Losses and special payments identified at an aggregate level in consolidated accounts 2017-18: FOI release

FOI reference: FOI/18/02713
Date received: 28 September 2018  
Date responded: 25 October 2018
 

You asked for details regarding various losses and special payments disclosures in the Scottish Government Consolidated Account 2017-18.

These Consolidated Accounts contain information collated from a number of Scottish Public Bodies, and a full description of these bodies and links to their individual accounts are provided on page 11 of the Consolidated Accounts you referenced in your questions https://www.gov.scot/Resource/0054/00540845.pdf.

The information I have provided below has been gathered from a number of separate organisations, as identified in each separate answer.

1. Full details (and any relevant documents) regarding the £0.22m of losses in the Education and Skills portfolio mentioned on p.47.

Answer: Disclosure Scotland

The losses for Disclosure Scotland per the consolidated accounts are detailed below:

• Approved impairment of aged debt £57,479; and
• A payment of £158,566 relating to a request for British Telecom (BT) to undertake a piece of mitigation work as part of the transformation programme. However, a change in strategy meant that this work was not implemented within our business model.

This information was previously disclosed in Disclosure Scotland's annual accounts - https://www.mygov.scot/disclosure-scotland-annual-report-accounts/

2. Full details (and any relevant documents) regarding the roughly £40,000 loss in the Finance and Constitution portfolio mentioned on p.47.

Answer: Scottish Government (core)

£39,517 write off of funding related to Sustainable Employment project managed by One Plus in 2006, whom latterly were liquidated by KPMG.

3. Full details (and any relevant documents) regarding the £2,000 loss in the Communities, Social Security and Equalities portfolio mentioned on p.47.

Answer: Scottish Government (core)

Write-offs of seven billed transactions from 2012 that are no longer recoverable:

• £100 'Easthall Park Housing Co-operative - Property Factors Registration Fee - Lower Rate'.
• £100 'YI Properties - Property Factors Registration Fee - Lower Rate'.
• £370 Linstone Housing Association - Property Factors Registration Fee - Higher Rate.
• £370 CHP Ltd t/a Sanctuary Cumbernauld - Property Factors Registration Fee - Higher Rate.
• £370 Blackwood Homes & Care - Property Factors Registration Fee - Higher Rate.
• £370 Ardenglen H A Ltd - Property Factors Registration Fee - Higher Rate.
• £370 Pavillion Properties - Property Factors Registration Fee - Higher Rate.

4. Full details (and any relevant documents) regarding a) the £1.04m of losses in the Rural Economy and Connectivity portfolio mentioned on p.47 and b) further details regarding the specified £800,000 loss for ‘…the building of the new processing facility but the scheme was subsequently abandoned’.

Answer: a) Scottish Government (core) & Transport Scotland*

£1,197 of invoices issued by Science and Advice for Scottish Agriculture (SASA) with each between £25 and £612, for items including seed testing, sale of antibodies, school kits for the detection of Botrytis cinerea and panel delegate travel. Cost recovery deemed no longer possible or not cost effective.

The following £171,746 of losses have arisen where EU Common Agriculture Policy (CAP) scheme payment recoveries are deemed no longer possible or not cost effective:

• £42,270 Farm Woodland Premium Scheme.
• £36,612 Farm Business Development Scheme.
• £27,720 Rural Stewardship Scheme.
• £22,995 Countryside Premium Scheme.
• £16,984 Single Farm Payment Scheme.
• £13,704 Food Processing, Marketing and Cooperation.
• £4,821 Land Management Contract Menu Scheme.
• £3,609 Farming Opportunities for New Entrants.
• £1,367 Land Managers Option.
• £937 of lower value payments related to various schemes.
• £401 Less Favoured Areas Support Scheme.
• £326 Farm Woodland Premium Scheme.

£67,186* loss relates to 12 damage to Crown property claims, within the trunk road network, which have been written off due to being unable to identify the culprit or no chance of recovering the costs. This information was recently disclosed in Transport Scotland’s annual accounts - https://www.transport.gov.scot/media/43243/transport-scotland-annual-report-and-accounts-2017-18.pdf

b) Scottish Government (core)

A £798,831 grant under the “Highlands & Islands Special Transitional Programme EAGGF Objective 1 2000-2006 Processing and Marketing Grant Scheme (Capital) for Agricultural Produce” in November 2006, was paid to operate a new build abattoir and meat processing facility near Wick, Caithness. The facility was opened in trial mode and not brought into full commercial operation. Department for Environment Food and Rural Affairs confirmed that the debt was no longer governed by EU regulation and should be treated as a National debt. Scottish Government are unsecured creditors with no prospect of dividend payment and therefore the debt was written off.

5. Full details (and any relevant documents) regarding the roughly £10,000 loss in the Culture, Tourism and External Affairs portfolio mentioned on p.47

Answer:

£6,680 Brussels Office foreign exchange (euro) loss, prior year £3,330 gain.

6. Full details (and any relevant documents) regarding a) £4.44m of losses in the Economy, Jobs and Fair Work (EJFW) portfolio and b) further details regarding the specified  £2.38m loss, both mentioned on p.47.

Answer: Scottish Government (EJFW portfolio) and *Accountant in Bankruptcy

The following £2.438m of losses relate to European Regional Development / Structural Funding (ERDF / ESF):

• South Lanarkshire College £144,655.
• Lerwick Port Authority £150,220.
• Sabhal Mor Ostaig £205,077.
• West College Scotland £46,946.
• Cromarty Firth Port Authority £8,617.
• Sealladh na Beinne Moire £54,259.
• Highland Opportunity Ltd £171,049.
• Scottish Council for Voluntary Organisations £403,790.
• City of Glasgow College £1,253,158.

£1.999m* fees and outlays incurred in sequestrating estates but not able to be recovered due to insufficient asset realisations/debtor contributions.

7. Full details (and any relevant documents) regarding a) roughly £20,000 of special payments in the Finance and Constitution portfolio and b) roughly £140,000 of special payments in the Administration portfolio, both mentioned on p.48.

Answer: a) Scottish Public Pension Agency

£23,348 comprising 15 compensation payments to members of the SPPA pension schemes. These payments represent confidential compensation payable on the resolution of disputes raised under the pension schemes administered by the SPPA.

b) Scottish Government (Administration portfolio)

Special payments have arisen predominantly as a consequence of Scottish Government HR policies such as compensation in lieu of notice and cover for personal injury, emergency medical treatment and loss or damage to personal property whilst on official business. 

• Professional fees £35,210.
• Settlement of claim £40,190.
• Payments made to staff who left SG employment £59,130.
• Other payments £330.

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