Minutes of Meeting of the Highland and Western Isles Valuation Joint Board held in Committee Room 1, Council Headquarters, Glenurquhart Road, Inverness, on Wednesday 25 November 2009 at 11.00 a.m.
Present
Representing The Highland Council
Mrs H Carmichael, Mr L Fraser, Mr J Gray, Mr J McGillivray, Mr P Cairns, Ms M Smith
Representing Western Isles Council
Mr M MacLeod, Mr K Murray
Officials in attendance:
Mr D Gillespie, Assessor and Electoral Registration Officer
Ms K Jenks, Senior Audit Manager, Audit Scotland
Mr A Bernard, Treasurer’s Office
Miss A Macrae, Clerk’s Office
Mrs H Carmichael in the Chair
1. Apologies for Absence
An apology for absence was intimated on behalf of Mr R Rowantree, the Highland Council.
2. Minutes of Last Meeting
There had been circulated and APPROVED the Minutes of the Board Meeting of 11 August 2009.
3. Revenue Budget Monitoring Statement 2009/10
There had been circulated Report No VAL-21-09 comprising a statement and commentary by the Assessor and Electoral Registration Officer on Revenue Expenditure and Income for the period to 31 October 2009. The report showed actual net expenditure of £1.325m as against anticipated expenditure for the period of £1.524m, and an anticipated underspend of £0.064m on the overall budget at the end of the financial year. The main savings related to an underspend on staffing following the retirement of the Assistant Assessor, along with other savings on travel and subsistence and other staff costs, and property costs.
The Board NOTED the report.
4. Report on 2008/09 Audit
There had been circulated Report No VAL-22-09 by the Treasurer introducing and commenting on the External Audit Report to Members, in respect of the Final Accounts, for the financial year ended 31 March 2009 and welcoming the fact that the Auditor had issued an unqualified report on the accounts. The 20008/09 Statement of Accounts was appended to the report. The report stated that the application of Financial Reporting Standard 17 has created a negative balance sheet, and that when this situation arose, consideration must be given to the Board’s ability to continue to conduct its business. The fact that the liabilities would, as in previous years, continue to be met as they fell due by the constituent authorities, allowed the accounts to be presented on a ‘going concern’ basis.
Discussion followed on the application of the Financial Reporting Standard 17, and the comparative losses shown from the previous to the current financial year. The Treasurer advised the Board that these figures were provided by actuaries, who as the experts on this matter were responsible for preparing the figures for the Authority based on information they held on the pension scheme. Following further discussion on the reporting of liabilities to the constituent authorities and the operation of the Financial Reporting Standard 17 in the private sector, Members asked that a short briefing note be provided to the next meeting to provide further explanation on this matter.
The External Auditor’s Report was also circulated as Report No VAL-22b-09
The Senior Audit Manager reported that a positive and unqualified report had been issued on the accounts, and explained that there was an excess of liabilities over assets due to the accrual of pension liabilities but that Audit Scotland were satisfied that the Valuation Joint Board was a going concern. Two action points had been identified in relation to the Board’s governance arrangements and an action plan had been attached to the report. The first point related to the need to make a more realistic provision for unplanned work, to manage time budgets and staff performance effectively and a need for the internal audit establishment to be kept fully resourced. The second action point related to single status and equal pay, and the need to ensure the Board was compliant in this area.
The Assessor and Electoral Registration Officer confirmed that action was being taken to address both points, advising that the slippage in the review of the Centralised Assessor’s Tax System and other matters raised had been due to resourcing issues. The pending appointment of two depute assessors would also address the resourcing issues within the internal audit staffing establishment. Discussions had been held with the Council’s Personnel Section and any signifcant risk associated with single status and equal pay had been indentified as low given the Department’s structure and the number of staff involved.
Related to governance issues the Assessor and Electoral Registration Officer also reported that Internal Audit would be investigating all aspects of information security, and discussion followed on the issues associated with the encryption of electronic files.
The Board NOTED:
- the External Auditor’s report for the year to 31 March 2009;
- the Treasurer’s response to the findings of the Auditor; and
- the Statement of Audited Accounts for 2008/09
The Board also AGREED that a short briefing note be prepared for the next meeting on Financial Reporting Standard 17, and its application in both the public and private sectors.
5. Review of Discretionary Policies under the Local Government
Pension Scheme
There had been circulated Report No VAL-23-09 by the Treasurer which advises the Board of a change in the Highland Council Pension Fund’s policy on Pension Transfers under the discretions contained in the Local Government (Scotland) Pension Scheme 2008.
Discussion followed on whether the change in policy could be viewed as discriminatory. The Treasurer clarified that while it was open for any new employee to join the Fund, they could not transfer their personal pension, other than in exceptional circumstances, and that it was open to the individual employee to decide whether they wished to join the scheme. Members also discussed the mechanism by which such requests would be considered, and it was noted that the final decision would be taken by the Trustees of the Pension Fund, who had a duty to protect the Fund.
The Board AGREED:
i. to note that the Highland Council Pension Fund would no longer accept
“transfers in” from Personal Pension Schemes, other than in exceptional
circumstances; and
ii. in relation to its employees to restrict the period for accepting the initiation
of a “transfer in” from Other Occupational Pension Schemes to 12 months
from entry to the Local Government Pension Scheme
6. Departmental Report
There had been circulated Report No VAL-24-09 by the Assessor and Electoral Registration Officer advising on the current position in regard to the main activities of the Department. Since the previous meeting of the Board, the Department had been concerned with the conduct of the 2009 electoral canvass, preparation for revaluation, handling of higher level valuation appeals and ongoing maintenance work on the valuation roll and council tax list.
The Assessor and Electoral Registration Officer expanded on the report and noted that the number of postal votes continued to rise to about 11% of the electorate. Planning and preparation for the General Election was underway, and three counting centres would be used in the Highlands. Therefore the arrangements for postal voter identifier checks would be more dispersed and the department was cooperating with the Returning Officer in arranging the necessary testing.
Thereafter discussion followed on the automated system being used to count postal votes and a question was raised as to whether this would be carried out at one central location. The Assessor and Electoral Registration Officer advised that this would be a decision for the Returning Officer, noting that postal votes could be delivered to the count at any of the three counting centres. Following further discussion Members requested that a demonstration of the technology associated with the electronic postal vote counting system be arranged.
Discussion also followed on the impact of freedom of information requests on the Department. The Assessor and Electoral Registration Officer reported that to date this had not had a significant impact in terms of the volume of requests received, indicating that much of the Department’s information was already published, and that other information was disclosed in a controlled manner in the context of the matters being discussed. Responding to questions he advised that any unauthorised release of information would be a serious disciplinary matter.
The Board NOTED the report and AGREED that a demonstration of the electronic counting system for postal votes be arranged in due course.
7. Race Equality Scheme – Annual Report on Progress
As Members were aware the Board was required to publish its annual report on its Race Equality Scheme by 30 November 2009. In this connection, there had been circulated a report No VAL-25-09 by the Assessor and Electoral Registration Officer updating Members as to the developments arising out of the Board’s obligations to racial equality.
With reference to this and Item 8 below, the Assessor and Electoral Registration Officer explained that it was the intention to combine the different equalities schemes into one single scheme, and accordingly the Equal Equalities Commission were to be approached as to whether they required individual schemes to be brought forward at this stage, or whether they were content for a combined scheme to be submitted as intended.
The Board NOTED the update report and AGREED to await the Equal Opportunities Commission’s response in relation to the proposed combined equalities scheme.
8. Disability Equality Scheme – Annual Report on Progress
As Members were aware the Board was required to publish its annual report on its Disability Equality Scheme by 4 December 2009. In the connection there had been circulated a report no VAL-26-09 by the Assessor and Electoral Registration Officer updating Members as to the developments arising out of the Board’s Obligations to disability equality.
The Board NOTED the update report and AGREED to await the Equal Opportunities Commission’s response in relation to the proposed combined equalities scheme.
9. Schedule of Meetings 2010
There had been circulated Report No VAL-27-09 by the Clerk recommending a schedule of meetings for 2010 and a remit to the Clerk to make the necessary arrangements; as follows.
During consideration of this matter it was noted that the proposed date in April was not convenient for the Members of the Western Isles Council. Members also sought confirmation in relation to the fact the August date had been scheduled for a Tuesday, noting that a Wednesday tended to suit all parties.
The Board APPROVED the schedule of meetings, on the basis that both the April and August dates be subject to review, and to a request going forward that one of the meetings during the year be held in Stornoway, possibly the August meeting.
The meeting ended at 12.15pm.