financial control is maintained. The system of internal financial control can provide only reasonable and not absolute assurance that assets are safeguarded, that transactions are authorised and properly recorded, and that material errors or irregularities are either prevented or detected within a timely period. The system of internal financial control is based on a framework of regular management information, financial regulations, administrative procedures (including segregation of duties), Page 81
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17 ANNUAL GOVERNANCE STATEMENT (continued) management supervision and a system of delegation and accountability. The system includes comprehensive budget setting and monitoring arrangements and the preparation of regular financial reports indicating actual expenditure against forecasts that are reported at each board meeting. Internal Audit Internal Audit is an assurance function that primarily provides an independent and objective opinion to the Board on the control environment comprising risk management, internal control, and governance by evaluating its effectiveness in achieving the organisation’s objectives. It objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources. Responsibility for the delivery of the Internal Audit Service is provided by the Audit and Risk Manager of the Moray Council. The Audit and Risk Manager provides the Board with independent assurance on risk management, governance and internal control in line with the Public Sector Internal Audit Standards. Internal Audit informs the effectiveness of the financial control environment as an element of the Board’s governance arrangements. For 2023/24 Internal Audit reviewed budget setting and monitoring, payroll costs which utilise a major element of the budget, non-payroll expenditure covering issues including office rentals and ICT costs, and assessment of income received. No issues were noted from this testing. It is the opinion of the Audit and Risk Manager, based on audit work completed, that reasonable assurance can be placed on the adequacy of and effectiveness of the system of internal financial control for the year ended 31 March 2024. External Agencies In addition to the various internal review processes and the financial audit referred to above, there are a number of bodies that the organisation is required to report to/submit governance arrangement for approval. The Scottish Information Commissioner collects data on requests and responses under Freedom of Information and Environmental Information legislation and will intervene where it considers enforcement action is required. The Keeper of Records reviews and approves records management arrangements. The way the organisation delivers its valuation and registration services is also subject to scrutiny by external agencies, with the valuation assessment aspect reported to the Scottish Government and subject to a case-by-case scrutiny on appeal and the Electoral Commission and Electoral Management Board reviewing and reporting on the performance of the ERO. Significant governance issues Securing good governance continues to be of prime importance to elected members, senior officials of the Board and members of the management team. It is a significant task, particularly at a time when budgets remain under significant pressure and major changes such as NDR and electoral reform are being implemented. In the 2022/23 governance statement, the key challenges facing the organisation for 2023/24 were to: Continue to upgrade our operational capacity in terms of workforce, processes and IT systems to meet the challenges of moving to a 3-yearly revaluation cycle. Page 82
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18 ANNUAL GOVERNANCE STATEMENT (continued) Upgrade systems and working practices to deal with the new 2 stage proposal and appeal system which came into force on 1 April 2023. Continue the work to improve and streamline our governance arrangements, progress equalities mainstreaming and performance monitoring and complete the work to widen our existing customer consultation framework. Continue the work to maximise the effectiveness of the electoral registration system in order to capitalise upon information sources and to enhance and develop the online voting information pages of our website to streamline voter contact and engagement. Manage the resources that will be required to manage the changes brought in by the Elections Act 2022 and the Boundary Commission with particular regard to preparation for the next UK Parliamentary General Election (date unknown). Continue to manage the resourcing required to ensure that this organisation meets all statutory commitments. In particular, there is a requirement to tackle significant levels of vacancy in the valuation team. We successfully met all operational demands and continued with a hybrid home/office approach to working. Recruitment for administrative and technical posts was successful but remained challenging in relation to suitably qualified valuation staff. A welcome and notable exception was the appointment of an experienced chartered surveyor into the post of Assistant Assessor. We continue to work with HR colleagues and other Assessors to find ways to address this particular recruitment issue. This year has seen many legislative changes which have required the design, creation and implementation of a range of new systems and procedures. These have included the development of a new IT application to deal with the transition to the new 2-stage proposal and appeals process, the adjustment to the demands of postal vote divergence, the introduction of voter ID and the preparation for the forthcoming General Election. We continue to monitor and develop our IT applications and processes to assist staff and other stakeholders as the need and opportunity arises. The migration of our IT systems to Aberdeenshire Council infrastructure has been successful and is expected to be completed in the second quarter of 2024/25. This migration provides the Board with additional resilience and support and gives staff access to a range of other services, including training and learning opportunities in a range of topics from IT skills to management and governance matters. We made more use of e-communications when carrying out the annual canvass in connection with the register of electors, saving staff resources and, ultimately, making financial savings to the Board. We intend to make more use of these options during the next financial year. The variation and rescheduling of the demands on the organisation do challenge resource management but close monitoring, management and reporting along with a degree of flexibility ensures that appropriate resourcing is in place and that all commitments are met. Page 83
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19 ANNUAL GOVERNANCE STATEMENT (continued) Looking ahead, the key challenges for 2024/25 are: Continue to upgrade our operational capacity in terms of workforce, processes and IT systems to meet the challenges of the 3-yearly revaluation cycle and the 2 stage proposal and appeal system. Continue the work to improve our governance arrangements, progress equalities mainstreaming and performance monitoring and complete the work to widen our customer consultation framework. Continue the work to utilise the full functionality of the electoral management system and online resources to improve registration levels and engagement with electors. Continue to manage resources to ensure that the organisation meets all statutory commitments. In particular, there is still a requirement to tackle the level of vacancies in the valuation team. Despite the key challenges noted above, no significant governance issues have been identified. Concluding Remarks In our respective roles as Convener of the Board and Assessor & ERO, we are committed to good governance and recognise the contribution it makes to securing delivery of service outcomes in an effective and efficient manner. This annual governance statement summarises current governance arrangements, provides evidence of progress and affirms our commitment to ensuring that the Board’s governance framework is responsive to the dynamic and challenging environment in which we serve. During the financial year to 31 March 2024 and to the date of this statement, no significant control weaknesses or issues have arisen and no significant failures have been identified in the expected standards for good governance, risk management and control. Councillor Donald Gatt Convener Mark J Adam MRICS AEA (Cert - Scotland) Assessor & Electoral Registration Officer Page 84
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20 REMUNERATION REPORT This report has been written to provide details of the Grampian Valuation Joint Board’s remuneration arrangements for its senior councillors and senior employees. This is required under the Local Authority Accounts (Scotland) Regulations 2014. All information disclosed in the tables 1 to 6 in this Remuneration Report is audited by the external auditors, Grant Thornton UK LLP. The other sections of the Remuneration Report are reviewed by Grant Thornton UK LLP to ensure that they are consistent with the financial statements. Remuneration of Councillors, Senior Councillors, Convener and Depute Convener The remuneration of councillors is regulated by The Local Governance (Scotland) Act 2004 (Remuneration) Amendment Regulations 2022 (SSI No. 2022/18). These regulations set out the amounts a councillor may be paid for being a Convener or Depute Convener of a Joint Board. This is inclusive of any amounts payable to them as either a councillor or senior councillor of their own Local Authority. The Board consists of 15 members comprising 6 from Aberdeen City Council, 6 from Aberdeenshire Council and 3 from Moray Council. The local authority of which the Convener or Depute Convener is a member pays the remuneration appropriate to the member’s work with the Joint Board. Conveners receive a remuneration which when added to their existing remuneration as a Councillor/Senior Councillor equals 75 percent of the Leader of a “Band A” council, i.e. £25,128 per annum. The Depute Convener’s remuneration is calculated on the basis of the basic salary plus 75 percent of the difference between the basic salary and the Convener’s salary, i.e. £23,872 per annum. These rates are effective for the year ending 31 March 2024. The Board has an arrangement with each Council which remunerates the Convener and Depute Convener/s to reimburse the Council for the additional costs of that councillor arising from them being a Convener or Depute Convener of the Board. Councillor Gatt was elected as Convener of the Grampian Valuation Joint Board on 26 August 2022. From this date Councillor Gatt has received a Special Responsibility Allowance for his role as Convener and the Board reimburses Moray Council for the additional cost. Councillor Davidson of Aberdeenshire Council was elected Vice Convener on 26 August 2022. Councillor Davidson already receives a Special Responsibility Allowance for duties within the Council which are paid for in full by Aberdeenshire Council and will be included in their remuneration report. Therefore no reimbursement is due by the Board. All other Councillors’ expenses are paid directly by the authority that they serve and will also be included in the individual authority’s remuneration report. Page 85
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21 Remuneration of Senior Councillors, Convener and Depute Convener (Table 1) Councillor Name and Responsibility Total Remuneration 2022/23 Salary, fees and allowances 2023/24 Total Remuneration 2023/24 £ £ £ Councillor Gatt Convener 2,935 4,818 4,818 Councillor Comrie Depute Convener (until 5 May 2022) 355 - - Total 3,290 4,818 4,818 No taxable expenses were paid in 2023/24 or in 2022/23. Remuneration of Councillors (Table 2) Grampian Valuation Joint Board paid the following salaries, allowances and expenses for all councillors (including senior councillors) during the year. It includes expenses met directly by the Board and expenses reimbursed to Councillors. Type of Remuneration 2022/23 2023/24 £ £ Salaries 3,290 4,818 TOTAL 3,290 4,818 Page 86
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22 Remuneration of Senior Employees The Local Authority Accounts (Scotland) Amendment Regulations 2014 require remuneration information to be disclosed for senior employees as defined below: i. A person who has responsibility for the management of a local authority to the extent that the person has power to direct or control the major activities of the authority whether solely or collectively with other persons. ii. A person who holds a post that is politically restricted by reason of section 2(1) (a), (b) or (c) of the Local Government and Housing Act 1989. iii. A person whose annual remuneration, including any annual remuneration from a local authority subsidiary body is £150,000 or more. These regulations apply equally to Joint Boards and remuneration disclosure is therefore required for the Assessor and Electoral Registration Officer (ERO) and two Depute Assessor and Depute Electoral Registration Officers who are deemed to be senior employees for the Grampian Valuation Joint Board. Details are shown on Table 3 below. The salary of senior employees is set by reference to national arrangements. The Scottish Joint Negotiating Committee (SJNC) sets the terms and conditions and pay bandings for senior employees but remuneration levels and pay scales are set locally and were last agreed by the Board on 23 January 2004. Remuneration of Senior Employees of the Board (Table 3) Name and Post Title Total Remuneration 2022/23 Salary, fees and allowances 2023/24 Taxable Expenses 2023/24 Total Remuneration 2023/24 £ £ £ Mark Adam Assessor & ERO 122,674 129,215 822 130,037 Gavin Oag Depute Assessor & ERO 96,372 101,359 1,337 102,696 Jim Barron Depute Assessor & ERO 87,797 91,958 1,296 93,254 TOTAL 306,843 322,532 3,455 325,987 The Treasurer and the Clerk to the Board do not receive remuneration from the Valuation Joint Board. The duties of the posts are covered by the post holders’ substantive posts in Moray Council. Details of their salaries are included in the remuneration report for Moray Council. Page 87
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23 Pension Benefits Pension benefits for Councillors and Local Government employees are provided through the North East Scotland Pension Fund, a Local Government Pension Scheme (LGPS). Councillors’ pension benefits are based on career average pay. For benefits earned up to 31 March 2024, the councillor’s pay for each year or part year ending 31 March (other than the pay in the final year commencing 1 April) is increased by the increase in the cost of living, as measured by the appropriate index (or indices) between the end of that year and the last day in the month in which their membership of the scheme ends. The total of the revalued pay is then divided by the year of membership to calculate the career average pay. This is the value used to calculate the pension benefits. The Board pay a contribution to the Pension Fund for the Convener and Depute Convener’s pensions if they are members of the scheme and this is based on a percentage of the cost of the Special Responsibility Allowance. Details are shown on Table 4 below. For local government employees, up until 31 March 2015 pension benefits accrued are based on final salary. This means that pension benefits are based on the final year’s pay and the number of years that person has been a member of the scheme. Benefits earned from 1 April 2015 are based on ‘career average’. The scheme’s normal retirement age for both councillors and employees is 65 for benefits up to 31 March 2015 and the State Pension Age for benefits built up after 1 April 2015. From 1 April 2009, a five tier contribution system was introduced with contributions from scheme members being based on how much pay falls into each tier. This is designed to give more equality between the cost and benefits of scheme membership. Prior to 2009 contributions rates were set at 6% for all non-manual employees. The members’ contribution rates for 2022/23 remain at the 2009/2010 rates although the pay bandings have been adjusted. The tiers and contribution rates are shown below. Tiered Contribution Pay Rates Pensionable pay 2022-23 Rate (%) 2022/23 Pensionable pay 2023-24 Rate (%) 2023/24 On earnings up to and including £23,000 5.50% On earnings up to an including £25,300 5.50% On earnings above £23,001 and up to £28,100 7.25% On earnings above £25,301 and up to £31,000 7.25% On earnings above £28,101 and up to £38,600 8.50% On earnings above £31,001 and up to £42,500 8.50% On earnings above £38,601 and up to £51,400 9.50% On earnings above £42,501 and up to £56,600 9.50% On earnings above £51,401 12.00% On earnings above £56,601 12.00% Page 88
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24 Pension Benefits (continued) If a person works part-time, their contribution rate is worked out on the whole-time pay rate for the job, with actual contributions paid on actual pay earned. There is no automatic entitlement to a lump sum. Members may opt to give up (commute) some pension for a lump sum up to the limit set by the Finance Act 2004. Up until 31 March 2015, the accrual rate guarantees a pension based on 1/60th of the final pensionable salary and years of pensionable service. (Prior to 2009 the accrual rate guaranteed a pension based on 1/80th and a lump sum based on 3/80th of the final pensionable salary and years of pensionable service). From 1 April 2015, the accrual rate guarantees a pension of 1/49th of pensionable pay for each year. At the end of each year the benefits are revalued and increased by inflation. The value of the accrued benefits has been calculated on the basis of the age at which the person will first become entitled to receive a full pension on retirement without reduction on account of its payment at that age; without exercising any option to commute pension entitlement into a lump sum; and without any adjustment for the effects of future inflation. The pension figures shown relate to the benefits that the person has accrued as a consequence of their local government service, and not just their current appointment. Senior Councillors (Table 4) For the year to 31 March 2023 For the year to 31 March 2024 £ £ Councillor Gatt Convener 566 930 Councillor Cormie Depute Convener (until 5 May 2022) 64 - Total 630 930 The above amounts show the in-year contributions relating to the Special Responsibility Allowance shown in Table 1. Senior Employees (Table 5) The pension entitlements of Senior Employees for the year to 31 March are shown in the table below, together with the contribution made by the Board to each Senior Employees’ pension during the year. Page 89
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25 Pension Benefits (continued) For the year to 31 March 2023 For the year to 31 March 2024 As at 31 March 2024 Difference from March 2023 £ £ £ £ Mark Adam 23,490 24,911 Pension 69,770 7,035 Assessor & ERO Lump Sum 113,262 6,461 Gavin Oag 18,423 19,537 Pension 53,282 5,567 Depute Assessor & ERO Lump Sum 73,166 4,174 Jim Barron 16,760 17,721 Pension 43,172 4,557 Depute Assessor & ERO Lump Sum 60,721 3,289 Total 58,673 62,169 413,373 31,083 In-year pension contributions Accrued pension benefits All senior employees shown in the tables above are members of the North East Scotland Pension Fund. The pension figures shown relate to the benefits that the person has accrued as a consequence of their total local government service and not just their current appointment. General Disclosure by Pay Band The Regulations require information to be provided for the number of persons whose remuneration is £50,000 or more. This information is disclosed in bands of £5,000 and is shown below. General Disclosure by Pay Band (Table 6) The Table includes the remuneration of the senior employees detailed in Table 3. Page 90
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26 Pension Benefits (continued) Councillor Donald Gatt Convener Mark J Adam MRICS AEA (Cert - Scotland) Assessor & Electoral Registration Officer Page 91
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27 COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 This Statement shows the accounting cost in the year of providing services in accordance with generally accepted accounting practices. This differs from the expenditure to be funded from the requisitions raised by the Board from the three constituent Local Authorities in accordance with statute. The effect on the General Fund is shown in the Movement in Reserves Statement and Note 7 Expenditure and Funding Analysis and Adjustments between Accounting Basis and Funding Basis under Regulations. £000 £000 £000 £000 £000 £000 Expenditure Income Net Expenditure Income Net 4,922 (28) 4,894 Rating and Council Tax Valuation and Electoral Registration 4,556 (66) 4,490 4,922 (28) 4,894 Cost Of Services 4,556 (66) 4,490 6 (33) (27) Financing and Investment Income and Expenditure 10 (6) (76) (82) (4,471) Requisitions and Non-Specific Grant Income 20 (4,587) 396 (Surplus)/Deficit on Provision of Services 8 (179) Deficit on revaluation of PPE 11 17 (783) Remeasurement of the Net Defined Benefit Liability 23 113 (783) Other Comprehensive (Income) and Expenditure 130 (387) Total Comprehensive (Income) and Expenditure (49) 2022/23 2023/24 Note Page 92
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28 MOVEMENT IN RESERVES STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 This Statement shows the movement in the year on the different reserves held by the Board, analysed into usable reserves (those that can be applied to fund expenditure) and unusable reserves. The Statement shows how the movements in the year are broken down between gains and losses incurred in accordance with generally accepted accounting practices and the statutory adjustments required to return to the amounts chargeable against requisitions for the year. The Increase or Decrease line shows the statutory General Fund movements in the year. 2023/24 General Fund Total Usable Reserves Unusable Reserves (Note 17) Total Board Reserves £000 £000 £000 £000 Balance at 31 March 2023 696 696 455 1,151 Total Comprehensive Income and Expenditure 179 179 (130) 49 Adjustments to usable reserves permitted by accounting standards 5 5 (5) - Adjustments between accounting basis & funding basis under regulations (Note 7) (133) (133) 133 - Increase / (Decrease) in Year 51 51 (2) 49 Balance at 31 March 2024 747 747 453 1,200 2022/23 General Fund Total Usable Reserves Unusable Reserves (Note 17) Total Board Reserves £000 £000 £000 £000 Balance at 31 March 2022 627 627 137 764 Total Comprehensive Income and Expenditure (396) (396) 783 387 Adjustments to usable reserves permitted by accounting standards 5 5 (5) - Adjustments between accounting basis & funding basis under regulations (Note 7) 460 460 (460) - Increase / (Decrease) in Year 69 69 318 387 Balance at 31 March 2023 696 696 455 1,151 Page 93
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29 BALANCE SHEET AS AT 31 MARCH 2024 The Balance Sheet shows the value as at the Balance Sheet date of assets and liabilities recognised by the Board. The net assets of the Board (assets less liabilities) are matched by the reserves held by the Board. 31 March 2023 31 March 2024 £000 Note £000 696 Property, Plant & Equipment 11 680 696 Long Term Assets 680 85 Short Term Debtors 12 38 1,205 Cash and Cash Equivalents 13 1,463 1,290 Current Assets 1,501 (705) Short Term Creditors 14 (817) (705) Current Liabilities (817) (130) Unfunded Pension Liability 23 (164) (130) Long Term Liabilities (164) 1,151 Net Assets 1,200 Usable reserves 16 224 General Fund 238 472 Earmarked NDR Reform Reserve 509 696 Total 747 Unusable Reserves 17 242 Revaluation Reserve 220 453 Capital Adjustment Account 459 (130) Pensions Reserve (164) (110) Employee Statutory Adjustment Account (62) 455 Total 453 1,151 Total Reserves 1,200 The notes on Pages 31 to 57 form part of the Financial Statements. Lorraine Paisey CA Treasurer Page 94
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30 CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 The Cash Flow statement shows the changes in cash and cash equivalents of the Board during the financial year. The statement shows how the Board generates and uses cash and cash equivalents by classifying cash flows as operating, investing and financing activities. The amount of net cash flows arising from operating activities is a key indicator of the extent to which the operations of the Board are funded by way of requisition and grant income or from the recipients of services provided by the Board. Investing activities represent the extent to which cash outflows have been made for resources which are intended to contribute to the Board’s future service delivery, i.e. assets. 31/03/2023 31/03/2024 £000 £000 (396) Net surplus/(deficit) on the provision of services 179 221 Adjust net deficit on the provision of services for non cash movements (Note 19) 79 (175) Net cash flows from Operating Activities 258 - Investing Activities - (175) Net increase/(decrease) in cash and cash equivalents 258 1,380 Cash and cash equivalents at the beginning of the financial year 1,205 1,205 Cash and cash equivalents at the end of the financial year 1,463 Page 95
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31 NOTES TO THE ACCOUNTS Note 1 Accounting Policies 1 General Principles The Annual Accounts summarise the Board’s transactions for the 2023/24 financial year and its position at the year-end of 31 March 2024. The Board is required to prepare Annual Accounts by the Local Authority Accounts (Scotland) Regulations 2014, which section 12 of the Local Government in Scotland Act 2003 requires to be prepared in accordance with proper accounting practices. These practices primarily comprise the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 and the Service Reporting Code of Practice 2023/24, supported by International Financial Reporting Standards (IFRS) and statutory guidance issued under section 12 of the 2003 Act. The principal accounting policies have been applied consistently throughout the year. The accounting convention adopted in the Annual Accounts is principally historical cost, modified by the revaluation of property, plant and equipment. 2 Accruals of Income and Expenditure Income and expenditure are accounted for in the year in which they take place, not simply when cash payments are made or received. Where income and expenditure has been recognised but cash has not been received or paid, a debtor or creditor for the relevant amount is recorded in the balance sheet. Where the debts may not be settled, the balance of debtors is written down and a charge made to revenue for the income that might not be collected. 3 Charges to Revenue for Non-Current Assets The service is charged with the following amounts to record the cost of holding non-current assets during the year: Depreciation attributable to the assets used by the relevant service. Revaluation and impairment losses on assets used by the service where there are no accumulated gains in the Revaluation Reserve against which the losses can be written off. 4 Requisitions and Contributions Requisitions and contributions relating to capital and revenue expenditure are accounted for on an accruals basis and recognised immediately in the Comprehensive Income and Expenditure Statement as income, except to the extent that the grant or contribution has a condition(s) (as opposed to restrictions) that the Board has not satisfied. 5 Cash and Cash Equivalents The Board uses Moray Council’s bank account for financial transactions and the balance is invested in the Council’s Loans Fund. This balance is repayable on demand and therefore treated as a cash equivalent and is included in the Balance Sheet at amortised cost, which equates to the actual cash value at 31 March 2024. Interest is received from Moray Council on the balance held. Page 96
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32 Note 1 (continued) 6 Benefits Payable During Employment Short-term employee benefits are those due to be settled within 12 months of the year-end. They include such benefits as wages and salaries, paid annual leave and paid sick leave for current employees and are recognised as an expense for services in the year in which employees render service to the Board. An accrual is made for the cost of holiday entitlements earned by employees but not taken before the year-end which employees can carry forward into the next financial year. 7 Termination Benefits Termination benefits are amounts payable as a result of a decision by the Board to terminate an officer’s employment before the normal retirement date or an officer’s decision to accept voluntary redundancy in exchange for those benefits and are charged on an accruals basis in the Comprehensive Income and Expenditure Statement at the earlier of when the Board can no longer withdraw the offer of those benefits or when the Board recognises costs for a restructuring. 8 Going Concern The Annual Accounts have been prepared on a going concern basis. As at 31 March 2024, the Balance Sheet of the Board shows a net asset position of £1.187m. 9 Overheads and Support Services The costs of overheads and support services are charged to those that benefit from the supply or service in accordance with the costing principles of the CIPFA Service Reporting Code of Practice (SeRCOP). The total absorption costing principle is used – the full cost of overheads and support services are shared between users in proportion to the benefits received. 10 Value Added Tax VAT is included in the Comprehensive Income and Expenditure Statement only to the extent that it is irrecoverable. The net amount due to or from HM Revenue and Customs in respect of VAT is included as part of debtors or creditors. 11 Reserves The Board sets aside specific amounts as reserves for future policy purposes. Reserves are created by appropriating amounts out of the General Fund Balance in the Movement in Reserves Statement. When expenditure to be financed from a reserve is incurred, it is charged to the appropriate service in that year to score against the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement. The reserve is then appropriated back into the General Fund Balance in the Movement in Reserves Statement so that there is no net charge against requisitions for the expenditure. Certain reserves are kept to manage the accounting processes for non-current assets, retirement and employee benefits and do not represent usable resources for the Board. Page 97
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33 Note 2 Accounting Standards That Have Been Issued But Have Not Yet Been Adopted The Code requires the Council to identify any accounting standards that have been issued but have yet to be adopted and could have a material impact on the accounts. This applies to the adoption of the following new or amended standards within the 2023/24 Code: Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); Updating a Reference to the Conceptual Framework (Amendments to IFRS 3). Definition of Accounting Estimates (Amendments to IAS 8); Deferred Tax (Amendments to IAS 12); Leases (Amendments to IFRS 16) The Code requires implementation from 1 April 2024 and there is, therefore, no impact on the 2023/24 financial statements. The above amendments are not anticipated to have a material impact on the information provided in the financial statements. Note 3 Critical Judgements in Applying Accounting Policies In applying the accounting policies set out in Note 1, the Treasurer has had to make certain judgements about complex transactions or those involving uncertainty about future events. The critical judgements made in the Annual Accounts are: Assets held at current value are revalued on a five-year basis as set out in the accounting policy for Property, Plant and Equipment. Moray Council’s Asset Manager (Commercial Property), who undertakes valuations on behalf on the Board and is a qualified RICS valuer, asserts that the carrying amount does not materially differ from that which would be determined using current value. In between valuations, a review is conducted to ensure carrying value does not differ from current value. The Board is part of a Defined Benefit Pension Scheme. In 2023/24 there was a pension asset. In preparing the accounts the Board has applied the asset ceiling test per IFRIC 14 which states that the amounts of net pension asset that can be recognised is the lower of either the amount of the net pension asset or the present value of any economic benefits available. The liability in the Board’s balance sheet is the amount following the application of this test. Note 4 Assumptions Made About the Future and Other Major Sources of Estimation Uncertainty The Annual Accounts contains estimated figures that are based on assumptions made by the Board about the future or that are otherwise uncertain. Estimates are made taking into account historical experience, current trends and other relevant factors. However, because balances cannot be determined with certainty, actual results could be materially different from the assumptions and estimates. The items in the Board's Balance Sheet at 31 March 2024 for which there is significant risk of material adjustment in the forthcoming financial year are as follows: Page 98
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34 Note 4 (continued) Item Uncertainties Effect if Actual Results Differ From Assumptions Property, Plant and Equipment (£0.680m) Assets are depreciated over useful lives that are dependent on assumptions about the level of repairs and maintenance that will be incurred in relation to individual buildings. The current economic climate makes it uncertain that the Council will be able to sustain its current spending on repairs and maintenance, bringing into doubt the useful lives assigned to assets Assets held at fair value are revalued on a five year rolling basis by a professionally qualified Royal Institution of Chartered Surveyors (RICS) valuer, Additional valuations are carried out on an ad hoc basis outwith the tolling programme arrangements where it is deemed necessary. The valuer also assess assets not formally revalued for material movements and indexation is applied where applicable. If the useful life of assets is reduced, depreciation increases and the carrying amount of the asset falls. It is estimated that the annual depreciation charge for buildings would increase by £0.003m for every year that useful lives had to be reduced. The estimated effect of a 1% change in the rate used for valuations would be a change up or down of £0.006m. Pension Liability (£0.164m) Estimation of the net liability to pay pensions depends on a number of complex judgements relating to the discount rate used, the rate at which salaries are projected to increase, changes in retirement ages, mortality rates and expected returns on pension fund assets. The effects on the net pension liability of changes in individual assumptions can be measured and are detailed in Note 23. Page 99
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35 Note 5 Material Items of Income and Expenditure Where material items of income and expenditure are not disclosed on the face of the Comprehensive Income and Expenditure Statement, the Code requires that the nature and amount of these items are disclosed in a note to the accounts. The following items are regarded as material: 2022/23 2023/24 Nature £000 £000 Grant income from the Scottish Government 13 53 Barclay Implementation Funding (included in requisitions) 268 268 Grant income from the Scottish Government was received to provide for the introduction of the Electoral Integrity Programme (EIP) from May 2023 across the UK. The EIP falls under the new Elections Act 2022 which contains measures such as introducing the requirement to show ID at polling stations, improving the accessibility of elections to make it easier for people with disabilities to vote, and bringing in changes to postal and proxy voting. Unspent funding in 2023/24 will be put to the earmarked reserve and used in 2024/25. The Barclay Implementation Funding was paid to the three local authorities, Aberdeen City Council, Aberdeenshire Council, and Moray Council and requisitioned in full by the Board, to implement the recommendations from the Barclay review of Non Domestic Rates. Unspent Barclay Funding in 2023/24 will be put to the earmarked reserve and used in future years. Note 6 Events After The Reporting Period The unaudited Annual Accounts were issued on 28 June 2024 and the audited Annual Accounts were authorised for issue on 31 January 2025 by Lorraine Paisey, Treasurer. Events taking place after this date are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 March 2024, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information. Page 100
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36 Note 7 Expenditure and Funding Analysis and Adjustments between Accounting Basis and Funding Basis under Regulations The Expenditure and Funding Analysis shows how annual expenditure is used and funded from resources (requisitions and government grants) by the Board in comparison with those resources consumed by the Board in accordance with generally accepted accounting practices. It also shows how this expenditure is allocated for decision making. Income and Expenditure accounted for under generally accepted accounting practices is presented more fully in the Comprehensive Income and Expenditure Statement. Net Expenditure chargeable to General Fund £000 Adjustments between Funding and Accounting Basis £000 Adjustments to usable reserves permitted by accounting standards Net Expenditure in the Comprehensiv e Income and Expenditure Statement £000 Net Expenditure chargeable to General Fund £000 Adjustments between Funding and Accounting Basis £000 Adjustments to usable reserves permitted by accounting standards Net Expenditure in the Comprehensiv e Income and Expenditure Statement £000 4,435 454 5 4,894 Rating and CT valuation & Electoral Registration 4,612 - 5 4,617 4,435 454 5 4,894 Net Cost of Services 4,612 - 5 4,617 (4,504) 6 - (4,498) Other Income and Expenditure (4,663) (6) - (4,669) (69) 460 5 396 (Surplus) or Deficit (51) (6) 5 (52) (627) Opening Balance (696) (69) (Surplus) or Deficit (51) (696) Closing Balance (747) 31 March 202431 March 2023 Page 101
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37 Note 7 (continued) Adjustments between the Funding and Accounting Basis 2023/24 Adjustment for Capital Purposes £000 Net Change for pensions adjustments £000 Other Differences £000 Total £000 Rating and CT valuation & Electoral Registration (5) (73) (49) (127) Net Cost of Services (5) (73) (49) (127) Other Income and Expenditure - (6) (6) Difference between the General Fund Deficit and the Comprehensive Income and Expenditure Statement Deficit (5) (79) (49) (133) 2022/23 Adjustment for Capital Purposes £000 Net Change for pensions adjustments £000 Other Differences £000 Total £000 Rating and CT valuation & Electoral Registration 29 404 21 454 Net Cost of Services 29 404 21 454 Other Income and Expenditure - 6 6 Difference between the General Fund Deficit and the Comprehensive Income and Expenditure Statement Deficit 29 410 21 460 Page 102
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38 Note 7 (continued) a) Adjustments for Capital Purposes This column adds in depreciation and impairment and revaluation gains and losses in the services line. b) Net Change for the Pensions Adjustments This column reflects the removal of pension contributions and the addition of IAS 19 Employee Benefits pension related income and expenditure. For the service this reflects the removal of the employer pension contributions made by the Board as allowed by statute and the replacement with current service costs and past service costs. c) Other Differences This column adjusts for differences between the amounts debited/credited to the Comprehensive Income and Expenditure Statement and amounts payable/receivable recognised under statute. For the service this reconciles the impact of accruals for accumulating compensated absences e.g. holiday pay as required by IAS19 Employee Benefits, to the salaries actually payable in the financial year in accordance with statute. Note 8 Expenditure and Income Analysed by Nature The Board’s expenditure and income is analysed as follows: Expenditure and Income 2022/23 2023/24 £000 £000 Rating, Council Tax Valuation and Electoral Registration Rating, Council Tax Valuation and Electoral Registration Employee benefit expenses 3,758 3,370 Other service expenses 1,065 1,118 Support service recharges 65 69 Depreciation, amortisation and impairment 34 (1) Interest payments 6 (6) Total Expenditure 4,928 4,550 Requisitions (4,471) (4,588) Government grants and other service income (28) (66) Interest and investment income (33) (76) Total Income (4,532) (4,729) (Surplus)/Deficit on the provision of services 396 (179) Page 103
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39 Note 9 Earmarked Portions of the General Fund Portions of the General Fund are earmarked for specific purposes as described below. Underspends or overspends against budget for these activities are transferred in or out of the earmarked funds at the year end. General Services NDR Reform Total £000 £000 £000 Balance at 31 March 2023 224 472 696 Increase/(Decrease) 2023/24 14 37 51 Balance at 31 March 2024 238 509 747 NDR Reform The purpose of this fund is to ring-fence funding received from constituent authorities to implement reforms from the Barclay Report which followed a review into the non-domestic rates system in Scotland. The Non-Domestic Rates (Scotland) Bill took effect from 1 April 2020. Note 10 Financing and Investment Income and Expenditure 2022/23 2023/24 £000 £000 Pensions interest cost/(gain) and expected return on pensions assets 6 (6) Interest receivable and similar income (33) (76) (27) (82) Note 11 Property, Plant and Equipment Recognition All expenditure on the acquisition, creation, enhancement or replacement of an asset or part of an asset is capitalised, providing the asset yields benefit for more than one year to the Board and the services it provides and the cost can be reliably measured. Where a component is replaced or restored, the carrying amount of the old component is derecognised and the new component reflected in the carrying amount. Measurement New assets are measured at cost. Cost includes the original purchase of the asset and the costs attributable to bringing the assets to its working condition for its intended use. Page 104
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40 Note 11 (continued) Assets are measured at current value which is Existing Use Value for Land and Buildings and Depreciated Historic Cost for Equipment and Furniture which is used as a proxy for current value. Derecognition The carrying amount of an item of property, plant and equipment is derecognised when an asset is disposed of or when no future economic benefits or service potential are expected from its use. The value of the asset in the Balance Sheet and any receipt is written to the Comprehensive Income and Expenditure Statement as part of the gain or loss on disposal. The gain or loss on disposal is not a charge against Requisitions, as the cost of non current assets is fully provided for under separate arrangements for Capital Financing. The carrying amount of the non current asset disposal is transferred to the Capital Adjustment Account and the disposal proceeds transferred to the Capital Fund and reported in the Movement in Reserves Statement. Depreciation Depreciation is provided for on all items of property, plant and equipment with a finite useful life by the systematic allocation of their depreciable amount over their useful lives. An exception is made for land where it can be demonstrated that it has an unlimited useful life. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. Depreciation is calculated using the straight-line method. In the year of acquisition, a full year’s depreciation is provided for on all assets. In the year of disposal, no depreciation is charged. The following useful lives and depreciation rates have been used in the calculation of depreciation:- Other Land & Buildings - 35-60 years, land is not depreciated Vehicles, Plant, Furniture & Equipment – 5-10 years Impairment Assets are assessed at each year end as to whether there is any indication that an asset may be impaired. Where indications exist and any possible differences are estimated to be material, the recoverable amount of the asset is estimated and, where this is less than the carrying amount of the asset, an impairment loss is recognised. Where an impairment loss is reversed subsequently, the reversal is credited to the Comprehensive Income and Expenditure Statement, up to the amount of the original loss, adjusted for depreciation that would have been charged if the loss had not been recognised. Revaluations The Board carries out a rolling programme that ensures that all Property, Plant and Equipment required to be measured at current or fair value is revalued at least every five years, with an annual assessment to ensure the carrying value within the financial statements is materially accurate. The last revaluation of Land and Buildings was done with effect from 31 March 2024 and the next revaluation is scheduled during 2028/29. All valuations were carried out by Moray Council’s Asset Manager (Commercial Property) in accordance with the methodologies Page 105
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41 Note 11 (continued) and bases for estimation set out in the professional standards of the Royal Institution of Chartered Surveyors. Valuations of vehicles, plant, furniture and equipment are based on depreciated historic cost as a proxy for current values. Other Land and Buildings Vehicles, Plant, Furniture & Equipment Total Property, Plant and Equipment £000 £000 £000 Cost or valuation At 1 April 2023 696 355 1,051 Additions - - - Revaluation decreases recognised in the Revaluation Reserve (77) - (77) Revaluation increases recognised in the Provision of Services 8 - 8 At 31 March 2024 627 355 982 Accumulated Depreciation and Impairment At 1 April 2023 72 283 355 Depreciation charge 14 19 33 Depreciation written out to the Revaluation Reserve (60) - (60) Depreciation written out to the Provision of Services (26) - (26) at 31 March 2024 0 302 302 Net Book Value at 31 March 2023 624 72 696 at 31 March 2024 627 53 680 Cost or valuation At 1 April 2022 696 355 1,051 Additions - - - At 31 March 2023 696 355 1051 Accumulated Depreciation and Impairment At 1 April 2022 58 263 321 Depreciation charge 14 20 34 at 31 March 2023 72 283 355 Net Book Value at 31 March 2022 638 92 730 at 31 March 2023 624 72 696 Page 106
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42 Note 12 Short Term Debtors 2022/23 2023/24 £000 £000 Prepayments 85 38 85 38 Note 13 Cash and Cash Equivalents 2022/23 2023/24 £000 £000 Temporary Investment in the Moray Council Loans Fund 1,205 1,463 Note 14 Short Term Creditors 2022/23 2023/24 £000 £000 Trade Payables 164 164 Other Payables ^ 541 653 Total 705 817 ^ Other Payables Central Government Bodies 70 68 Short Term Employee Absences 136 82 Other Local Authorities 335 503 Other Payables 541 653 Note 15 Financial Instruments Classifications A financial instrument is a contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another. Non-exchange transactions, such as those relating to taxes and government grants, do not give rise to financial instruments. Financial Liabilities A financial liability is an obligation to transfer economic benefits controlled by the Board and can be represented by a contractual obligation to deliver cash or financial assets or an obligation to exchange financial assets and liabilities with another entity that is potentially unfavourable to the Board. Page 107
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43 Note 15 (continued) The majority of the Board's financial liabilities held during the year are measured at amortised cost and comprised: Creditors for requisitions due to be returned to constituent authorities Trade payables for goods and services received Financial Assets A financial asset is a right to future economic benefits controlled by the Board that is represented by cash, equity instruments or a contractual right to receive cash or other financial assets or a right to exchange financial assets and liabilities with another entity that is potentially favourable to the Board. The financial assets held by the Board during the year are accounted for under the following classification: Amortised cost (where cash flows are solely payments of principal and interest and the business model is to collect those cash flows) comprising: temporary investment in the Moray Council Loans Fund trade receivables for goods and services provided Financial assets held at amortised cost are shown net of a loss allowance reflecting the statistical likelihood that the borrower or debtor will be unable to meet their contractual commitments to the Board. Fair Value For all categories of financial assets and liabilities held by the Board, there was no difference between the carrying value and the fair value at the Balance Sheet date and all are in Level 2 of the fair value hierarchy. Financial Instruments – Balances The financial liabilities disclosed in the Balance Sheet are analysed across the following categories: 2022/23 2023/24 £000 £000 Short Term Creditors - Amortised Cost 164 164 Trade Payables 164 164 Other Payables 541 653 Total 705 817 Tax Creditors included above (127) (124) Requisition Creditors included above (278) (447) Short Term Employee Absences included above (136) (82) Total Other Payables (541) (653) Total Financial Liabilities Current Creditors 164 164 The financial assets disclosed in the Balance Sheet are analysed across the following categories: 2022/23 2023/24 £000 £000 Temporary Investment in the Moray Council Loans Fund 1,205 1,463 Page 108
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44 Note 16 Usable Reserves General Fund The creation of a General Fund was introduced to provide the Assessor with some flexibility to investigate any spend-to-save projects which would require one-off expenditure in order to deliver future budget savings. The reserve also acts as a contingency for any unexpected costs in future years. Details of the earmarked reserve can be found in Note 9. 2022/23 2023/24 Usable Reserves £000 £000 General Fund 224 238 Earmarked NDR Reform Reserve 472 509 696 747 Note 17 Unusable Reserves 2022/23 2023/24 £000 £000 Revaluation Reserve 242 220 Capital Adjustment Account 453 459 Pension Reserve (130) (164) Employee Statutory Adjustment Account (110) (62) 455 453 Revaluation Reserve The Revaluation Reserve contains gains made by the Board arising from increases in the value of its Property, Plant and Equipment. The reserve contains only revaluation gains accumulated since 1 April 2007, the date that the Reserve was created. Accumulated gains arising before that date are consolidated into the balance on the Capital Adjustment Account. 2022/23 2023/24 £000 £000 Balance at 1 April 247 242 Revaluations - (17) Difference between fair value depreciation and historical cost depreciation (5) (5) Balance at 31 March 242 220 Page 109
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45 Note 17 (continued) Employee Statutory Adjustment Account The Employee Statutory Adjustment Account absorbs the differences that would otherwise arise on the General Fund Balance from accruing for compensated absences earned but not taken in the year, e.g. annual leave entitlement carried forward at 31 March. Statutory arrangements require that the impact on the General Fund Balance is neutralised by transfers to or from the Account. 2022/23 2023/24 £000 £000 Balance at 1 April (89) (110) Settlement or cancellation of accrual made at the end of the preceding year 89 110 Amounts accrued at the end of the current year (110) (62) Balance at 31 March (110) (62) Capital Adjustment Account The Capital Adjustment Account absorbs the timing differences arising from the different arrangements for accounting for the consumption of non-current assets and for financing the acquisition, construction or enhancement of those assets under statutory provisions. The Account also contains revaluation gains accumulated on Property, Plant and Equipment before 1 April 2007, the date that the Revaluation Reserve was created to hold such gains. 2022/23 2023/24 £000 £000 Balance at 1 April 482 453 Reversal of items relating to capital expenditure debited or credited to the Comprehensive Income and Expenditure Statement Charges for depreciation and impairment of non- current assets (29) 6 Capital financing in the year: Use of government grant to finance new capital expenditure - Capital Expenditure charged against the General Fund Balance 31 March 453 459 Page 110
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46 Note 17 (continued) Pensions Reserve The Pensions Reserve absorbs the timing differences arising from the different arrangements for accounting for post-employment benefits and for funding benefits in accordance with statutory provisions. The Board accounts for post-employment benefits in the Comprehensive Income and Expenditure Statement as the benefits are earned by employees accruing years of service, updating the liabilities recognised to reflect inflation, changing assumptions and investment returns on any resources set aside to meet the costs. However, statutory arrangements require benefits earned to be financed as the Board makes employer's contributions to pension funds or eventually pays any pensions for which it is directly responsible. The debit balance on the Pensions Reserve therefore shows a shortfall in the benefits earned by past and current employees and the resources the Board has set aside to meet them. The statutory arrangements will ensure that funding will have been set aside by the time the benefits come to be paid. Balance at 1 April (503) (130) Remeasurements of the net defined benefit (liability)/asset 783 (113) Reversal of items relating to retirement benefits debited or credited to the Surplus or Deficit on the Provision of Services in the Comprehensive Income and Expenditure Statement (912) (458) Employer's pensions contributions and direct payments to pensioners payable in the year 502 537 Balance at 31 March (130) (164) Note 18 External Audit Costs The agreed external audit fee for 2023/24 was £0.013m for work undertaken in accordance with the Code of Audit Practice (2022/23 £0.009m). Page 111
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47 Note 19 Cashflow – Analysis of Net Deficit on the provision of services for non cash movements 2022/23 2023/24 £000 £000 Depreciation/Impairment charges (34) 1 Pension Liability (410) 79 Increase/(Decrease) in Debtors (5) (47) Decrease in Creditors 228 (112) (221) (79) Note 20 Requisition and Grant Income The Board credited the following requisitions to the Comprehensive Income and Expenditure Statement. The requisitions are based on population. 2022/23 2023/24 £000 £000 Credited to Requisitions and Non Specific Grant Income: Requisition from Aberdeen City Council (1,858) (1,952) Requisition from Aberdeenshire Council (2,115) (2,255) Requisition from Moray Council (776) (827) Total (4,749) (5,034) Returned to constituent authorities: Aberdeen City Council 108 173 Aberdeenshire Council 125 200 Moray Council 45 74 Total 278 447 Total Requisition and Grant Income (4,471) (4,587) Page 112
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48 Note 21 Leases Operating Leases – Board as Lessee Operating lease payments are reflected in the Cost of Services heading in the Comprehensive Income and Expenditure Statement, as the rentals become payable. The Board does not have any finance leases. The Board pays Aberdeenshire Council for the rental of their offices within Woodhill House under the terms of an operating lease. The amount paid under these terms in 2023/24 was £0.0125m (£0.125m in 2022/23). The future minimum lease payments due under non-cancellable leases in future years are: 2022/23 2023/24 £000 £000 Not later than one year 125 125 Later than one year and not later than five years 375 250 More than five years - - 500 375 Note 22 Related Parties The Board is required to disclose material transactions with related parties - bodies or individuals that have the potential to control or influence the Board or to be controlled or influenced by the Board. Disclosure of these transactions allows readers to assess the extent to which the Board 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 Board. Constituent Authorities The constituent authorities have the potential to control or influence the Board as they provide the majority of the Board's funding. Details are shown in Note 20. The Board also made payments to the constituent authorities in the normal course of business. The amounts are detailed below Page 113
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49 Note 22 (continued) Members Members of the Board have direct control over the Board's financial and operating policies. The total of members' allowances paid is shown in the Remuneration Report. There were no other material transactions with members other than the allowances shown in the Remuneration Report. Note 23 Defined Benefit Pension Scheme Participation in Pension Scheme As part of the terms and conditions of employment of its officers, the Board makes contributions towards the cost of post-employment benefits. Although these benefits will not actually be payable until the employees retire, the Board has a commitment to make the payments for those benefits and must disclose them at the time that employees earn their future entitlement. The Board participates in the North East Scotland Pension Fund (NESPF), a Local Government Pension Scheme, which is administered by Aberdeen City Council. Up until 31 March 2015 pension benefits accrued are based on final salary. This means that pension benefits are based on the final year's pay and the number of years that person has been a member of the scheme. Benefits earned from 1 April 2015 are based on career average salary. The Scheme is a funded defined benefit scheme, meaning that the Board and employees pay contributions into a fund, calculated at a level intended to balance the pension liabilities with investment assets over a period of time. There are also arrangements in place for the award of discretionary post-retirement benefits upon early retirement. This is an unfunded defined benefit arrangement under which liabilities are recognised when awards are made. However, there are no investment assets built up to meet these pension liabilities and cash has to be generated to meet actual pension payments as they eventually fall due. 2022/23 2023/24 £000 £000 Aberdeen City Council 75 61 Aberdeenshire Council 258 192 Moray Council 104 115 Aberdeen City Council 108 173 Aberdeenshire Council 126 207 Moray Council 135 160 The amounts owed to the constituent authorities for requisitions and normal business activities at 31 March were: Page 114
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50 Note 23 (continued) The North East Scotland Pension Fund is operated under the regulatory framework for the Local Government Pension Scheme and the governance of the scheme is the responsibility of the Pensions Committee. The Committee is comprised of nine elected members of Aberdeen City Council. Policy is determined in accordance with the Pensions Fund Regulations. Following the introduction of The Local Government Pension Scheme (Governance) (Scotland) Regulations 2015, the Pension Fund took the opportunity to review its governance arrangements. To comply with these regulations, the Pension Fund implemented a Pension Board with representation from Unions and Employers from the 1 April 2015. With the introduction of the Pension Board, the Joint Investment Advisory Committee was disbanded. The principal risks to the scheme are the longevity assumptions, statutory changes to the scheme, changes to inflation, bond yields and the performance of the investments held by the scheme. These are mitigated to a certain extent by the statutory requirements to charge the General Fund the amounts required by statute as described in the accounting policy note. Transactions relating to Post-employment Benefits In relation to the North East Scotland Pension Fund, the Board recognises the cost of retirement benefits in the reported cost of services when they are earned by employees, rather than when the benefits are eventually paid as pensions. However, the charge required to be made against requisitions is based on the cash payable in the year, so the real cost of post- employment/retirement benefits is reversed out in the Movement in Reserves Statement. The following transactions have been made in the Comprehensive Income and Expenditure Statement and Movement in Reserves Statement during the year: Page 115
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51 Note 23 (continued) COMPREHENSIVE INCOME AND EXPENDITURE STATEMENT 2022/23 2023/24 £000 £000 Cost of Services: Past Service Cost 0 0 Current Service Cost and administration expenses 906 464 Financing and Investment Income and Expenditure: Net Interest Expense 6 (6) Total Post Employment Benefit Charged to the Surplus or Deficit on the Provision of Services 912 458 Other Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement. Remeasurement of the Net Defined Benefit Liability comprising: Expected return on pension fund assets 2,955 (412) Actuarial (gain)/loss on financial assumptions (14,114) 665 Effect of Asset Ceiling 10,376 140- Total Post Employment Benefit Charged to the Comprehensive Income and Expenditure Statement. (783) 113 MOVEMENT IN RESERVES STATEMENT Reversal of net charges made to the Surplus or Deficit for the Provision of Services for post employment benefits in accordance with the Code 912 458 Actual amount charged against requisitions for pensions in the year 502 537 Page 116
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52 Note 23 (continued) Pensions Assets and Liabilities Recognised in the Balance Sheet The change in the net pensions asset is analysed into the following components: Current Service Cost: The increase in liabilities as a result of years of service earned this year. Net Interest on the Net Defined Benefit Liability: The change during the year in the net defined benefit liability that arises from the passage of time – charged to the Financing and Investment Income and Expenditure line of the Comprehensive Income and Expenditure Statement. It is the difference between the interest (increase) in the value of the liabilities as the benefits are one year closer to being paid and the interest on pension assets based on assets held at the start of the year. The calculation is based on the discount rate in force at the beginning of the year. Remeasurements: This comprises the Return on Plan Assets (excluding amounts included in the Net Interest on the Net Defined Benefit Liability) and Actuarial Gains and Losses which are changes in the net pensions liability that arise because events have not coincided with assumptions made at the last actuarial valuation or because the actuaries have updated their assumptions – charged to the Pensions Reserve as Other Comprehensive Income and Expenditure. Contributions Paid to the Pension Fund: Cash paid as employer’s contributions to the pension fund in settlement of liabilities; not accounted for as an expense. The amount included in the Balance Sheet arising from the Board’s obligation in respect of its defined benefit plan is as follows: 31 March 2023 31 March 2024 £000 £000 Present value of the funded defined benefit obligation (28,035) (29,337) Present value of the unfunded defined benefit obligation (130) (164) Total present value of the defined benefit obligation (28,165) (29,501) Fair value of plan assets 38,411 40,081 IFRIC 14 Asset Ceiling Adjustment (10,376) (10,744) Net liability arising from defined benefit obligation (130) (164) The Board has applied the asset ceiling test as prescribed by IFRIC 14 which limits the measurement of the defined benefit asset to the ‘present value of economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan.’ The pension asset can be recognised as the lower of the net pension asset or the present value of any economic benefits available. The Board’s actuaries undertook this assessment and the asset value in the accounts has reduced as the present value of the benefits available were lower than the pension asset. The net liability arising from the unfunded defined benefit obligation remains as there is no right to offset this. Page 117
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53 Note 23 (continued) The reconciliation of the Board’s share of the present value of the North East Scotland Pension Fund’s defined benefit liability is as follows: 2023 2024 £000 £000 1 April (41,103) (28,165) Current Service Cost (896) (453) Interest on pension liabilities (1,138) (1,353) Remeasurements: Experience loss (2,255) (1,016) Gain on financial assumptions 15,496 0 Gain on demographic assumptions 873 351 Contributions by scheme participants (166) (174) Benefits Paid 1,024 1,309 Past Service Cost 0 0 31 March (28,165) (29,501) The reconciliation of the movements in the Board’s share of the fair value of the North East Pension Fund’s assets is as follows: 2023 2024 £000 £000 1 April 40,600 38,411 Interest on plan assets 1,132 1,867 Remeasurements (assets) (2,955) 412 Administration expenses (10) (11) Employer Contributions 502 537 Contributions by scheme participants 166 174 Benefits Paid (1,024) (1,309) 31 March 38,411 40,081 Page 118
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54 Note 23 (continued) The Board’s share of the Pension Fund’s assets is: Quoted Prices in Active Markets Prices not Quoted in Active Markets Totals Quoted Prices in Active Markets Prices not Quoted in Active Markets Totals £000 £000 £000 £000 £000 £000 U.K. Equities 9,426 - 9,426 5,908 - 5,908 Overseas Equities 11,981 - 11,981 17,280 - 17,280 U.K Government Bonds 2,466 - 2,466 2,236 - 2,236 Other Government Bonds - - - - - - Other U.K. Bonds - - - - - - Other non U.K. Bonds - - - - - - Property - 2,512 2,512 - 2,483 2,483 Private Equity - 2,685 2,685 - 2,763 2,763 Private Debt - 1,091 1,091 - 863 863 Private Equity Infrastructure - 2,036 2,036 - 3,022 3,022 Infrastructure Pooled fund 818 - 818 621 - 621 Private Equity Real Estate - 672 672 - 576 576 Multi Asset Credit - 3,230 3,230 - 3,244 3,244 Diversified Growth Funds - - - - - - Cash Instruments - 1,494 1,494 - 1,085 1,085 Total Assets 24,691 13,720 38,411 26,045 14,036 40,081 31 March 2023 31 March 2024 Basis for Estimating Assets and Liabilities The most recent valuation was carried out as at 31 March 2023 and has been updated by Mercer Limited, independent actuaries to the North East Scotland Pension Fund, in order to assess the liabilities of the Fund as at 31 March 2024. Liabilities have been assessed on an actuarial basis using the projected unit credit method, an estimate of the pensions that will be payable in future years dependent on assumptions about mortality rates, salary levels etc. The principal assumptions used by the actuary have been: Page 119
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55 Note 23 (continued) 31 March 2023 31 March 2024 Financial assumptions: Discount rate 4.90% 4.90% Rate of increase in salaries 4.20% 4.20% Rate of increase in pensions 2.80% 2.80% Rate of CPI inflation 2.70% 2.70% Mortality assumptions: Longevity at 65 for current pensioners: Men 21 20.7 Women 23.4 23.0 Longevity at 65 for future pensioners: Men 22.4 22.0 Women 25.4 24.8 Sensitivity Analysis The estimation of the defined benefit obligations is sensitive to the actuarial assumptions set out in the table above. The sensitivity analyses below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, and assume for each change that the assumption analysed changes while all the other assumptions remain constant. The assumption in longevity, for example, assumes that life expectancy increases or decreases for men and women. In practice, this is unlikely to occur, and changes of the assumptions may be interrelated. The estimations in the sensitivity analysis have followed the accounting policies for the scheme, i.e. on an actuarial basis using the projected unit credit method. The methods and types of assumptions used in preparing the sensitivity analysis below did not change from those used in the previous period. The effects of a 0.1% increase/decrease in the rate for discounting scheme liabilities, the rate of inflation, and the rate of increase in salaries, a 1 year increase/decrease in life expectancy, and a +/-1% change in the 2023/24 investment returns, are shown in the table below: Page 120
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56 Note 23 (continued) Sensitivity Analysis as at 31 March 2024 Central Sensitivity 1 Sensitivity 2 Sensitivity 3 Sensitivity 4 Sensitivity 5 + 0.1% p.a. discount rate + 0.1% p.a. inflation + 0.1% p.a. pay growth 1 year increase in life expectancy +1% change in 2023/24 investment returns -1% change in 2023/24 investment returns £000s £000s £000s £000s £000s £000s £000s Liabilities 29,501 27,658 30,468 29,685 30,219 29,501 29,501 Assets (40,081) (40,081) (40,081) (40,081) (40,081) (40,081) (39,683) Fund Surplus (10,580) (12,423) (9,613) (10,396) (9,862) (10,580) (10,182) Page 121
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57 Note 23 (continued) Funding Strategy Statement (FSS) The FSS sets out how the administering authority balances the potentially conflicting aims of affordability of contributions, transparency of process, stability of employers’ contributions, and prudence in the funding basis. The Pension Committee’s long-term funding objective is to achieve and maintain assets equal to 100% of projected accrued liabilities, assessed on an ongoing basis. The current actuarial valuation of the Fund is effective as at 31 March 2020 and the results indicate that overall the assets represented 107% of projected accrued liabilities at the valuation date. Investments that would most closely match the pension liabilities would be gilts, predominantly index- linked, reflecting the nature of the Fund’s liabilities. However, the Fund invests in other assets, in the expectation that these will provide higher returns albeit without any guarantee that higher returns will be achieved over any particular year. The benefit of higher investment return is that, over the long term, a higher level of funding should achieve lower employer contribution rates. However the additional investment returns from growth assets come with a price: greater volatility relative to the liabilities thus introducing risk. There is a trade-off between the benefits of additional investment return from greater exposure to growth assets and the greater predictability from having greater exposure to liability matching assets. The asset proportions of the Fund at 31 March 2024, with March 2023 in brackets were: equities, including alternatives 85.5% (83.2%), bonds 5.6% (6.4%), property 6.2 % (6.5%) and cash 2.7 % (3.9%). This is based on the Board’s proportion of assets held as supplied by the actuary, rather than the proportions held by the fund as a whole. Impact on the Board’s Cash Flows While the Fund’s main objective is to ensure solvency of the NESPF they also aim to keep employers' contributions at as constant a rate as possible. Following the 2020 valuation the Pensions Committee has agreed a strategy with the scheme's actuary to achieve a funding level of 100% over an average surplus spread period of 24 years and have maintained an employer contribution rate requirement of 19.3% for local authorities across the scheme. During the valuation process employer rates are set for a period of three years with the next triennial valuation due as at 31 March 2023 to determine a funding level and set the rates for 2024/25 onwards. The projected employer contributions expected to be made to the Local Government Pension Scheme in the year to 31 March 2025 is £0.512m. The weighted average duration of the liabilities for scheme members at the 31 March 2024 valuation is 14 years. Page 122
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58 GLOSSARY OF TERMS EXPENDITURE Employee Benefit Expenses Includes direct and indirect employee expenses. Direct expenses include salaries and overtime, employer’s national insurance and superannuation contributions. Indirect employee expenses include relocation cost, interview expenses, training and staff advertising. Other Service Expenses Includes rent, rates, repairs and maintenance and premises-related expenditure at the area offices in Banff, Elgin and Woodhill House headquarters. all costs associated with the hire or use of transport, including staff travel allowances and public transport and the cost of purchasing equipment, furniture and materials used in the operation or administration of the service, including printing and stationery, canvass expenses and valuation appeal panel costs. Support Services This is a charge from Moray Council for services that support the Board in its provision of services to the public. These include Legal Services, Financial Services, Internal Audit and Human Resources. Depreciation Depreciation is a charge to the Comprehensive Income and Expenditure Statement, reflecting the decline in value of assets as a result of their usage or ageing. Impairment Impairment is a charge to the Comprehensive Income and Expenditure Statement, reflecting that the recoverable amount of an asset is less than its carrying amount. INCOME Requisitions Funding received from the constituent authorities for which the Board provides a service. Page 123
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59 GLOSSARY OF TERMS (continued) OTHER TERMS CIPFA The Chartered Institute of Public Finance and Accountancy LASAAC Local Authority (Scotland) Accounts Advisory Committee IFRS International Financial Reporting Standard The Code The Code of Practice on Local Authority Accounting in the United Kingdom SeRCOP Service Reporting Code of Practice Fair Value IFRS 13 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (i.e. an exit price). When measuring fair value, an entity uses the assumptions that market participants would use when pricing the asset or liability under current market conditions, including assumptions about risk. Current Value For operational land and buildings, current value is the amount that would be paid for the asset in its existing use. Economic Cost The total cost of performing an activity or following a decision or course of action. Page 124
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60 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF GRAMPIAN VALUATION JOINT BOARD AND THE ACCOUNTS COMMISSION REPORTING ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion on financial statements We certify that we have audited the financial statements in the annual accounts of Grampian Valuation Joint Board for the year ended 31 March 2024 under Part VII of the Local Government (Scotland) Act 1973. The financial statements comprise the Comprehensive Income and Expenditure Statement, Movement in Reserves Statement, Balance Sheet, Cash Flow Statement, and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards, as interpreted and adapted by the Code of Practice on Local Authority Accounting in the United Kingdom 2023/24 (the 2023/24 Code). In our opinion the accompanying financial statements: give a true and fair view of the state of affairs of the body as at 31 March 2024 and of its income and expenditure for the year then ended; have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2023/24 Code; and have been prepared in accordance with the requirements of the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003. Basis for opinion We conducted our audit in accordance with applicable law and International Standards on Auditing (UK) (ISAs (UK)), as required by the Code of Audit Practice approved by the Accounts Commission for Scotland. Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of our report. We were appointed by the Accounts Commission on 28 May 2022. Our period of appointment is five years, covering 2022/23 to 2026/27. We are independent of the body in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Non- audit services prohibited by the Ethical Standard were not provided to the body. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern basis of accounting We have concluded that the use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Page 125
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61 the body’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from when the financial statements are authorised for issue. These conclusions are not intended to, nor do they, provide assurance on the body’s current or future financial sustainability. However, we report on the body’s arrangements for financial sustainability in a separate Annual Audit Report available from the Audit Scotland website. Risks of material misstatement We report in our Annual Audit Report the most significant assessed risks of material misstatement that we identified and our judgements thereon. Responsibilities of the Treasurer and Grampian Valuation Joint Board for the financial statements As explained more fully in the Statement of Responsibilities for the Annual Accounts, the Treasurer is responsible for the preparation of financial statements that give a true and fair view in accordance with the financial reporting framework, and for such internal control as the Treasurer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Treasurer is responsible for assessing the body’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless there is an intention to discontinue the body’s operations. Grampian Valuation Joint Board is responsible for overseeing the financial reporting process. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: using our understanding of the local government sector to identify that the Local Government (Scotland) Act 1973, The Local Authority Accounts (Scotland) Regulations 2014, and the Local Government in Scotland Act 2003 are significant in the context of the body; inquiring of the Treasurer as to other laws or regulations that may be expected to have a fundamental effect on the operations of the body; Page 126
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62 inquiring of the Treasurer concerning the body’s policies and procedures regarding compliance with the applicable legal and regulatory framework; discussions among our audit team on the susceptibility of the financial statements to material misstatement, including how fraud might occur; and considering whether the audit team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is affected by the inherent difficulty in detecting irregularities, the effectiveness of the body’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud are inherently more difficult to detect than irregularities that result from error as fraud may involve collusion, intentional omissions, misrepresentations, or the override of internal control. The capability of the audit to detect fraud and other irregularities depends on factors such as the skilfulness of the perpetrator, the frequency and extent of manipulation, the degree of collusion involved, the relative size of individual amounts manipulated, and the seniority of those individuals involved. A further description of the auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. REPORTING ON OTHER REQUIREMENTS Opinion prescribed by the Accounts Commission on the audited parts of the Remuneration Report We have audited the parts of the Remuneration Report described as audited. In our opinion, the audited parts of the Remuneration Report have been properly prepared in accordance with The Local Authority Accounts (Scotland) Regulations 2014. Other information The Treasurer is responsible for the other information in the annual accounts. The other information comprises the Management Commentary, Annual Governance Statement, Statement of Responsibilities and the unaudited part of the Remuneration Report. Our responsibility is to read all the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except on the Management Commentary and Annual Governance Statement to the extent explicitly stated in the following opinions prescribed by the Accounts Commission. Page 127
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63 Opinions prescribed by the Accounts Commission on the Management Commentary and Annual Governance Statement In our opinion, based on the work undertaken in the course of the audit: the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with statutory guidance issued under the Local Government in Scotland Act 2003; and the information given in the Annual Governance Statement for the financial year for which the financial statements are prepared is consistent with the financial statements and that report has been prepared in accordance with the Delivering Good Governance in Local Government: Framework (2016). Matters on which we are required to report by exception We are required by the Accounts Commission to report to you if, in our opinion: adequate accounting records have not been kept; or the financial statements and the audited part of the Remuneration Report are not in agreement with the accounting records; or we have not received all the information and explanations we require for our audit. We have nothing to report in respect of these matters. Conclusions on wider scope responsibilities In addition to our responsibilities for the annual accounts, our conclusions on the wider scope responsibilities specified in the Code of Audit Practice, including those in respect of Best Value, are set out in our Annual Audit Report. Use of our report This report is made solely to the parties to whom it is addressed in accordance with Part VII of the Local Government (Scotland) Act 1973 and for no other purpose. In accordance with paragraph 108 of the Code of Audit Practice, we do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties. Signature: ………………………… Angela Pieri, (for and on behalf of Grant Thornton UK LLP), 110 Queen Street, Glasgow, G1 3BX, Date: …………………………….. Page 128
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Grant Thornton UK LLP
110 Queen Street
Glasgow
G1 3BX
Dear Grant Thornton UK LLP
Grampian Valuation Joint Board
Financial Statements for the year ended 31 March 2024
This representation letter is provided in connection with the audit of the financial statements of Grampian
Valuation Joint Board for the year ended 31 March 2024 for the purpose of expressing an opinion as to
whether financial statements give a true and fair view in accordance with International Financial Reporting
Standards and the CIPFA/LASAAC Code of Practice on Local Authority Accounting in the United Kingdom
2023/24 and applicable law.
We confirm that to the best of our knowledge and belief having made such inquiries as we considered
necessary for the purpose of appropriately informing ourselves:
Financial Statements
i. We have fulfilled our responsibilities for the preparation of the financial statements in accordance
with International Financial Reporting Standards and the CIPFA/LASAAC Code of Practice on Local
Authority Accounting in the United Kingdom 2023/24 ("the Code"); in particular the financial
statements are fairly presented in accordance therewith.
ii. We have complied with the requirements of all statutory directions affecting the body and these
matters have been appropriately reflected and disclosed in the financial statements.
iii. The body has complied with all aspects of contractual agreements that could have a material effect
on the financial statements in the event of non-compliance. There has been no non-compliance with
requirements of any regulatory authorities that could have a material effect on the financial
statements in the event of non-compliance.
iv. We acknowledge our responsibility for the design, implementation and maintenance of internal
control to prevent and detect fraud.
v. Significant assumptions used by us in making accounting estimates, including those measured at
fair value, are reasonable. We are satisfied that the material judgements used in the preparation of
the financial statements are soundly based, in accordance with the Code and adequately disclosed
in the financial statements. We understand our responsibilities includes identifying and considering
alternative, methods, assumptions or source data that would be equally valid under the financial
reporting framework, and why these alternatives were rejected in favour of the estimate used. We
are satisfied that the methods, the data and the significant assumptions used by us in making
accounting estimates and their related disclosures are appropriate to achieve recognition,
measurement or disclosure that is reasonable in accordance with the Code and adequately
disclosed in the financial statements.
Item 6.
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vi. We confirm that we are satisfied that the actuarial assumptions underlying the valuation of pension scheme assets and liabilities for IAS19 Employee Benefits disclosures are consistent with our knowledge. We confirm that all settlements and curtailments have been identified and properly accounted for. We also confirm that all significant post-employment benefits have been identified and properly accounted for. vii. Except as disclosed in the financial statements: a. there are no unrecorded liabilities, actual or contingent b. none of the assets has been assigned, pledged or mortgaged c. there are no material prior year charges or credits, nor exceptional or non-recurring items requiring separate disclosure. viii. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of International Financial Reporting Standards and the Code. ix. All events subsequent to the date of the financial statements and for which International Financial Reporting Standards and the Code require adjustment or disclosure have been adjusted or disclosed. x. We have considered where relevant any adjusted misstatements, and misclassification and disclosures changes schedules included in your Auditor’s Annual Report. The financial statements have been amended for these misstatements, misclassifications and disclosure changes and are free of material misstatements, including omissions. xi. Actual or possible litigation and claims have been accounted for and disclosed in accordance with the requirements of International Financial Reporting Standards. xii. We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements. xiii. We have updated our going concern assessment. We continue to believe that the financial statements should be prepared on a going concern basis and have not identified any material uncertainties related to going concern on the grounds that : a. the nature of the body means that, notwithstanding any intention to cease body in their current form, it will continue to be appropriate to adopt the going concern basis of accounting because, in such an event, services it performs can be expected to continue to be delivered by related public authorities and preparing the financial statements on a going concern basis will still provide a faithful representation of the items in the financial statements b. the financial reporting framework permits the entry to prepare its financial statements on the basis of the presumption set out under a) above; and c. the system of internal control has not identified any events or conditions relevant to going concern. We believe that no further disclosures relating to the body’s ability to continue as a going concern need to be made in the financial statements xiv. The body has complied with all aspects of ring-fenced grants that could have a material effect on the financial statements in the event of non-compliance. Information Provided xv. We have provided you with: a. access to all information of which we are aware that is relevant to the preparation of the financial statements such as records, documentation and other matters; b. additional information that you have requested from us for the purpose of your audit; and c. access to persons within the body via remote arrangements, from whom you determined it necessary to obtain audit evidence. xvi. We have communicated to you all deficiencies in internal control of which management is aware. Page 130
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xvii. All transactions have been recorded in the accounting records and are reflected in the financial statements. xviii. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud. xix. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the body, and involves: a. management; b. employees who have significant roles in internal control; or c. others where the fraud could have a material effect on the financial statements. xx. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud, affecting the financial statements communicated by employees, former employees, analysts, regulators or others. xxi. We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing financial statements. xxii. We have disclosed to you the identity of the related parties and all the related party relationships and transactions of which we are aware. xxiii. We have disclosed to you all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements. Annual Governance Statement xxiv. We are satisfied that the Annual Governance Statement (AGS) fairly reflects the body's risk assurance and governance framework and we confirm that we are not aware of any significant risks that are not disclosed within the AGS. Management Commentary xxv. The disclosures within the Management commentary fairly reflect our understanding of the financial and operating performance over the period covered by the financial statements. Approval The approval of this letter of representation was minuted by the Grampian Valuation Joint Board at its meeting on 31 January 2025. Yours faithfully Signature ………………………………………………. Name… Lorraine Paisey Position… Treasurer Date………………………………………………………… Signed on behalf of Grampian Valuation Joint Board Page 131
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 31 JANUARY 2025 SUBJECT: REVENUE BUDGET MONITORING STATEMENT FOR THE PERIOD 1 APRIL TO 31 DECEMBER 2024 BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 To consider the Revenue Budget Monitoring Statement for the period 1 April to 31 December 2024. 1.2 To consider the Estimated Outturn position for the year to 2024/25. 2 RECOMMENDATION 2.1 It is recommended that the Board considers and notes: (i) The Revenue Monitoring Statement for the period 1 April 2024 to 31 December 2024; and (ii) The estimated outturn forecast for the year 2024/25. 3. CURRENT POSITION 3.1 At its meeting on 26 January 2024, the Board agreed the Revenue Budget for 2024/25 (paragraph 5 of the Minute refers) be set at £5,178,000 and approved the requisitions to constituent authorities of £5,022,000, with £156,000 being funded from the earmarked NDR reserve. 3.2 APPENDIX 1 shows the monitoring position to 31 December 2024 against the budget. It gives details of the 2024/25 Revenue Budget, actual expenditure to date and the variance of expenditure against budget to date. It also shows the estimated outturn and the estimated variance for the year. 3.3 Total net expenditure at 31 December 2024 is £3,069,000 which is an underspend of £754,000 against budget to date (£3,823,000). Item 7. Page 133
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3.4 There are currently 11 staffing vacancies and recruitment is actively being carried out. Year to Date Variances 3.5 There is a £360,000 underspend against budget to date within employee costs. The variance arises from vacant posts in the establishment, including NDR posts not yet occupied, partly offset by the cost of the 2024/25 pay award being higher than budgeted. The budget for 2024/25 allowed for a 3% pay award. At a meeting on 27 September 2024 Council Leaders agreed that the SJC pay offer which had been accepted by GMB and Unite members, should be implemented to ensure that employees received their pay uplift and backpay without further delay. The pay award was processed in October’s pay-run, backdated to 1 April 2024. A £0.67 uplift in the hourly rate, or 3.6% uplift (whichever is greater) was applied to each spinal column point. The increase above the budgeted figure of 3% has been absorbed within the current staffing budget. 3.6 There is a small underspend on property costs of £5,000. 3.7 Transport Costs have a slight overspend of £1,000. 3.8 Budgets within Supplies and Services are under by a total of £22,000 to date, with the main variances in Reference Books, Specialist Services, Printing and Stationary, Postages and IT Maintenance & Support; overspends of £8,000, £10,000 and underspends of £8,000, £9,000 and £31,000 respectively. This is not causing concern at this stage of the year. 3.9 Support charges are processed at 31 March as part of the year end closedown. 3.10 There are no other significant variances to report at this stage in the year. Government Grant funding 3.11 Funding is being given to local authorities and Valuation Joint Boards for the introduction of the Electoral Integrity Programme (EIP), in order to meet the requirements of the Elections Act 2022. New measures introduced include the requirement to show ID at polling stations, improving the accessibility of elections for people with disabilities, and bringing in changes to postal and proxy voting. Government Grant income of £235,000 was received from the Department of Levelling Up, Housing and Communities in May for the Electoral Integrity Programme New Burdens funding. A further £141,000 for EIP was received at the end of June 2024 to reflect the impact of the Elections Act at the UK Parliamentary General Election in July 2024. 4. ESTIMATED OUTTURN 2024/25 4.1 The revenue budget is currently expected to be underspent by the year end and at this three-quarter way point in the year the estimated variance is an underspend of £694,000. Page 134
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4.2 A substantial variance is due to ongoing vacancies. The estimated outturn figures are based on the current establishment at the time of preparing this report rather than forecast filling any of the vacant posts, due to recruitment difficulties already mentioned. Managing the service with the current level of vacancies means that overtime may be required, and a best estimate has been included in the estimated outturn figure. 4.3 The agreed pay award for 2024/25, as referred to in Paragraph 3.5 has been included in the estimated outturn. 4.4 Property costs are estimated to be over budget by £43,000 this year. The intended move to Woodhill House did not materialise, which has increased the projected Property Rental costs by £41,000. 4.5 Supplies and services are forecast to be over budget by £71,000 in total, with IT Maintenance and Support accounting for £54,000 of the projected overspend. This is mainly due to increased consultancy costs (£13,000 projected overspend), additional hardware maintenance (£15,000 projected overspend), IT Software (£12,000 projected overspend) and increased costs of IT Outsourced Services (£26,000 projected overspend) which includes network, website and Aberdeenshire services costs. Additional items have been purchased from the grant funding referred to in Paragraph 4.9 and 4.10. There have been problems encountered with the Oracle upgrade which has also contributed to these over-spends. There is a projected underspend of £9,000 for IT Hardware. Reference books are forecast to be over budget by £10,000, this includes Armour for valuation for rating and the BCIS subscriptions along with Registers of Scotland and Westlaw costs. Forecast variances in supplies and services have been identified in the Appendix. 4.6 Income from sales of electoral registers occur in the second half of the year, when the register has been published. The outturn has been estimated at budget level. 4.7 Of the £509,000 NDR Reform budget this year, £156,000 was budgeted to be funded from the earmarked reserve. Based on the estimated outturn figures, funding from the reserve will not be needed this year, and the projected underspend (if realised) will be transferred to the earmarked reserve. 4.8 It is not expected that use of the General Fund reserve will be needed in 2024/25. New Burdens Funding 4.9 In 2022/23, all Electoral Registration Officers and Returning Officers were advised by letter of New Burdens funding being provided for the introduction of the Electoral Integrity Programme (EIP) from May 2023 across the UK. The EIP falls under the new Elections Act 2022 which contains measures such as introducing the requirement to show ID at polling stations, improving the accessibility of elections to make it easier for people with disabilities to vote, and bringing in changes to postal and proxy voting. Page 135
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4.10 The funding will provide local authorities and Valuation Joint Boards the resources to deliver the changes required to cover additional staff, training and equipment costs. £13,000 was received in 2022/23, £14,000 in 2023/24 and a further £375,986 in 2024/25 specifically for this. Funds have been used to cover the scanner replacement, purchase of tablets and additional training, although it is likely a considerable amount of funding will not be spent during 2024/25 and will be carried forward into 2025/26 to meet increased costs forecast for that year. 5. CONCLUSION 5.1 The total net expenditure as at 31 December 2024 is £3,069,000 giving an underspend against budget to date of £754,000. 5.2 The estimated outturn is an underspend of £694,000. 5.3 The Assessor and his Senior Management Team closely monitor and control budgets in order to keep within agreed levels and generate savings wherever possible throughout the year. Author of Report: Audrey Boyd, Accountant Background papers: Held within Accountancy Section, Moray Council Date: 31 January 2024 Page 136
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APPENDIX 1 GRAMPIAN VALUATION JOINT BOARD REVENUE MONITORING STATEMENT FOR PERIOD 1 APRIL TO 31 DECEMBER 2024 Line 2024-25 2024-25 Actual Variance No. Total Budget Budget to Date 31-Dec-24 31-Dec-24 £'000 £'000 £'000 £'000 Employee Costs 1 Salaries 3,181 2,385 2,132 253 2 National Insurance 338 253 222 31 3 Superannuation 320 240 211 29 4 Additional Pensions 25 19 19 - 5 Other Employee Costs 7 5 2 3 6 Training 71 53 9 44 Total Employee Costs 3,942 2,955 2,595 360 Property Costs 7 Accommodation Charges 309 242 255 (13) 8 Repairs and Maintenance 27 18 3 15 9 Energy Costs 15 11 9 2 10 Cleaning 5 4 3 1 Total Property Costs 356 275 270 5 Transport Costs Item 7. Page 137
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11 Staff Travel and Subsistence 50 38 39 (1) Total Transport Costs 50 38 39 (1) Supplies & Services 12 Equipment, Furniture & Materials 9 7 4 3 13 PPE 1 1 - 1 14 Reference Books 13 11 19 (8) 15 Printing & Stationery 18 12 4 8 16 Postages & ER Printing 434 344 335 9 17 Telephones 10 7 11 (4) 18 Advertising 1 1 - 1 19 IT Maintenance & Support 220 165 134 31 20 Valuation Appeals 30 1 4 (3) 21 Members' Allowances 4 - - - 22 Fees, Charges & Subs 8 1 4 (3) 23 Specialist Services 30 13 23 (10) 24 Conference Fees & Subsistence 2 1 2 (1) 25 Other Supplies & Services 4 3 5 (2) Total Supplies & Services 784 567 545 22 Support Services 25 Lead Authority Charge 65 - - - Total Support Services 65 - - - Gross Expenditure 5,197 3,835 3,449 386 Income Page 138
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26 Sales and Other Income (15) (12) (4) (8) 27 Interest on Revenue balances (4) - - - 28 Government Grant Income - - (376) 376 Total Income (19) (12) (380) 368 29 Net Expenditure 5,178 3,823 3,069 754 Funded from Reserves 30 NDR Reform (156) - - - 31 Electoral Reform - - - - Total Funded from Reserves (156) - - - 32 Requisitions (5,022) (3,762) (3,762) - 33 (Surplus)/Deficit for Year - 61 (693) 754 GRAMPIAN VALUATION JOINT BOARD BUDGET FOR PERIOD 1 APRIL TO 31 DECEMBER 2024 Line 2024-25 Estimated Out- turn Estimated Variance No. Total Budget 2024-25 2024-25 £'000 £'000 £'000 Employee Costs 1 Salaries 3,181 2,850 331 Page 139
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2 National Insurance 338 303 35 3 Superannuation 320 287 33 4 Additional Pensions 25 25 - 5 Other Employee Costs 7 5 2 6 Training 71 24 47 Total Employee Costs 3,942 3,494 448 Property Costs 7 Accommodation Charges 309 351 (42) 8 Repairs and Maintenance 27 27 - 9 Energy Costs 15 15 - 10 Cleaning 5 6 (1) Total Property Costs 356 399 (43) Transport Costs 11 Staff Travel and Subsistence 50 66 (16) Total Transport Costs 50 66 (16) Supplies & Services 12 Equipment, Furniture & Materials 9 10 (1) 13 PPE 1 1 - 14 Reference Books 13 23 (10) 15 Printing & Stationery 18 18 - 16 Postages & ER Printing 434 434 - 17 Telephones 10 12 (2) 18 Advertising 1 1 - Page 140
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19 IT Maintenance & Support 220 274 (54) 20 Valuation Appeals 30 30 - 21 Members' Allowances 4 4 - 22 Fees, Charges & Subs 8 10 (2) 23 Specialist Services 30 30 - 24 Conference Fees & Subsistence 2 3 (1) 25 Other Supplies & Services 4 5 (1) Total Supplies & Services 784 855 (71) Support Services 25 Lead Authority Charge 65 65 - Total Support Services 65 65 - Gross Expenditure 5,197 4,879 318 Income 26 Sales and Other Income (15) (15) - 27 Interest on Revenue balances (4) (4) - 28 Government Grant Income - (376) 376 Total Income (19) (395) 376 29 Net Expenditure 5,178 4,484 694 Funded from Reserves 30 NDR Reform (156) (156) - 31 Electoral Reform - - - Page 141
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Total Funded from Reserves (156) (156) - 32 Requisitions (5,022) (5,022) - 33 (Surplus)/Deficit for Year - (694) 694 Page 142
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REPORT TO: GRAMPIAN VALUATION JOINT BOARD ON 31 JANUARY 2025 SUBJECT: FINANCIAL PLANNING FOR 2025/26 AND FUTURE YEARS BY: TREASURER TO THE BOARD 1. REASON FOR REPORT 1.1 To consider the budgets that will form the three year Revenue Budget from 2025/26 onwards, and to discuss the operational issues facing the Assessor & Electoral Registration Officer (ERO) in the medium to long term. 1.2 To approve the budget for 2025/26 and the requisitions to the constituent authorities for that year. 2. RECOMMENDATIONS 2.1 It is recommended that the Board considers and notes: (i) The indicative three year budget from 2026/27 onwards and that this will be further adjusted during the preparation of the Revenue Budget for 2026/27; (ii) Various scenarios which could impact on the revenue budget and the range of potential assumptions and risks; and (iii) Operational issues facing the service. 2.2 It is recommended that the Board approves: (i) The budget for 2025/26 set out in APPENDIX 1 to this report; and (ii) The requisitions to the constituent authorities set out in paragraph . 3. BACKGROUND 3.1 The main issues for the Assessor’s service to be addressed in setting the Item 8. Page 143
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budget are: • Financial uncertainty in key areas, particularly salaries and accommodation • Level of staff turnover/challenges in recruiting and retaining staff • Implementation of the requirements of the Elections Act 3.2 The Board approved the budget for 2024/25 at its meeting on 26 January 2024 and at that meeting noted an indicative budget for 2025/26 of £5,208,000. The draft budget before the Board for approval today is £5,699,000, an increase of £491,000 over the indicative budget. The main reason for the increase is an increase in postage budget of £347,000, primarily to cover the requirement of the Elections Act to write to all electors registered for postal votes every three years to remind them of the need to re- register if they so wish and then to write confirming their re-registration or to remind them of the need to so, as appropriate. There are around 100,000 electors registered for postal votes. This and other movements in the proposed budget are described in more detail in section 4 of this report. 3.3 Additional funding relating to NDR reform has been passed to Scottish local authorities through increased GAE as part of the General Revenue Grant. This funding is not ring fenced, however it is given in recognition of additional duties which will arise regarding valuation of properties. 4. CURRENT POSITION 4.1 The Revenue Monitoring report to 31 December 2024, in a separate report to this Board meeting, discusses the reasons for budget variances currently being reported. The estimated out-turn for the year is £4,484,000, an underspend of £694,000. The main reasons for the underspend are staffing vacancies and new burdens funding for the Election Act, with the underspend being carried forward in an ear-marked reserve. 4.2 APPENDIX 1 shows the budget for 2025/26 along with the current indicative budgets for 2026/27 and 2027/28. 5. BUDGET PROPOSALS 2025/26 Salaries and Recruitment 5.1 Salaries and employers’ on-costs make up approximately 75% of the net expenditure budget of the service. The service is reliant on recruiting and retaining professional staff in order to carry out its statutory functions. However, it has regularly been reported in the budget monitoring reports to the Board that the recruitment of staff is a difficulty for the service. 5.2 The base budget for 2025/26 includes a recruitment and vacancy adjustment in the budget, to incorporate an allowance for average level of vacancies and the interval that arises between filling posts. There is a risk associated with Page 144
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this, as the service aims to have a full staffing complement. In 2024/25 a 10% vacancy factor on all core posts was agreed as appropriate and was the equivalent of reducing the budget by £383,000. The current impact of vacancies is a 11% underspend on the budget for 2024/25, but this is forecast to reduce to 10% following recent successful recruitment. It is proposed to maintain the vacancy factor at 10% for 2025/26 and going forward and accordingly a vacancy factor of £406,000 is included in the base budget for 2025/26 in APPENDIX 1. 5.3 The pay award for 2024/25 has been built-in to the starting point for the 2025/26 staffing budget. A range of potential pay awards for the next three years are shown in the table below. These are based on the Treasury’s inflation target of 2% and average current rates of inflation over the past 6 months, which have ranged from 2.8% in June, through 3.1% in August, returning to 2.8% in October. Clearly there has been recent pressure from trade unions during pay negotiation processes, but inflationary increases have been assumed, with the attendant risk that this may be insufficient. To give an indication of the level of risk the impact of a 5% increase year on year is shown in the table at paragraph 5.4 below. 5.4 The year-on-year impact of the range of possible pay awards thus developed is shown in the table below. The figures used include employers on-costs (National Insurance and Superannuation) and take account of any salary increments due. It also shows the impact of the recently announced changes to Employer’s National Insurance Contributions, which takes effect from April 2025. The mid point assumption of 3% is included in the budget in APPENDIX 1. Scenario Impact on 2025/26 budget £000 Impact on 2026/27 budget £000 Impact on 2027/28 budget £000 2% pay award 102 90 88 3% pay award 153 135 132 5% pay award 255 225 220 Accommodation 5.5 When the budget for 2024/25 was set, a revised arranged for accommodation at Woodhill House was anticipated to be implemented and budgets were adjusted accordingly, with savings of £46,000 expected to accrue. The plans for Woodhill House involved Community Planning Partners and with the cessation of NHS capital projects the proposed reconfiguration is now not anticipated in the short to medium term. The budget has therefore been adjusted to reflect the current base cost and includes an inflationary uplift on Non Domestic Rates, water charges and insurance for 2025/26 and future years. 5.6 Moray Council has been actively reducing its corporate building footprint. Options to accommodate the Elgin-based Board staff in Council HQ have Page 145
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been explored but were unsuccessful, primarily due to lack of storage accommodation. Further options looking at accommodation in the Annexe to the HQ building are currently being explored but at this early stage no adjustment has been made to the base budget. 5.7 Given the volatility of utility costs in recent years an inflation uplift of 5% has been incorporated into the budget for gas and electricity each year going forward. Other Costs and Savings 5.8 Staff travel costs arise from staff travelling to site inspections. The proposed budget is unchanged from 2024/25 as the approved HMRC rate remains unchanged. 5.9 Stationery is anticipated to out-turn significantly under budget and a reduction of £8,000 is incorporated in the base budget for 2025/26 with no inflation uplift proposed going forward. 5.10 Due to absent voter write out and draft / valuation notices there is a £300,000 one-off increase in postage costs for 2025/26 anticipated. The costs in future years are expected to revert, with inflationary uplifts assumed year on year. It is proposed that these one-off costs, which arise from legislative requirements, are funded from the ear-marked reserves for NDR reform and the Election Act. 5.11 A reduction of £8,000 in the base budget for telephones is incorporated for 2025/26, as the majority of these costs are now included within the IT Maintenance and Support budget. 5.12 IT maintenance and support is provided through a service level agreement with Aberdeenshire Council. Due to the requirement to move to the Cloud infrastructure and with the majority of telephone costs now incorporated within the IT Maintenance and Support budget, an increase in costs of £30,000 is projected for 2025/26. No inflation uplift is proposed going forward. 5.13 Other budgets remain unchanged or have minor variances. NDR Reform 5.14 When the budget for 2024/25 was approved this was shown as a separate section of the budget. However, following discussion with the Assessor it has been agreed that this is now business as usual and the budget has been combined with the core budget for the purposes of presenting the financial options going forward. Reserves 5.15 It is not expected that the use of reserves will be required to balance spend in 2024/25 and general reserves at 31 March 2025 will remain at the maximum Page 146
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approved level of £239,000, with a return to the participating authorities expected. At its meeting on 3 March 2020 the Board approved that a minimum general reserve of 2.5% of estimated annual net expenditure would be maintained. Based on the proposed 2025/26 estimated net expenditure of £5,468,000, this equates to a minimum general reserve of £136,700. The Board therefore has flexibility to use up to £102,300 to cushion the impact of inflation on its budget for 2025/26. Given the uncertainty over pay awards for 2025/26 and the quantification of risk summarised in paragraph 5.24 below the Board may consider it prudent not to plan to use reserves in 2025/26 and no use of general reserves is assumed in the budget. Risks 5.16 The main financial risks identified in the report relate to staffing costs. They are are summarised here for ease of reference along with a general inflation risk for those areas held at flat cash budgets. Risk Para ref Potential impact £000s Insufficient allowance for pay award (3% to 5% including oncosts) 5.4 102 Above average vacancy factor (10% to 5%) 5.6 203 General inflation (3%) 5.3 7 Total 312 5.17 There are also risks arising from changing service requirements, which can affect the financial requirements of the service. 5.18 There is a risk of additional costs from unplanned elections. 5.19 The proposed base 2025/26 Revenue Budget is shown in APPENDIX 1. The proposed net expenditure budget is an increase of £292,000 from 2024/25. The total net increase in requisitions of £290,000 is summarised below. Budget movements 2025/26 £000s Increases Staffing budget – 3% pay award, increments 154 Office Equipment 1 Reference books 3 Postages and ER Printing 347 IT Maintenance and Support 34 Fees, Charges and Subs 1 Conference Fees and Subsistence 1 Decreases Page 147
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Budget movements 2025/26 £000s Training (37) Property Costs (35) Printing and Stationery (8) Telephones (8) Electoral Register Sales (2) Net increase in core budget 441 6 REQUISITIONS 6.1 The table below shows the requisition for each constituent authority which is required in order to fund the Board’s base revenue budget for 2025/26 as presented. 6.2 The constituent authorities have previously agreed that expenditure by the Board should be apportioned between authorities pro rata to the population figures for each council. The population figures used are the latest published by the National Records of Scotland in their Mid-Year Population Estimates, for mid-2021. 6.3 The proposed requisitions of £5,399,000 are an increase in the 2024/25 requisitions by £377,000 in total. It should be noted that it was agreed to fund £156,000 from NDR Reform reserves in 2024/25, resulting in a reduced percentage increase in 2024/25 and a lower base starting point for 2025/26. Population Requisition % Proposed Requisition 2025/26 £ Requisition 2024/25 £ Increase on 2024/25 Requisition % Aberdeen City 227,430 38.77 2,093,192 1,947,280 7.493 Aberdeenshire 262,690 44.79 2,418,212 2,249,178 7.493 Moray 96,410 16.44 887,596 825,542 7.493 Total 586,530 100.00 5,399,000 5,022,000 7.493 7 CONCLUSION 7.1 The budget for 2025/26 includes some savings and efficiencies where possible and has maintained the vacancy management factor. The Assessor will continue to look for potential efficiencies where possible. Page 148
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7.2 There has also been increases in the costs and there is significant uncertainty regarding staff costs going forward. 7.3 There is potential to use general reserves to cushion the impact of increased budgets, where these cannot be covered by savings. However, this should be balanced against the potential risks to the Board identified in this report. 7.4 Brought forward funding for the Election Act is proposed to be used to cover the additional costs of postage arising from renewal of postal vote registration. This reduces the impact on the constituent authorities and is appropriate use of the funding from UK Government. Author of Report: Lorraine Paisey, Treasurer Background papers: Held within Accountancy Section, Moray Council Ref: Page 149
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GRAMPIAN VALUATION JOINT BOARD BUDGET Appendix 1 FINANCIAL PLANNING Line 2024-2025 2025-2026 2026-2027 2027-2028 No. Budget Proposed Proposed Proposed Budget Budget Budget £'000 £'000 £'000 £'000 Employee Costs 1 Salaries 3,181 3,308 3,417 3,524 2 National Insurance 338 353 368 382 3 Superannuation 320 331 342 353 4 Additional Pensions 25 26 27 27 5 Other Employee Costs 7 7 7 8 6 Training 71 34 34 34 Total Employee Costs 3,942 4,059 4,195 4,328 Property Costs 7 Accommodation Charges 309 350 356 362 8 Repairs and Maintenance 27 20 20 20 9 Energy Costs 15 16 17 17 10 Cleaning 5 5 6 6 Total Property Costs 356 391 399 405 Transport Costs 11 Staff Travel and Subsistence 50 50 50 50 Total Transport Costs 50 50 50 50 Supplies & Services 12 Equipment, Furniture & Materials 9 10 10 10 13 Protective Clothing 1 1 1 1 14 Text & Reference Books 13 16 16 16 15 Printing & Stationery 18 10 10 10 16 Postages & ER Printing 434 781 460 470 17 Telephones 10 2 2 2 18 Advertising 1 1 1 1 19 IT Maintenance & Support 220 254 254 254 20 Valuation Appeals 30 30 30 30 21 Members Allowances 4 4 4 4 22 Fees, Charges & Subs 8 9 9 9 23 Specialist Services 30 30 30 30 24 Conference Fees and Subsistence 2 3 3 3 25 Other Supplies & Services 4 4 4 4 Total Supplies & Services 784 1,155 834 844 Support Services 26 Lead Authority Charge 65 65 65 65 Total Support Services 65 65 65 65 Item 8. Page 151
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Gross Expenditure 5,197 5,720 5,543 5,692 Income 27 Sales and Other Income (15) (17) (17) (17) 28 Government Grants - - - - 29 Interest on Revenue balances (4) (4) (4) (4) Total Income (19) (21) (21) (21) 30 Net Expenditure 5,178 5,699 5,522 5,671 Funded from Reserves - - - 31 NDR Reform (156) - - - 32 Electoral Reform (300) 33 Requisitions (5,022) (5,399) (5,522) (5,671) 34 NDR Requisitions - - - - 35 (Surplus)/Deficit for Year - - - - Page 152
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REPORT TO: Grampian Valuation Joint Board on 31 January 2025 SUBJECT: Governance BY: The Assessor & ERO 1. Reason for Report 1.1 To update the Board on the current position regarding the Board’s three offices. 2. Recommendation 2.1 It is recommended that the Board note the content of the report and allow the Assessor, in discussion with the Treasurer and the Clerk, to take any necessary decisions regarding the relocation of staff to alternative office accommodation in Elgin. 3. Background 3.1 The Board operates three offices, one in Aberdeen, one in Banff and one in Elgin. 4. Current position 4.1 Woodhill House, Aberdeen 4.2 The Board lease office space within Woodhill House from Aberdeenshire Council. The proposed relocation within Woodhill House, which was at the Council’s request, will not now take place. Aberdeenshire Council are reviewing their options following the collapse of discussions with NHS Grampian to relocate to the building. The Board’s lease runs until 31 March 2027. 4.3 Mitchell Burnett House, Banff 4.4 The Board own and occupy the office building named Mitchell Burnett House. This office was constructed for the Board and opened in 2008. The plant which provides heating and hot water to the building is in need of replacement as the equipment is now only capable of providing either hot water or heating to the building, not both. A quote to replace the plant has been received from the contractor who maintains and services the system. Given the indicative cost of the replacement a formal procurement exercise will be required. It is hoped this can be completed during the 2024/25 financial year. Item 9. Page 153
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4.5 234 High Street, Elgin 4.6 The Board has user and pool rights to the first-floor office in the building at 232-240 High Street. As part of Moray Council’s review of their existing property stock, at Moray Council’s request, we are currently discussing a potential relocation to office accommodation within their Annex building. Should this occur, the Board would be entitled to a proportion of the value of the whole building at 232-240 High Street. 5. Conclusion 5.1 The Board’s occupancy of office space in Aberdeen is relatively secure although the Board will need to consider its occupation of Woodhill House beyond 31 March 2027. 5.2 The heating plant in Banff is in need of replacement and requires to be carried out as a matter of relative urgency. 5.3 A decision will soon need to be taken regarding the Board’s occupation of the office space in Elgin. The Board are therefore asked to allow the Assessor, in discussion with the Treasurer and the Clerk, to take any necessary decisions regarding the relocation of staff to alternative office space which may be identified in discussion with Moray Council officials. It is anticipated that any relocation would result in net savings to the Board and provide a capital injection of funds. Author of Report: Mark Adam, Assessor & ERO Page 154
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REPORT TO: Grampian Valuation Joint Board on 31 January 2025 SUBJECT: Governance BY: The Assessor & ERO 1. Reason for Report 1.1 To update the Board on the review of the Board’s Anti Fraud and Corruption Policy and the Code of Conduct for Employees. 2. Recommendation 2.1 It is recommended that the Board note the content of the report and approve the changes to the Anti Fraud and Corruption Policy (Appendices 1 and 2) and the Code of Conduct for Employees (Appendices 3 and 4). 3. Background 3.1 The Board’s governance documents are subject to regular review to ensure that they remain up-to-date in terms of legislative requirements, good practice and operational relevance. 3.2 The Board’s Financial Regulations were updated in October 2024. 4. Current position 4.1 The Anti Fraud and Corruption Policy has been reviewed and updated to reflect the changes to the Board’s Financial Regulations. 4.2 The Code of Conduct has been reviewed and updated to reflect current reporting practices and updated guidance from Scottish Ministers. 4.3 The Treasurer and the Audit & Risk Manager have been consulted on the changes to the documents in the appendices. 5. Conclusion 5.1 The changes to the governance documents are relatively minor but reflect current guidance and reporting and working practices. 5.2 It is recommended that the Board approve the revised governance documents. Author of Report: Mark Adam, Assessor & ERO Item 10. Page 155
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Grampian Valuation Joint Board Anti Fraud and Corruption Policy Date of Review October 2024 Date of previous version 23 October 2019 Policy Approved Version Effective From Next Review Date Formatted: Left Formatted: Font: 12 pt Formatted Table Formatted: Font: 12 pt, Not Bold Formatted: Font: 12 pt Formatted: Left Formatted: Font: 12 pt, Not Bold Formatted: Font: 12 pt Formatted: Left Formatted: Font: 12 pt, Not Bold Formatted: Font: 12 pt Formatted: Font: 12 pt, Not Bold Formatted: Left Formatted: Font: 12 pt Formatted: Font: 12 pt, Not Bold Formatted: Left Item 10. Page 157
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Page 1 of 4 1 Statement of Intention 1.1 The Board aims to provide an excellent public service and needs to ensure propriety and accountability in all matters. The Board is determined to protect itself and the public from fraud and corruption and is committed to the rigorous maintenance of a strategy for the prevention and detection of fraud and corruption, which will provide a framework for: encouraging fraud deterrence and prevention raising awareness of fraud and corruption and promoting their detection performing investigations and facilitating recovery invoking disciplinary proceedings and referral to Police and/or Procurator Fiscal monitoring, publishing, and updating the policy and its related procedures and performance. 2 Definitions 2.1 Fraud The Board regards “fraud” as being any intentional distortion of financial statements and other records/information, and the misappropriation of assets. This may involve: falsification or alteration of accounting records, other documents, or information misappropriation of assets or theft suppression or omission of information from records or documents suppression or omission of the effects of transactions from records or documents recording transactions which have no substance wilful misrepresentation of information/transactions or of the Board’s state of affairs 2.2 Corruption The Board defines the term “corruption” as the offering, giving, soliciting, or accepting of any inducement or reward which would influence the actions taken by the body, its members or officers. Main areas of activity, which are susceptible to corruption may include: contracts asset purchase information gathering activities required for statutory purposes. 3 Elements of the Anti-Fraud and Corruption Strategy 3.1 The Board’s Anti-Fraud and Corruption Strategy is based on a series of comprehensive and related elements designed to frustrate any fraudulent or corrupt act. These elements are: 1. Operating Culture 2. Deterrent and Preventative Measures 3. Fraud Response Policy and Detection & Investigation Procedure 3.2 Operating Culture The Board is determined that the culture and tone of the organisation meets the expectations of the Committee on Standards of Public Life and is committed to the Seven Principles of Public Life (also known as the Nolan Principles) of objectivity, leadership, Page 158
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Page 2 of 4 accountability, honesty, selflessness, and integritySelflessness, Integrity, Objectivity, Accountability, Openness, Honesty and Leadership. The Board expects Members and employees to lead by example in ensuring opposition to fraud and corruption, and in ensuring adherence to rules and regulations, and to National and Local Codes of Conduct, and that all procedures and practices are beyond reproach. The Board also requires all individuals and organisations with which it deals in any capacity to behave towards the Board with integrity and without intent or actions involving fraud or corruption. Board employees and members of the public are important elements in the stance against fraud and corruption and are positively encouraged to raise any concerns they may have on these issues which impact on board activities using the Board’s Confidential Reporting Policy, and Complaints Procedure. Training and guidance are vital in maintaining the effectiveness of the Strategy strategy for the Prevention prevention and Detection detection of Fraud fraud and Corruption corruption and its general credibility. The Board supports induction and work-related training to ensure that responsibilities and duties are regularly highlighted and reinforced, and best practice is followed by all staff. The Internal Audit & Risk Manager is required to investigate activities suspected of involving fraud and corruption. Where appropriate, the Board co-operates with other local authorities and public sector bodies in the prevention, detection and investigation of fraud and corruption. 3.3 Deterrent and Preventative Measures The Board’s Standing Orders, Financial Regulations and Scheme of Delegation, together with organisational procedures, set out a framework for dealing with the affairs of the Board and all employees have a duty to comply with their provisions. Thorough documentation, including working manuals and operating procedures, is expected of all financial and operational systems and these must be issued to all relevant staff. Every effort must be made to continually review and develop these systems in line with best practice to ensure efficient and effective internal controls, including the effective segregation of duties as appropriate, and to deter fraudulent activity and detect error. The adequacy and appropriateness of the Board’s financial systems is independently monitored and assessed by External Auditors and the control and operating systems by Internal Audit. The senior management team is committed to continuously improving the systems for which it is responsible, both through their own self-assessments and by positive responses to audit recommendations. Members must have regard to the National Code of Local Government Conduct and acceptance of their appointment includes an undertaking to be guided by the National Code. Employee recruitment is required to be in accordance with procedures laid down by the Board and in particular written references must be obtained and other appropriate checks made to confirm the honesty and integrity of potential employees before appointments are made. Board employees are required to undertake Disclosure Scotland checks and are also expected to follow the Code of Conduct for employees and rules related to their professional qualifications. As a basic principle, any offers of gifts or hospitality from a ratepayer, agent, or member of the public, as a result of Board staff undertaking their duties, must be refused. It is recognised, however, that where staff are involved in lengthy negotiations and discussions, Page 159
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Page 3 of 4 particularly with ratepayer agents, the refusal of an invitation to a light lunch or snack would seem churlish. The acceptance of such an invitation would be acceptable. Any invitation to more lavish entertainment should in the first instance be refused. No such invitation should be accepted without the prior written consent of the Assessor & ERO. Any fee, commission, or any other payment collected or received by a Board employee, arising in any way from or though their Board employment, is not permitted to be retained except with the written consent of the Assessor & ERO. No gift or other ex gratia payment of more than £30 value may be retained by an employee of the Board, in accordance with the Code of Conduct for Employees. Board employees must declare any possible conflicts of interest which they may have while conducting the business of the Board and these must be noted in a register maintained for that purpose. 3.4 Fraud Response Policy and Detection & Investigation Procedure The Board will be robust in dealing with any financial malpractice and can be expected to deal timeously and thoroughly with any person who attempts to defraud the Board or who engages in corrupt practices, whether they are Members, employees, suppliers or unrelated third parties. If Members of the Board or its staff discover any fraud or irregularity that affects the affairs of the Board or suspect that a fraud or irregularity may have taken place, they must immediately tell the Assessor & ERO, and the Treasurer or and the Internal Audit & Risk Manager (as appropriate). The Assessor & ERO in consultation with the, Treasurer or Internaland the Audit & Risk Manager shall decide the best course of action regarding any(as appropriate) will arrange for an investigation to be carried out where appropriateof the alleged irregularity. An appointed senior officer who may be assisted by Internal Audit will investigate all instances of fraud or irregularity in the Board. The Board’s Disciplinary Procedures will be used where the outcome of the investigation indicates improper behaviour on the part of employees. Where loss has been suffered through fraudulent activity, the Board will pursue the perpetrator for recovery, including taking appropriate legal action. The Assessor & ERO, Treasurer and Internal Audit & Risk Manager will ensure that matters are reported to the Police if there are reasonable grounds for believing that a criminal offence has been committed. 4 Review The Board will periodically review current procedures and, where necessary, put in place a framework of systems and procedures to deter and investigate fraud and corruption. It shall ensure that any new arrangements are fair and are monitored and updated to keep pace with future developments in preventative, deterrent and detection techniques regarding fraudulent or corrupt activity. Commented [MA1]: Amended in line with the Financial Regulations from 2024 Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Formatted: Not Highlight Page 160
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Page 4 of 4 Version History Version Status Date By 1 Approved 23/08/2019 GVJB 2 Draft 10/2024 MJA 3 Page 161
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Grampian Valuation Joint Board Anti Fraud and Corruption Policy Date of Review October 2024 Date of previous version 23 October 2019 Policy Approved Version Effective From Next Review Date Item 10. Page 163
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Page 1 of 4 1 Statement of Intention 1.1 The Board aims to provide an excellent public service and needs to ensure propriety and accountability in all matters. The Board is determined to protect itself and the public from fraud and corruption and is committed to the rigorous maintenance of a strategy for the prevention and detection of fraud and corruption, which will provide a framework for: • encouraging fraud deterrence and prevention • raising awareness of fraud and corruption and promoting their detection • performing investigations and facilitating recovery • invoking disciplinary proceedings and referral to Police and/or Procurator Fiscal • monitoring, publishing, and updating the policy and its related procedures and performance. 2 Definitions 2.1 Fraud The Board regards “fraud” as being any intentional distortion of financial statements and other records/information, and the misappropriation of assets. This may involve: • falsification or alteration of accounting records, other documents, or information • misappropriation of assets or theft • suppression or omission of information from records or documents • suppression or omission of the effects of transactions from records or documents • recording transactions which have no substance • wilful misrepresentation of information/transactions or of the Board’s state of affairs 2.2 Corruption The Board defines the term “corruption” as the offering, giving, soliciting, or accepting of any inducement or reward which would influence the actions taken by the body, its members or officers. Main areas of activity, which are susceptible to corruption may include: • contracts • asset purchase • information gathering activities required for statutory purposes. 3 Elements of the Anti-Fraud and Corruption Strategy 3.1 The Board’s Anti-Fraud and Corruption Strategy is based on a series of comprehensive and related elements designed to frustrate any fraudulent or corrupt act. These elements are: 1. Operating Culture 2. Deterrent and Preventative Measures 3. Fraud Response Policy and Detection & Investigation Procedure 3.2 Operating Culture The Board is determined that the culture and tone of the organisation meets the expectations of the Committee on Standards of Public Life and is committed to the Seven Principles of Public Life (also known as the Nolan Principles) of Selflessness, Integrity, Objectivity, Accountability, Openness, Honesty and Leadership. The Board expects Members and employees to lead by example in ensuring opposition to fraud and corruption, and in ensuring adherence to rules and regulations, and to National and Local Codes of Conduct, and that all procedures and practices are beyond reproach. Page 164
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Page 2 of 4 The Board also requires all individuals and organisations with which it deals in any capacity to behave towards the Board with integrity and without intent or actions involving fraud or corruption. Board employees and members of the public are important elements in the stance against fraud and corruption and are positively encouraged to raise any concerns they may have on these issues which impact on board activities using the Board’s Confidential Reporting Policy, and Complaints Procedure. Training and guidance are vital in maintaining the effectiveness of the strategy for the prevention and detection of fraud and corruption and its general credibility. The Board supports induction and work-related training to ensure that responsibilities and duties are regularly highlighted and reinforced, and best practice is followed by all staff. The Internal Audit & Risk Manager is required to investigate activities suspected of involving fraud and corruption. Where appropriate, the Board co-operates with other local authorities and public sector bodies in the prevention, detection and investigation of fraud and corruption. 3.3 3.2 Deterrent and Preventative Measures The Board’s Standing Orders, Financial Regulations and Scheme of Delegation, together with organisational procedures, set out a framework for dealing with the affairs of the Board and all employees have a duty to comply with their provisions. Thorough documentation, including working manuals and operating procedures, is expected of all financial and operational systems and these must be issued to all relevant staff. Every effort must be made to continually review and develop these systems in line with best practice to ensure efficient and effective internal controls, including the effective segregation of duties as appropriate, and to deter fraudulent activity and detect error. The adequacy and appropriateness of the Board’s financial systems is independently monitored and assessed by External Auditors and the control and operating systems by Internal Audit. The senior management team is committed to continuously improving the systems for which it is responsible, both through their own self-assessments and by positive responses to audit recommendations. Members must have regard to the National Code of Local Government Conduct and acceptance of their appointment includes an undertaking to be guided by the National Code. Employee recruitment is required to be in accordance with procedures laid down by the Board and in particular written references must be obtained and other appropriate checks made to confirm the honesty and integrity of potential employees before appointments are made. Board employees are required to undertake Disclosure Scotland checks and are also expected to follow the Code of Conduct for employees and rules related to their professional qualifications. As a basic principle, any offers of gifts or hospitality from a ratepayer, agent, or member of the public, as a result of Board staff undertaking their duties, must be refused. It is recognised, however, that where staff are involved in lengthy negotiations and discussions, particularly with ratepayer agents, the refusal of an invitation to a light lunch or snack would seem churlish. The acceptance of such an invitation would be acceptable. Any invitation to more lavish entertainment should in the first instance be refused. No such invitation should be accepted without the prior written consent of the Assessor & ERO. Page 165
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Page 3 of 4 Any fee, commission, or any other payment collected or received by a Board employee, arising in any way from or though their Board employment, is not permitted to be retained except with the written consent of the Assessor & ERO. No gift or other ex gratia payment of more than £30 value may be retained by an employee of the Board, in accordance with the Code of Conduct for Employees. Board employees must declare any possible conflicts of interest which they may have while conducting the business of the Board and these must be noted in a register maintained for that purpose. 3.4 Fraud Response Policy and Detection & Investigation Procedure The Board will be robust in dealing with any financial malpractice and can be expected to deal timeously and thoroughly with any person who attempts to defraud the Board or who engages in corrupt practices, whether they are Members, employees, suppliers or unrelated third parties. If Members of the Board or its staff discover any fraud or irregularity that affects the affairs of the Board or suspect that a fraud or irregularity may have taken place, they must immediately tell the Assessor & ERO, the Treasurer and the Internal Audit & Risk Manager. The Assessor & ERO in consultation with the Treasurer and the Audit & Risk Manager shall decide the best course of action regarding any investigation of the alleged irregularity. The Board’s Disciplinary Procedures will be used where the outcome of the investigation indicates improper behaviour on the part of employees. Where loss has been suffered through fraudulent activity, the Board will pursue the perpetrator for recovery, including taking appropriate legal action. The Assessor & ERO, Treasurer and Internal Audit & Risk Manager will ensure that matters are reported to the Police if there are reasonable grounds for believing that a criminal offence has been committed. 4 Review The Board will periodically review current procedures and, where necessary, put in place a framework of systems and procedures to deter and investigate fraud and corruption. It shall ensure that any new arrangements are fair and are monitored and updated to keep pace with future developments in preventative, deterrent and detection techniques regarding fraudulent or corrupt activity. Page 166
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Grampian Valuation Joint Board Code of Conduct for Employees Date of Review October 2024 Date of previous version 23 October 2019 Policy Approved Version Effective From Next Review Date Formatted: Font: 22 pt Item 10. Page 169
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1.0 Introduction 1.1 The public is entitled to expect the highest standards of conduct from all employees of the Board. You must meet those expectations by ensuring your conduct is above reproach. It is your responsibility to make sure you are familiar with the provisions of this Code and that your actions comply with it. However, no written information can provide for all circumstances and if you are uncertain about how the Code applies, you should seek advice from your line manager, Personnel ServicesHR (Moray Council), or your trade union representative. This Code incorporates existing policies, regulations and conditions of service and provides further guidance on the minimum standards of conduct expected of Board employees. 1.2 In addition to the general Code, there may be professional standards and rules related to your particular area of work which you must also comply with (ege.g. RICS). 1.3 The Code does not affect your rights and responsibilities under the law; its purpose is to provide clear and helpful advice. Because of the nature of their work, parts of the Code may apply to some employees more than others, but all employees must comply with the Code. 1.4 A breach of the Code may result in disciplinary action in accordance with the Board’s Disciplinary Procedures. Employees are reminded of the Bribery Act 2010 where it is an offence to offer, promise, or give a financial or other advantage to another person. 1.41.5 Employees are reminded of the Bribery Act 2010 where it is an offence to offer, promise, or give a financial or other advantage to another person. 2.0 Scope 2.1 This Code shall apply to all Board employees. 3.0 Key Principles of the Code 3.1 The general principles upon which this Code of Conduct is based are:- Selflessness: You should not take decisions, which will result in any financial or other benefit to yourself, your family, or your friends. Decisions should be based solely on the public and Board’s best interests. Integrity: You should not place yourself under any financial or other obligation to any individual or organisation, which might reasonably be thought to influence you in your work for the Board. Objectivity: Any decisions which you take in the course of your work for the Board must be based solely on merit, including making appointments, awarding contracts, or recommending valuation adjustments or banding changes. Accountability: You are accountable for your decisions and actions to the Page 170
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Board as your employer. The Board, in turn, is accountable to the public. Openness: You should be as open as possible in all the decisions and actions that you take. You should give reasons for decisions and should not restrict information unless this is clearly required by Board policy, by the law or when public interest demands. Honesty: You have a duty to act honestly. You must declare any private interests relating to or which might affect your work with the Board. Leadership: If you are in a managerial position, you must promote and support these principles by leadership and example to maintain and strengthen the trust and confidence in the integrity of the Board and its employees. Respect: You must respect all other Board employees, Members and users of Board services and treat them with courtesy at all times. 4.0 Relationships 4.1 The Public You may have access to the public as users of services or as citizens. Each member of the public should be dealt with fairly, equitably and consistently to ensure courteous, efficient and impartial service delivery to all groups and individuals within the community. 4.2 Board Members You must respect all Board Members and the role they play and treat them with courtesy at all times. It is expected that Members will show the same consideration in return. Both Members and employees are servants of the publicpublic servants but their responsibilities are distinct: Members are responsible to the electorate and serve only as long as their term of office lasts. Recognising the statutory position of the Assessor & ERO, their role is to determine policy outside the statutory frameworks of Lands Valuation and Electoral Registration. Employees are responsible to the Board and their job is the direct operational management and delivery of the services provided by the Board. Mutual respect between Members and employees is essential to good local government. Close personal familiarity between individual Members and employees can damage the relationship and prove embarrassing to other Members and employees. You should follow the practice detailed in the Protocol for Relations between Members and employees attached at Appendix A. 4.3 Contractors You must be fair and impartial in your dealings with contractors, sub-contractors and suppliers. If you are involved in the tendering process you must follow the Page 171
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Board’s procedures and rules about tenders and contracts. If you have access to confidential information on tenders or costs, you must not disclose that information to any unauthorised individual or organisation. 4.4 Conflicts of Interest You must not allow any private interest, financial or non-financial, to influence your decisions. You must also not use your position to further your own interests or the interests of others who do not have a right to benefit under the Board’s policies. You may have a private interest which relates to your work for the Board. That interest may be a financial one or one that a member of the public might reasonably think could influence your judgement. In addition, close family members or people living in your household may have financial interests in the work of the Board. All such interests must be declared to your line manager/supervisor and subsequently passed to the Principal Administration OfficerAssessor for recording in a register of staff interests. If you are a member of an organisation or club (ege.g. School Board, Community Council, PTA etcetc.) and membership might result in a conflict of interest in relation to any aspect of your work with the Board, you should declare this interest to your line manager/supervisor who, in turn, should pass the details to the Principal Administration OfficerAssessor. This applies equally to membership of organisations or clubs, which are not open to the public (ege.g. Freemasonry). You need only declare interests which relate to your work with the Board. If you declare an interest, you will not normally be required to continue to work or take decisions relative to this interest. In certain circumstances, your activities outside work may be restricted due to your employment, eg political or commercial activities. 4.5 Confidentiality The Board’s decision making process must be as transparent and open as possible and this should be the basis on which you normally work. The Board must provide the public with clear and accessible information about how it operates. There are exceptions, however, to the principle of openness where confidentiality is involved, and information may be withheld if, for example, it would compromise a right of personal or commercial confidentiality or Board Policy. This does not apply where there is a legal duty to provide information. If there is any doubt you should raise the matter with your line manager/supervisor. You must not break the law in this area. The provisions of the Freedom of Information (Scotland) Act 2002 are relevant in this regard. 4.6 Employment outside the Board The Board will normally allow employees to undertake paid employment outside the Board unless there is a clear conflict of interest, or it is likely to have an adverse Page 172
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effect on the work of the Board. Employees should seek advice from their line manager/supervisor if they are in doubt and, where approval is given, details should be forwarded to the Assessor & ERO, for retention in personnel files and a copy will be forwarded to Moray Council for retention. Any fees, commissions or other payments received by an employee as a consequence of their acting as an officer of the Board shall, unless otherwise directed by the Board, be paid to the Board. 4.7 Gifts and Hospitality You may occasionally be placed in a position where you have to decide whether or not to accept offers of gifts or hospitality from organisations or businesses associated with the Board. It is essential that any suggestions of improper influence should be avoided. The general rule should be to refuse, tactfully, offers or gifts from businesses, organisations, or individuals who are associated with, or wish to be associated with the Board commercially. Gifts should also be refused from organisations or individuals seeking, or at some stage in the near future may be expected to seek, a particular decision or action from the Board or the Assessor & ERO. In certain circumstances, hospitality or gifts not exceeding £30 in value may be accepted, but you should refuse repeated gifts or hospitality from the same source. In any event, all offers of gifts and hospitality should be notified to your line manager/supervisor who will forward the information to the Principal Administration OfficerAssessor for recording in a register of gifts and hospitality. This recording mechanism will enable the Board to respond to any queries on such issues. When making a visit to inspect domestic or non-domestic property or to attend meetings, you must ensure that the Board pays for the cost of these visits. 4.8 Corruption It is important that employees are aware that it is a serious criminal offence for them corruptly to receive or give any gift, loan, fee, reward or advantage for doing or not doing anything, or for showing favour or disfavour to any person, in the course of their work with the Board. 4.9 Use of Financial Resources You must ensure that any public funds entrusted to you are used in a responsible and lawful manner. You must strive to ensure value for money to the local community and to avoid legal challenge to the Board. 4.10 Use of Other Resources You are not permitted to use materials, equipment or resources of the Board for outside employment or for personal benefit without the permission of the Board. In particular, employees with access to a computer should make themselves aware of the relevant policy and associated documents on its use including internet and e- mail access. Page 173
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4.11 Appointments The Board has Recruitment and Selection Policies which set out the basic principles which must be taken into consideration to enable the Board to achieve a corporate and consistent approach in the critical area of recruitment and selection and to comply with employment legislation and associated codes of practice. All appointments must be carried out fairly and openly and candidates appointed on the basis of merit. If you are involved in the recruitment and selection process and have any kind of relationship which might affect your ability to be impartial, that relationship must be declared to the Assessor & ERO, who will decide whether you can participate in the process. The same procedure must be followed in other personnel procedures such as grievance or disciplinary procedures or job evaluation. You must not lobby Members or colleagues either directly or indirectly to secure personal appointment or promotion, or the appointment/non-appointment or promotion of another person. Any employee who has been lobbied by an applicant, a colleague or any other person must report the matter immediately to the Assessor & ERO. 4.12 Contacts with the Media All contact with the media should normally be directed through the Assessor & ERO. Designated officers may, however, speak to the media on issues related to their direct area of responsibility. Designated officers are limited to staff with statutory Depute status except in exceptional circumstances. Staff below the level of Assistant Assessor are unlikely to have direct contact with the media. 4.13 Public Statements Outside work, you are entitled to express your views about the Board provided you do not make use of any private information gained through your work with the Board. But, in your work capacity, you must not criticise the Board either through the media or at a public meeting, or in any written communication with members of the public. This includes responding to public consultations the Board hosts on social media, for example Facebook or TwitterX. Employees who have serious concerns about any aspect of the Board’s work are referred to the Confidential Reporting (“Whistleblowing”) Policy. 4.14 Political Neutrality and Services to Members The public expects employees of the Board to undertake their duties in a politically neutral manner and this must be respected by Members. The political activities of a small number of employees are restricted by law. Employees must serve the Board and all Members regardless of their political outlook. The Assessor & ERO and senior officers have ultimate responsibility to help ensure that the policies of the Board are implemented. All employees must implement the Board’s policies irrespective of their personal views. Page 174
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In the event of an employee receiving a request from a Member to provide assistance with a matter which is clearly party political or which does not have a clear link with the work of the Board, the employee should refer the matter to their line manager/supervisor who, if necessary, should report the matter to the Assessor & ERO for clarification. Some senior employees may from time to time require to have a close working relationship with Members or Councillors of the major political group(s) of the constituent councils. Political groups may sometimes seek advice from employees of the Board particularly in relation to electoral matters. The following procedures will assist employees who may be requested to give advice to political groups:- The political group’s office bearer must first approach the Assessor & ERO They must tell the Assessor & ERO what typewhat type of advice they are seeking. The Assessor & ERO will decide whether the advice can be given, when and by which employee. If attendance at a meeting is involved, the employee must leave after giving the advice and before any decision is taken. The employee must observe strict confidentiality. The discussion in one political group or Council should not be disclosed to another political group or Council or to any member of such a group or another Council. 5.0 The Rights of the Employee 5.1 Public Statements As citizens, employees are entitled to express their views about the Board, provided they do not make use of any private information gained through their work with the Board. They should not, in their working capacity, or as a result of their employment relationship, criticise the Board either through the media or at a public meeting, or in any written communication with members of the public. 5.2 Access to Councillors As citizens, employees are entitled to raise any complaints which they may have about the constituent Council’s services with their Councillor or via the Council’s Complaints Procedure. Complaints relating to any aspect of your employment with the Board should be raised with your line manager/supervisor or via the Board’s Grievance Procedure or Harassment Policy. Formatted: Font: 11.5 pt, Not Expanded by / Condensed by Formatted: Indent: Left: 2.11 cm, No bullets or numbering Page 175
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5.3 Fair and Reasonable Treatment at Work Employees are entitled to expect fair and reasonable treatment from their colleagues, managers and Board Members. If you feel that you have been unfairly treated or have been discriminated against, you are entitled to make use of the appropriate Board policies and procedures (ege.g. Grievance Procedure, Disciplinary Procedure, or Harassment at Work Policy). There may be rare occasions when an employee feels that they have been required by a colleague, a Board Member, a member of the public, or an organisation to act in a way which might be illegal, improper or unethical, or which is otherwise in conflict with the principles of this Code or the procedures of the Board. Employees are referred to the Board’s Confidential Reporting (“Whistleblowing”) Policy for dealing with such concerns, which includes the following steps:- Raise concerns with your immediate line manager/supervisor. If you feel you cannot discuss the matter with your line manager/supervisor then the matter should be reported to the Principal Administration Officer who acts as the Board’s Confidential Reporting Officer, or directly to the Assessor & ERO. The Principal Administration Officer, following consultations as appropriate, with the Assessor & ERO or other Senior Officers, will determine what action should be taken. 6.0 Associated Documents 6.1 Readers are also referred to the following policies and procedures:- Financial Regulations Anti-Fraud and Corruption Policy Confidential Reporting (“Whistleblowing”) Policy Disciplinary Procedure Grievance Procedure Recruitment and Selection: Policy and Procedures Harassment at Work Policy Formatted: Not Expanded by / Condensed by Page 176
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APPENDIX A A PROTOCOL FOR RELATIONS BETWEEN COUNCILLORS AND EMPLOYEES IN SCOTTISH COUNCILS (as issued in December 2021 by the Scottish Ministers, with the approval of the Scottish Parliament, as required by the Ethical Standards in Public Life etc.(Scotland) Act 2000 (the “Act”), December 2021.E Definitions The reference to ‘employees’ below covers all employees and officers of councils and all officers and employees of any other body or organisation to which a councillor is appointed or nominated by the Council. The reference to ‘Convener’ below covers all committee chairs and portfolio leads. The reference to ‘chief officers’ covers all Chief Executives, Directors and Heads of Service. The reference to ‘committee’ also covers all forms of executive and scrutiny operating models. Although the Board is not a Council, the protocol is still appropriate for Board Members and Board Employees and should be read in that context. Principles 1. This protocol outlines the way in which councillors and employees should behave towards one another. It should be noted that while some scenarios are included, these are not exhaustive. The protocol should be treated, therefore, as applying in all situations where there is interaction between councillors and employees. 2. Councillors and employees should work in an atmosphere of mutual trust and respect, with neither party seeking to take unfair advantage of their position or influence. Roles Roles 3. Councillors are required to provide strategic leadership and oversight. This involves setting strategy and policy, scrutinising and making major, complex decisions that concern the Council as a whole. Councillors are not, however, responsible for operational management (being the planning, organising and execution involved in day to dayday-to-day activities) as this is the role of employees. Chief Executives and senior employees have ultimate responsibility to ensure that the Council meets its responsibilities. 4. Legally, employees are employed by the Council / other body and are accountable to it as an entity. Employees are responsible for serving the Council / other body as a whole, and not any particular political group, combination of groups or individual councillor. It is nevertheless appropriate for employees to be called upon to assist any political group in its deliberations or to help individual councillors fulfil their different roles (see the section on political groups below). Formatted: Indent: Left: 0 cm Formatted: Font: Not Bold Formatted: Justified Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Font: Not Bold Formatted: Justified Formatted: Font: Not Bold Formatted: Justified Formatted: Font: Bold Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Page 177
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Office bearers 5. For the Council to perform effectively, it is important that there is a close professional working relationship between a committee convener and the director and other senior employees of any service reporting to that committee. However, such relationships should never be allowed to become so close, or appear to be so close, as to bring into question an employee’s ability to deal with other councillors impartially, or the ability of a convener to deal with other employees impartially. 6. Conveners will have many dealings with employees. While employees should always seek to assist committee chairs, they are ultimately responsible to the relevant chief officer and not to any convener. 7. Conveners will often be consulted on the preparation of agendas and reports. Employees will always be fully responsible, however, for the contents of any report submitted in their name and will always have the right to submit reports to councillors on their areas of professional competence. The Convener does not have a right to veto this course of action. 8. Conveners are recognised as the legitimate elected spokesperson on their committee’s area of responsibility. Where authority is delegated to employees, they may choose to consult the relevant convener about any action they propose to take. The employee nevertheless retains responsibility for the final decision (as long as the delegated authority remains in place). Political groups 9. Most councils operate through a system of groups of councillors, many of them based on political affiliation. All employees must treat all political groups and individual councillors in a fair and even-handed manner and must maintain political neutrality at all times. 10. Employees can provide political groups with support (such as discussing matters with the convener and vice-convener before a committee meeting or presenting information to a group meeting). While, in practice, such support is likely to be most in demand from whichever political group is in control of the Council, it nevertheless should be available to all political groups. The advice given by employees to different party or political groups should be consistent. 11. Councillors and employees must act in accordance with the council’s rules about the access and support to be provided to political groups (for example, that all requests must be approved by the Chief Executive). 12. Employee support for political groups must not extend beyond providing information and advice in relation to matters of council business. Employees should not be asked, or be expected, to be present at meetings or parts of meetings when matters concerning party business are being discussed. It is the responsibility of the convener of the political group meeting to ensure that all attending are clear on the status of the meeting and the basis on which any employees are present. Formatted: Font: Bold Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Page 178
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13. Councillors and employees must note that while political group meetings may form part of the preliminaries to council decision-making, political groups are not empowered to make decisions on behalf of the Council. Conclusions reached at such meetings are not council decisions and it is essential that they are not interpreted or treated as such. 14. Employees can provide information and advice in relation to matters of council business to political groups. Employees are nevertheless responsible for ensuring that all necessary information and advice is still provided to the relevant committee or sub- committee when the matter in question is considered. 15. Political groups must recognise that information and advice given by employees should be used to enhance discussion and debate at council and committee meetings. Such information or advice should not be used for political advantage (for example by issuing media briefings before a decision is made), as doing so could devalue the decision- making process and can place employees in a difficult position. 16. Employees should take special care when providing information and advice to a meeting of a political group where other individuals who are not elected members of the Council are in attendance, as such individuals will not be bound by the Councillors’ Code (and, in particular, the provisions concerning the declaration of interests and confidentiality). 17. Employees must treat any discussions with a political group or individual councillor as being strictly confidential. 18. Any difficulties or uncertainty about the extent of advice and information that can be provided to political groups should be raised with the Chief Executive (who should then discuss the matter with the group leader). Councillors as local representatives 19. Councillors should ensure they act in accordance with the provisions of the Councillors’ Code and this protocol when performing such a role. Elected members must recognise that, when performing their local representative role, they are representing the Council. Employees must treat all councillors fairly and openly in their role as local representatives. Communications 20 . Employees should not normally copy any communications they have with an individual councillor to any other councillor, unless they have been clear in advance that they intend to do so (or this has been agreed). Human resource issues 21. Where councillors are involved in the appointments of employees they must act fairly and openly, and make decisions solely on merit. 22. Councillors should not become involved in issues relating to any individual employee’s pay or terms and conditions of appointment, except while serving on a committee tasked with dealing with such matters. Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Page 179
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Social relationships 23. The relationship between councillors and employees depends upon trust, which will be enhanced by the development of positive and professional relationships. While councillors and employees may often find themselves in the same social situations, they should take care to avoid close personal familiarity as this can damage the relationship of mutual respect and the belief that employees can undertake their role in an impartial and objective manner. Councillors and employees should, therefore, be cautious in developing close personal friendships while they have an official relationship. Public comment 24. Councillors and employees both have a responsibility to project a positive image of the Council and should avoid making any public comments that could bring it into disrepute. 25. Councillors should not raise any adverse matters relating to the performance, conduct or capability of employees in public. Employees must ensure they treat councillors with similar respect and courtesy. Employees supporting councillors 26. Where councils arrange for employees to provide direct administrative or practical support for individual councillors to help them undertake their duties, particular considerations will apply. While councillors may ask employees to provide such support in a particular way, they must nevertheless remember that the employee is accountable to their line manager. Any issues about conflicting priorities, conduct or performance must be referred to the line manager. 1. Principles 1.2 This protocol sets out the way in which Councils and employees of Councils should behave towards one another. It does not cover all the variety of circumstances which can arise, but the approach which it adopts will serve as a guide to dealing with other issues as they come up. Although the Board is not a Council, the protocol is appropriate for Board Members and employees and should be read in that context. The protocol is also relevant in respect of relations between employees and the Councillors of the constituent authorities. 1.3 Councillors and employees should work in an atmosphere of mutual trust and respect, with neither party seeking to take unfair advantage of their position. 2. Scope 2.2 The commonest contacts are between Councillors and senior employees at Chief Executive, Director or Head of Service level and this protocol is very largely about those contacts. There are also many contacts between Councillors and other employees in their daily business and the principles of this protocol also apply to them. Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Indent: Left: 0 cm, Hanging: 1 cm Formatted: Justified, Indent: Left: 0 cm, Hanging: 1 cm Formatted: Font: Bold Formatted: Font: Not Bold Formatted: Justified Formatted: Font: (Intl) Arial Formatted: Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt, Condensed by 0.05 pt Formatted: Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Page 180
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3. Members’ and Employees’ roles 3.2 Within a Council, Councillors have a number of different roles, all of which call for separate consideration. Some Councillors are chairs of Committees, most belong to political groups and all have a local constituency to represent. 3.3 Legally, employees are employed by the Council and are accountable to it. Ultimately they serve the Council as a whole and not any particular political group, combination of groups or any individual member. Nonetheless, political groups exist in most Councils and employees may properly be called upon to assist the deliberations of political groups and also to help individual members in their different roles. Chief Executives and senior officers have ultimate responsibility to ensure that the Council’s responsibilities are implemented. 4. Office Bearers 4.2 It is clearly important that there should be a close professional working relationship between the chair of a Committee and the Director and other senior employees of any service which reports to that Committee. However, such relationships should never be allowed to become so close, or appear to be so close, as to bring into Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Page 181
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question employees’ ability to deal impartially with other Councillors and the ability of chairs to deal impartially with other employees. 4.3 The chair of a Committee will often be consulted on the preparation of agendas and reports. Employees will always be fully responsible for the contents of any report submitted in their name and have the right to submit reports to Members on their areas of professional competence. While employees will wish to listen to the views of Conveners, they must retain final responsibility for the content of reports. 4.4 Committee chairs are recognised as the legitimate elected spokesperson on their Committees’ areas of responsibility. Where authority is delegated to employees they will often wish to consult chairs of Committees about the action which they propose to take but the responsibility for the final decision remains with the employee who is accountable for it. Chairs should bear this in mind when discussing proposed action with employees. 4.5 Committee chairs will have many dealings with employees within a service. Those employees should always seek to assist a Committee chair but it must be remembered that they are ultimately responsible to the head of the service. 5. Political Groups 5.2 Most Councils operate through a system of groups of Councillors, many of them based on political affiliation. All employees must, in their dealings with political groups and individual members, treat them in a fair and even-handed manner. Employees must at all times maintain political neutrality. 5.3 The support provided by employees can take many forms, ranging from the meeting with the chair and vice chair before a Committee meeting to a presentation to a full party group meeting. Whilst in practice such support is likely to be in most demand from whichever party group is for the time being in control of the Council, it should be available to all party groups. The advice given by employees to different party groups should be consistent. 5.4 Certain matters must, however, be clearly understood by all those participating in this type of process, Councillors and employees alike. In particular:- Council rules about groups’ access to employees, eg all requests being approved by the Chief Executive, must be followed. Employee support in these circumstances must not extend beyond providing information and advice in relation to matters of Council business. The observance of this distinction will be assisted if employees are not expected to be present at meetings or parts of meetings, when matters of party business are to be discussed. Party group meetings, whilst they form part of the preliminaries to Council decision- making, are not empowered to make decisions on behalf of the Council. Conclusions reached at such meetings do not therefore rank as Council decisions and it is essential that they are not interpreted or acted upon as such. Formatted: Normal, Justified, Right: 0 cm, Space Before: 0 pt Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 2.11 cm Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, Line spacing: single, No bullets or numbering, Tab stops: Not at 2.11 cm Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, Line spacing: single, No bullets or numbering, Tab stops: Not at 2.11 cm Page 182
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Where employees provide information and advice to a party group meeting in relation to a matter of Council business, this cannot act as a substitute for providing all necessary information and advice to the relevant Committee or Sub-Committee when the matter in question is considered. Political groups need to recognise that information and advice given by employees should be used to enhance discussion and debate at Council and Committee meetings. If such information is used for political advantage, for example media briefings beforehand, then the process could become devalued and place employees in a difficult position in giving information and advice. The chair of a political group meeting attended by employees has a responsibility for ensuring that those attending are clear on the status of the meeting and the basis on which employees are attending. 5.5 Special care needs to be exercised whenever employees are involved in providing information and advice to a meeting of a political group which includes persons who are not members of the Council. Such persons will not be bound by the Codes of Conduct for Councillors and employees (in particular, the provisions concerning the declaration of interests and confidentiality) and for this and other reasons employees may not be able to provide the same level of information and advice as they would to a members only meeting. 5.6 Any discussion with a political group or Councillor must be treated with strict confidentiality by the employees concerned and should not be accessible to any other political group. It is acknowledged, however, that factual information upon which any advice is based will, if requested, be available to all political groups. 5.7 Should any difficulty or uncertainty arise in the area of employee advice to party groups, this shall be raised with the Chief Executive who should discuss the matter with the group leader. 6. Local Representative 6.2 All Councillors represent part of the area of the Council. Within each Council’s rules about consultation and Councillor improvement, employees must treat all Councillors fairly and openly in their role as local representatives. When performing their local representative role, Councillors will be seen by the public as representing the Council and should act in accordance with the principles of the Code of Conduct for Councillors and this protocol. 7. Correspondence 7.2 Correspondence between an individual Councillor and an employee should not normally be copied by the officer to any other Councillor. Where it is necessary to copy the correspondence to another member, this should be made clear to the original Councillor at the time. Formatted: Normal, Right: 0 cm, Space Before: 0 pt, Line spacing: single, No bullets or numbering, Tab stops: Not at 2.11 cm Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 2.11 cm Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, Line spacing: single, No bullets or numbering, Tab stops: Not at 2.11 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Page 183
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8. Appointments 8.2 Where Councillors are involved in the appointments of employees they must act fairly and openly and judge candidates solely on merit. 9. Social Relationships 9.2 The relationship between Councillors and employees depends upon trust and this will be enhanced by the development of positive, friendly relationships. Councillors and employees will often be thrown together in social situations within the community and have a responsibility to project a positive image of the Council. Nonetheless, close personal familiarity between individual employees and Councillors can damage the relationship of mutual respect and the belief that employees give objective and professional advice and commitment to the Council. Councillors and employees should, therefore, be cautious in developing close personal friendships while they have an official relationship. 10. Public Comment 10.2 Councillors should not raise matters relating to the conduct or capability of employees in public. Employees must accord to Councillors the respect and courtesy due to them in their various roles. There are provisions in the Code of Conduct for Employees about speaking in public and employees should observe them. 11. Employees supporting Councillors Where Councils arrange for employees to support members directly in carrying out their duties, particular considerations apply. Such employees are normally involved in administrative and practical support of Councillors. While such staff may operate to the requirements of individual Councillors in their daily business, it must be remembered that the employees are accountable to their line managers and any issues about conflicting priorities, con Version Historyduct or performance must be referred to those managers. Version Status Date By 1 Approved 01/02/2019 GVJB 2 Draft 10/24 MJA 3 11.2 Formatted: Normal, Justified, Space Before: 0 pt, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Justified Formatted: Font: (Default) Arial, 12 pt Formatted: Normal, Justified, No bullets or numbering, Tab stops: Not at 1.47 cm Formatted: Font: 12 pt Formatted: Justified, Space Before: 0 pt Formatted: Font: Formatted: Font: Bold, Underline Formatted: Font: Arial, 12 pt, Condensed by 0.05 pt Formatted: Font: Bold Formatted: Normal, Right: 0 cm, No bullets or numbering, Tab stops: Not at 1.47 cm Page 184
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Grampian Valuation Joint Board Code of Conduct for Employees Date of Review October 2024 Date of previous version 23 October 2019 Policy Approved Version Effective From Next Review Date Item 10. Page 185
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1.0 Introduction 1.1 The public is entitled to expect the highest standards of conduct from all employees of the Board. You must meet those expectations by ensuring your conduct is above reproach. It is your responsibility to make sure you are familiar with the provisions of this Code and that your actions comply with it. However, no written information can provide for all circumstances and if you are uncertain about how the Code applies, you should seek advice from your line manager, HR (Moray Council), or your trade union representative. This Code incorporates existing policies, regulations and conditions of service and provides further guidance on the minimum standards of conduct expected of Board employees. 1.2 In addition to the general Code, there may be professional standards and rules related to your particular area of work which you must also comply with (e.g. RICS). 1.3 The Code does not affect your rights and responsibilities under the law; its purpose is to provide clear and helpful advice. Because of the nature of their work, parts of the Code may apply to some employees more than others, but all employees must comply with the Code. 1.4 A breach of the Code may result in disciplinary action in accordance with the Board’s Disciplinary Procedures. Employees are reminded of the Bribery Act 2010 where it is an offence to offer, promise, or give a financial or other advantage to another person. 1.5 Employees are reminded of the Bribery Act 2010 where it is an offence to offer, promise, or give a financial or other advantage to another person. 2.0 Scope 2.1 This Code shall apply to all Board employees. 3.0 Key Principles of the Code 3.1 The general principles upon which this Code of Conduct is based are:- • Selflessness: You should not take decisions, which will result in any financial or other benefit to yourself, your family, or your friends. Decisions should be based solely on the public and Board’s best interests. • Integrity: You should not place yourself under any financial or other obligation to any individual or organisation, which might reasonably be thought to influence you in your work for the Board. • Objectivity: Any decisions which you take in the course of your work for the Board must be based solely on merit, including making appointments, awarding contracts, or recommending valuation adjustments or banding changes. • Accountability: You are accountable for your decisions and actions to the Board as your employer. The Board, in turn, is accountable to the public. • Openness: You should be as open as possible in all the decisions and actions Page 186
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that you take. You should give reasons for decisions and should not restrict information unless this is clearly required by Board policy, by the law or when public interest demands. • Honesty: You have a duty to act honestly. You must declare any private interests relating to or which might affect your work with the Board. • Leadership: If you are in a managerial position, you must promote and support these principles by leadership and example to maintain and strengthen the trust and confidence in the integrity of the Board and its employees. • Respect: You must respect all other Board employees, Members and users of Board services and treat them with courtesy at all times. 4.0 Relationships 4.1 The Public You may have access to the public as users of services or as citizens. Each member of the public should be dealt with fairly, equitably and consistently to ensure courteous, efficient and impartial service delivery to all groups and individuals within the community. 4.2 Board Members You must respect all Board Members and the role they play and treat them with courtesy at all times. It is expected that Members will show the same consideration in return. Both Members and employees are public servants but their responsibilities are distinct: Members are responsible to the electorate and serve only as long as their term of office lasts. Recognising the statutory position of the Assessor & ERO, their role is to determine policy outside the statutory frameworks of Lands Valuation and Electoral Registration. Employees are responsible to the Board and their job is the direct operational management and delivery of the services provided by the Board. Mutual respect between Members and employees is essential to good local government. Close personal familiarity between individual Members and employees can damage the relationship and prove embarrassing to other Members and employees. You should follow the practice detailed in the Protocol for Relations between Members and employees attached at Appendix A. 4.3 Contractors You must be fair and impartial in your dealings with contractors, sub-contractors and suppliers. If you are involved in the tendering process you must follow the Board’s procedures and rules about tenders and contracts. If you have access to confidential information on tenders or costs, you must not Page 187
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disclose that information to any unauthorised individual or organisation. 4.4 Conflicts of Interest You must not allow any private interest, financial or non-financial, to influence your decisions. You must also not use your position to further your own interests or the interests of others who do not have a right to benefit under the Board’s policies. You may have a private interest which relates to your work for the Board. That interest may be a financial one or one that a member of the public might reasonably think could influence your judgement. In addition, close family members or people living in your household may have financial interests in the work of the Board. All such interests must be declared to your line manager/supervisor and subsequently passed to the Assessor for recording in a register of staff interests. If you are a member of an organisation or club (e.g. School Board, Community Council, PTA etc.) and membership might result in a conflict of interest in relation to any aspect of your work with the Board, you should declare this interest to your line manager/supervisor who, in turn, should pass the details to the Assessor. This applies equally to membership of organisations or clubs, which are not open to the public (e.g. Freemasonry). You need only declare interests which relate to your work with the Board. If you declare an interest, you will not normally be required to continue to work or take decisions relative to this interest. In certain circumstances, your activities outside work may be restricted due to your employment, eg political or commercial activities. 4.5 Confidentiality The Board’s decision making process must be as transparent and open as possible and this should be the basis on which you normally work. The Board must provide the public with clear and accessible information about how it operates. There are exceptions, however, to the principle of openness where confidentiality is involved, and information may be withheld if, for example, it would compromise a right of personal or commercial confidentiality or Board Policy. This does not apply where there is a legal duty to provide information. If there is any doubt you should raise the matter with your line manager/supervisor. You must not break the law in this area. The provisions of the Freedom of Information (Scotland) Act 2002 are relevant in this regard. 4.6 Employment outside the Board The Board will normally allow employees to undertake paid employment outside the Board unless there is a clear conflict of interest, or it is likely to have an adverse effect on the work of the Board. Employees should seek advice from their line manager/supervisor if they are in doubt and, where approval is given, details should be forwarded to the Assessor & ERO, for retention in personnel files. Any fees, commissions or other payments received by an employee as a Page 188
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consequence of their acting as an officer of the Board shall, unless otherwise directed by the Board, be paid to the Board. 4.7 Gifts and Hospitality You may occasionally be placed in a position where you have to decide whether or not to accept offers of gifts or hospitality from organisations or businesses associated with the Board. It is essential that any suggestions of improper influence should be avoided. The general rule should be to refuse, tactfully, offers or gifts from businesses, organisations, or individuals who are associated with, or wish to be associated with the Board commercially. Gifts should also be refused from organisations or individuals seeking, or at some stage in the near future may be expected to seek, a particular decision or action from the Board or the Assessor & ERO. In certain circumstances, hospitality or gifts not exceeding £30 in value may be accepted, but you should refuse repeated gifts or hospitality from the same source. In any event, all offers of gifts and hospitality should be notified to your line manager/supervisor who will forward the information to the Assessor for recording in a register of gifts and hospitality. This recording mechanism will enable the Board to respond to any queries on such issues. When making a visit to inspect domestic or non-domestic property or to attend meetings, you must ensure that the Board pays for the cost of these visits. 4.8 Corruption It is important that employees are aware that it is a serious criminal offence for them corruptly to receive or give any gift, loan, fee, reward or advantage for doing or not doing anything, or for showing favour or disfavour to any person, in the course of their work with the Board. 4.9 Use of Financial Resources You must ensure that any public funds entrusted to you are used in a responsible and lawful manner. You must strive to ensure value for money to the local community and to avoid legal challenge to the Board. 4.10 Use of Other Resources You are not permitted to use materials, equipment or resources of the Board for outside employment or for personal benefit without the permission of the Board. In particular, employees with access to a computer should make themselves aware of the relevant policy and associated documents on its use including internet and e- mail access. Page 189
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4.11 Appointments The Board has Recruitment and Selection Policies which set out the basic principles which must be taken into consideration to enable the Board to achieve a corporate and consistent approach in the critical area of recruitment and selection and to comply with employment legislation and associated codes of practice. All appointments must be carried out fairly and openly and candidates appointed on the basis of merit. If you are involved in the recruitment and selection process and have any kind of relationship which might affect your ability to be impartial, that relationship must be declared to the Assessor & ERO, who will decide whether you can participate in the process. The same procedure must be followed in other personnel procedures such as grievance or disciplinary procedures or job evaluation. You must not lobby Members or colleagues either directly or indirectly to secure personal appointment or promotion, or the appointment/non-appointment or promotion of another person. Any employee who has been lobbied by an applicant, a colleague or any other person must report the matter immediately to the Assessor & ERO. 4.12 Contacts with the Media All contact with the media should normally be directed through the Assessor & ERO. Designated officers may, however, speak to the media on issues related to their direct area of responsibility. Designated officers are limited to staff with statutory Depute status except in exceptional circumstances. Staff below the level of Assistant Assessor are unlikely to have direct contact with the media. 4.13 Public Statements Outside work, you are entitled to express your views about the Board provided you do not make use of any private information gained through your work with the Board. But, in your work capacity, you must not criticise the Board either through the media or at a public meeting, or in any written communication with members of the public. This includes responding to public consultations the Board hosts on social media, for example Facebook or X. Employees who have serious concerns about any aspect of the Board’s work are referred to the Confidential Reporting (“Whistleblowing”) Policy. 4.14 Political Neutrality and Services to Members The public expects employees of the Board to undertake their duties in a politically neutral manner and this must be respected by Members. The political activities of a small number of employees are restricted by law. Employees must serve the Board and all Members regardless of their political outlook. The Assessor & ERO and senior officers have ultimate responsibility to help ensure that the policies of the Board are implemented. All employees must implement the Board’s policies irrespective of their personal views. Page 190
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In the event of an employee receiving a request from a Member to provide assistance with a matter which is clearly party political or which does not have a clear link with the work of the Board, the employee should refer the matter to their line manager/supervisor who, if necessary, should report the matter to the Assessor & ERO for clarification. Some senior employees may from time to time require to have a close working relationship with Members or Councillors of the major political group(s) of the constituent councils. Political groups may sometimes seek advice from employees of the Board particularly in relation to electoral matters. The following procedures will assist employees who may be requested to give advice to political groups:- • The political group’s office bearer must first approach the Assessor & ERO • They must tell the Assessor & ERO what type of advice they are seeking. • The Assessor & ERO will decide whether the advice can be given, when and by which employee. • If attendance at a meeting is involved, the employee must leave after giving the advice and before any decision is taken. • The employee must observe strict confidentiality. The discussion in one political group or Council should not be disclosed to another political group or Council or to any member of such a group or another Council. 5.0 The Rights of the Employee 5.1 Public Statements As citizens, employees are entitled to express their views about the Board, provided they do not make use of any private information gained through their work with the Board. They should not, in their working capacity, or as a result of their employment relationship, criticise the Board either through the media or at a public meeting, or in any written communication with members of the public. 5.2 Access to Councillors As citizens, employees are entitled to raise any complaints which they may have about the constituent Council’s services with their Councillor or via the Council’s Complaints Procedure. Complaints relating to any aspect of your employment with the Board should be raised with your line manager/supervisor or via the Board’s Grievance Procedure or Harassment Policy. Page 191
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5.3 Fair and Reasonable Treatment at Work Employees are entitled to expect fair and reasonable treatment from their colleagues, managers and Board Members. If you feel that you have been unfairly treated or have been discriminated against, you are entitled to make use of the appropriate Board policies and procedures (e.g. Grievance Procedure, Disciplinary Procedure, or Harassment at Work Policy). There may be rare occasions when an employee feels that they have been required by a colleague, a Board Member, a member of the public, or an organisation to act in a way which might be illegal, improper or unethical, or which is otherwise in conflict with the principles of this Code or the procedures of the Board. Employees are referred to the Board’s Confidential Reporting (“Whistleblowing”) Policy for dealing with such concerns, which includes the following steps:- • Raise concerns with your immediate line manager/supervisor. • If you feel you cannot discuss the matter with your line manager/supervisor then the matter should be reported to the Principal Administration Officer who acts as the Board’s Confidential Reporting Officer, or directly to the Assessor & ERO. • The Principal Administration Officer, following consultations as appropriate, with the Assessor & ERO or other Senior Officers, will determine what action should be taken. 6.0 Associated Documents 6.1 Readers are also referred to the following policies and procedures:- • Financial Regulations • Anti-Fraud and Corruption Policy • Confidential Reporting (“Whistleblowing”) Policy • Disciplinary Procedure • Grievance Procedure • Recruitment and Selection: Policy and Procedures • Harassment at Work Policy Page 192
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APPENDIX A A PROTOCOL FOR RELATIONS BETWEEN COUNCILLORS AND EMPLOYEES (as issued in December 2021 by the Scottish Ministers, with the approval of the Scottish Parliament, as required by the Ethical Standards in Public Life etc.(Scotland) Act 2000 (the “Act”). Definitions The reference to ‘employees’ below covers all employees and officers of councils and all officers and employees of any other body or organisation to which a councillor is appointed or nominated by the Council. The reference to ‘Convener’ below covers all committee chairs and portfolio leads. The reference to ‘chief officers’ covers all Chief Executives, Directors and Heads of Service. The reference to ‘committee’ also covers all forms of executive and scrutiny operating models. Although the Board is not a Council, the protocol is still appropriate for Board Members and Board Employees and should be read in that context. Principles 1. This protocol outlines the way in which councillors and employees should behave towards one another. It should be noted that while some scenarios are included, these are not exhaustive. The protocol should be treated, therefore, as applying in all situations where there is interaction between councillors and employees. 2. Councillors and employees should work in an atmosphere of mutual trust and respect, with neither party seeking to take unfair advantage of their position or influence. Roles 3. Councillors are required to provide strategic leadership and oversight. This involves setting strategy and policy, scrutinising and making major, complex decisions that concern the Council as a whole. Councillors are not, however, responsible for operational management (being the planning, organising and execution involved in day-to-day activities) as this is the role of employees. Chief Executives and senior employees have ultimate responsibility to ensure that the Council meets its responsibilities. 4. Legally, employees are employed by the Council / other body and are accountable to it as an entity. Employees are responsible for serving the Council/other body as a whole, and not any particular political group, combination of groups or individual councillor. It is nevertheless appropriate for employees to be called upon to assist any political group in its deliberations or to help individual councillors fulfil their different roles (see the section on political groups below). Page 193
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Office bearers 5. For the Council to perform effectively, it is important that there is a close professional working relationship between a committee convener and the director and other senior employees of any service reporting to that committee. However, such relationships should never be allowed to become so close, or appear to be so close, as to bring into question an employee’s ability to deal with other councillors impartially, or the ability of a convener to deal with other employees impartially. 6. Conveners will have many dealings with employees. While employees should always seek to assist committee chairs, they are ultimately responsible to the relevant chief officer and not to any convener. 7. Conveners will often be consulted on the preparation of agendas and reports. Employees will always be fully responsible, however, for the contents of any report submitted in their name and will always have the right to submit reports to councillors on their areas of professional competence. The Convener does not have a right to veto this course of action. 8. Conveners are recognised as the legitimate elected spokesperson on their committee’s area of responsibility. Where authority is delegated to employees, they may choose to consult the relevant convener about any action they propose to take. The employee nevertheless retains responsibility for the final decision (as long as the delegated authority remains in place). Political groups 9. Most councils operate through a system of groups of councillors, many of them based on political affiliation. All employees must treat all political groups and individual councillors in a fair and even-handed manner and must maintain political neutrality at all times. 10. Employees can provide political groups with support (such as discussing matters with the convener and vice-convener before a committee meeting or presenting information to a group meeting). While, in practice, such support is likely to be most in demand from whichever political group is in control of the Council, it nevertheless should be available to all political groups. The advice given by employees to different party or political groups should be consistent. 11. Councillors and employees must act in accordance with the council’s rules about the access and support to be provided to political groups (for example, that all requests must be approved by the Chief Executive). 12. Employee support for political groups must not extend beyond providing information and advice in relation to matters of council business. Employees should not be asked, or be expected, to be present at meetings or parts of meetings when matters concerning party business are being discussed. It is the responsibility of the convener of the political group meeting to ensure that all attending are clear on the status of the meeting and the basis on which any employees are present. 13. Councillors and employees must note that while political group meetings may form part of the preliminaries to council decision-making, political groups are not empowered to make decisions on behalf of the Council. Conclusions reached at such meetings are Page 194
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not council decisions and it is essential that they are not interpreted or treated as such. 14. Employees can provide information and advice in relation to matters of council business to political groups. Employees are nevertheless responsible for ensuring that all necessary information and advice is still provided to the relevant committee or sub- committee when the matter in question is considered. 15. Political groups must recognise that information and advice given by employees should be used to enhance discussion and debate at council and committee meetings. Such information or advice should not be used for political advantage (for example by issuing media briefings before a decision is made), as doing so could devalue the decision- making process and can place employees in a difficult position. 16. Employees should take special care when providing information and advice to a meeting of a political group where other individuals who are not elected members of the Council are in attendance, as such individuals will not be bound by the Councillors’ Code (and, in particular, the provisions concerning the declaration of interests and confidentiality). 17. Employees must treat any discussions with a political group or individual councillor as being strictly confidential. 18. Any difficulties or uncertainty about the extent of advice and information that can be provided to political groups should be raised with the Chief Executive (who should then discuss the matter with the group leader). Councillors as local representatives 19. Councillors should ensure they act in accordance with the provisions of the Councillors’ Code and this protocol when performing such a role. Elected members must recognise that, when performing their local representative role, they are representing the Council. Employees must treat all councillors fairly and openly in their role as local representatives. Communications 20. Employees should not normally copy any communications they have with an individual councillor to any other councillor, unless they have been clear in advance that they intend to do so (or this has been agreed). Human resource issues 21. Where councillors are involved in the appointments of employees they must act fairly and openly, and make decisions solely on merit. 22. Councillors should not become involved in issues relating to any individual employee’s pay or terms and conditions of appointment, except while serving on a committee tasked with dealing with such matters. Social relationships 23. The relationship between councillors and employees depends upon trust, which will be enhanced by the development of positive and professional relationships. While Page 195
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councillors and employees may often find themselves in the same social situations, they should take care to avoid close personal familiarity as this can damage the relationship of mutual respect and the belief that employees can undertake their role in an impartial and objective manner. Councillors and employees should, therefore, be cautious in developing close personal friendships while they have an official relationship. Public comment 24. Councillors and employees both have a responsibility to project a positive image of the Council and should avoid making any public comments that could bring it into disrepute. 25. Councillors should not raise any adverse matters relating to the performance, conduct or capability of employees in public. Employees must ensure they treat councillors with similar respect and courtesy. Employees supporting councillors 26. Where councils arrange for employees to provide direct administrative or practical support for individual councillors to help them undertake their duties, particular considerations will apply. While councillors may ask employees to provide such support in a particular way, they must nevertheless remember that the employee is accountable to their line manager. Any issues about conflicting priorities, conduct or performance must be referred to the line manager. Version History Version Status Date By 1 Approved 01/02/2019 GVJB 2 Draft 10/24 MJA 3 Page 196
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REPORT TO: Grampian Valuation Joint Board on 31 January 2025 SUBJECT: Valuation Roll & Council Tax Valuation List BY: Depute Assessor & ERO (Aberdeen & Moray) 1. Reason for Report 1.1 To provide an operational update on the valuation services provided by the Assessor including the performance levels achieved during the period 1 April 2024 to 15 January 2025. 2. Recommendation 2.1 It is recommended that the Board note the report. 3. Background 3.1 3.2 The Board’s Code of Corporate Governance sets out a framework of performance measurement and evaluation. This framework identifies a number of quantitative service-related performance indicators. The current thresholds for the performance indicators that have been agreed between the Scottish Government and the Scottish Assessors Association were reviewed by the Board in January 2024. 4. 4.1 4.1.1 4.1.2 Valuation Roll Appeals Revaluation 2017 appeals 13 revaluation appeals remain outstanding with the Upper Tribunal for Scotland, a reduction of six since June 2024. Revaluation 2017 Running Roll appeals All appeals transferred to the First-tier Tribunal for Scotland were resolved by the statutory disposal deadline on 31 December 2024. 8 appeals remain outstanding with the Upper Tribunal for Scotland. Item 11. Page 197
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4.1.3 Revaluation 2023 proposals The disposal of the 2,456 Revaluation 2023 proposals that were received last year is progressing well, with around 75% now resolved. The last date for their disposal is 30 September 2025, although the majority should be determined by the end of the first quarter of 2025. The conversion rate from proposals made to the Assessor to appeals lodged with the First-tier Tribunal in this new two stage process is encouragingly low at this point at 3.5% of proposals dealt with. 4.2 Running roll updates Appendix 1 provides performance for running roll updates to the Valuation Roll during the period from 1 April 2024 to 15 January 2025 and the previous two full years. 5. 5.1 5.2 Council Tax Valuation List Updates to the List Appendix 2 provides performance information for updates to the Council Tax Valuation List during the period from 1 April 2024 to 15 January 2025 and the previous two full years. Proposals and Appeals There are currently around 50 live Council Tax proposals and appeals, which are in the process of being resolved mainly through discussion at the initial proposal stage, but also by way of formal appeal hearings set by the First-tier Tribunal for Scotland where no agreement was possible at the first stage. 6. Conclusion The KPIs in both systems have been impacted by a challenging period in which an understrength valuation team has been required to deal with a new two stage non-domestic appeal process, the onerous self-catering unit review described in earlier reports and the citation by the First-tier Tribunal of large numbers of appeals delayed first by Covid and then the overwhelming numbers transferred to them from their predecessor Committees. With encouraging developments in regard to recruitment and the vast majority of the pre-Revaluation 2023 appeals now resolved it is anticipated that the KPI statistics can be improved going forward. Author of Report: Gavin M Oag Depute Assessor & ERO Page 198
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Appendix 1 Valuation Roll Performance Indicators as at 15 January 2025 Time period 2024/2025 2023/2024 2022/2023 (part year) Amendments within time periods The number of amendments made to the valuation roll during the year as a result of material change of circumstances, error corrections and new subjects. The time period is the period between the effective date of the amendment and the date the corresponding Valuation Notice is issued. 0 - 3 Months % Threshold % 3 - 6 Months % Threshold % Over 6 Months % Threshold % 380 37.62% 65.00% 173 17.13% 20.00% 457 45.25% 15.00% 915 35.92% 65.00% 426 16.73% 20.00% 1,206 47.35% 15.00% 527 30.41% 65.00% 338 19.50% 20.00% 868 50.09% 15.00% Number of amendments 1,010 2,547 1,733 Total number of entries At 1 April 30,167 30,296 30,326 Total Rateable Value At 1 April £937M £934M £1,002M Item 11. Page 199
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Appendix 2 Council Tax Valuation List Performance Indicators as at 15 January 2025 Time Period 2024/2025 2023/2024 2022/2023 (part year) New Entries within Time Periods The time period is the period between the effective date of the amendment and the date the corresponding Banding Notice is issued. 0 - 3 Months % Threshold % 3 - 6 Months % Threshold % Over 6 Months % Threshold % 1,799 74.74% 94.00% 440 18.28% 3.00% 168 6.98% 3.00% 1,961 64.70% 94.00% 507 16.73% 3.00% 563 18.57% 3.00% 1,938 71.12% 94.00% 623 22.86% 3.00% 164 6.02% 3.00% Number of New Entries Added The actual number of new dwellings added to the Valuation List during the year. 2,407 3,031 2,725 Total Number of Entries The actual number of properties shown in the Valuation List as at 1 April annually. 305,005 302,364 300,067 Adjusted to Band “D” Equivalent Original ratios 304,325 301,317 298,616 2017 ratios 320,614 317,377 314,462 Item 11. Page 201
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REPORT TO: Grampian Valuation Joint Board on 31 January 2025 SUBJECT: Electoral Registration BY: The Principal Admin Officer 1. Reason for Report 1.1 To update the Board on current developments in electoral registration. 2. Recommendation 2.1 It is recommended that the Board consider and note the content of this report. 3. Background 3.1 UK Parliamentary general election 4 July 2024. 3.2 Annual Canvass 2024. 3.3 Local Government by-elections 7 November 2024. 3.4 Community Council boundary changes and polls. 3.5 Statutory Review of Polling districts and polling places. 3.6 Annual Signature Refresh and reserved postal vote renewal. 4. Electoral Registration Update 4.1 UK Parliamentary general election 4 July 2024 4.2 The period leading up to the general election on 4 July 2024 was extremely busy. However, our approach to staff resourcing, based on a gradual upscaling using temporary canvass staff, core staff from other teams such as senior managers, secretarial and IT staff as well as additional hours worked by the core admin team, worked very well. We were able to safely deliver all the necessary processes in support of the election to a high standard, and on time. Item 12. Page 203
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4.3 Some of the most challenging aspects arose from the new rules around postal voting introduced by The Elections Act 2022, with applicants now required to pass an identity verification check when applying for a postal vote at a reserved poll. This requirement meant that on the postal vote closing date several hundred applications where the applicant had not met the identity check requirements remained on hold awaiting supporting documentation. Our core processing staff made every effort to contact these electors, communicating both the urgency of the matter and the impact of any lack of action. This work was not easy due to the lack of functionality/insufficient clear visibility of the current state of each application within the ERO portal, making it challenging to efficiently identify and handle these follow up contacts. 4.4 This situation was further complicated given that there is no deadline in law, meaning that applications could be determined up to and including on polling day, provided the applicant presented the necessary documentation to the Electoral Registration Officer (ERO). Given the practicalities of an elector presenting evidence to an ERO at a very late stage, this having to be communicated to the Returning Officer (RO) and the RO then arranging for a ballot pack to be produced and then delivered or collected by the elector, it was agreed that a cut off must be set. Through The Electoral Management Board for Scotland (EMB), agreement was reached across Scotland that the determination deadline would be midday on 3 July 2024. In addition to the problems around the late issue of ballot packs, there is also an impact on the polling station registers and lists of absent voters which, at the time of the agreed deadline, we had already produced and handed over to election teams. Arrangements had to be made for replacement pages of the register and lists of absent voters to be supplied. The number of electors involved in these final processes was very small, but the impact was considerable in terms of the additional processes and ensuring that everything was done correctly. This was a crucial piece of work, as the potential risk of the documents held at the polling station not matching the fully up to date list of absent voters was that an elector could vote twice. 4.5 The new proxy limits introduced by The Elections Act 2022 also required additional measures to be put in place by ERO staff to ensure that limits were not breached. At a reserved election a proxy can vote on behalf of a maximum of 4 people, of which a maximum of 2 may be domestic electors. Domestic electors are neither overseas voters or service voters. Our electoral management system (EMS) functionality did not support detection of any breach of the limits at the time of processing. Monitoring of the proxy limits was carried out by extracting and checking a report and then following up with electors and proxies. This did mean that appointed proxies were being contacted subsequent to an excess of applications being processed with decisions then being needed on which appointments would remain in place. At times making contact with the proxy or elector needed repeated attempts and alternative applications had to be made within limited timescales. Page 204
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4.6 Downstream of our processes, there were well publicised problems with the timely delivery of postal vote packs. Although this did not result from any failing on the part of our service, we were adversely impacted by additional contacts from the public by email and telephone. While callers were politely directed to the relevant council election team, ERO staff were dealing with many additional calls from electors who were understandably anxious about being able to cast their vote and reluctant to be directed to another service when their postal vote acknowledgement letter had been issued by the ERO. Once the ordinary proxy deadline had passed, six working days before the poll, and the emergency proxy provisions came into force, a small number of extremely persistent electors attempted to apply for an emergency proxy due to the fact that they had not received their postal ballot paper. These issues around delayed postal votes and the call for emergency proxies to be available to replace them led to the issue of a statement by the EMB: DELAYED DELIVERY OF POSTAL VOTES: STATEMENT FROM THE ELECTORAL MANAGEMENT BOARD FOR SCOTLAND (EMB) – Electoral Management Board for Scotland. 4.7 Annual Canvass 2024 4.8 As reported to the Board on 28 June 2024, preparation and planning for the annual canvass had commenced earlier than usual with the intention of completing the canvass prior to an autumn general election. With the calling of the general election on 22 May all canvass activity was put on hold. 4.9 Immediately after the poll on 4 July a revised plan had to be developed including the requirement to agree an amended timetable with our contract printer for the hundreds of thousands of letters which must be printed and dispatched during the canvass. 4.10 Our usual canvass timetable has the initial letters posted in the first week of August with all follow up activity being completed by late November. For the delayed canvass in 2024 the first letters were posted on 3 September and the final follow up visits were carried out in the week commencing 20 January 2025. 4.11 One key decision taken at the outset was that we would delay the publication of our revised register from 1 December 2024 until 1 February 2025 as is permitted where an election takes place during the canvass period (which officially commences on 1 July) - Section 13 (1A) of the Representation of the People Act 1983 (as amended). In arriving at this decision we considered a number of factors including the fact that there would be a number of by-elections to be supported during the canvass and the requirement to implement changes arising from the Polling District and Polling Place reviews. 4.12 All organisations and individuals who receive the register on publication or on request were notified that the revised register would be published on 1 February 2025 rather than 1 December 2024. Additional monthly alteration notices were produced and distributed on 3 December 2024 and 3 January 2025 to entitled recipients and were offered for sale to Credit Reference agencies. 4.13 We are on track to complete year end processes, which will include implementation of polling district boundary changes, before producing the revised registers for publication on 1 February 2025. Page 205
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4.14 The numbers of follow up activities for canvass non-responses have been very similar to 2023, again requiring in excess of 50,000 house visits and just under 5,000 telephone canvass contact attempts. In addition to sending emails (Ecomms) to matched properties at the start of the canvass, we have also sent Ecomm reminders to unmatched properties on 2 occasions to encourage households to provide their response. Despite this additional activity we do expect our overall return rate to be slightly reduced and this is likely due to electors perception that there was no need to take action given that they have very recently voted at a general election. This reduced response rate has been noted by some of our colleagues in Scotland. Canvass response rates for all EROs will be collated through the Scottish Assessor’s Association (SAA) Electoral Registration Committee (ERC) in due course. 4.15 Arrangements will be made in due course for the printing of paper copies of the register for distribution to local and national libraries. With the closure of the Xerox printing facility in the basement of Woodhill House we are looking into alternative providers. 4.16 Local Government by-elections 7 November 2024 4.17 Following the resignation of 4 councillors, 2 having been elected to the Westminster Parliament, by-elections were held in Aberdeenshire, Ward 3 – Fraserburgh and District, Ward 4 – Central Buchan, Ward 19 – Mearns and in Moray Ward 7 – Elgin City South. 4.18 Where by-elections are held during the canvass there is a need to prioritise processing of applications within the by-election area and we adjusted the distribution of canvass visits being carried out in October to target the by-election areas. None of these adjustments was particularly onerous. 4.19 While three of the by-elections were administered using our standard processes, Aberdeenshire Council had decided to trial the Modern Polling product, provided by the company Modern Democracy, for the Fraserburgh and District poll. Modern Polling is a Cloud based digital polling station platform. This did require some extra work on the part of ERO staff to extract additional data from our Electoral Management system (Eros), in different formats, earlier in the process and more frequently. While this did not have a major impact for one by-election it would have at a major set of elections and would require early engagement from any council involved to allow plans to be put in place for this additional work. 4.20 Community Council boundary changes and polls 4.21 Aberdeen City Council advised us early in 2024 that they would hold their triennial elections for community councils on 3 October 2024 with the nomination process opening on 14 August. In early June they notified us that they had made a number of changes to community council boundaries. 4.22 Aberdeenshire council advised us in mid-July that they would be running community council elections with nominations opening on 19 August with any polls taking place on 19 September. Page 206
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4.23 Production of registers for community council areas for any of our constituent authorities is a simple process. However the processing of boundary changes requires considerable preparation and planning, not least because we need the help of an IT specialist to process the shape files provided by the council teams. 4.24 With the commitment of all the staff involved we managed to complete the work and supply the registers within the required timescales, however this undoubtedly impacted on our main effort which was delivery of the annual canvass. 4.25 Statutory Review of Polling Districts and Polling Places 4.26 Both Aberdeen City and Aberdeenshire councils have completed their review of Polling Districts and Polling Places and we are currently working on setting up the changes on the Eros system. The changes will be implemented as part of the year end processes prior to producing the revised register in time for 1 February 2025 publication. Moray Council have indicated that they will not be making any changes to polling districts at this time. 4.27 The majority of the changes in Aberdeen City and Aberdeenshire consist of the merging of small polling districts which were created as a consequence of the amendments to the UK Parliamentary boundaries which took effect at the general election on 4 July. While these small polling districts had to be available to be output separately as part of their “old” constituency in the event of a request for the supply of the register from the incumbent member, or where a recall petition or a by-election was called before the general election, they can now be merged with larger polling districts within their new constituency. Once these merges are processed there will be consequential renumbering of the remaining polling districts in many of the affected wards and redundant polling districts to be deleted. In Ward 1 of Aberdeen City there is a reconfiguration of the boundaries of polling districts DN0105 Stoneywood and DN0107 Bankhead. Once the boundary change has been processed, DN0107 Bankhead will be renamed as Bucksburn West, and DN0108 Bucksburn will be renamed as Bucksburn East. This project must be completed prior to year end in order for the changes to take effect in the revised register and has required a considerable commitment of admin resources and the expert assistance of one of our IT analysts to carry out the task. 4.28 Annual Signature Refresh and reserved postal vote renewal 4.29 The annual refresh of signatures now relates only to devolved absent votes where the applicant must provide a new signature at the 5-year point. Initial letters were issued on 15 January 2025 to 8,500 postal voters and 36 proxy voters. Under the new rules introduced by the Elections Act 2022, electors who hold a reserved postal vote will be required to reapply before their postal vote expires, with the maximum duration being 3 years. 4.30 We are in the early stages of planning the write out to those electors whose reserved postal vote will expire on 31 January 2026. Page 207
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Author of Report: Linda H Smith, Principal Administrative Officer 5.0 Conclusion 5.1 While it had been known that a UK Parliamentary general election would take place in 2024, the timing was unexpected. Running a general election is always challenging and this time we were implementing some fundamental changes to the absent voting system for the first time, in addition to the extension of the overseas elector franchise and the processing of voter ID. Many tasks had to be carried out using new IT systems which were developed by the UK Government. Our staff performed admirably in making this event a success. 5.2 We have successfully delivered another annual canvass, but at times this was challenging due to additional short notice tasks. Again, staff showed great commitment and resilience to deliver all of our objectives. 5.3 Although there are no scheduled elections in 2025, it will be another very busy year. In addition to the required write out to reserved electors, changes to the rules on absent voting in Scotland are planned, leading to convergence with the UK rules and resulting in another major revision of our processes. Page 208
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REPORT TO: Grampian Valuation Joint Board on 31 January 2025 SUBJECT: Staff Vacancies, Recruitment & Upskilling Existing Staff BY: The Depute Assessor & ERO (Aberdeenshire) 1. Reason for Report 1.1 To update the Board on the current level of staff vacancies, recruitment and the upskilling of existing staff. 2. Recommendation 2.1 It is recommended that the Board consider and note the contents of this report. 3. Background 3.1 At the January 2023 meeting of the Board, it was requested that the Board be updated at each meeting on the level of vacancies and the steps being taken to improve the situation. 4. Current Vacancies 4.1 There are currently eight vacant posts: Section Establishment (FTE) Number of vacancies (FTE) Clerical 29 1 IT 3 1 Management 3 0 Secretarial 3 0 Technical 13 2 Valuation 30 4 Total 81 8 Item 13. Page 209
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5. Recruitment 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 Once more, I am pleased to be able to inform you that since the last report to the Board in October 2024 we have successfully recruited candidates to a number of posts. The experienced Chartered Surveyor recruited to the Valuer Post in Elgin will assume the post in mid February 2025. We have recruited an experienced Chartered Surveyor from the private sector to a Valuer post in Aberdeen and they started on 3 January 2025. We have filled one of our vacant Technical Assistant posts with the appointee having started in the post on 20 January 2025. We still have a number of vacant Valuer and Technical Assistant posts within our structure and we are maintaining our efforts to fill these vacancies. Following the retirement of the Administrative Officer in December, the vacancy was advertised internally and following interview an appointment was made. The vacancy left by this appointment will be advertised internally in the first instance and I would hope that a suitable candidate will be forthcoming. A vacant Clerical Officer post was filled by an existing Electoral Registration Assistant (ERA) and the resultant vacancy for the ERA post was filled by an external candidate with both appointments effective from 25 November 2024. Recent appointments to the Valuation and Technical sections of the organisation do not seem to be due to any change in the way these posts have been advertised. Recent interest in the Valuation Section vacancies has been by direct contact from existing surveyors in the private sector. 6. Action Being Taken 6.1 It is still our intention to review the IT vacancy following the completion of the work to move to Aberdeenshire IT infrastructure, which is now nearing completion. We are still advertising the remaining valuation vacancies through our own website and will continue to review timing for future adverts for these posts in RICS Recruit and myjobscotland. 6.2 6.3 In conjunction with other Assessors, we are developing our training framework for our Graduate Trainee Valuers. This is to not only assist them with successfully completing their Assessment of Professional Competence, but also as method to attract high quality graduates who may be comparing the training framework of potential employers before applying for or accepting a post. The Scottish Assessor’s Association is collating information which will allow Assessors to showcase career paths and development opportunities in Assessors’ offices. Page 210
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7. Conclusion 7.1 7.2 As we move forward in the 2026 Revaluation cycle, it is encouraging to see that we are having more success in recruiting qualified staff to our organisation. Whilst we still have a number of vacancies, recent appointments will assist us in our ongoing statutory duties. We continue to explore ways to make our organisation an attractive employer to potential applicants and of course for our existing staff. We are also still seeking more opportunities for joined up working at a national level on recruitment issues. Author of Report: James A Barron Depute Assessor & ERO Page 211
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REPORT TO: Grampian Valuation Joint Board on 31 January 2025 SUBJECT: Public Performance Report BY: The Assessor & ERO 1. Reason for Report 1.1 To seek approval for the publication of the 2023/24 public performance report. 2. Recommendation 2.1 The Board note the content and agree to the publication of the Public Performance Report provided as an appendix to this report. 3. Background 3.1 The Board’s Code of Corporate Governance requires publication of an annual report incorporating financial and performance information. 4. Current position 4.1 The public performance report provides financial, staffing and sickness absence data along with statistical data relative to the organisation’s three service strands - Council Tax, Valuation Roll and Electoral Registration. The report does not provide the same level of detail provided in the routine performance reports to the Board. It does however seek to provide an overview of the organisation’s performance. 4.2 The report focusses on the priorities identified in the management commentary to the audited accounts and provides statistical information that shows how the organisation has performed over recent years. The report also illustrates the reactive nature of services that an Assessor and ERO must be prepared to deliver against extremely tight statutory timelines and changing circumstances. 5. Conclusion 5.1 Valuation Roll and Council Tax key performance indicators were below target but this was perhaps to be expected given the level of valuation vacancies. However, the organisation did meet all its statutory objectives and this is a credit to the dedication and hard work of the staff. Author of Report: Mark J Adam, Assessor & ERO Item 14. Page 213
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1 Grampian Assessor & Electoral Registration Officer Public performance report for 2023/24 Introduction The Grampian Assessor & Electoral Registration Officer (ERO) is an independent statutory official appointed by the Grampian Valuation Joint Board to value non-domestic properties for rating purposes, allocate dwellings to council tax bands and provide an electoral registration service for the Aberdeen, Aberdeenshire and Moray Council areas. General Information The Grampian Valuation Joint Board is a public body that funds the Assessor & ERO by means of requisitions from Aberdeen, Aberdeenshire and Moray councils and the net expenditure for 2023/24 was £4.536M resulting in an underspend of £0.674M against the budgeted figure for the financial year. The Board has a full-time equivalent of 81 posts distributed between offices in Aberdeen, Banff and Elgin. At 31 March 2024 there were 66 full-time equivalent staff in post. In 2023/24, staff absence due to ill health was 2.4%, a 0.7% increase from 2022/23 but still comparing well to previous years. A review of our 2023/24 priorities The following operational priorities were specifically identified in the management commentary for the year. They must not be considered in isolation as the organisation has a wide range of on-going priorities that relate not only to operational activities but also to our duty to eliminate discrimination and mainstream equalities, manage our records to the satisfaction of the Keeper of Records, protect data and provide information on request and in line with current law. Implement a full household canvass. The annual canvass of households has been the subject of major reform in 2020 and the 2023 canvass was the fourth canvass using the now established method. Data matching is used at the outset to help identify those properties where the residents are more likely to have changed, the initial match being a comparison of the electoral register with information held by the Department for Work and Pensions (DWP). Canvass Communication letters (CCA) advising who was on the register were issued to around 198,000 households where we held matched data (Route 1) and a response was only required where there were changes - the issue of a CCA concludes the canvass for Route 1 properties. Different Canvass Communication letters (CCB) were issued to around 97,000 households where there was unmatched data (Route 2) and a response was required from these households. If no response was received from these Route 2 properties, follow up action was required, including, potentially, a personal contact. Around 200 properties, including residential homes, were selected for Route 3 whereby information about the occupants was sought from a “responsible person” rather than the occupants themselves. A comparison of the 4 years from 2020 is shown below. Households are still encouraged to use our automated response channels in the first instance as they require less back-office processing and are less costly for the public purse. Item 14. Page 215
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2 Annual Canvass of households 2020 2021 2022 2023 DWP Match Rate 83.11% 83.09% 83.21% 82.91% Number of Properties in Route 1 191,982 198,279 192,288 197,946 Number of Properties in Route 2 95,095 91,452 99,818 97,074 Route 2 overall response rate (%) 61.40% 60.30% 62.20% 61.50% Number of Properties in Route 3 271 227 156 220 Publish revised registers by 1 December 2023. The revised registers were published on 1 December 2023. The local government franchise electorate rose from 448,915 to 452,084 between 1 December 2022 and 1 December 2023 with the Westminster franchise electorate increasing slightly from 413,739 to 415,935 over the same period. Register publication date Local Government Electorate Number of households canvassed 1 December 2023 452,084 294,639 1 December 2022 448,915 292,262 1 December 2021 448,607 289,958 1 December 2020 448,331 286,999 1 February 2020 445,960 282,999 Dispose of the remaining appeals lodged in respect of the valuation roll in force from 1 April 2017 The deadline for disposal of appeals lodged in respect of the valuation roll in force from 1 April 2017 was extended to 31 December 2024 and the First-tier Tribunal Local Taxation Chamber had a program of disposal which proved to be quite challenging given that the number of outstanding appeals in Grampian stood at around 3,100. However, the majority of these were material change of circumstances appeals, lodged as a result of the pandemic, and we saw ratepayers withdraw these appeals in bulk without any discussions taking place with our valuers. Maintain complete and accurate Valuation Rolls and Valuation Lists. These two priorities use quantitative target-based performance indicators rather than qualitative measures and as such can be misleading at times as achieving the targets relies partly on the timeous receipt of information from the owners and occupiers of dwellings and non-domestic properties. Valuer vacancies again impacted on the organisation’s ability to meet the timescales suggested by the key performance indicators for 2023/24. Table 1 shows the number of new dwellings added to the Council Tax Valuation Lists in Grampian over the last 5 years and also the percentage that received notification within the 3 and 6 month performance windows. Table 1 also shows the performance thresholds that have been set. Table 1 The time taken to add new dwellings to the Council Tax Valuation List Within 3 months Within 6 months Year Number Threshold Actual Threshold Actual 2023/24 3,031 94% 65% 97% 82% 2022/23 2,725 94% 71% 97% 94% 2021/22 2,964 94% 83% 97% 95% 2020/21 2,212 94% 61% 97% 80% 2019/20 3,437 94% 90% 97% 97% Page 216
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3 Table 2 shows the number of alterations made to the Valuation Roll over the last 5 years along with the percentage of alterations that were made within the 3 and 6 month performance windows. The performance thresholds are also provided. Alterations include new entries to the Valuation Roll for newly constructed or converted buildings as well as alterations to existing buildings and the correction of errors. Table 2 The time taken to alter the Valuation Roll Within 3 months Within 6 months Year Number Threshold Actual Threshold Actual 2023/24 2,545 65% 36% 85% 53% 2022/23 1,732 65% 30% 85% 50% 2021/22 1,683 65% 39% 85% 72% 2020/21 1,430 70% 30% 85% 49% 2019/20 1,984 70% 59% 85% 77% Conclusion The nature of the services that are provided by the organisation means that we must have the planning and resources in place to address and react to any new priorities and demands as efficiently and timely as possible whilst still delivering the statutory duties required of the Assessor and Electoral Registration Officer. The organisation performed well in 2023/24 to fulfil its statutory requirements to maintain the Register of Electors, the Valuation Roll and the Valuation List, particularly when carrying a significant number of vacancies in the valuation section. Colleagues have again shown a high degree of hard work and dedication and the current level of performance is a testament to this. The Management Team is appreciative of their effort. Mark J Adam Grampian Assessor & Electoral Registration Officer Woodhill House, Westburn Road, Aberdeen AB16 5GE assessor@grampian-vjb.gov.uk Page 217
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