• Agenda

Minutes of Meeting of the Highland and Western Isles Valuation Joint Board held in the Council Chamber, Council Offices, Sandwick Road, Stornoway, on Thursday, 29 August 2013, at 10.30 a.m.

Present

Representing The Highland Council:

Mrs H Carmichael, Mr D Bremner, Dr I Cockburn (by video-conference [VC] link), Mr J Ford, Mr L Fraser, Mr K Gowans, Mr M Green (by VC link), Mr J Stone

Representing Comhairle nan Eilean Siar: 

Mr J Mackay

Officials in attendance:

Mr D Gillespie, Assessor and Electoral Registration Officer
Mrs M Grigor, Treasurer’s Office (by VC link)
Ms D Sutherland, Internal Audit & Risk Management, the Highland Council (by VC link)
Ms M Bruce, Senior Audit Manager, Audit Scotland (by VC link)
Ms E Barrie, Personnel Adviser’s Office (by VC link)
Mrs R Moir, Assistant Clerk

Mrs H Carmichael in the Chair

1. Apologies for Absence
    Liesgeulan

Apologies for absence were intimated on behalf of Mr A MacLeod of Comhairle nan Eilean Siar.

2. Declarations of Interest
    Foillseachaidhean Com-pàirt

There were no declarations of interest.

3. Minutes of Meeting of 4 April 2013
    Geàrr-chunntas Coinneamh 4 An Giblean 2013

There had been circulated and were APPROVED the Minutes of the Board Meeting of 4 April 2013.

4. Draft Annual Report 2012/13
    Dreachd Aithisg Bhliadhnail 2012/13

There had been circulated the Draft Annual Report for 2012-13 (50kb pdf) prepared by the Assessor and Electoral Registration Officer (ERO), summarising the functions and finances of the Board and incorporating the Performance Report.

The Convener made a number of introductory comments, highlighting the significant workload impacting on both the previous and current years, including preparation for the Scottish Independence Referendum, the European Parliamentary Election and the transition to Individual Electoral Registration.

In speaking to the report, the Assessor and ERO pointed out that its format was largely unchanged.  He confirmed that future such reports would also incorporate performance reporting in relation to the requirements of Equalities legislation.  This had not, however, been included in the current Report in light of the update on these issues separately reported to the Board at its 4 April 2013 meeting.  He further confirmed that any policy reviews in this area would be brought to the Board for approval as required.

The Board AGREED that:-

i.  subject to the inclusion of the Audited 2012/13 Accounts once these were
   available, the Report be published; and
ii. should any changes be necessary, it be remitted to the Assessor and
   Electoral Registration Officer, in consultation with the Convener and Vice
   Convener, to determine whether to proceed with publication of the Annual 
   Report or to delay until after the next meeting of the Board.

5. Unaudited Accounts 2012/13
    Cunntasan Neo-sgrùdaichte 2012/13

There had been circulated Report No val-9-13 (917kb pdf) comprising the Statement of Unaudited Accounts for the financial year 2012/13.

The Treasurer’s representative outlined some main features of the Accounts, including drawing attention to the treatment of pension liabilities, which, in response to a question, she further clarified with reference to the International Financial Reporting Standards.

In response to another question concerning the increase in Valuation Appeal Panel costs, the Assessor and ERO indicated that this was due to a greater number of sittings.  He highlighted the impact of the 2010 Revaluation, including delays arising out of the need for decisions in principle from the Lands Valuation Appeal Court and also the practice of fresh appeals being lodged each financial year by large numbers of ratepayers.  Whilst the bulk of the post-revaluation work had now been cleared, a number of cases were still outstanding.  This was an area where the Board was obliged to meet the relevant costs, despite being unable to control the process.  The situation was similar across Scotland.

After discussion, the Board AGREED that, once an unqualified report from the Auditor was received, the Audited Accounts then be incorporated into the Annual Report and the Report published.

6. Statement on Internal Control 2012/13
    Aithris air In-Ùghdarras 2012/13

There had been circulated Report No val-10-13 (68kb pdf) dated 7 August 2013 by the Head of Internal Audit and Risk Management, The Highland Council, comprising the Statement on Internal Control for 2012/13.

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 2013.

The report also confirmed that a recent internal audit of valuation arrangements would be reported separately to the Board, probably at its next meeting, but did not affect the audit opinion as given in the Statement on Internal Control.

The Board NOTED the contents of the report.

7. Report to Those Charged With Governance on the 2012/13 Audit
    Aithisg Dhaibhsan air a bheil Uallach airson Riaghladh air Sgrùdadh 2012/13

There had been circulated Report No val-11-13 (1304kb pdf) dated August 2013 comprising Report by the Senior Audit Manager, Audit Scotland, on the 2012/13 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
• written assurances would be sought from the Treasurer on aspects of the financial statements and judgements and estimates made, prior to the independent auditor’s opinion being certified.

As in previous years, the Senior Audit Manager also highlighted the report’s comments on the Board’s status as a “going concern”, with particular reference to the accrual of pensions liabilities in accordance with International Accounting Standard 19 (Employee Benefits).  She reminded Members that the Board had adopted a “going concern” basis for the preparation of the financial statements as future actuarial valuations of the pension fund would consider the appropriate employer's rate to meet the fund's commitments. The constituent authorities of the Joint Board were required by regulation to fund the Joint Board's liabilities as they fell due. Accordingly, Audit Scotland were satisfied that 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 Members’ questions, the Senior Audit Manager and the Treasurer’s representative acknowledged the impact of market forces on fund evaluation and the difficulty in identifying performance trends.

Having heard the Senior Audit Manager and Convener both thank the Treasurer’s and Assessor and ERO’s staff for their cooperation in carrying out the audit work, 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 there had been no retirements of any type of Highland and Western Isles Valuation Joint Board staff members for the period 1 April 2012 to 31 March 2013.

9. Revenue Budget Monitoring Statement 2013/14
    Aithisg Sgrùdaidh a' Bhuidseit Ionmhais 2013/14

There had been circulated Report No val-12-13 (25kb pdf) dated 7 August 2013 comprising a statement and commentary by the Assessor and Electoral Registration Officer on Revenue Expenditure and Income for the period to 31 July 2013, and the projected year-end position.

In speaking to the report, the Assessor and ERO advised that, while it was likely that Valuation Appeal Committee costs would rise, overall, a balanced budget out-turn was anticipated at year-end.  He also commented that, whilst some additional Cabinet Office funding was anticipated to help to address costs associated with the introduction of Individual Electoral Registration, it was not clear whether these costs would be fully covered.

In response to a question, he confirmed that regular representations were made to reduce or remove individual Boards’ responsibility for Valuation Appeal Committee costs, so far without success.  He drew attention, however, to the Tribunals (Scotland) Bill currently before the Scottish Parliament concerning a proposed review of the entire Scottish Tribunal system, which might introduce relevant changes.

The Board NOTED the contents of the report.

10. Departmental Report
      Aithisg Roinneil

There had been circulated Report No val-13-13 (41kb pdf) dated August 2013 by the Assessor and Electoral Registration Officer advising on the current position of the main activities of the Department and recommending a revised Whistleblowing Policy.  The report, in summary, outlined progress with preparations for various significant electoral events, disposal of rating revaluation appeals, and maintenance of the Valuation Roll and Council Tax list.  Further details on these matters were set out in the report.

During discussion, Members shared the Assessor and ERO’s disappointment over the initial response rate of around 50% only to the refresh process in relation to signatures for absent voting.  Reminders had been issued and failure to return would mean cancellation of the elector’s postal vote, requiring a completely new application; the basic right to vote in person would, however, remain.

Members were reminded of the process being followed to register young people eligible to vote in the Scottish Referendum, with the canvass form being prepopulated so far as possible with information taken from school rolls.  The young person’s canvass form would be included in the annual canvass, to be issued on 1 October, and the Assessor and ERO undertook to circulate a sample form to Members for their information and interest.

In relation to questions on encouraging registration, the Assessor and ERO confirmed that he had a statutory duty to promote participation in the election process.  A similar duty fell on the Returning Officer and on the Electoral Commission and each had a role to play, with the process required of the ERO clearly established in terms of postal communication and follow-up visits where required.  Every effort was being made to integrate the approach to encouraging participation.  The Electoral Commission had a good record of running national campaigns, while the local agencies would seek to cover local areas that might be missed.  The Assessor and ERO pointed out that all schools had access to Electoral Commission literature, and advised that he was in discussion with the Returning Officer as to whether his staff could play a role in demonstrating to young people how the system operated.  It was likely that these efforts would be led by local educators in line with guidance being issued by COSLA.

With reference to the “confirmation dry run” carried out in preparation for the introduction of Individual Electoral Registration, the Assessor and ERO confirmed that the result within Highland had exceeded the pilot average and was running at the same level as other similar areas of Scotland.  He also highlighted the volume of Valuation Appeals business pending and, in addition to seeking approval of the revised Whistlebowing Policy, invited the Board to agree that, due to revised taxation rules militating against Board staff “piggy-backing” on to Highland Council schemes, the establishment of a separate bicycle purchase scheme for Board staff be explored.

After discussion, the Board AGREED that the establishment of a separate bicycle purchase and similar schemes for Board staff be explored; APPROVED the revised Whistleblowing Policy, as appended to the report; and otherwise NOTED the report contents.

11. Exclusion of the Public
      Às-dùnadh a’Phobaill

The Board RESOLVED that, under Section 50A(4) of the Local Government (Scotland) Act 1973, the public be excluded from the meeting for the following item on the grounds that it involved the likely disclosure of exempt information as defined in Paragraph 1 of Part 1 of Schedule 7A of the Act.

12. Post of Assessor and Electoral Registration Officer
      Dreuchd Measadair agus Oifigear Clàraidh Thaghaidhean

There had been circulated to Members only Report No VAL14/13 dated 19 August 2013 by the Clerk recommending for approval a recruitment process for a new Assessor & Electoral Registration Officer, to take up post following the retirement in October 2013 of the present incumbent.

During discussion, Dr I Cockburn expressed the view that, in light of the current economic climate, a further special Board meeting should be held to review the proposed salary level for the post, with additional information made available for that meeting, to inform the discussion.  The Convener having sought advice, the Personnel Adviser’s representative confirmed that the salary level was a matter for the Board’s decision; however, changing the established level would imply a change to the current job specification and remit.  In support of Dr Cockburn, Mr M Green also expressed affordability concerns and suggested that, in addition to further Personnel advice on this, the Board seek an expert opinion from the External Adviser whose appointment was also being recommended in the report.

Other Members expressed the view that the recommended salary figure, being the current figure, should be approved.  A judgement had clearly been made previously that the demands of the post merited the current figure; these demands had not lessened.  It was important that the best candidate be attracted to what was a vital and demanding senior post covering a large and diverse area; the figure was reasonable and appropriate; and unnecessary delay in starting the recruitment process should be avoided.

After discussion, Dr I Cockburn, seconded by Mr M Green, moved that the Board defer its decision on the appropriate salary level to be offered and meet again at the earliest possible date to review the position in its entirety.

Mrs H Carmichael, seconded by Mr J Mackay, moved as an amendment that the Board agree the recommendations in this regard as set out in the circulated report.

On a vote being taken, the amendment was carried by 7 votes to 2.

Accordingly, after discussion, the Board AGREED:

i.  unanimously, the recruitment process as detailed in Section 2 of the report;
ii.  in terms of the vote as set out above, the salary level and associated Job
    Profile and Person Specification, as set out in Sections 3 and 5 of the report;
iii. unanimously, to use an External Adviser to support the recruitment process,
    as outlined in Section 4 of the report; and
iv. unanimously, the interim arrangements as outlined in Section 7 of the report.

The meeting closed at 12.15 p.m.