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Publication - Publication

The Scottish Government Consolidated Accounts 2015 to 2016

Published: 30 Sep 2016
ISBN:
9781786524881

Annual report of consolidated financial results of the Scottish Government, its executive agencies and the Crown Office, prepared in accordance with IFRS.

140 page PDF

746.5kB

140 page PDF

746.5kB

Contents
The Scottish Government Consolidated Accounts 2015 to 2016
Accountability Report

140 page PDF

746.5kB

Accountability Report

Corporate Governance

Information about the structure of the Scottish Government and details of the Scottish Government Ministers and senior officials can be found in the Performance Report and in the Governance Statement.

Statement of Accountable Officer's Responsibilities

In accordance with the accounts direction (reproduced on page 138) issued under Section 19(4) of the Public Finance and Accountability (Scotland) Act 2000 the Scottish Ministers are required to prepare resource accounts for each financial year in the form and on the basis set out in the Government Financial Reporting Manual, detailing the resources acquired, held, or disposed of during the year and the use of resources by the Scottish Ministers during the year.

The resource accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of the Scottish Government, the net resource outturn, resources applied to objectives, recognised gains and losses and cash flows for the financial year.

The Permanent Secretary is the most senior member of the staff of the Scottish Administration and as the Principal Accountable Officer is the Accountable Officer responsible for preparing the accounts and submitting them to the Auditor General for Scotland.

In preparing the accounts the Principal Accountable Officer was required to comply with the Government Financial Reporting Manual ( FReM) and in particular to:

  • observe the accounts direction including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis;
  • make judgements and estimates on a reasonable basis;
  • state whether applicable accounting standards as set out in the FReM have been followed and disclose and explain any material departures in the accounts; and
  • prepare the accounts on a going concern basis.

The Principal Accountable Officer confirms that the Annual Report and Accounts as a whole are fair, balanced and reasonable.

The responsibilities of the Principal Accountable Officer are described in the Memorandum to Accountable Officers from the Principal Accountable Officer published in the Scottish Public Finance Manual, a copy of which can be found at http://www.gov.scot/Topics/Government/Finance/spfm/Intro.

For the purposes of the audit, so far as the Principal Accountable Officer is aware, there is no relevant audit information of which the auditors are unaware and all necessary steps have been taken by the Principal Accountable Officer to ensure awareness of relevant audit information and to establish that the Scottish Government's auditors are aware of that information.

The Principal Accountable Officer authorised these accounts for issue on 22 September 2016.

Governance Statement

Scope of Responsibility

As Permanent Secretary to the Scottish Government I am responsible for ensuring that appropriate arrangements are in place for governance and that these arrangements support the Scottish Government's Purpose and the achievement of Scottish Ministers' policies, aims and objectives.

As Principal Accountable Officer for the Scottish Administration (under the terms of the Public Finance & Accountability (Scotland) Act 2000), I am also responsible for ensuring the propriety and regularity of finances and the economic, efficient and effective use of resources. In discharging these overall responsibilities I am supported by the designated Accountable Officers within the core Scottish Government, in the Crown Office and Procurator Fiscal Service, in Scottish Government Executive Agencies and in Health Bodies. Detailed information on the role and responsibilities of Accountable Officers is set out in the Accountability chapter of the Scottish Public Finance Manual.

Governance Framework

Throughout the 2015-16 financial year the Strategic Board, which I chair, has met quarterly to oversee the delivery of the Scottish Government's strategy and our readiness to address future challenges. The Board's role has been to ensure the proper stewardship of public money with a focus on Performance and Outcomes; People and Capability; Finance and Risk; and Organisational Efficiency.

Strategic Board membership consisted of: the six Directors General, the Chief Economist, the Director of People, Communications and Ministerial Support, the Chief Social Policy Adviser, the Chief Executive of the Crown Office and Procurator Fiscal Service, together with at least three Non-Executive Directors (including the Chair of the Scottish Government Audit and Risk Committee). The role of the Non-Executive Directors is to promote the highest standards of corporate governance and provide independent support and challenge to the executive members. Further information on the Strategic Board, and on the conduct of its business during the period, can be found on the Scottish Government website.

The Scottish Government's strategy sets out our development priorities as the civil service supporting the Scottish Government. Responsibility for the strategy rests with the Executive Team, consisting of myself and the six Directors General. The Executive Team meets twice a week and has reported directly to the Strategic Board.

Our current governance framework supports delivery of the strategy and consists of six operational areas with boards, led at Director General level, focussing on: People, Resources, Performance, Constitution, Economy, and Finance including; Financial Strategy, Infrastructure Investment and Fiscal Responsibility. These boards provide management oversight to ensure the delivery of the strategy and core components of the Programme for Government.

This structure has worked well over the last year but I initiated a programme to ensure our governance framework will support the organisation in meeting its future delivery challenges more effectively, covered in more detail under Review of Corporate Governance 2020. This is to reflect our growing fiscal responsibilities, raising taxes locally as well as spending them, the additional budget pressures we face over the next few years , and new powers over areas such as welfare arrangements. The programme also has a focus on enhancing our engagement with communities and our use of digital tools for this and in delivering all our outcomes.

The Scottish Government Audit and Risk Committee monitors and reviews the risk, control and governance arrangements which have been established in the organisation, and the associated assurance processes. The Committee consists entirely of Non-Executive Directors, and supports me in my role as Principal Accountable Officer by providing independent challenge and support on the effectiveness of our corporate governance arrangements.

The Committee has been assisted by a network of audit and risk committees ( ARCs) grouped under the relevant Portfolio Accountable Officers which have monitored and reviewed supporting assurance procedures.

The committees have been constituted and operated in accordance with relevant guidance published in the Scottish Public Finance Manual. The chairs of the Scottish Government Audit and Risk Committee and ARCs met twice in the reporting year to ensure consistency in approach and the sharing of good practice. Links between all audit and risk committees, and between Non-Executive Directors and senior managers have been further facilitated through a network for Scottish Government Non-Executive Directors. The pool of Scottish Government Non-Executive Directors has been subject to rotation with one previous member completing their term of office and one new member recruited following a fair and open competition.

The 2015-16 corporate governance structure for the Scottish Government, including the portfolio-based audit and risk committees, is set out below.

corporate governance structure

The Scottish Government complies with all governance related guidance in the Scottish Public Finance Manual, the Civil Service Code and relevant elements of the Good Governance Standard for Public Services produced by the Independent Commission on Good Governance in Public Services. Governance arrangements for the separate accounting entities within the Scottish Government consolidation boundary similarly comply with relevant guidance in the Scottish Public Finance Manual and generally accepted best practice principles.

In order to ensure good practice and effective links between the Strategic Board and the Scottish Government Audit and Risk Committee ( SGARC) during the reporting year, the Chair of SGARC provided two formal reports to the Strategic Board for consideration. The reports covered issues raised at SGARC meetings, the Strategic Risk Register and Internal and External Audit reports.

Review of Corporate Governance 2020

In November 2015, I commissioned a review to explore opportunities to streamline our corporate governance arrangements while ensuring principles of effectiveness and transparency were maintained. The review focussed on six key governance activities: decision-making; assurance, including risk; accountability; challenge; direction and vision; and collaboration and co-production. The conclusion of the review was that there were four key areas where improvements could be made: 1) Structure; 2) Purpose; 3) Communication; and 4) Culture. The key features of the new structure will be:

  • The work of Strategic Board and its functions will be absorbed into a reframed Executive Board with responsibility for operational decisions and strategic direction.
  • Executive Team will, on a periodic basis, form into a more strategic mode with input from Non-Executive Directors, expert advisers, and with external input as required.
  • The SGARC will become an Assurance and Audit Committee, continuing to monitor and review the risk, control and governance arrangements within the Scottish Government.
  • There will be a high-level Strategic Risk and Opportunity Support group, led by a Non-Executive Director to support Executive Team in its lead role for consideration of risks and opportunities.
  • Portfolio audit and risk committees will be abolished, with the exception of the Crown Office and Procurator Fiscal Service due to the specific remit of that Committee.
  • Non-Executive Directors will continue to be commissioned to engage in specific programmes of work and to review the activities of the organisation on a more flexible basis.
  • The role of Non-Executive Directors will be reviewed to enhance their direct relationship with me as Permanent Secretary and to allow greater development of subject knowledge, putting them in the best possible place to play an effective support and challenge role.
  • Continued engagement with Audit Scotland in its role in considering and reporting on the effectiveness of arrangements as they operate in practice.

The effectiveness of Scottish Government governance arrangements is ultimately linked to the achievement of policies, aims and objectives set by the Scottish Ministers. Information on the National Performance Framework and progress towards meeting the National Outcomes determined by Ministers is published on the Scotland Performs website. A list of National Indicators (often cross-cutting) is provided for each National Outcome allowing users to assess performance themselves. An updated National Performance Framework indicator set was published on 11 March 2016, the 50 National Indicators remained unchanged but five new ones were added on underemployment, the Living Wage, the gender pay gap, access to local greenspace and increasing natural capital.

In addition, the Community Empowerment (Scotland) Act 2015 received Royal Assent on 24 July 2015 and ensures that the current outcomes approach to government will continue in the long term. The Act places a duty on the Scottish Ministers to consult on, develop and publish a set of national outcomes for Scotland, while having due regard for reducing the inequalities of outcomes which result from socio-economic disadvantage. The Scottish Ministers must also regularly and publicly report on progress towards these outcomes and review them at least every five years.

The separate accounting entities within the Scottish Government consolidation boundary have corporate governance arrangements in place appropriate to their individual circumstances and in compliance with relevant guidance. The effectiveness of governance arrangements for the separate accounting entities is addressed in the governance statements provided by the entities concerned as part of their annual accounts.

Risk and Control Framework

Guidance on the basic principles of risk management is included in the Scottish Public Finance Manual. Consistent with that guidance, a corporate approach to risk management in the core Scottish Government is documented and published on the Scottish Government intranet. The Director General Finance continues to lead work, on behalf of the Strategic Board, on the Scottish Government's risk management strategy, establishing an improvement project to further enhance risk management across the organisation with a view to providing a simpler, focussed, consistent and less resource intensive risk management process further encouraging the effective consideration of risk throughout the organisation.

Throughout the reporting period, the Strategic Board, the Executive Team and key corporate boards and committees have continued to take an active lead in embedding risk management across the organisation. Risk management is a core staff competency, supported by corporate training and development, with appropriate links in place to other activities such as programme and project management.

Risk management controls are established at the corporate level, within directorates as part of corporate governance arrangements. Robust systems are in place to ensure risks are reviewed on a regular basis and managed at the appropriate level. The Scottish Government Audit and Risk Committee and the Non-Executive members of the various core Scottish Government boards, provide for independent external scrutiny of risk management.

The Scottish Government operates in a dynamic environment, delivering the priorities of the Scottish Government whilst managing associated risks and opportunities. Over the last year a number of areas have been scrutinised at a strategic level in the organisation, including:

  • The programme of dialogue, learning and information sharing with DWP to ensure new powers over social security are successfully implemented, with smooth transition from DWP to new Scottish policies and administrative arrangements. Early engagement with key stakeholders and those representing the particular target groups for the devolved benefits is also underway.
  • The resourcing implications of the expanding functions and priorities of the Scottish Government are being addressed as part of the SG2020 exercise. This is our overarching organisational change approach to continuing to evolve into the open capable and responsive organisation we need to be. As part of this work, steps have been taken to enable the organisation to match resources with priorities, for example through changes to promotions policy, use of redeployment, flexible working and appropriate learning and development. We are working with other branches of government to bring in staff with relevant skills and experience to support the implementation of the Scotland Act 2016 alongside existing Scottish Government staff. In relation specifically to the technical work associated with the financial provisions in the Scotland Act 2016, a Fiscal Framework Implementation Board has been established and will provide assurance, challenge and governance in relation to the implementation of the Fiscal Framework and the new fiscal powers.
  • That we ensure all of our policy decisions are tested against European Commission ( EC) State aid rules and are implemented in a compliant way. To maintain Scottish Government reputation and minimise risk of any aid being awarded illegally as the EC increases focus on the monitoring and transparency of public funding.
  • Ensuring project management controls were implemented to ensure that the Scottish Government was effectively prepared for UK's Remain/Leave Referendum on EU membership developing targeted messaging for deployment across Government and ensuring input into the UK's renegotiation proposals. In response to the result of the EU Referendum new project management arrangements were introduced and resources were reallocated to ensure an effective Scottish response.
  • The continuing challenges around our capacity to effectively develop, deliver and manage the IT/Digital enabled business change projects and programmes that are essential to support our delivery of effective public services to citizens and businesses. There is now a Central Government Digital Transformation Service in place to support organisations, their Senior Responsible Officers and Accountable Officers, to develop their digital strategy, scope their projects, and put in place the right skills and resources to oversee and deliver the project; providing support in recruiting the necessary staff. Compliance with the assurance framework has been included as part of the 2015-16 annual assurance process for bodies sponsored by the Scottish Government.
  • That processes are in place to ensure that early notification and interpretation of changes to EU guidance on classification are assessed against the Scottish Government's delivery landscape, and that the establishment of new bodies and Special Purpose vehicles are assessed for national Accounts classification purposes.
  • Managing the short, medium and long term focus for health and social care (including supporting reviews and policy work streams). In common with much of rest of the developed world, Scotland faces an unprecedented combination of challenges including:
    • a relatively poor pattern of health across the population and of health inequalities
    • rapidly changing demographic trends including a rapidly ageing population, bringing particular pressures around dementia among other conditions; and greater survival rates among early births with an increase in the those living with developmental and learning difficulties
    • high levels of preventable diseases and other health conditions among the ageing population
    • changing and more vocal public expectations of the type of care people want, where they want it (at or closer to home) and the role they should have in it (people at the centre of decisions); and
    • continuing tight fiscal conditions despite the budget consequentials that will flow if the UK Government delivers its commitment to extra health spending.

In the face of those challenges it is clear that while we are making progress toward our current 2020 Vision for health and social care, which at its core remains valid and will endure beyond 2020, we need to make more headway more quickly. We also need to look to a longer horizon, out to 2030, to bring about a transformational change in our approach to improving the health and wellbeing of the population and to the delivery of high quality, efficient, appropriately integrated and locally delivered and genuinely person centred health and social care services. Realising the 2020 Vision, and moving beyond it, requires careful management of immediate and short term pressures in the system to provide a solid platform for managing and adapting to medium term (out to 2020) and longer term (2030+) pressures. It also requires constant assurance that individual policies and policy/delivery reviews are developed and managed coherently and that, collectively and individually, they continue to support wider-scale transformational change.

  • Ensuring the Scottish Government contributes effectively to the management of Ministers' interests in the Scottish Child Abuse Inquiry, responding competently, fully, openly, transparently and in a responsible manner to the Inquiry's information and records requirements, and ensuring executive agencies and NDPB's who have an interest in the Inquiry (as relevant to Scottish Government's interests) are also fully aware and prepared for the Inquiry's implications and engage effectively with it.
  • That our culture in the Scottish Government supports and enables greater diversity, demonstrating it is an exemplar employer by committing to positively value the different perspectives and skills of all staff and make full use of these in our work.
  • Work undertaken to manage Phase 1 of the Futures Programme to deliver the IT functionality and necessary controls to support implementation of the new Common Agricultural Policy ( CAP) and payments to farmers in 2015. To maintain a robust platform, minimise disallowance and comply with EC Paying Agency requirements.

The Scottish Government Audit and Risk Committee provides Non-Executive consideration of the adequacy of the core Scottish Government's risk management arrangements and approach for the prevention, detection, reporting and handling of fraud.

Counter Fraud Activity

Guidance on the prevention, detection, reporting and handling of fraud is included in the Scottish Public Finance Manual ( SPFM). Development work in this area has included the publication of Grant Funding and Procured Goods and Services Contracts guidance as an Annex in the SPFM designed to raise awareness of the decision making process for determining whether a grant or a procured contract is most appropriate. In addition a comprehensive review of the Scottish Government Grants Process to enhance controls in this area resulted in the publication of transformed guidance on the Scottish Government Intranet to support staff in ensuring grants are used for the purposes for which they are intended.

The Scottish Government has continued to engage with cross-government groups, sharing our approach and supporting the prevention agenda through the Fraud, Error and Debt Team within Cabinet Office. The Scottish Government has also entered into a partnership agreement with NHS Counter Fraud Services regarding the use of counter fraud expertise including specialist investigation and analytical services with the view to developing our techniques for minimising our fraud risks. The Scottish Government also continues to participate in the biennial National Fraud Initiative data matching exercise led by Audit Scotland, and we welcome the outcomes delivered from the 2014-15 exercise. The Scottish Government is working with Public Bodies across Scotland and Audit Scotland to continue to improve how we protect public resources now and in the future.

Details of the risk and control frameworks in place in the separate accounting entities within the Scottish Government consolidation boundary are provided in the governance statements provided by the entities concerned as part of their annual accounts.

Data Security Framework

The Scottish Government has policies and related guidance on information risk to ensure that it meets prescribed information assurance standards and requirements. DG Communities as Senior Information Risk Owner, is the focus for the management of information risk at Strategic Board.

During 2015-16, four data security incidents which could have resulted in the loss or potential loss of Scottish Government data were reported to the Scottish Government Office of Protective Security. Each incident was also reported to the Information Commissioner's Office ( ICO). No enforcement action was taken by ICO but actions were taken in each case to ensure that the probable impact of any loss was minimised. Appropriate procedures were also put in place to minimise the likelihood of any future recurrence.

Information assurance and security constitute a significant priority for the Scottish Government. Safe, Secure and Prosperous: A Cyber Resilience Strategy for Scotland was published in November 2015 and the Scottish Government intends to lead from the front; building our own cyber resilience and working with other public sector organisations to make sure resilience is built in to digital public services. Cyber risk is owned by the Strategic Board and delivery of the corporate Cyber Strategy 2020 will provide technical, governance, process and awareness improvements.

Assurance Framework

In December 2015 the findings of a strategic review of Internal Audit were reported to the Scottish Government Audit and Risk Committee. Led by an external expert acting as Interim Head of Internal Audit, the independent review identified key areas for improvement to strengthen our assurance arrangements and management of risk. This resulted in the appointment of a Director of Internal Audit in April 2016 to increase the profile and influence of Internal Audit across the organisation. This will further enhance the leadership of the Internal Audit function, and the level of strategic engagement with stakeholders, as an integral contributor to improving the organisation's operations and enhancing our risk management, control and governance arrangements.

An annual assurance on the adequacy and effectiveness of the core Scottish Government's internal control system, including risk management and safeguards against losses - and the extent to which it can be relied upon is provided through the professional opinion of the Scottish Government's Director of Internal Audit. In the annual assurance report submitted to the Scottish Government Audit and Risk Committee on 22 September 2016, the Director of Internal Audit confirmed that reasonable assurance could be placed on the internal control arrangements.

Audit Scotland reviews the Scottish Government's internal audit arrangements on an annual basis and for 2015-16 concluded that reliance could be placed on the work undertaken. Audit Scotland also provides assurance through the work undertaken on behalf of the Auditor General in auditing the Scottish Government consolidated accounts.

The process for the provision of annual assurances by senior staff within the core Scottish Government (and the other constituent parts of the Scottish Administration) is set out in the Scottish Public Finance Manual.

The culmination of this process is the provision of certificates of assurance from the Directors General to me, following advice from Non-Executive Directors. The Non-Executive Directors review, and advise on, the comprehensiveness of assurances provided to the Directors General. This includes the annual assurances provided by the Scottish Government Internal Audit, reports from managers and the consideration of information on control issues received in respect of any associated Executive Agencies, non-ministerial departments and sponsored bodies.

Each portfolio reports annually to the Scottish Government Audit and Risk Committee to provide assurances that they are operating in accordance with Scottish Public Finance Manual guidance and to draw the committee's attention to relevant issues. The chairs of the portfolio-based audit and risk committees met with the Scottish Government Audit and Risk Committee, prior to the finalisation of the Scottish Government consolidated accounts, to discuss their reports and any relevant issues. At this meeting on 22 August 2016, no significant control weaknesses were raised.

The Scottish Government Audit and Risk Committee provides me with an annual assurance, timed to support the signature of the Scottish Government consolidated accounts and the associated governance statement, following consideration of the accounts by Strategic Board on 6 September 2016. In providing such assurance the Scottish Government Audit and Risk Committee must consider the comprehensiveness of the Scottish Government assurance framework, the reliability and integrity of assurances provided and the findings of both internal and external auditors. The Scottish Government Audit and Risk Committee also advises on what, if any, issues arising during the financial year, and the period up to signature of the accounts, would warrant being recorded in the governance statement for the Scottish Government consolidated accounts. This process was completed in the course of the Scottish Government Audit and Risk Committee meeting on 22 September 2016.

A similar process is in place in each of the separate accounting entities within the Scottish Government consolidation boundary.

Significant Internal Control Issues

Details of significant internal control issues relevant to the 2015-16 financial year, or the period up to signature of the Scottish Government consolidated accounts, are detailed below. In providing this information due weight has been given to any significant matters recorded in the governance statements of the separate accounting entities within the Scottish Government consolidation boundary.

The delivery of CAP payments for the scheme year 2015 has proved enormously challenging. Payments have been made far later than in a normal year. The risk of penalties for late payment has been mitigated significantly following action by the European Commission following problems in a number of other Member States, but some residual risk remains. To support farmers, as the CAP payments system is being established, nationally funded loan schemes were initiated in 2015-16 but with the bulk of the loans issued in 2016-17 financial year and challenges remain in ensuring that all loans are recovered timeously. Further, in the delivery of the Futures Programme that provides the IT functionality to make the CAP payments from 2015 onwards, there have been a number of control weaknesses in contract management including a conflict of interest. These control weaknesses (e.g. authorisation and management of overtime) have been addressed, with the remaining risk mitigated significantly. The Programme and its contract management are now on a far better footing for the future.

Three of the four 2007-13 Structural Funds Programmes were suspended by the European Commission during 2015 as a result Internal Audit Authority findings, meaning that the auditors reported significant errors in the delivery of the programmes. As a result of senior management taking corrective measures those errors have been reduced significantly. This will not eliminate all risks with the 2007-13 programmes which are now in their closure phase. During this phase audit scrutiny could yet expose issues which could have financial consequences for Scottish Government. Implementation of the 2014-20 programmes is well underway. New systems and processes have been developed and are now in operation for these programmes. The updated framework addresses the known weaknesses from 2007-13 experience and should reduce the risk of audit failures in the 2014-20 programme work. There is an element of delivery risk with any European Funding programme as we work towards closure of the current arrangements by March 2017. However, the structural funds management and audit scrutiny teams have been working closely on a joint project plan to ensure the audit and closure work is completed to a high standard and on time.

The suspensions of the three programmes are being lifted by the Commission in response to the corrective action taken by senior management. DG Emploi lifted the suspensions on the European Structural Funds programmes in August 2016 with the outstanding funds being received by the Scottish Government in August. DG Regio agreed to lift the suspension of the European Regional Development Fund programme at its Committee on the 9th September. Formal confirmation of this is expected shortly with the withheld funds being released to the SG shortly after that.

NHS 24 - The Future Programme is a significant programme of change that will see the replacement of NHS 24's telephony and technology infrastructure and applications, supporting the delivery of the core unscheduled care service and a range of other scheduled care services. As a result of issues arising following the launch of the system, NHS 24 paused implementation of the Future Programme in November 2015 and plans are now in place for a phased implementation starting in autumn 2016. The delay has had a significant impact on the operational and financial plans of the Board for this and the next five years, however patient safety remains paramount and has been central to decisions taken throughout.

NHS Tayside - During 2015-16, as a result of an operational deficit and particular costs associated with backdated unsocial hours payments, the Board received brokerage of £5.0 million in order to meet its financial targets. Agreement of this brokerage was predicated on the Health Board developing plans to return to financial balance, and the Board have put in place a five year Transformation Programme to achieve this. The Scottish Government has agreed a package of tailored support in the form of specialist skills and resources to support the Board in progressing this programme and principles which will govern the profile of brokerage repayments to be agreed as part of this process.

Written Authority

Under the terms of the Public Finance & Accountability (Scotland) Act 2000 there is a statutory duty on the Principal Accountable Officer and designated Accountable Officers to obtain written authority from, as the case may be, Ministers or governing boards before taking any action which we consider to be inconsistent with the proper performance of our functions as Accountable Officers.

No such written authority was required during the 2015-16 financial year, or the period up to signature of the accounts, by Accountable Officers within the Scottish Government consolidation boundary.

Remuneration and Staff Report

The information in the Performance and Accountability Reports is reviewed by the external auditors for consistency with the financial statements, and the information disclosed in tables on pages 37-48 has been audited by them.

Appointments

Civil service appointments are made in accordance with the Civil Service Commissioners' Recruitment Principles, which require appointments to be on merit on the basis of fair and open competition but also include the circumstances when appointments may otherwise be made.

Director General members of the Scottish Government Strategic Board are appointed following approval by the Head of the Home Civil Service, following consultation with the First Minister in accordance with the Constitutional Reform and Governance Act 2010. Prior to the introduction of the Constitutional Reform and Governance Act 2010, appointments were approved by the Prime Minister.

All but one of the Executive members of the Scottish Government Strategic Board, covered by this report, hold appointments which are open-ended until they choose to retire. For those with permanent appointments, the rules for termination are set out in chapter 11 of the Civil Service Management Code. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme. The Scottish Government, its Agencies and the Crown Office and Procurator Fiscal Service, in line with the rest of the UK Civil Service, introduced a policy of no mandatory retirement age for the Senior Civil Service from 1 October 2009, in line with the implementation of the Employment Equality (Age) Regulations 2006. Under current arrangements, an individual's pension will become payable from age 60 if they were employed in the Civil Service prior to 30 July 2007, and in these circumstances that employee can choose to leave work and collect his or her pension at any time from age 60, subject only to compliance with the basic notice of leave requirements. The Government announced a number of reforms to civil service pensions which were applied from 1 April 2015.

Further information about the work of the Civil Service Commissioners can be found at civilservicecommission.independent.gov.uk.

Independent non-executive members of the Scottish Government Strategic Board are appointed by the Permanent Secretary for an initial period of two to three years (normally up to a maximum of six years via re-appointment). Such appointments can be terminated with one month's notice period.

Remuneration Policy

The salaries of the Scottish Government Ministers were established under section 81(1) and (2) of the Scotland Act 1998. They are paid through the Scottish Parliamentary Corporate Body ( SPCB).

The remuneration of senior civil servants ( SCS) is set in accordance with the Civil Service Management Code (available at www.civilservice.gov.uk) and with independent advice from the Senior Salaries Review Body ( SSRB).

In reaching its recommendations, the SSRB is to have regard to the following considerations:

  • The need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities;
  • Regional/local variations in labour markets and their effects on the recruitment and retention of staff;
  • Government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services;
  • The funds available to departments as set out in the Government's departmental expenditure limits; and
  • The Government's inflation target.

Further information about the work of the SSRB can be found at www.ome.uk.com.

Within the Scottish Government, the Top Level Pay Committee, comprising the Permanent Secretary, the Directors General, Chief Executive of the Crown Office and Non-executive members of the Strategic Board, ensures that the Pay and Performance Management policy falls within the parameters set by the SSRB and Cabinet Office. The Scottish Government's Top Level Pay Committee has agreed that for SCS pay in 2015-16:-

  • all SCS staff, apart from poor performers and those near the maximum of the pay range, will receive a 1% pay uplift to their base pay; and
  • there will be no non-consolidated performance payments.

The Permanent Secretary's salary and performance-related pay are set as part of a UK Cabinet Office framework and agreed by the Prime Minister. In 2015-16, the Permanent Secretary's performance was assessed as being entitled to a non-consolidated payment which he declined in line with Scottish Government pay policy.

Non-executive members receive fees for attendance at regular Scottish Government Strategic Board meetings and Scottish Government Audit and Risk Committee ( SGARC) meetings. Non-executive members expenses incurred in attending these meetings are also reimbursed.

Remuneration

The remuneration of the Ministers who served over the year to 31 March 2016 and members of the Scottish Government Strategic Board is noted below.

Ministers and Law Officers

The remuneration of the First Minister and the Cabinet Ministers during the year to 31 March 2016 is shown in the table below. Ministerial salaries are additional to salaries and entitlements as MSPs. The full year salary rate for the First Minister is £85,598 and for all other Cabinet Ministers is £44,406.

2015-16
Ministerial
Gross Salary
2014-15
Ministerial
Gross Salary
£ £
Nicola Sturgeon, MSP (1) 85,598 59,095
John Swinney, MSP 44,406 44,097
Keith Brown, MSP 44,406 33,388
Roseanna Cunningham, MSP 44,406 33,388
Angela Constance, MSP 44,406 43,161
Shona Robison, MSP 44,406 43,161
Alex Neil, MSP 44,406 44,097
Michael Matheson, MSP 44,406 33,388
Richard Lochhead, MSP 44,406 44,097
Fiona Hyslop, MSP 44,406 44,097
Alex Salmond, MSP - 54,071
Michael Russell, MSP - 28,173
Kenny MacAskill, MSP - 28,173

(1) The First Minister has a benefit-in-kind for 2015-16 of £93.81 arising from the provision of accommodation at Bute House (2014-15: £93.15).

Scottish Government Ministers Pay Freeze Commitment

The Scottish Parliament Corporate Body is required under Chapter 46, Section 81 of the Scotland Act 1998 to make provision for the payment of salaries to MSPs, Officeholders of the Parliament and Ministers. A resolution of the Parliament to pay salaries in accordance with the Scottish Parliamentary Salaries Scheme was passed by the Parliament on a free vote on 21 March 2002. The Scheme determines that the Scottish Parliamentary Corporate Body should decide the salary levels for Members and Officeholders including the Law Officers. The Scheme determines that Members' and Officeholders' salary rates should be increased annually from 1 April in line with public sector pay rises in Scotland, using the Annual Survey of Hours and Earnings published by the Office for National Statistics.

Scottish Government Ministers and the Law Officers have previously agreed to freeze pay as at their April 2009 pay level. The Salaries Scheme does not give the power to withhold an annual increase. To achieve the required reduction, pay increases are deducted from the Ministers' and the Law Officers' net salaries and repaid to the Scottish Consolidated Fund. The disclosure reflects the salary awarded under the Scottish Parliamentary Salaries Scheme.

Law Officers

The remuneration of the serving Law Officers for the year to 31 March 2016 is shown below:

2015-16
Gross Salary
2014-15
Gross Salary
£ £
Frank Mulholland, QC 117,102 116,287
Lesley Thomson, QC 101,040 100,337

Senior Management Team

The remuneration for the Permanent Secretary and members of the Scottish Government Strategic Board, excluding the non-executive members, for the year to 31 March 2016 were as follows:

Salary Salary Pension
Benefits
Pension
Benefits
Total Total
2015-16 2014-15 *2015-16 *2014-15 2015-16 2014-15
£'000 £'000 £'000 £'000 £'000 £'000
Sir Peter Housden KCB (to 30 June 2015) 60-65 180-185 - - 60-65 180-185
Leslie Evans (1) 150-155 125-130 298 25 450-455 150-155
Barbara Allison (2) - 15-20 - 6 - 20-25
Sarah Davidson 115-120 95-100 70 117 185-190 210-215
Graeme Dickson 115-120 115-120 38 26 155-160 140-145
Gary Gillespie 90-95 90-95 41 20 130-135 110-115
Paul Gray 145-150 140-145 - - 145-150 140-145
Paul Johnston (3) 80-85 - 70 - 150-155 -
Alyson Stafford CBE 135-140 135-140 66 46 200-205 180-185
Ken Thomson 115-120 115-120 43 43 160-165 160-165
Professor Muffy Calder OBE (4) - 65-70 - - - 65-70
Catherine Dyer CBE 125-130 125-130 37 26 160-165 150-155
Professor Carol Tannahill (5) 65-70 65-70 - - 65-70 65-70

*Pension benefits are calculated as real increase in pension multiplied by 20 plus the real increase in any lump sum less the contributions made by the individual.

(1) Leslie Evans served on Strategic Board as DG Learning & Justice, until 1 July 2015 when she was appointed as Permanent Secretary. Her full year salary as Permanent Secretary is in the band £160K-165K

(2) Barbara Allison left her interim director role on Strategic Board on 25 May 2014. The full year salary for Barbara Allison for 2014-15 is in the £90k-£95k band.

(3) Paul Johnston joined Strategic Board on 15 June 2015. The full year salary band is £105k- 110k.

(4) Professor Muffy Calder left on 31 December 2014. Prior to that date, she was on secondment to the Scottish Government from the University of Glasgow. Her salary and pension matters are the responsibility of her parent employer. The Scottish Government reimbursed the University of Glasgow on a pro-rata basis to reflect salary, ERNIC and employer pension costs for a secondment equivalent to three days per week.

(5) Professor Carol Tannahill joined the Scottish Government on 1 April 2014 on secondment from the Glasgow Centre for Population Health. Her salary and pension matters are the responsibility of her parent employer. The Scottish Government reimbursed her employer on a pro-rata basis to reflect salary, ERNIC and employer pension costs for a secondment equivalent to 0.5 full time equivalent.

No members of the Scottish Government Strategic Board received benefits-in-kind.

In accordance with the FReM, reporting bodies are required to disclose the relationship between the remuneration of the highest-paid member of the Senior Management Team in their organisation and the median remuneration of the organisation's workforce. The median calculation includes directly employed staff paid through SG payroll. It covers both permanent staff and those on fixed term contracts. It does not include temporary agency staff paid locally by invoice. The ratio is calculated as the mid-point of the highest band divided by the median total remuneration.

2015-16 2014-15
£'000 £'000
Band of Highest Paid member of the Strategic Board Total Remuneration 150-155 180-185
Median Total Remuneration 31,340 31,029
Ratio 4.9 5.9

Equivalent information relating to senior managers of the other bodies consolidated within these accounts is given in their respective annual accounts.

Total remuneration includes salary, non-consolidated performance-related pay, and benefits-in-kind. It does not include employer pension contributions and the cash equivalent transfer value of pensions.

Non-Executive Members

Salary

'Salary' includes gross salary; non-consolidated performance related pay; overtime; reserved rights to London weighting or London allowances; recruitment and retention allowances; private office allowances and any other allowance to the extent that it is subject to UK taxation and any ex-gratia payments.

Benefits-in-Kind

The monetary value of benefits-in-kind covers any benefits provided by the Scottish Government and treated by HM Revenue and Customs as a taxable emolument.

The fees for the non-executive members of the Scottish Government Strategic Board are as follows:

2015-16
Fees
2014-15
Fees
£'000 £'000
Christina Allon 5-10 5-10
Janet Hamblin (from September 2015) 0-5 -
Linda McKay 5-10 5-10
Alex Smith (until September 2015) 0-5 5-10

No non-executive members of the Scottish Government Strategic Board received benefits-in-kind. The non-executive members do not participate in the Civil Service Pension Scheme.

Pension Benefits

Ministers and Law Officers

The pension entitlements of the Cabinet Team for the year to 31 March 2016 are shown below:

Accrued
pension
at age 65 as
at
31-Mar-16
Real
increase
in pension
at age 65
CETV at
31-Mar-16
CETV at
31-Mar-15
Real
Increase
in CETV
£'000 £'000 £'000 £'000 £'000
Nicola Sturgeon 15-20 5-7.5 204 118 77
John Swinney, MSP 5-10 0-2.5 124 104 16
Fiona Hyslop, MSP 5-10 0-2.5 124 104 16
Richard Lochhead, MSP 5-10 0-2.5 109 91 13
Alex Neil, MSP 5-10 0-2.5 149 121 24
Angela Constance, MSP 0-5 0-2.5 53 40 11
Shona Robison, MSP 5-10 0-2.5 118 96 17
Keith Brown, MSP 5-10 0-2.5 113 85 23
Michael Matheson, MSP 5-10 0-2.5 61 34 22
Roseanna Cunningham, MSP 5-10 2.5-5 149 91 54

New factors are used in the calculator for the CETV values at the start and end of the period. This means CETV values shown at 31 March 2015 may not match those shown in last year's accounts.

The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total ministerial service, and not just their current appointment as a Minister. The Ministers are members of the Scottish Parliamentary Pension Scheme, full details of which are available from www.sppa.gov.uk.

The pension entitlements of the Law Officers are shown below.

Accrued pension
at age 65 as at
31-Mar-15
Real increase
in pension
at age 65
CETV at
31-Mar-16
CETV at
31-Mar-15
Real
Increase
in CETV
£'000 £'000 £'000 £'000 £'000
Frank Mulholland, QC 20-25 0-5 316 265 44
Lesley Thomson, QC 10-15 0-5 192 144 37

Senior Management Team

The pension entitlements of the Permanent Secretary and executive members of the Scottish Government Strategic Board are as follows (equivalent information relating to senior managers of other bodies consolidated within these accounts is given in their respective annual accounts):

Accrued pension
at age 60
and related lump
sum as at
31-Mar-16
Real increase
in pension and
related lump sum
at age 60
CETV at
31-Mar-16
CETV at
31-Mar-15
Real
Increase
in CETV
£'000 £'000 £'000 £'000 £'000
Leslie Evans 65-70 plus lump sum 200-205 10-15 plus lump sum 40-45 1,469 1,104 282
Barbara Allison 25-30 plus lump sum 80-85 0-2.5 plus lump sum 2.5-5 560 496 21
Sarah Davidson 25-30 plus lump sum 85-90 2.5-5 plus lump sum 2.5-5 471 391 34
Graeme Dickson 45-50 plus lump sum 140-145 0-2.5 plus lump sum 5-7.5 1,100 984 38
Gary Gillespie 15-20 plus lump sum 50-55 0-2.5 plus lump sum 0-2.5 307 257 18
Paul Johnston 20-25 plus lump sum 55-60 0-2.5 plus lump sum 2.5-5 289 230 33
Alyson Stafford CBE 20-25 2.5-5 419 345 35
Ken Thomson 45-50 2.5-5 888 782 35
Catherine Dyer 40-45 plus lump sum 130-135 0-2.5 plus lump sum 5-7.5 940 838 34

Sir Peter Housden KCB, Permanent Secretary until 30 th June 2015, and Paul Gray , Director General for Health & Social Care, chose not to be covered by the Civil Service pension arrangements during the reporting year.

There is no automatic right to a lump sum for officials who are members of the Premium Pension Scheme or the Nuvos Pension Scheme.

New factors are used in the calculator for the CETV values at the start and end of the period. This means CETV values shown at 31 March 2015 may not match those shown in last year's accounts.

No employer contributions have been made to the partnership pension accounts.

Civil Service Pensions

Pension benefits are provided through the Civil Service pension arrangements. From 1 April 2015 a new pension scheme for civil servants was introduced - the Civil Servants and Others Pension Scheme or alpha, which provides benefits on a career average basis with a normal pension age equal to the member's State Pension Age (or 65 if higher). From that date all newly appointed civil servants and the majority of those already in service joined alpha. Prior to that date, civil servants participated in the Principal Civil Service Pension Scheme ( PCSPS). The PCSPS has four sections: three providing benefits on a final salary basis ( classic, premium or classic plus) with a normal pension age of 60; and one providing benefits on a whole career basis ( nuvos) with a normal pension age of 65.

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus, nuvos and alpha are increased annually in line with Pensions Increase legislation. Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 will switch into alpha sometime between 1 June 2015 and 1 February 2022. All members who switch to alpha have their PCSPS benefits 'banked', with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha - as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes.)

Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a 'money purchase' stakeholder pension with an employer contribution ( partnership pension account). Employee contributions are salary-related and range between 3% and 8.05% of pensionable earnings for members of classic (and members of alpha who were members of classic immediately before joining alpha) and between 4.6% and 8.05% for members of premium, classic plus, nuvos and all other members of alpha.

Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement.

For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum.

Classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium.

In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member's earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation.

Benefits in alpha build up in a similar way to nuvos, except that the accrual rate in 2.32%. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004.

The partnership pension account is a stakeholder pension arrangement. The employer makes a basic contribution of between 3% and 12.5% up to 30 September 2015 and 8% and 14.75% from 1 October 2015 (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of providers. The employee does not have to contribute, but where they do make contributions, the employer will match these up to a limit of 3% of pensionable salary (in addition to the employer's basic contribution). Employers also contribute a further 0.8% of pensionable salary up to 30 September 2015 and 0.5% of pensionable salary from 1 October 2015 to cover the cost of centrally-provided risk benefit cover (death in service and ill health retirement).

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus, 65 for members of nuvos, and the higher of 65 or State Pension Age for members of alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha - as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes, but note that part of that pension may be payable from different ages.)

Further details about the Civil Service pension arrangements can be found at the website www.civilservicepensionscheme.org.uk

Cash Equivalent Transfer Values for Civil Service pensions

A Cash Equivalent Transfer Value ( CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member's accrued benefits and any contingent spouse's pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The figures include the value of any pension benefit in another scheme or arrangement which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

Real increase in CETV

This reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

For 2015-16 Scottish Government employers' contributions of £71m (2014-15: £80m) were payable to PCSPS at one of four rates in the range 20% to 24.5% of pensionable pay, based on salary bands. The Scheme Actuary reviews employer contributions every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2015-16 to be paid when the member retires, and not the benefits paid during this period to existing pensioners.

For 2015-16 the value of Scottish Government employers' contributions relating to the partnership pension account is £348k (2014-15: £139k). There were no contributions due to the partnership pension or prepaid at the balance sheet date.

People and Culture

Staff numbers and related costs

Staff numbers (Full time equivalent) No of
Special
Advisors
Permanent
Staff
Other 2015-16
Total
2014-15
Total
Finance, Constitution and Economy 0 741 40 781 890
Health, Wellbeing and Sport 0 143,640 2,017 145,657 144,267
Education and Lifelong Learning 0 1,125 306 1,431 1,278
Fair Work, Skills and Training 0 25 3 28 42
Justice 0 4,767 10 4,777 4,713
Social Justice, Communities and Pensioners Rights 0 403 7 410 389
Rural Affairs, Food and Environment 0 1,466 80 1,546 1,577
Culture, Europe and External Affairs 0 70 2 72 1,135
Infrastructure, Investment and Cities 0 859 46 905 671
Administration 13 892 29 934 1,308
Crown Office and Procurator Fiscal Service 0 1,367 240 1,607 1,626
SG Strategic Board 0 7 0 7 7
Total 13 155,362 2,780 158,155 157,903
Included in the above:
Number of staff on capital projects (full time equivalents) 195 224
Staff costs 2015-16
2014-15
£'m £'m
Wages and Salaries (Permanent staff) 5,399 5,319
Social security costs (Permanent staff) 433 427
Other pension costs (Permanent staff) 746 669
Sub-total 6,578 6,415
Non-Permanent Staff (including Agency, temporary, contract staff and inward secondments) 279 215
Total 6,857 6,630
Less recoveries in respect of outward secondments (52) (47)
Total net costs 6,805 6,583

Number and cost of exit packages (set by reference to the Civil Service Compensation Scheme)

Exit Packages Cost Band No of departures
agreed
2015-16
Cost of exit
packages
2015-16
£000
No of departures
agreed
2014-15
<£10,000 46 201 31
£10,000 to £25,000 34 629 73
£25,000 to £50,000 44 1,619 83
£50,000 to £100,000 38 2,586 59
£100,000 to £150,000 3 519 14
£150,000 to £200,000 3 536 1
£200,000 to £250,000 0 0 3
£250,000+ 1 315 0
Total number / cost of exit packages 169 6405 264

Exit packages were disclosed in the staff note in 2014-15 and the total cost per band was not reported. The total cost of exit packages in 2014-15 was £11million.

There were no compulsory redundancies in 2015-16 or 2014-15.

Staff Relations, Diversity and Equal Opportunities

The Scottish Government is an equal opportunities employer. Policies are in place to guard against discrimination and to ensure that there is no unfair or unlawful discriminatory treatment or any barriers to employment or advancement in the Scottish Government and to promote diversity and inclusion in the workplace. The Scottish Government is also committed to meeting its public sector duties under the Equality Act 2010.

The Scottish Government gives a high priority to the development of all its people. This is set out in the Scottish Government's People Strategy. Learning and Development in the Scottish Government is quality assured through its commitment to the Investor in People (IiP) Scheme. The organisation has been recognised as an Investor in People since 1997. In August 2013, the Scottish Government became the first central UK Civil Service organisation to be recognised with a Gold Award. The Scottish Government is committed to a programme of continuous improvement in relation to its implementation of the People Strategy and the IiP standard, attaining accreditation for Investors in Young People.

The Scottish Government recognises that the success of any organisation depends largely on the effective performance, engagement and attendance of all its employees. People are a valued resource. Therefore, as an employer the Scottish Government's Attendance Management procedures are designed to maintain a well-motivated and healthy workforce. The procedures are intended to:

  • be supportive and positive;
  • promote fair and consistent treatment for everyone;
  • encourage, assist and make it easy for people to return to and stay in work; and
  • explain employees' entitlements and the roles and responsibilities of HR.

In 2015-16 an average of 7.2 working days (2014-15: 7.1) were lost per staff year for the Scottish Government. The NHS Bodies in Scotland report their sickness absence rates based on contracted hours lost rather than days lost due to different shift patterns in the NHS Scotland workforce. The sickness absence rate across NHS Scotland for the year to 31 March 2016 was 4.7% of total contracted hours (2014-15: 4.7% of total contracted hours).

The Scottish Government Equal Opportunities policy states that all staff should be treated equally irrespective of their sex, marital/civil partnership status, age, race, ethnic origin, sexual orientation, disability, religion or belief, work pattern, employment status, gender identity (transgender), maternity or paternity status, caring responsibility or trade union membership. Employment and promotion are solely on merit and all opportunities are available to all staff irrespective of working pattern. Furthermore the Scottish Government is committed to increasing the diversity of staff within the organisation. We are committed to developing all our staff, whilst ignoring all irrelevant differences in their management and development. In addition, we will positively value the different perspectives and skills of all our staff and make full use of these in our work.

During 2015-16 there were 42,638 male employees, 143,578 female employees, 188 for whom the information was not available and 3 who prefer not to say. This has been measured as head count numbers and not full time equivalents.

The Scottish Government made significant progress in jumping 110 places from 216 to 106 on the Stonewall UK Workplace Equality Index ( WEI), the fourth top public sector organisation in Scotland. The Stonewall WEI is an evidence-based benchmarking tool used by employers to assess their achievements and progress on LGBT equality in the workplace.

The Scottish Government supports the wider Civil Service Talent Action Plan in its drive to mainstream equality and diversity further into every aspect of its business. This includes changing behaviours and culture to create a fully inclusive Civil Service, confident in its diversity; promoting strong leadership and clear accountability for delivering diversity; attracting, keeping and developing talent from all societies in Scotland; and becoming representative of the society we serve, at all levels.

Employment of Disabled People

The Scottish Government follows Civil Service good practice guidance on the employment of disabled people and is a Jobcentre Plus Positive about Disabled People Symbol user. The 'two-ticks' positive about disability symbol is awarded by Jobcentre Plus to employers who have made commitments to employ, keep and develop the abilities of disabled staff. As such, the Scottish Government ensures that there is no discrimination on the grounds of disability and that access to employment and career advancement is based solely on merit, competence and suitability for the work.

The average number of disabled employees employed by the Scottish Government, its Executive Agencies, Health Bodies and the Crown Office and Procurator Fiscal Service over the year to 31 March 2016 was 1,947 (2014-15: 1,741).

Losses and special payments

The following losses and special payments have been audited by the Scottish Government's auditors. Losses and special payments are in the nature of transactions which Parliament cannot be supposed to have contemplated when approving the annual Budget Act and subsequent Amendment Orders. The Scottish Public Finance Manual requires a formal approval procedure to regularise such transactions and their notation in the annual accounts.

Losses Statement

2015-16 2015-16 2014-15
Portfolio No of Cases £m £m
Finance, Constitution and Economy 3,666 2.82 5.53
Health, Wellbeing and Sport 4,259 3.06 3.71
Education and Lifelong Learning 1 0.01 4.80
Fair Work, Skills and Training - - -
Justice 465 0.03 0.26
Social Justice, Communities and Pensioners' Rights 47 0.69 -
Rural Affairs, Food and the Environment 43 0.25 1.17
Culture, Europe and External Affairs 15 0.02 0.10
Infrastructure, Investment and Cities 40 0.46 0.73
Administration 16 0.04 0.01

Details of cases over £0.25m

There were no cases over £0.25m in 2015/16.

For 2014/15, the cases over £0.25m are described below:

Portfolio 2014-15
£m
Finance, Constitution and Economy Unable to recover grant due to liquidation of recipient 2.40
Health, Wellbeing and Sport Loss of equipment - suspected theft 0.73
Rural Affairs, Food and the Environment Exchange rate loss on balances due from the EU on the European Fisheries Fund which is paid in Euros. Due to fluctuations in exchange rate, the sterling balance on settlement was lower than previously recorded 0.86
Education and Lifelong Learning In year write offs relating to current and historic cases 4.80

Special Payments

Portfolio 2015-16 2015-16 2014-15
No of Cases £m £m
Finance, Constitution and Economy 9 - -
Health, Wellbeing and Sport 1,361 50.47 46.32
Education and Lifelong Learning 49 0.02 1.14
Fair Work, Skills and Training - - -
Justice 260 1.26 1.20
Social Justice, Communities and Pensioners' Rights - - -
Rural Affairs , Food and the Environment - - -
Culture, Europe and External Affairs - - -
Infrastructure, Investment and Cities - - -
Administration 12 0.04 0.02
Crown Office and Procurator Fiscal - - 0.07
Details of cases over £0.25m 2015-16 2015-16 2014-15
Portfolio No of Cases Details £m £m
Health,Wellbeing and Sport: NHS Boards: Clinical Compensation Payments:
3 Ayrshire and Arran Health Board 1.45 1.75
2 NHS Borders 0.71 2.87
- NHS Dumfries and Galloway - 0.26
1 Fife Health Board 0.41 0.27
1 Forth Valley Health Board 1.04 -
5 Grampian Health Board 2.98 4.06
16 Greater Glasgow and Clyde Health Board 10.88 3.19
2 NHS Highland 0.81 0.98
6 Lanarkshire Health Board 10.27 4.38
5 Lothian Health Board 3.26 7.77
5 Tayside Health Board 4.21 3.43
1 Scottish Ambulance Service 0.94 0.70
Education and Lifelong Learning - During 2014-15, Disclosure Scotland paid a supplier £1.1 million, representing the first milestone payment of a contract that subsequently did not complete. - 1.14

Gifts

The Scottish Government made gifts in the year as follows:

2015-16 2015-16 2014-15
Portfolio No of Cases £m £m
Social Justice, Communities and Pensioners' Rights - - 0.01
Administration 111 0.003 -

There were no cases over £0.25m.

Principal Accountable Officer

22 September 2016


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