| Description | The receipts and payments account for teh Scottish Consolidated fund for the period 1 April 2003 to 31 March 2004 |
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| ISBN | |
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| Official Print Publication Date | |
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| Website Publication Date | December 30, 2004 |
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SCOTTISH CONSOLIDATED FUND RECEIPTS & PAYMENTS ACCOUNT
1 APRIL 2003 to 31 MARCH 2004
December 2004
SE/2004/292
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FOREWORD
BACKGROUND | 1. The Scottish Consolidated Fund (The Fund) was set up following devolution in 1999 and received its statutory powers under the Scotland Act 1998. |
SCOPE OF THE ACCOUNT | 2. This account has been prepared under Section 19 (2) of the Public Finance and Accountability (Scotland) Act 2000 (the Act) which requires the Scottish Ministers to prepare and lay before Parliament an account showing payments into and out of the Fund. Attached as an appendix to these accounts is an Accounts Direction issued by Scottish Ministers in accordance with Section 19(4) of the Public Finance and Accountability (Scotland) Act 2000. 3. During the year in question there was a major change in the way the Executive receives it's money with the responsibility transferring from the Scotland Office to the Department for Constitutional Affairs. 4. The Fund receives, from the Department for Constitutional Affairs, sums which have been voted by the UK Parliament for the purpose of "grant payable to the Scottish Consolidated Fund". Receipts not authorised to be used to support expenditure shall also, by virtue of Section 64(3) of the Scotland Act 1998, be payable into The Fund. 5. The sums payable from The Fund are set out in Sections 4 and 6 of the Act. |
ACCOUNTABLE OFFICER | 6. The Permanent Secretary of the Scottish Executive is the Accountable Officer for The Fund. The Accountable Officer is responsible for the propriety and regularity of the public finances for which he is answerable, for the keeping of proper records and for the preparation and submission of appropriate accounts as set out in Section 15 of the Act. |
SCOTTISH CONSOLIDATED FUND RECEIPTS AND PAYMENTS | 7. These accounts show the transactions for the services set out above. The receipts paid into The Fund during the year totalled 19,131m with payments from The Fund of 19,958m. |
COMPARATIVE FIGURES | 8. Comparative figures for 2002-2003 are shown in the accounts. |
AUDIT | 9. The accounts of the Fund are audited by an auditor appointed by the Auditor General for Scotland as set out in Section 19(7) of the Act. |
John Elvidge
Accountable Officer
Scottish Executive
10 December 2004
STATEMENT OF ACCOUNTABLE OFFICER'S RESPONSIBILITY
1. Section 19 (2) of The Act requires the Scottish Ministers to prepare and lay before Parliament an account showing the receipts into and payments out of the Scottish Consolidated Fund. The accounts are prepared on a cash basis and must properly present the Scottish Consolidated Fund's transactions for the period 1 April 2003 to 31 March 2004.
2. The responsibilities of the Accountable Officer, including his responsibility for the propriety and regularity of the public finances and for the keeping of proper records, are set out in the Memorandum to Accountable Officers issued by the Principal Accountable Officer to each Accountable Officer.
John Elvidge
Accountable Officer
Scottish Executive
10 December 2004
STATEMENT ON INTERNAL CONTROL
1. As Accountable Officer, I have responsibility for maintaining a sound system of internal control that supports the achievement of the policies, aims and objectives, set by the Scottish Ministers for the Scottish Consolidated Fund (The Fund), whilst safeguarding the public funds and assets for which I am personally responsible, in accordance with the responsibilities assigned to me.
2. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve those policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness.
3. The system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of the Fund's policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them effectively, efficiently and economically. This process has been in place for the year ended 31 March 2004 and up to the date of approval of the annual accounts and accords with guidance from the Scottish Ministers.
4. The operation of The Fund is governed by the provisions of the Scotland Act 1998 and the Public Finance and Accountability (Scotland) Act 2000 (PFA Act) which set out the conditions for payments to be made out of the Fund and sums to be paid into the Fund.
5. The Fund uses and relies on the core financial management systems of the Scottish Executive to carry out its accounting and payment functions. I have received satisfactory assurances from the Principal Finance Officer on the reliance of these central systems.
6. My responsibility for receipts begins only when they are actually paid into The Fund. Other Accountable Officers may be responsible up to that point.
7. The following procedures to identify, evaluate and manage significant risks have already been implemented:
- Guidance on Risk Management has been prepared and issued by the Scottish Executive. The risks associated with the operation of the Fund have been identified and incorporation of these into a risk register together with the determination of a control strategy for each risk is kept under constant review.
- The Scottish Executive's internal auditors provide reports on the adequacy and effectiveness of the Fund's systems of internal control together with recommendations for improvement.
In the financial year 2003-04 the Fund has:
- revised and updated procedures to take account of recommendations from external and internal auditors
- taken action to reduce the balance on the account and to agree a course of action which can be used in future years to maintain any balances at an appropriate level
- regularly reviewed its processes to identify and keep up to date the risk register and related control strategies
- promoted good practice in risk management through awareness training
- ensured that there was a full risk and control assessment before reporting on the year ending 31 March 2004
- ensured that during the year staff have received continuous training on any revision to procedures and arrangements operating within the Fund
8. During financial year 2004-5 the Fund further plans to:
- continually review the procedures of the Fund to take account of any comments made by external and internal auditors and opportunities for improvement identified from operational activities and to produce a complete manual covering the Fund and the relevant regulations
- review the operation of the funding drawdown procedures
- amend the set-up in the Scottish Executive Accounting System (SEAS), the core financial management system on which the Fund's accounting records are maintained, in order to separate those records completely from those of the other bodies operating within SEAS.
9. My review of the effectiveness of the system of internal control is informed by the work of the internal auditors and my staff who manage the Fund and have responsibility for the development and maintenance of the internal control framework and by comments made by the external auditors in the management letters and other reports.
John Elvidge
Accountable Officer
Scottish Executive
10 December 2004
THE SCOTTISH CONSOLIDATED FUND
RECEIPTS AND PAYMENTS ACCOUNT FOR THE PERIOD 1 APRIL 2003 TO 31 MARCH 2004
RECEIPTS | NOTE | 000 | 000 | 2002-2003
000 |
Receipts from the Department for Constitutional Affairs under section 64(2) of the Scotland Act 1998 | | 17,058,050 | | 17,985,679 |
Non Domestic Rates Income | | 1,804,423 | | 1,718,104 |
Repayment of Loans formerly from National Loans |
Fund Principal and Interest | | 191,722 | | 116,087 |
Repayment of unused funds by Forestry Commission | | 2,539 | | 1,294 |
Pension contributions from Auditor General | 3 | 25 | | 44 |
Other Receipts | 1 | 73,853 | | 665,766 |
TOTAL RECEIPTS | | | 19,130,612 | 20,486,974 |
PAYMENTS |
Payments authorised under the Budget Act Documents | 2 | 19,680,353 | | 19,736,770 |
Charges on the SCF |
Judicial Salaries | 4 | 25,700 | | 19,200 |
Designated Receipts | 1 | 60,010 | | 67,977 |
National Loans Fund repayments to Department for Constitutional Affairs of Principal and Interest | | 191,722 | | 116,087 |
Repayment of SCFER to Scottish Executive | | 108 | | - |
TOTAL PAYMENTS | | | 19,957,893 | 19,940,034 |
SURPLUS/(DEFICIT) FOR THE PERIOD | 5 | | (827,281) | 546,940 |
John Elvidge
Accountable Officer
Scottish Executive
10 December 2004
The notes on pages 7 to 10 form part of these accounts.
NOTE 1
ANALYSIS OF RECEIPTS NOT AUTHORISED TO BE USED TO SUPPORT EXPENDITURE
As provided for in section 64(3) of the Scotland Act 1998 (and certain other legislative provisions) all sums received by members of the Scottish Administration (and certain other bodies) are to be paid into the Scottish Consolidated Fund unless there are alternative statutory provisions. In practice, most of the receipts of the bodies concerned were authorised to be used to support expenditure under the Budget Act and the Budget Orders (see Note 2).
Scotland Act 1998 (Designation of Receipts) Order 2000 designates certain receipts (designated receipts) and provides that sums equivalent to these are to be paid to the Department for Constitutional Affairs, in practice for paying into the UK Consolidated Fund.
2003-2004 | Receipts paid into Fund during period 000 | Receipts classed as Designated 000 |
Scottish Executive Environment and Rural Affairs Department | 36,493.00 | 36,493.00 |
Scottish Executive Development Department | 259.00 | 3.00 |
Scottish Executive Education Department | 807.00 | 0.00 |
Scottish Executive Enterprise Transport and Lifelong Learning Department | 1,352.00 | 1,348.00 |
Scottish Executive Justice Department | 15,404.00 | 14,120.00 |
Scottish Executive Administration | 237.00 | 21.00 |
Scottish Executive Finance and Central Services Department | 59.00 | 0.00 |
Crown Office & Procurator Fiscal Service | 17,087.00 | 17,000.00 |
Scottish Parliamentary Public Body | 58.00 | 0.00 |
Registers of Scotland | 2,097.00 | 2,097.00 |
TOTAL FOR 2003-2004 | 73,853.00 | 71,082.00 |
During 2003-2004 the Fund paid a total of 60.0m (2002-2003 67.9m) over to the Department for Constitutional Affairs for onward transmission to the UK Consolidated Fund. The balance of 11.1m will be paid over during 2004-2005.
2002-2003 | Receipts paid into Fund during period 000 | Receipts classed as Designated 000 |
Scottish Executive Rural Affairs Department | 281,919.00 | 10,615.00 |
Scottish Executive Development Department | 1,648.00 | 1,915.00 |
Scottish Executive Education Department | 28.00 | 0.00 |
Scottish Executive Enterprise Transport | | |
and Lifelong Learning Department | 3,772.00 | 3,674.00 |
Scottish Executive Health Department | 275,375.00 | 0.00 |
Scottish Executive Justice Department | 22,266.00 | 20,194.00 |
Scottish Executive Administration | 435.00 | 84.00 |
Scottish Executive Finance and Central Services Department | 78,273.00 | 29,440.00 |
Crown Office & Procurator Fiscal Service | 681.00 | 658.00 |
Registers of Scotland | 1,397.00 | 1,397.00 |
TOTAL FOR 2002-2003 | 665,794.00 | 67,977.00 |
NOTE 2
PAYMENTS AUTHORISED UNDER THE BUDGET ACTS
For the period of this account the Scottish Parliament approved: The Budget (Scotland) Act 2003 as amended by The Budget (Scotland) Act 2003(Amendment) Order 2003 (SSI 2003/330), The Budget (Scotland) Act 2003 (Amendment) (No2) Order 2003 (SSI 2003/603) and The Budget (Scotland) Act 2003 (Amendment) (No3) Order 2004 (SSI 2004/147).
These Orders appropriate sums out of the Scottish Consolidated Fund for the financial year ending 31 March 2004 for the purposes of meeting expenditure in that year in connection with the functions for which expenditure is, by virtue of the Scotland Act 1998 and provisions made under it, payable out of that fund during the year.
2003-2004 | 000 | 000 |
Scottish Executive and Associated Departments | 19,354,485.00 | |
Crown Office & Procurator Fiscal Services | 91,368.00 | |
SCOTTISH ADMINISTRATION | | 19,445,853.00 |
Forestry Commission (Scotland) | | 44,000.00 |
Food Standards Agency | | 6,100.00 |
The Scottish Parliamentary Corporate Body | | 179,600.00 |
Audit Scotland | | 4,800.00 |
TOTAL PAID | | 19,680,353.00 |
During 2002-2003 the authorised payments under the Budget Acts was 19,736,770,000 this is summarised below:
2002-2003 | 000 | 000 |
Scottish Executive and associated Departments | 19,476,154.00 | |
Crown Office & Procurator Fiscal Services | 69,500.00 | |
SCOTTISH ADMINISTRATION | | 19,545,654.00 |
Forestry Commission (Scotland) | | 40,390.00 |
Food Standards Agency | | 4,800.00 |
The Scottish Parliamentary Corporate Body | | 140,121.00 |
Audit Scotland | | 5,805.00 |
TOTAL PAID | | 19,736,770.00 |
NOTE 3
AUDITOR GENERAL FOR SCOTLAND'S PENSION FUND
During the year Audit Scotland paid a total of 24,660 to the Fund in respect of the Auditor General for Scotland's pension. The sum is paid to the Fund as the liability to pay any future pension will fall to Audit Scotland and be paid from their annual budget, which in turn will be funded by the Fund.
NOTE 4
JUDICIAL SALARIES RECEIPTS AND PAYMENTS ACCOUNT FOR THE PERIOD 1 APRIL 2003 TO 31 MARCH 2004
RECEIPTS | 000 | 000 | 2002-2003
000 |
Received from Scottish Consolidated Fund | 25,700.00 | | 19,200.00 |
TOTAL RECEIPTS | | 25,700.00 | 19,200.00 |
PAYMENTS |
Salary Costs | 23,496.00 | | 21,414.00 |
Bank Charges | 1.00 | | 1.00 |
TOTAL PAYMENTS | | 23,497.00 | 21,415.00 |
Excess of Receipts Over Payments | | 2,203.00 | -2,215.00 |
Balance held at the Office of HM Paymaster General as at 31 March 2003 | | -603.00 | |
Excess of receipts over payments in the period to 31 March 2004 | | 2,203.00 | |
Balance held at the Office of HM Paymaster General as at 31 March 2004 | | 1,600.00 | |
NOTE 5
SUMMARY OF THE BALANCE HELD AT THE OFFICE OF PAYMASTER GENERAL
| 2003-2004
000 | 2002-2003
000 |
Balance brought forward from 2002-2003 | 880,412.00 | 333,472.00 |
Surplus/(Deficit) of receipts over payments for the period 2003-2004 | -827,280.70 | 546,940.00 |
Balance at 31 March 2004 | 53,131.30 | 880,412.00 |
The balance represents the following items: | | |
NHS Trust cash balances surrendered to SCF | 41,611.00 | 41,611.00 |
Queens and Lord Treasurer's Remembrancer | 4,002.00 | 4,002.00 |
Designated Receipts not yet paid to Department of Constitutional Affairs | 11,072.00 | 0.00 |
General SCF Reserve: | -3,553.70 | 834,799.00 |
Balance held at the Office of HM Paymaster General | 53,131.30 | 880,412.00 |
The balance on the General Reserve of the Scottish Consolidated Fund does not necessarily represent an amount available for appropriation by a Budget Act or other means as there may be sums due to the Scottish Executive or other funded bodies and/or sums due to the Department of Constitutional Affairs for onward transmission to the UK Consolidated Fund. In particular, non-domestic rates paid to and by Scottish Ministers are credited to or drawn from the Scottish Consolidated Fund and are accounted for in more detail in a separate non-domestic rating account. The net balance on non-domestic rate activities recorded in that account is partly reflected in the General Reserve of the Scottish Consolidated Fund and partly in balances with the Scottish Executive.
During 2003-2004 the Executive have taken action to reduce the significant balance that was on the account at the end of the last financial year. Action taken has resulted in 818m of the balance on the account at the 31 March 2003 being utilised by the bodies directly funded by the Fund, through a reduction in the sum drawn down from the Department of Constitutional Affairs. The year end balance on the General Reserve is shown as a deficit, this reflects the short term utilisation of cash within the Fund for purposes of the above.
Scottish Consolidated Fund
Independent Auditor's report To the Scottish Parliament and the Auditor General for Scotland
I have audited the financial statements on pages 6 to 10 under section 19 of the Public Finance and Accountability (Scotland) Act 2000.
This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice approved by the Auditor General for Scotland and for no other purpose, as set out in paragraph 43 of the Statement of Responsibilities of Auditors and of Audited Bodies prepared by Audit Scotland, dated July 2001.
Respective responsibilities of the Accountable Officer and Auditor
As described on page 3 the Accountable Officer is responsible for the preparation of the financial statements and for ensuring the regularity of financial transactions. The Accountable Officer is also responsible for the preparation of the Foreword and the statement on the system of internal control. My responsibilities, as independent auditor, are established by the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice approved by the Auditor General for Scotland, and guided by the auditing profession's ethical guidance.
I report my opinion as to whether the financial statements properly present the receipts and payments of the Scottish Consolidated Fund and the balance held and are properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers and whether in all material respects the sums paid out of the Scottish Consolidated Fund were in accordance with section 65 of the Scotland Act 1998 and sections 4 to 6 of the Public Finance and Accountability (Scotland) Act 2000
I also report if, in my opinion, the Foreword is not consistent with the audited financial statements, proper accounting records have not been kept, or if I have not received all the information and explanations I require for my audit.
I review whether the statement on pages 4 and 5 complies with the Scottish Executive guidance on statements on the system of internal control. I report if, in my opinion, the statement does not comply with the guidance, or if the statement is misleading or inconsistent with other information I am aware of from my audit. I am not required to consider whether the statement covers all risks and controls, or form an opinion on the effectiveness of the Fund's corporate governance procedures or its risk and control procedures.
Basis of opinion
I conducted my audit in accordance with the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice, which requires compliance with relevant United Kingdom Auditing Standards issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of the receipts and payments shown in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Accountable Officer in the preparation of the financial statements.
I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error, and that, in all material respects, the receipts and payments shown in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. In forming my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion
Financial statements
In my opinion the financial statements properly present the receipts and payments of the Scottish Consolidated Fund for the year ended 31 March 2004 and the balance held at that date and have been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers.
Regularity
In my opinion, in all material respects, the sums paid out of the Scottish Consolidated Fund were in accordance with section 65 of the Scotland Act 1998 and sections 4 to 6 of the Public Finance and Accountability (Scotland) Act 2000.
Peter Tait CPFA
Chief Auditor
15 December 2004 | Audit Scotland
Osborne House
1/5 Osborne Terrace
Edinburgh
EH12 5HG |
SCOTTISH CONSOLIDATED FUND
DIRECTION BY THE SCOTTISH MINISTERS
in accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000
1. The account of payments into and out of the Scottish Consolidated Fund for the year ended 31 March 2004 and subsequent years shall properly present those payments.
2. When preparing the accounts of the payments into and out of the Scottish Consolidated Fund for the year ended 31 March 2004 and subsequent years the Scottish Ministers shall comply with the accounting principles and disclosure requirements of the edition of the Scottish Public Finance Manual which was in force for that period
3. This direction shall be reproduced as an appendix to the statement of accounts. The direction given on 15 July 2002 is hereby revoked.
Signed by the authority of the Scottish Ministers
Dated
