Revenue Scotland revises view on Partial Charities Relief

Revenue Scotland has revised its view on the application of Schedule 13 of the Land and Buildings Transaction Tax (Scotland) Act 2013 (‘LBTTA’) to cases where a charity is one of a number of buyers who are or will become common owners.  We now accept that Charities relief from LBTT may be claimed for the charity’s (or charities’) pro indiviso share(s) of the relevant land transaction.

Revenue Scotland publishes its first annual report

Revenue Scotland has collected £572m in its first full year of operation.

Scotland’s devolved tax authority, which is responsible for the administration and collection of Land and Building Transaction Tax (LBTT) and Scottish Landfill Tax (SLfT), revealed the total revenue raised when it published its 2015-2016 annual report and financial statements today. The revenue collected is transferred to the Scottish Consolidated Fund to support the delivery of public services in Scotland.

Reminder of agent reponsibilities for LBTT Arrangements Satisfactory

Revenue Scotland would like to remind agents of their responsibilities in respect to Arrangements Satisfactory for LBTT. Transactions for residential properties with a chargeable consideration of £40,000 and over will require an LBTT return to be made, even if no tax is due.  Full details on which land transactions are notifiable for LBTT purposes and which are not can be found at LBTT4003

Summary Financial Data


Devolved Taxes 2017-22

 
 
 
2017-18
£'000
2018-19
£000
2019-20
£'000
2020-21
£'000
2021-22
£'000

LBTT 

557,267 

554,185 

597,368 

517,354 

807,183 

SLfT 

147,984 

148,517 

118,959 

106,528 

125,248 

Penalties & Interest 

1,754 

3,135 

735 

138 

1,245 

Total Tax Revenue 

707,005 

705,837 

717,062 

624,020 

933,676 

Image

LBTT 2017-22

 
 

LBTT 

 

2017-18 

 

2018-19 

 

2019-20 

 

2020-21 

 

2021-22 

Residential 

258,386 

262,336 

286,908 

259,632 

418,390 

Net ADS 

94,645 

99,211 

120,226 

115,104 

140,750 

Non-residential 

204,236 

192,638 

190,234 

142,618 

248,043 

Total LBTT (£’000) 

557,267 

554,185 

597,368 

517,354 

807,183 

No. of Tax Returns 

116,380 

120,280 

121,050 

109,170 

126,350

Image

 


SLfT 2017-22

SLfT 

2017-18 

2018-19 

2019-20 

2020-21 

2021-22 

Tax (£’000) 

147,984 

148,517 

118,959 

106,528 

125,248 

Standard rate tonnage 

1,775,000 

1,650,100 

1,343,700 

1,170,300 

1,348,600 

Lower rate tonnage 

790,300 

739,500 

685,700 

618,800 

680,100 

Total tonnage 

2,565,300 

2,389,600 

2,029,400 

1,789,100 

2,028,700 

Image

 


Resource Spend (including programme costs) 2017-22

 
2017-18
£'000
2018-19
£'000
2019-20
£'000
2020-21
£'000
2021-22
£'000

Income 

59 

41 

Staff costs11 

(2,785) 

(3,448) 

(3,998) 

(4,234) 

(4,324) 

Goods & services 

(1,613) 

(1,668) 

(1,912) 

(1,651) 

(1,638) 

Programme costs12 

(1,075) 

(1,095) 

(763) 

(30) 

Depreciation & amortisation 

(12) 

(16) 

(182) 

(377) 

(417) 

Provision

(212) 

Net operating costs 

(5,485) 

(6,227) 

(7,067) 

(6,233) 

(6,338) 

11 Includes compensation on early retirement
12 Includes staff and non-staff costs of developing processes and systems to comply with new legislation or the introduction of IT systems 

Financial Statements 2021-22

Statement of comprehensive net expenditure 

For the Year Ended 31 March 2022 

  Note

2021-22
Total
£'000

2020-21
Total
£'000

Income 2 41 59
Staff costs 2 (4,324) (4,262)
Purchase of goods and services 3 (1,638) (1,653)
Depreciation 5 (9) (10)
Amortisation 5 (408) (367)
Provision 8 0 0
Net operating costs for the year   (6,338) (6,233)

The notes on pages 84-97 form part of the financial statements

Statement of financial position

As at 31 March 2022

 
 

Note 

2021-22

£000

2020-21

£000

Non-current assets 

 
 
 

Tangible assets 

25 

34 

Intangible assets 

2,804 

2,913 

Total non-current assets 

 

2,829 

2,947 

 
 
 
 

Current assets 

 
 
 

Other receivables 

33 

50

Total current assets 

 

33 

50

 
 
 
 

Current liabilities 

 
 
 

Provision 

Trade & other payables 

(714) 

(794) 

Total current liabilities 

 

(714) 

(794) 

 
 
 
 

Total net assets 

 
 

 

2,148 

2,203 

 

 

 
 

Taxpayers' equity 

 

2,148 

2,203 

The notes on pages 84-97 form part of these financial statements.
The Chief Executive and Accountable Officer authorised these financial statements
for issue on 1 November 2022.

Elaine Lorimer – Chief Executive of Revenue Scotland and Accountable Officer

Statement of cash flows 

For the year ended 31 March 2022 

 
 
 
 

Note 

 

2021-22
£000

 

2020-21
£000

 

Cash flows from operating activities 

 
 
 
 

Net operating costs for the year 

 

SOCNE 

 

(6,338) 

 

(6,233) 

 
 
 
 
 

Adjustments for non cash transactions 

 

 

 

 

 

 

 

Audit fee 

 

10 

 

100 

 

98 

 

Depreciation 

 

 

 

10 

 

Amortisation 

 

 

408 

 

367 

 
 
 
 
 

Movements in working capital 

 

 

 

 

 
 

(Increase)/Decrease in trade and other receivables 

 

 

17 

 

(16) 

 

(Decrease)/Increase in provision 

 

 

 

(212) 

 

(Decrease)/Increase in trade and other payables 

 

 

(80) 

 

16 

 
 
 
 

Net cash outflow from operating activities 

 

(5,884) 

(5,970) 

 
 
 
 

Purchase of non-current assets 

(299) 

(349) 

 
 
 
 

Net cash outflow from investing activities 

 

(299) 

(349) 

Cash flows from financing activities 

 

0

 

Net funding 

 

(6,183) 

(6,319) 

The notes on pages 84-97 form part of the financial statements.

Statement of changes in taxpayers’ equity 

For the year ended 31 March 2022

 
 
 

Note 

General Fund
Reserves

2021-22
£000

 

General Fund
Reserves
2020-21
£000

Balance at 31 March 

 

2,203 

2,019 

 
 
 
 

Net operating costs for the year 

SOCNE 

(6,338) 

(6,233) 

Non cash charges – auditor's remuneration 

10 

100 

98 

 
 
 
 

Net funding 

 

6,183 

6,319 

 
 
 
 
 

Balance at 31 March 

 

2,148 

2,203 

The notes of pages 84-97 form part of these financial statements. 

Notes to the Accounts 

Statement of Accounting Policies

Basis of accounting 

In line with section 12 of the Revenue Scotland and Tax Powers Act 2014, and in accordance with the accounts direction issued by the Scottish Ministers under section 19(4) of the Public Finance and Accountability (Scotland) Act 2000, these financial statements have been prepared in accordance with the 2021-22 Government Financial Reporting Manual (FReM) issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) as adapted or interpreted for the public sector context. The particular policies adopted are described below. They have been applied consistently in dealing with items that are considered material to the accounts. 

The accounts are prepared using accounting policies, and where necessary, estimation techniques which are judged to be most appropriate to the particular circumstances for the purpose of giving a true and fair view in accordance with the principles set out in International Accounting Standards (IAS) 8 Accounting Policies, Changing in Accounting Estimates and Errors. 

In accordance with the FReM these accounts have been prepared under the historical cost convention and on a going concern basis, which provides that the organisation will continue in operational existence for the foreseeable future.

Accounting convention 

The accounts have been prepared in accordance with the historical cost convention modified to account for fair value of non-current assets. Expenditure has been accounted for on an accruals basis.

New Accounting Standards 

In accordance with IAS 8, changes to International Financial Reporting Standards (IFRS) that have been issued but not yet effective have been reviewed for impact on the financial statements in the period of initial application. The standards that are considered relevant to Revenue Scotland and the anticipated impact on the accounts are as follows: 

IFRS 16 – Leases 

We previously reported that this standard was due to come into effect for accounting periods commencing after 1 April 2020. 

However HM Treasury agreed with the Financial Reporting Advisory Board (FRAB) to defer the implementation of this standard until 1 April 2022 due to circumstances caused by the COVID-19 pandemic. When implemented the distinction between finance and operating leases is removed and all leases become ‘on balance sheet’. 

The FReM interprets and adapts IFRS 16 for the public sector context in several ways. 

An assessment has been carried out and this has determined that there are no assets currently falling within the definition of IFRS 16 which require to be included 

on the statement of financial position from 1 April 2022, in accordance with the transition arrangements set out in IFRS 16 application guidance originally issued by HM Treasury in April 2019, updated in March 2020 and further in December 2020. 

Value Added Tax (VAT) 

Revenue Scotland is registered for VAT as part of the Scottish Government VAT group registration which is responsible for recovering VAT on behalf of Revenue Scotland. 

Revenue Scotland does not provide any chargeable services and therefore output VAT does not apply. Irrecoverable input VAT is charged to the relevant expenditure category. Where VAT is recoverable, the amounts are stated net of VAT. 

Property, Plant, Equipment and Intangible Assets 

Recognition 

All property, plant, equipment and intangible assets are accounted for as non-current assets unless they are deemed to be held for sale. 

Capitalisation 

Minor expenditure on equipment and furniture are written off in the year of purchase, as are all other items of a capital nature costing less than £10,000. 

Assets under development 

Assets under development are shown separately in note 5. Costs are accumulated until the assets is brought into use whereupon it is transferred into the relevant asset class and depreciated. 

Staff costs 

Where staff have been working on the development, integration and testing of IT software, these costs are included in the amounts capitalised. 

Depreciation and Amortisation 

Provision for depreciation and amortisation is made so as to write off the cost of non-current assets on a straight line basis over the expected useful lives of the assets concerned. The expected useful lives of assets are regularly and systematically reviewed to ensure that they genuinely reflect the actual replacement cycle ofall assets. Depreciation and amortisation are not charged on assets in the course of development until the month after they are brought into use. 

The expected useful lives are as follows: 

  • computer equipment, 3 – 10 years 

  • IT systems, 3 – 10 years 

  • office equipment, 3 – 10 years 

  • furniture and fittings, 3 – 15 years. 

Asset Valuation 

Depreciated and amortised historical cost is used as a proxy for fair value since the assets are low value and have short useful lives. The majority of the intangible assets represent bespoke IT systems and there is no active market for these assets.

Financial instruments 

As the cash requirements of Revenue Scotland are met through the Scottish Government, financial instruments play a limited role in creating and managing risk. The only financial instruments within the accounts are financial assets in the form of other receivables, and financial liabilities in the form of trade and other liabilities. 

Leases 

Operating leases are charged to the Statement of Comprehensive Net Expenditure on a straight line basis over the term of the lease. 

Pension costs 

Revenue Scotland employees are civil servants who are entitled to be members of the Civil Servant and Others Pension Scheme or the Principal Civil Service Pension Scheme. These are unfunded, multi-employer defined benefit schemes in which Revenue Scotland is unable to identify its share of the underlying assets and liabilities. The schemes are accounted for as defined contribution schemes under the multi-employer exemption permitted in IAS 19 Employee Benefits.
Revenue Scotland’s contribution is recognised as a cost in the year. 

Short term employee benefits 

The cost of annual leave and flexible working time entitlement earned but not taken by employees at the end of the year is recognised as an accrual of benefits in the financial statements to the extent that employees are permitted to carry forward leave into the following year. 

Other receivables 

Other receivables are stated at their nominal value. 

Trade and other payables 

Trade payables are stated at their nominal value. 

Provisions for liabilities and charges 

A provision is recognised where an outflow of resources is expected as a result of a past event. These are included within the accounts at the estimated value. 

2. Staff income and costs

  2021-22
£'000

2020-21
£'000

Income - Seconded staff 41 59
     
Staff costs
Wages and salaries
2,830 2,717
Social security 294 291
Pension 778 722
Seconded-in staff 76 0
Agency 346 735
Less staff costs capitalised 0 (203)
Total staff costs 4,324 4,262

3. Goods and services

  2021-22
£'000
2020-21
£'000
Staff related costs    

Board fees & expense

45 52
Travel & subsistence 0 1
Training 21 40
Recruitment 20 22
     
Supplies & services    
Legal 148 107
Computer & telephone 330 359
Shared services (1) 352 354
Delegated duties (2) 488 463
Other supplies & services 134 157
Audit fee - external (see note 10) 100 98
Total goods & services 1,638 1,653
  1. In the interests of efficiency, effectiveness and economy, Revenue Scotland and the Scottish Ministers are committed to identifying opportunities for shared services. The amount represents costs charged by the Scottish Government for the following functions: 

  • Human Resource management (including, for example: general terms and conditions of service, pay negotiations, pay awards, payroll, pensions and recruitment for senior civil service posts) 

  • Financial management (Scottish Government finance systems) 

  • Information Systems, Telephony, Information and Library Service 

  • Estates and facilities management 

  • Internal audit 

  • Procurement. 

  1. Delegated duties represent the amounts payable to the Scottish Environment Protection Agency in relation to the duties delegated to them under the Revenue Scotland and Tax Powers Act 2014. 

Reconciliation of net resource outturn to net funding received 

 
 

Notes 

 

2021-22 
£000

 

2020-21
£000

Resource outturn 

SoCNE 

6,338 

6,233 

Capital outturn 

299 

349 

Non cash charges – auditor's remuneration 

10 

(100) 

(98) 

 

Depreciation 

 

 

(9) 

 

(10) 

Amortisation 

(408) 

(367) 

 

Changes in working capital 

 

SoCF 

 

63 

 

212 

 
 
 
 

Net funding 

 

6,183 

6,319 

Non-current assets

Tangible Assets

 
 
 
 

Furniture & Fittings 
£000

 

2021-22 
£000

 

2020-21 
£000

Cost 

 
 
 

At 1 April 

76 

76 

76 

Additions 

At 31 March 

76 

76 

76 

 
 
 
 

Depreciation 

 
 
 

At 1 April 

42 

42 

32 

Charged in the year 

9

10 

At 31 March 

51 

51 

42 

 
 
 
 

Asset financing 

 
 
 

Owned 

25 

25 

34 

Carrying amount at 31 March 

25 

25 

34 

Intangible Assets

  IT System
under development
£000
IT System
£000
Telephony
£000
2021-22
Total
£000

Cost

       
At 1 April 0 3,404 70 3,474
Additions 0 282 17 299
Transfers 0 0 0 0
At 31 March 0 3,686 87 3,773
         

Amortisation

       
At 1 April 0 525 36 561
Charged in the year 0 397 11 408
At 31 March 0 922 47 969
         
Asset Financing        
Owned 0 2,764 40 2,804
Carrying amount at 31 March 0 2,764 40 2,804
Prior Year IT System
under development
£000
IT System
£000
Telephony
£000
2020-21
Total
£000

Cost

       
At 1 April 2020 324 2,731 70 3,125
Additions 349 0 0 349
Transfers (673) 673 0 0
At 31 March 2021 0 3,404 70 3,474
         

Amortisation

       
At 1 April 0 165 29 194
Charged in the year 0 360 7 367
At 31 March 2021 0 525 36 561
         
Asset Financing        
Owned 0 2,879 34 2,913
Carrying amount at 31 March 2021 0 2,879 34 2,913

6. Other receivables

Amounts falling due within one year: 

2021-22

£000

2020-21

£000

Prepaid expenses

31 

32 

Sundry debtors 

18 

 
 
 

Total receivables within one year 

33 

50 

 7. Trade and other payables

 
 
 

Amounts falling due within one year: 

 

2021-22
£000

 

2020-21
£000

Trade payables 

27 

43 

Social security and payroll related 

178 

138 

Accrued short-term employee benefits (see note 1.9) 

187 

172 

Other accruals 

322 

441 

 
 
 

Total payables within one year 

714 

794 

8. Provision for liabilities and charges 

 

 
 

2021-22
£'000 

 

2020-21
£'000 

Balance at 1 April 

212 

Utilised in year 

(212) 

Balance at 31 March 

0 

0

 

Analysis of timing 

2021-22
£'000 

2020-21
£'000

Not later than one year 

 

9. Related party transactions 

Revenue Scotland is a non-ministerial office of the Scottish Administration and it considers that the Scottish Government, its agencies and non-departmental bodies are related parties within this context. 

During the year Revenue Scotland had a number of material financial transactions with the Scottish Government. Those relating to shared services provided are detailed in note 3 above. In addition some staff were both seconded to and seconded from Scottish Government during the year. Income and costs associated with these secondments are shown in note 2 above. 

In line with RSTPA, section 2, Revenue Scotland has delegated some of its functions relating to SLfT to the Scottish Environment Protection Agency (SEPA). The costs incurred are provided in note 3 above. 

None of the Board members, key managerial staff or other related parties has undertaken any material transactions with Revenue Scotland during the year. 

10. Audit fee

  2021-22
£000
2020-21
£000
Auditor's fee - resource accounts 22 21
Auditor's fee - devolved taxes account 78 77
Total Auditor's fees 100 98

Auditor’s remuneration is disclosed as a notional charge and relates to fees notified to Revenue Scotland by Audit Scotland in respect of audit work carried out to the year ended 31 March 2022. All audit fees are paid from the Scottish Consolidated Fund. 

No non-audit work was carried out by Audit Scotland during the year ended 31 March 2022. 

11. Commitments 

Revenue Commitments 

Total future minimum payments under contractual commitments are given in the tables below for each of the following periods. 

 
2021-22 

£000

2020-21

£000

IT Systems 

 
 

Not later than one year 

256 

307 

Between one and five years 

966 

1,159 

Beyond five years 

302 

652 

Total revenue commitments 

1,524 

2,118 

The amounts above are in relation to the contracts for the provision of Revenue Scotland’s tax and finance systems. The contract for the tax system expires in 2029 and that for the finance system expires in December 2022. 

Amounts charged in 2021-22 of £274,000 (2020-21: £317,000) are included within computer and telephone charges in note 3 above. The fall in amount relates to a change in VAT treatment on service costs provided for the tax system.

Capital Commitments

  2021-22
£000

2020-21
£000

IT Systems    
Not later than one year 94 0
Total capital commitments 94 0

The amounts above relate to orders placed in 2021-22 for IT hardware delivered in 2022-23. 

 

Independent Auditor’s Report

Independent auditor’s report to Revenue Scotland, the Auditor General for Scotland and the Scottish Parliament

Reporting on the audit of the financial statements

Opinion on financial statements 

I have audited the financial statements in the annual report and accounts of Revenue Scotland (Resource Accounts) for the year ended 31 March 2022 under the Public Finance and Accountability (Scotland) Act 2000. The financial statements comprise the Statement of Comprehensive Net Expenditure, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Taxpayers’ Equity and notes to the financial statements, including significant accounting policies. 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 2021/22 Government Financial Reporting Manual (the 2021/22 FReM). 

In my opinion the accompanying financial statements: 

  • give a true and fair view in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers 

of the state of the body’s affairs as at 31 March 2022 and of its net expenditure for the year then ended; 

  • have been properly prepared in accordance with UK adopted international accounting standards, as interpreted and adapted by the 2021/22 FReM; and 

  • have been prepared in accordance with the requirements of the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers.

Basis for opinion 

I conducted my 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 Auditor General for Scotland. My responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the financial statements section of my report. I was appointed by the Auditor General on 9 March 2015. The period of total uninterrupted appointment is seven years. I am independent of the body in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK including the Financial Reporting Council’s Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. Non-audit services prohibited by the Ethical Standard were not provided to the body. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 

Conclusions relating to going concern basis of accounting 

I 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 I have performed, I have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on 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, I 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 

I report in my Annual Audit Report the most significant assessed risks of material misstatement that I identified and my judgements thereon. 

Responsibilities of the Accountable Officer for the financial statements 

As explained more fully in the Statement of the Accountable Officer’s Responsibilities, the Accountable Officer 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 Accountable Officer 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 Accountable Officer is responsible for using the going concern basis of accounting unless there is an intention to discontinue the body’s operations. 

Auditor’s responsibilities for the audit of the financial statements 

My 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 my 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. I design procedures in line with my responsibilities outlined above to detect material misstatements in respect of irregularities, including fraud. Procedures include: 

  • obtaining an understanding of the applicable legal and regulatory framework and how the body is complying with that framework; 

  • identifying which laws and regulations are significant in the context of the body; 

  • assessing 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 my 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 my auditor’s report. 

Reporting on regularity of expenditure and income 

Opinion on regularity 

In my opinion in all material respects: 

  • the expenditure and income in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers, the Budget (Scotland) Act covering the financial year and sections 4 to 7 of he Public Finance and Accountability (Scotland) Act 2000; and 

  • the sums paid out of the Scottish Consolidated Fund for the purpose of meeting the expenditure shown in the financial statements were applied in accordance with section 65 of the Scotland Act 1998. 

Responsibilities for regularity 

The Accountable Officer is responsible for ensuring the regularity of expenditure and income. In addition to my responsibilities in respect of irregularities explained in the audit of the financial statements section of my report, I am responsible for expressing an opinion on the regularity of expenditure and income in accordance with the Public Finance and Accountability (Scotland) Act 2000

Reporting on other requirements 

Opinion prescribed by the Auditor General for Scotland on audited part of the Remuneration and Staff Report 

I have audited the parts of the Remuneration and Staff Report described as audited. In my opinion, the audited part of the Remuneration and Staff Report has been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers. 

Other information 

The Accountable Officer is responsible for the other information in the annual report and accounts. The other information comprises the Performance Report and the Accountability Report excluding the audited part of the Remuneration and Staff Report. My 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 my knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. My opinion on the financial statements does not cover the other information and I do not express any form of assurance conclusion thereon except on the Performance Report and Governance Statement to the extent explicitly stated in the following opinions prescribed by the Auditor General for Scotland. 

Opinions prescribed by the Auditor General for Scotland on Performance Report and Governance Statement 

In my opinion, based on the work undertaken in the course of the audit: 

  • the information given in the Performance Report 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 Public Finance and Accountability 

(Scotland) Act 2000 and directions made thereunder by the Scottish Ministers; and 

  • the information given in the 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 Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers. 

Matters on which I am required to report by exception 

I am required by the Auditor General for Scotland to report to you if, in my opinion: 

  • adequate accounting records have not been kept; or 

  • the financial statements and the audited part of the Remuneration and Staff Report are not in agreement with the accounting records; or 

  • I have not received all the information and explanations I require for my audit. 

I have nothing to report in respect of these matters. 

Conclusions on wider scope responsibilities

In addition to my responsibilities for the annual report and accounts, my conclusions on the wider scope responsibilities specified in the Code of Audit Practice are set out in my Annual Audit Report.

Use of my report 

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 for no other purpose. In accordance with paragraph 120 of the Code of Audit Practice, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.

Mark Taylor, CPFA 

Audit Director Audit Scotland 102 West Port Edinburgh EH3 9DN 

02 November 2022 

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