Scottish Government

The Scottish Government Annual Report

For the year ended 31 March 2009

INTRODUCTION/BACKGROUND

Basis of Accounts

1. These accounts have been prepared in accordance with the accounts direction issued by the Scottish Ministers under section 19(4) of the Public Finance and Accountability (Scotland) Act 2000. The accounts direction is reproduced here.

Scottish Government Consolidation Accounting Boundary

2. These accounts reflect the consolidated assets and liabilities and the results of all entities within the Scottish Government consolidation accounting boundary as defined in the Government Financial Reporting Manual ( FReM). This consists of the seven internal Portfolios, supported by Administration, their Executive Agencies (each linked to a specific portfolio), the Crown Office and Procurator Fiscal Service and the NHS Bodies responsible for the planning, promotion, commissioning and the delivery of healthcare.

3. The core Scottish Government was restructured in 2008-09 to include an additional portfolio, Local Government, reflecting the Concordat between Scottish Local Authorities and the Scottish Government. In addition, many of the programmes within portfolios were restructured. As a result relevant prior year comparatives have been restated.

The bodies within the boundary are as follows:

Core Portfolios:

• Office of the First Minister
• Finance and Sustainable Growth
• Health and Wellbeing
• Education and Lifelong Learning
• Justice
• Rural Affairs and the Environment
• Local Government

Executive Agencies:

Office of the First Minister

• Historic Scotland ( www.historic-scotland.gov.uk)

Finance and Sustainable Growth

• Scottish Public Pensions Agency ( www.sppa.gov.uk)
• Transport Scotland ( www.transportscotland.gov.uk)

Health and Wellbeing

• Mental Health Tribunal ( www.mhtscot.org)
• Scottish Housing Regulator ( www.scottishhousingregulator.gov.uk)

Education and Lifelong Learning

• Her Majesty's Inspectorate of Education ( www.hmie.gov.uk)
• Social Work Inspection Agency ( www.swia.gov.uk)
• Student Awards Agency for Scotland ( www.student-support-saas.gov.uk)

Justice

• Scottish Prison Service ( www.sps.gov.uk)
• Scottish Court Service ( www.scotcourts.gov.uk)
• Accountant in Bankruptcy ( www.aib.gov.uk)

Rural Affairs and the Environment

• Scottish Fisheries Protection Agency ( www.sfpa.gov.uk)
• Fisheries Research Services ( www.marlab.ac.uk)

Other Consolidated Bodies:

• The NHS Bodies in Scotland responsible for the planning, promotion, commissioning and delivery of healthcare.
• The Crown Office and Procurator Fiscal Service ( www.copfs.gov.uk)

4. Within the accounts the Core Portfolios are referred to as 'Core', while the other consolidated bodies, including the Executive Agencies, Crown Office and Procurator Fiscal Service and the Health Bodies, are referred to as 'Other'.

5. The Scottish Government is also the sole shareholder of Caledonian Maritime Assets Ltd, David MacBrayne Ltd, Highland and Islands Airports Limited and the Scottish Futures Trust; a shareholder in Partnerships UK Limited; and sponsor of a number of executive, advisory and tribunal Non-Departmental Public Bodies. These bodies are regarded as related parties with which the Scottish Government has had various transactions during the year, but do not fall within the Scottish Government consolidation accounting boundary. Further details of Scottish Public Bodies are available from the Scottish Government website at http://www.scotland.gov.uk/Topics/Government/public-bodies.

6. The Crown Office and Procurator Fiscal Service, the Executive Agencies and the individual Health Bodies also produce and publish their own annual accounts. These accounts can be accessed via the Scottish Government website at www.scotland.gov.uk. Useful information on the Core Portfolios is also provided in a separate balance sheet (see here) and accompanying notes (see here).

Comparison of Budget to Outturn

7. These accounts seek to report actual outturn compared to the budget authorised by the Scottish Parliament. The annual budget authorised by the Scottish Parliament, however, is the budget for the wider Scottish Administration. It therefore includes the funding of activities which are not within the Scottish Government, and not, therefore, dealt with in these accounts. There are also some differences between the budgeting rules and the accounting requirements that have to be accommodated in any comparison. These accounts therefore seek to compare the actual outturn to the budget stated on the same basis, with a reconciliation and explanation of the budget reflected in the accounts with that shown in the annual budget documents provided in Note 24.

Brief History

8. The Scottish Government is the devolved administration in Scotland. The Scottish Government was established at devolution in 1999. From 1 July 1999, the Scottish Government and Scottish Parliament assumed legislative responsibility for a wide range of devolved matters, including agriculture, economic development, education, environment, fisheries, food standards, forestry, health, housing, local government, planning, social work, most aspects of transport, and tourism. Matters such as the constitution, defence, foreign policy, national taxation and social security are reserved to the UK Parliament.

Principal Activities and Key Aims

9. The principal activities and key aims of the Scottish Government are set out below by Cabinet Secretary portfolio.

MINISTERS AND SENIOR OFFICERS

10. The responsibilities of the First Minister and his Cabinet Team during the financial year were:

First Minister

Head of the devolved Scottish Government: responsible for development, implementation and presentation of Scottish Government policy, constitutional affairs, and for promoting and representing Scotland.

Deputy First Minister and Cabinet Secretary for Health and Wellbeing

Responsible for the NHS, health service reform, allied healthcare services, acute and primary services, performance, quality and improvement framework, health promotion, sport, public health, health improvement, pharmaceutical services, food safety and dentistry, community care, older people, mental health, learning disability, substance misuse, social inclusion, equalities, anti-poverty measures, housing and regeneration.

Cabinet Secretary for Finance and Sustainable Growth

Responsible for the economy, the Scottish Budget, public service reform, de-regulation, local government, public service delivery, cities and community planning, General Register Office, Registers of Scotland, relocation, e-government, Scottish Public Pensions Agency, procurement, budgetary monitoring, business and industry including Scottish Enterprise, Highlands and Islands Enterprise, trade and inward investment, corporate social responsibility, voluntary sector and the social economy, community business and corporate development, European Structural Funds, energy, tourism, land use planning system, climate change, building standards, transport policy and delivery, public transport, road, rail services, air and ferry services, and Scottish Water.

Cabinet Secretary for Education and Lifelong Learning

Responsible for further and higher education, science and lifelong learning, school education, training and skills, HM Inspectorate of Education and the Scottish Qualifications Authority, nurseries and childcare, children's services, children's hearings, social work and the Social Work Inspection Agency.

Cabinet Secretary for Justice

Responsible for criminal law and procedure, youth justice, criminal justice social work, police, prisons and sentencing policy, legal aid, legal profession, courts and law reform, anti-social behaviour, sectarianism, human rights, fire and rescue services, community safety, civil contingencies, drugs policy and related matters, liquor licensing, vulnerable witnesses, victim support and civil law, charity law, religious and faith organisations.

Cabinet Secretary for Rural Affairs and the Environment

Responsible for agriculture, fisheries and rural development including aquaculture and forestry, environment and natural heritage, land reform, water quality regulation and sustainable development.

11. The First Minister and Cabinet Secretaries were supported by a number of Ministers covering a range of Scottish Government business. During February 2009 the First Minister announced changes to the Ministerial responsibilities.

• Minister for Europe, External Affairs and Culture (to February 2009)
• Minister for Culture, External Affairs and the Constitution (from February 2009)
• Minister for Parliamentary Business
• Minister for Public Health (to February 2009)
• Minister for Public Health and Sport (from February 2009)
• Minister for Communities and Sport (to February 2009)
• Minister for Housing and Communities (from February 2009)
• Minister for Enterprise, Energy and Tourism
• Minister for Transport, Infrastructure and Climate Change
• Minister for Children and Early Years
• Minister for Schools and Skills
• Minister for Community Safety
• Minister for Environment

12. Further information on Ministerial responsibilities is available from the Scottish Parliament and Scottish Government websites:

www.scottish.parliament.uk/home.htm

www.scotland.gov.uk/Home

13. The Scottish Ministers and their Deputies during the year to 31 March 2009 were:

14. The Law Officers serving during the year to 31 March 2009 were:

15. The Scottish Government Senior Management Team are responsible for ensuring that the Scottish Government is organised and managed in the most effective way to support Ministers in the implementation of their policies. Further information on the management structure of the Scottish Government is available on the Scottish Government website at www.scotland.gov.uk. The Scottish Government Strategic Board Members who served in the year to 31 March 2009 were as follows:

16. The non-executive directors bring an external perspective to the consideration of corporate management issues such as staffing, administration costs, monitoring of programme expenditure, training and development, accommodation strategy and relations with stakeholders. Professor Bill Bound chaired the Scottish Government Audit Committee ( SGAC).