Minutes of Meeting of the Highland and Western Isles Valuation Joint Board held in the Council Headquarters, Glenurquhart Road, Inverness, on Thursday, 11 September 2014, at 10.30   a.m.

Present:

Representing The Highland Council

Mrs H Carmichael, Mr D Bremner, Miss J Campbell (Substitute), Mr A Duffy, Mr J Ford, Mr L Fraser, Mrs M Paterson

Representing Comhairle nan Eilean Siar

Mr J Mackay, Mr R MacKinnon (Substitute)

Officials in attendance:

Mr B Gillies, Assessor and Electoral Registration Officer
Mrs F Wood, Treasurer’s Office
Ms D Sutherland, Audit and Risk Manager, the Highland Council
Ms M Bruce, Senior Audit Manager, Audit Scotland
Mrs R Moir, Clerk’s Office  

Mrs H Carmichael in the Chair  

1.  Apologies for Absence
Leisgeulan

Apologies for absence were intimated on behalf of Dr I Cockburn and Mr A Graham of the Highland Council and Mr A Macleod of Comhairle nan Eilean Siar.

2.   Declarations of Interest
Foillseachaidhean Com-pàirt

The Board NOTED that there were no declarations of interest expressed.

3.   Minutes of Meeting of 1 May 2014
Geàrr-chunntas Coinneamh 1 Ceitean 2014

There had been circulated and were APPROVED the Minutes of the Board meeting of 1 May 2014.

4.   Unaudited Accounts 2013/14
Cunntasan Neo-sgrùdaichte 2013/14

There had been circulated the Unaudited Statement of Accounts for the financial year 2013/14. 

In speaking to the report, the Treasurer’s representative highlighted a number of features, including the small underspend at year end, which had been returned to the Constituent Authorities in the same proportion as their requisition funding, given that it could not be transferred as Reserves to the Board’s General Fund, the cumulative balance having already reached the maximum permitted level of 5% of the Board’s total budget.  She also drew attention to the treatment of the Board’s pension liabilities in the Balance Sheet.

The Convener commented that, subsequent to issue of the papers for this meeting, she had now received a copy of the Audited Accounts for signature.  She confirmed that the accounts were unqualified.

The Board AGREED that, an unqualified report from the Auditor having been received, the Audited Accounts be incorporated into the Annual Report for 2013/14.

5.   Statement on Internal Control 2013/2014
Aithris air In-Ùghdarras 2013/14

There had been circulated Report No VAL15/14 dated 15 August 2014 by the Head of Internal Audit and Risk Management, The Highland Council, on the statement on internal control for 2013/14. 

The report contained an assessment of the adequacy, reliability and effectiveness of the Board’s system of internal financial control and provided information for the annual Statement of Accounts.  It assured Members that, on the basis of the work undertaken during the year, it was considered that the key systems operated in a sound manner and that there had been no fundamental breakdown in control resulting in material discrepancy.  However, as no system of control could provide absolute assurance against material loss, nor could Internal Audit give that assurance, it was the audit opinion that reasonable assurance could be placed upon the adequacy and effectiveness of the Board’s internal control systems for the year to 31 March 2014.

The report also confirmed that a review by the Assessor and Electoral Registration Officer of the Overview of Governance Arrangements document, which had been prepared in 2010, was nearing completion and should be reported to the Board’s next meeting.  The Audit and Risk Manager commented that a recent internal audit of the operation of the Accounts Payable system within the Assessor and Electoral Registration Officer’s Department was nearing finalisation and would also be reported to the Board.

The Board NOTED the contents of the report.

6.  Internal Audit - Report – Matters Arising from the Statement of Internal Control 2013/14
Aithisg In-sgrùdaidh – Gnothaichean Ag Èirigh bho Aithris In-Ùghdarrais 2013/14

There had been circulated Report No VAL16/14 dated 15 August 2014 by the Head of Internal Audit and Risk Management, The Highland Council, advising Members of audit work undertaken since the previous Valuation Joint Board meeting held on 1 May 2014.  The report provided details of an audit report on Matters Arising from the Statement of Internal Control 2013/14 which gave an audit opinion of Full Assurance, with no audit recommendations and thus no Action Plan.

The Board NOTED the contents of the report.

7.  Report to Those Charged With Governance on the 2013/14 Audit
Aithisg Dhaibhsan air a bheil Uallach airson Riaghladh air Sgrùdadh 2013/14

There had been circulated Report No VAL17/14 dated September 2014 comprising Report by the Senior Audit Manager, Audit Scotland, to those charged with governance on the 2013/14 Audit, together with draft Annual Report on the 2013/14 audit.

In speaking to the report, the Senior Audit Manager highlighted a number of its provisions, including:

• subject to the satisfactory conclusion of any outstanding matters and receipt of a revised set of financial statements for final review, Audit Scotland anticipated being able to issue an unqualified auditor’s report the following day
• the Proposed Independent Auditor’s Report (Appendix A to the report) and the Draft Annual Report on the 2013/14 Audit (Appendix C) would both have finalised status on signature of the annual accounts
• final adjustments to the figures in the unaudited accounts (item 4 above refers) had resulted in an increase in the total underspend, to be returned to the Constituent Authorities on a pro rata basis, from £36,000 to £61,000
• Audit Scotland continued to be satisfied that, with particular reference to the accrual of pensions liabilities in accordance with International Accounting Standard 19 (Employee Benefits), the process which the Joint Board had undertaken in order to consider the organisation's ability to continue as a “going concern” was reasonable.

In response to questions as to the identified risk cited in the draft annual report relating to potential future financial pressures, it was confirmed that this was a risk that required to be acknowledged and included in the Board’s Risk Register; however, the Assessor and Electoral Registration Officer confirmed his commitment that his Department would continue to meet all of its statutory duties.

The Board NOTED the contents of the report.

8.   Monitoring of Retirements
Cumail sùil air Cluaineis

Members were reminded that the Highland Council was an administering authority of the Local Government Pension Scheme and was therefore responsible for the costs involved with the pension fund, in which a number of employers participated, including those of this Board.  Members were also reminded that, in accordance with Accounts Commission for Scotland guidance, information was provided to the Board on an annual basis relating to the number and types of retirements of Valuation Joint Board staff members of the Scheme.

The Board NOTED that, whilst there had been one retirement by a Highland and Western Isles Valuation Joint Board staff member of the Local Government Pension Scheme for the year to 31 March 2014, this had not constituted an early retirement containing a cost to the employer, and had had no financial implications for the Board.

9.  Revenue Budget Monitoring Statement 2013/14
Aithris Sgrùdaidh a' Bhuidseit Teachd-a-Steach airson 2013/14

There had been circulated Report No VAL18/14 dated 3 September 2014 comprising a statement and commentary by the Assessor and Electoral Registration Officer on Revenue Expenditure and Income for the period to 31 July 2014, and the projected year-end position.

In speaking to the report, the Assessor and Electoral Registration Officer confirmed that, while net expenditure to date was running at only some 21% of the annual budget, a number of costs had not yet come through and the overall year-end outturn was expected to be on budget.

In response to questions, he confirmed that:

• whilst the Scottish Government had provided some additional funding towards the Scottish Referendum’s impact, with specific reference to IT costs, the increase in workload had proved so unprecedented that consideration would be given to seeking further funding support
• the significant rise in the income figure in 2013/14 was largely due to additional ring-fenced UK Government funding towards the costs of implementing Individual Electoral Registration
• there was a legislative obligation on his Department to meet the costs of the Valuation Appeal Committee.

The Board NOTED the contents of the report.

10.   Departmental Report
Aithisg Roinneil

There had been circulated Report No VAL19/14 dated 1 September 2014 by the Assessor and Electoral Registration Officer advising on the current position of the main activities of the Department.  The report, in summary, outlined progress on Electoral Registration, Valuation Appeal Committee casework in respect of both non-domestic rating and council tax, and general maintenance of the Valuation Roll and Council Tax list.

In speaking to the report, the Assessor and Electoral Registration Officer highlighted his Department’s successful contribution to the recent European Election and Council bye-elections, and also outlined the actions he had taken to maximise the registration of young voters for the forthcoming Scottish Referendum.  He also took the opportunity to illustrate the significant pressures on his staff due to the unprecedented level of interest in the Referendum and the substantial increase in the volume of enquiries and applications for electoral registration received by his Department.  He praised his staff’s dedication and willingness to work excessive hours in order to ensure all business was processed timeously and asked that his thanks to them be put on record.

The Assessor and Electoral Registration Officer also commented that no lull in pressure could be anticipated following the Referendum, as his staff would then have to deal with the implementation of Individual Electoral Registration (IER), whose introduction into Scotland had been delayed until following the Referendum.  Whilst the full impact of this workload would not be clear until March 2015, he confirmed that he had applied to the Cabinet Office for further funding, given the particularly rural nature of the Board’s area, and had received a small additional grant towards this work.

He also drew attention to a couple of minor corrections to his report: the removal of the words “end of year” at section 5 and clarification that the post title at section 6 should read “Office and Support Manager”.

In response to questions, the Assessor and Electoral Registration Officer confirmed that:

• it was difficult to quantify exactly what proportion of the increase in electoral registration applications was due solely to the Referendum, as there would always be some measure of natural growth due to factors such as population change
• a range of identifiers would be available for substantiating applications for IER, while the possibility of accessing other national databases in addition to that of the Department of Works and Pensions was also being investigated
• as a safety net to allow the new system to bed in, the legislation provided that no-one would be removed from the Register until after the May 2015 General Election as a consequence of the introduction of IER.

After discussion, the Board NOTED:

i.   the contents of the report; and
ii.   that the Assessor and Electoral Registration Officer would make himself available on an informal basis following the meeting to answer any general questions Members might have in relation to those aspects of the Referendum process falling within his remit.

The Board also AGREED that:

i.    the Board’s thanks be conveyed to the staff of the Assessor and Electoral Registration Officer’s Department
      for their commitment and hard work in dealing with the recent and ongoing exceptional workload; and
ii.   a submission be made to the Scottish Government seeking extra funding assistance for the additional costs
      incurred by the Board in preparation for the Scottish Referendum.

11.   Departmental Policy Review
Ath-sgrùdaidh Poileasaidh Roinneil

At its meeting held on 21 November 2013, the Board had noted a verbal update by the Assessor and Electoral Registration Officer setting out a proposed work programme of future Board business, during which he had advised that a number of departmental policies, in particular personnel policies, would be brought to the Board over the following year for review.

There had been circulated and was APPROVED Report No VAL20/14 dated 2 September 2014 comprising a reviewed Code of Conduct for Employees, which largely mirrored that adopted by the Highland Council.

The meeting closed at 11.40 a.m.

 

 

 

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