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STUDENTAWARDSAGENCYSCOTLANDAnnual Report & Accounts 2014-2015

Presented to the Scottish Parliament under Section 22(5) of the Public Finance and Accountability (Scotland) Act 2000

Laid before the Scottish Parliament by Scottish Ministers in August 2015

Presented to the Scottish Parliament under Section 22(5) of the Public Finance and Accountability (Scotland) Act 2000

Laid before the Scottish Parliament by Scottish Ministers in August 2015

SG/2015/116

StudentAwardsAgencyScotland (SAAS)Annual Report & Accounts 2014‑2015

02 Annual Report and Accounts 2014-2015 Student Awards Agency Scotland

CONTENTS

www.saas.gov.uk

Annual Report and Accounts 2014-2015 Student Awards Agency Scotland 03

Chief Executive’s Foreword 04

Management Commentary 06

Strategic Report 07

• Who We are and What We Do 07

• Transforming the Business 09

• Delivering the Core Business 14

• Financial Review 20

• Environmental & Sustainability Report 21

• Key Performance Indicators 23

• Accounts Direction 25

Management Board Report 26

• Introduction to the Management Board 30

Remuneration Report 34

Statement of Accountable Officer’s Responsibilities 42

Governance Statement 44

Independent Auditor’s Report 52

Annual Accounts 56

Notes to the Accounts 61

Accounts Direction 74

Contact Information 76


Chief Executive’s Foreword


2014‑2015 WAS AN IMPORTANT TRANSITIONAL YEAR FOR SAAS

I believe that once again we were able to demonstrate a good quality and efficient service to our students. A record number of full-time, undergraduate students took advantage of our end-June ‘Guarantee Date’ to ensure that their funding packages were in place before the start of their courses. We again ensured we met this guarantee for all students and we also maintained a high level of response to our customers through our contact centre.

But more importantly our stakeholders in colleges and universities, and students themselves, were positive about the delivery of the 2014‑2015 application cycle. We have put in place local student forums and during the year these have, rightly, focused on how we improve services to specific groups of students and on the future of Student Awards Agency Scotland (SAAS) services.

One such area has been how we improve our digital services. Work is now underway to achieve this, but in the meantime we are also squeezing out additional functionality from our existing systems. This means that for the first time students applying now for the 2015‑2016 year are able to apply; provide supporting documentation; receive messages; and receive their award letter without the need for any exchange of paper. We recognise that this is just the start of that journey.

The Agency’s new branding has also been developed with, and in response to, students to underline the key funding and professional service we deliver. During the year we also strengthened our management structure; strengthened the external expertise on our Board by the recruitment of new Non‑Executive Board Members; and forged new partnerships with the higher education sector.

Exceptionally during 2014‑2015, we have delivered these outcomes against the background of the relocation of the Agency. We moved from our leased building at South Gyle Business Park to take up occupancy at Saughton House as part of the Scottish Government’s Estates Strategy. SAAS had been located at Gyleview House since before its inception as an Executive Agency in 1994. So this was a major undertaking by an organisation not used to estates management. We gave a commitment that this move would not impact on our customers and we are proud that we were able to deliver that.

As always, this could only be achieved by the hard work and commitment by all the Agency’s employees for which I am hugely grateful.

David WallaceChief Executive23 July 2015

06 Annual Report and Accounts 2014-2015 Student Awards Agency Scotland06

MANAGEMENT COMMENTARY


Strategic ReportWe were established as an Executive Agency on 5 April 1994. Our operating framework, including financial delegations, is set down in the Agency’s Framework Document. The Chief Executive is the Agency’s Accountable Officer, answerable to the Scottish Government’s Principal Accountable Officer and Scottish Ministers.

Our key functions are to:

• assess and process applications for student support for eligible full‑time higher education students, providing financial support under the Students’ Allowances Scheme; the Postgraduate Students’ Allowances Scheme; the Nursing and Midwifery Student Bursaries Scheme; and the NHS Bursary Scheme;

• administer the Part‑Time Fee Grant;

• distribute Discretionary and Childcare Funds to Scottish universities and Discretionary Funds to Scottish colleges;

• provide resources to the Student Loans Company Limited for both loan funding and administration costs; and

• administer the Individual Learning Accounts Scotland Scheme, in partnership with Skills Development Scotland.

How We Relate to the SG’s Purpose and PrioritiesThe Scottish Government’s core purpose is “to focus government and public services on creating a more successful country with opportunities for all of Scotland to flourish, through increasing sustainable economic growth”.

The route to the achievement of the Government’s purpose is by a defined set of 5 Strategic Objectives and 16 National Outcomes. These comprise the National Performance Framework and provide a clear and consistent set of priorities across government and its agencies.

The Agency contributes to the Government’s national strategic objective of a Smarter Scotland, which seeks to “expand opportunities for people in Scotland to succeed from nurture through to lifelong learning ensuring higher and more widely shared achievements”. In particular our functions help deliver the following National Outcomes:

Who We Are and What We DoThe Student Awards Agency Scotland (SAAS) is an Executive Agency of the Scottish Government (SG) under the terms of the Scotland Act 1998. The Agency operates independently and impartially while remaining directly accountable to Scottish Ministers.


• We are better educated, more skilled and more successful, renowned for our research and innovation

• Our young people are successful learners, confident individuals, effective contributors and responsible citizens

• Tackling the significant inequalities in Scottish life

• Our public services are high quality, continually improving, efficient and responsive to local people’s needs

• We reduce the local and global environmental impact of our consumption and production

Our ValuesThe Civil Service Code sets out the core Civil Service values and the standards of behaviour expected of all civil servants in upholding these values. All Student Awards Agency Scotland staff are civil servants and are bound by the Civil Service Code. The core values of the Civil Service Code are:

• Integrity – putting the obligations of public service above personal interests

• Honesty – being truthful and open

• Objectivity – basing advice and decisions on rigorous analysis of the evidence

• Impartiality – acting solely according to the merits of the case and serve equally well governments of different political persuasions

The diagram opposite illustrates how our performance framework aligns with the Scottish Government’s purpose:

KPI’SKPI’S

NATIONAL OUTCOMES

KEY FUNCTIONS

SAAS CORPORATE PLAN

BRANCH PLAN

EMPLOYEE OBJECTIVES

SG


As a service delivery organisation, we also recognise the importance of putting the customer first and we understand that how people perceive SAAS will be determined by how we, as employees, communicate with our customers and stakeholders. For that reason, we also uphold a value of:

• Customer focus – putting customers at the centre of everything we do

Transforming the BusinessThe Agency is focused on enhancing the efficiency, effectiveness and quality of our services. The continuing challenge is how to successfully transform the business while at the same time maintaining appropriate service delivery standards. The difficult economic environment and accompanying pressures on public spending along with the sheer scale of change required to keep pace with ever evolving technological advances make this particularly difficult.

The Management Board has therefore spent some time over the year considering the future direction of the Agency and how best to match the scale of change required with the resources available. As a result, we have developed five key strategic goals that will drive and direct all change activity over the coming 3‑5 years.

• Strategic Goal 1: Build our organisational efficiency, capability and capacity and invest in our people

• Strategic Goal 2: Influence and contribute towards national policy through the provision of high‑quality evidence‑based advice

• Strategic Goal 3: Meet our customers’ expectations in a digital age

• Strategic Goal 4: Embed a customer‑centred service delivery approach, making it as easy as possible to do business with us

• Strategic Goal 5: Develop robust and sustainable partnerships with key stakeholders based on co‑operation and collaboration

In 2014‑2015, through careful planning and resource allocation we have successfully delivered a range of improvement activities whilst maintaining a service that is acceptable to our customers. Activities undertaken over and above business as usual during the last 12 months include:

163,038Full-time Applications


Building Organisational CapacityHaving focused on resourcing our front line customer service during 2013‑2014, this focus on capacity building has continued into 2014‑2015 but with a greater emphasis on strengthening our back office functions and reviewing the overall shape and structure of the Agency. This has required us to run two significant recruitment campaigns for administrative and entry level management staff and we’ve strengthened the senior leadership capability within the Agency with the recruitment of three new executive posts at SG C2 grade. In doing so, we have now created four Director posts designed to better reflect, in particular to our external stakeholders, the scope and responsibility of these roles. We have also strengthened the Management Board with the recruitment of additional Non‑Executive Board Members, expanding the breadth of knowledge and experience operating at the most senior level within the Agency.

Influencing and Contributing Towards National PolicyWe have strong links with our policy colleagues in the Higher Education Learner Support Division of the Scottish Government and we meet regularly to discuss policy proposals and the possible impact on the Agency and our customers. We believe we are uniquely placed to see the impact of student support arrangements in practice and to feedback our experience of the practical implementation of student support to policy colleagues.

We also provide input on a formal basis. We have been involved in the review of postgraduate support which is chaired independently by Professor Bryan McGregor (Vice‑Principal University of Aberdeen). The Postgraduate Review Group aims to identify the underlying causes of the decline in taught postgraduate study and will make recommendations to the Cabinet Secretary for Education. We also sit on the project board and the project team for the Review of Nursing Bursary which is being led by SG Health and Social Care colleagues.

The Reviews are due to report in June 2015 and the outcomes of both are likely to require the Agency to implement system and operational changes to the way we currently deliver student support to these students.

270,000 More than

calls answered


Meeting Customer Expectations in the Digital AgeOur new strategic goals have informed our recently launched service modernisation programme, designed to improve the experience of students and partners’ interaction with the Agency. The goals and accompanying programme provide a clear direction of travel. The newly created Transformation Programme Board is overseeing this work, reporting directly to Management Board.

Successes during 2014‑2015 include delivery of the significant policy and operational changes required in time for the 2015‑2016 session going live in April 2015. The 2015‑2016 Change of Session project introduced, for the first time, living cost loans for postgraduate students. Other changes include the introduction of an online messaging service for our customers along with the introduction of electronic Award Letters that can be viewed and printed via the online accounts of our customers. This means that for the first time a student can now apply, submit supporting evidence, and receive an award without any exchange of paper. The long term aim is to make all services to all customers available online.

To enable that transformation we must replace the current online application processing system which has reached end‑of‑life. We have therefore tendered and awarded the contract to develop, in time for the 2016‑2017 session, the first phase of an OnLine Student Portal. Work is now underway to fully scope out our business requirements. Future phases will see us focus on our exchanges with colleges, universities and other stakeholders which are critical to our business processes.

2014‑2015 also saw us undertake a project to develop and improve the Agency’s record management arrangements, particularly in relation to information not contained within the Agency’s application processing system (StEPS). We selected to implement the Scottish Government’s eRDM (electronic Records & Document Management) solution. In doing so, we have benefited from a mature, well developed and managed corporate solution available from within the Public Sector. This approach is consistent with the Shared Services initiative and supports better and more efficient communication and sharing of information with our colleagues within the Scottish Government.


Customer Centred Service DeliveryOther significant developments this year have included the Agency’s Rebranding Project. Feedback from stakeholders told us that our “brand” was not recognised or understood by some of our key target audience. We therefore worked with Scottish Government marketing colleagues, The Union design company and our students to develop a new, consistent and coherent brand that our student audience can identify with. The new brand launched at the SAAS National Conference in March 2015 with our social media platforms, website and publications updated. Incremental implementation continues on other platforms and with partners who utilise the Agency logo.

For the second year, we organised a PR campaign aimed at encouraging students to apply early in the session for their student support package. Tapping into the publicity surrounding the Commonwealth Games, the Scottish field and track athlete Eilidh Child agreed to front an ad campaign for us before going on to win silver at the Games and Gold at the European Championships. Eilidh is a former student of Edinburgh university.

The PR campaign, coupled with our continued commitment to have funding in place for the start of term for all students applying in full by the Guarantee Date saw a record 121,989 students apply by 30 June. A significant amount of these applications and associated mail were received in the last two weeks of June. Receiving this volume of work over such a short space of time meant that our 21 day turnaround target could not be sustained. However, the Guarantee Date commitment, which has been agreed by the Management Board in conjunction with the Scottish Government to be the primary customer service target, was met with 100% of the applications received by the Guarantee Date successfully processed before course start dates.

Developing Sustainable Partnerships2014‑2015 saw the Agency enter into an innovative new partnership with the University of Edinburgh to share student support information. This enabled Edinburgh University to target and ensure that eligible students now automatically receive their own additional accommodation bursary support.

246Permanent Staff


The agreement demonstrates a commitment by both partners to work together for the benefit of mutual students, meaning less paperwork, a reduced administrative burden for the University and that eligible students get their full entitlement to financial support. The signing of this Agreement, the first we’ve entered into with a higher education institution, means that our customers will benefit from a better, more efficient service and they can be confident that their personal data is being handled responsibly and securely.

2014‑2015 also saw us introduce regional Student Forums with the aim of further strengthening relationships and encouraging closer collaborative working with Student Representatives. The president of National Union of Students Scotland already attends our Management Board and Strategic Board meetings.

We have also been one of the first adopters of the new Scottish Government Procurement Shared Service. This fully managed service which commenced in April 2014 provides for the provision of a quality service within a cost effective framework. It delivers strategic support across all aspects of procurement, including the practical implementation of policy and changing legislation, monitoring and operational delivery. We will continue with the service in 2015.

RelocationAs a consequence of a review across the Scottish Government estate it was agreed that SAAS should relocate from Gyleview House where we had been sited since our inception to Saughton House, a Scottish Government owned building, towards the end of 2014.

The successful relocation was as a result of years of planning and in particular had a major impact on our IT infrastructure. The office moves took place over three weekends – 21, 28 November and 5 December with SAAS open for business in Saughton House on Monday 8 December. The move required careful planning and co‑ordination of the physical moves for over 200 colleagues in a way that minimised the impact on business areas. Throughout the exercise we ensured the continuity of service to customers.

600,000 Payments made to students, colleges, and universities


Delivering the Core BusinessAgainst this backdrop of significant change, the Agency has continued to deliver our core business to our customers. We received, and processed, over 250,000 applications for student support this session covering both full‑time and part‑time students. Of these, a total of 163,038 applications for full‑time student support were received, an increase of 1.75% on 2013‑2014. This continues a trend over the last seven years of increasing numbers of full time student applications to the Agency.

Undergraduate supportOf the 163,038 applications received for full‑time student support, 149,579 applications were for undergraduate support and 8,906 applications were from nursing and midwifery students. In addition, 2,133 cases were assessed and found to be ineligible for support.

Postgraduate supportStudents on eligible postgraduate courses, who meet the award conditions, can apply for tuition fee loan support. We received and processed 2,420 applications for this session, a reduction of 8.4% from 2013‑2014.

Part-time supportWe received and processed 14,564 applications for part‑time fees.

Total Applications Received165,000

160,000

155,000

150,000

145,000

140,000

135,000

130,000

2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015


Disabled Students Allowance (DSA)Extra support is available to qualifying students who incur additional costs as a result of a disability. This support covers items ranging from computer software, hardware and consumables to non‑medical personal help. During 2014‑2015 5,340 applications were received compared to 6,270 applications in 2013‑2014.

NHS Bursary SchemeDuring session 2014‑2015 we processed 623 applications from dental students eligible for support under the NHS Bursary Scheme. This scheme assists undergraduate dental students who undertake a contract to work with NHS Scotland after graduating.

Individual Learning Accounts (ILA)We work in partnership with Skills Development Scotland (SDS) to assess applications for support under the Individual Learning Accounts (ILA) scheme. This year we received 49,972 applications and 14,795 income reassessments on behalf of this scheme. This represents a reduction in applications of 19% from the previous year.

HelplineOver 270,000 calls were answered within our response time target this year, maintaining the standards set in 2013‑2014. We provided an extended opening hours service from June to October and our phone lines remained open until midnight on 30 June to assist students in meeting the Guarantee Date deadline.

Complaints and AppealsDuring 2014‑2015 we received 267 complaints and 487 appeals, of which 97% and 96%, respectively, were answered within the response time targets. In line with the Scottish Public Services Ombudsman’s (SPSO) best practice we publish our complaints and appeals procedure on our website (www.saas.gov.uk) and we use information generated through this process to identify any patterns or trends that require a change to our working practices.

64,767ILA Applications

http://www.saas.gov.uk


Human ResourcesDuring the period 1 April 2014 to 31 March 2015, we appointed 56 permanent staff. Of these appointments, 28 were female and 28 were male; one of the appointees declared a disability and two were from an ethnic minority. In addition, 10 Modern Apprentices were appointed of which seven were female and three were male.

As of 31 March 2015, 246 permanent employees and 53 temporary staff were employed by SAAS. Currently 32 employees work part time, with varied working patterns of three to five days, covering a minimum of 17 hours per week. In addition, one member of staff works annualised hours and six work a full time compressed week. Eight staff declared a disability.

Female Male Total

Senior Civil Service 0 1 1

Senior Management 4 1 5

Employees 131 109 240

Total 135 111 246

*Breakdown of permanent staff by gender as at 31 March 2015

Financial ManagementAdditional budget of £2.7m was secured during 2014‑2015 to relocate the Agency from its leased premises at Gyleview House to the shared Scottish Government building at Saughton House. This major project combined with the continuing transformation of the Agency gave rise to a challenging year for budget management.

We processed 1,232 invoices for payment by colleagues in the Scottish Government, made almost 600,000 individual payments to students, colleges and universities, and received nearly 100,000 repayments from students and third parties.

220Suspected fraud cases investigated


Counter FraudThe Agency continues its work to protect public funds from fraudulent activity. The Fraud Team received 220 suspected fraud cases for investigation during 2014‑2015, including 78 cases identified through the National Fraud Initiative, a project that is carried out every second year to match data across public bodies and identify possible fraud. This is an increase in caseload of 65% from the previous year. The chart below provides a snapshot of cases received from 2010‑2011 to 2014‑2015.

In addition to investigating potential fraud that has been committed against SAAS, we also work with other public bodies to assist with their investigations. We responded to 72 requests for data from partners, provided 14 witness statements and staff from across the Agency appeared in court as witness for seven criminal prosecutions.

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

300

250

200

150

100

50

0

Suspected fraud cases received for investigation

NFI

New Investigation Cases


RecoveriesWe recover overpayments that have been made, generally from students withdrawing early from study, and reinvest the money back into the student support programme for future students.

To assist us in the recovery process, we took legal action against 1,533 debtors, enforcement action against 828 individuals and arrested the earnings of 228 debtors.

During the year we recovered £3,520,102, a decrease of 1.9% on the previous year.

The chart below shows the amount of debt we have recovered in the period 2009‑2010 to 2014‑2015:

While there has been a small decrease in cash recovered, at the end of March 2015, outstanding debt had also reduced by 21% from the previous year to £10.2m. This includes £3.3m (32%) that is attributable to student nurses and midwives whose bursaries we administer on behalf of the Scottish Government’s Health and Social Care Directorate.

Principal risks and uncertaintiesOne of the biggest risks the Agency faced during 2014‑2015 was our relocation from South Gyle Business Park to Saughton House, a Scottish Government owned building. However, this was successfully planned and managed without disruption to our services, demonstrating our capability to successfully deliver significant business change.

£4,000,000

£3,500,000

£3,000,000

£2,500,0002009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Cash recovered 2009/2010 - 2014/2015

14,564Part-Time Fee Grant Applications


The cyclical nature of our business and our reliance on IT systems coupled with the need for more robust management information as a basis for process improvement work also continues to create challenges for the Agency as does the recruitment and retention of staff into key posts. Going forward, our key challenge will be delivering transformation without adversely impacting on service provision standards.

We maintain a risk register which identifies the key risks to the Agency, the actions required to mitigate these risks and the impact should these risks become issues. This year we have also developed a full assurance map to underpin the assessment of the risk and control environment, supported by independent appraisal from our internal audit service. The assurance map is a mechanism for linking assurances from various sources to the risks that threaten the achievement of our objectives.

Looking to the FutureOur future focus will continue to be improving service delivery to our customers in both the short term and longer term, taking account of improvement activities already underway so as to forge a clear and sustainable path towards a modern service.

Going concernThe Agency receives its funding from the Scottish Government and its annual operating budget is approved and published each year, as part of the Scottish Government’s budget, by the Scottish Parliament.

Funding requirements have been agreed, with the Scottish Government, that give our Management Board the reasonable expectation that the Agency will have adequate resources to continue in operational existence for the foreseeable future. For this reason, we continue to adopt the going concern basis in preparing the annual report and accounts.

£3,520,102Recovered debt


Financial ReviewThe budget approved by the Scottish Parliament for the Agency’s operating costs was £15.080m (£11.263m in 2013‑2014) revenue and £1.000m (£0.417m in 2013‑2014) capital. The accounts also include additional expenditure of £0.448m for central government expenditure and the audit fee which is allowed for in the Scottish Government’s budget.

Our actual operating costs for the year were £14.374m (£11.503m in 2013‑2014) being £13.926m (budget £15.080m) plus £0.448m of allocated central government expenditure and audit fee. Costs for the year increased by 25% from 2013‑2014, an exceptional year for the Agency as we moved from leased premises to a shared Scottish Government building. Overall, operating costs were within budget by 7.7%.

Capital expenditure for the year was £0.795m (budget £1.000m). This represented an increase of £0.410m from 2013‑2014.

Significant changes in assetsWe have summarised the changes in assets in the notes to the financial statements. Additions were for a new telephone system, IT hardware and software, additional monitors for PCs, audio visual equipment, printers and the creation of a new SAAS entrance for customers following our move to shared Scottish Government offices at Saughton House. Disposals included refurbished items belonging to the leased building we vacated at Gyleview House and obsolete IT and other equipment, including items that could not be used at Saughton House.

ConsultancyDuring the year we spent £41k on consultants to assist us with the transformation of the Agency’s IT products including the OnLine Services Project, a digital solution to improve the customers’ experience with SAAS. In 2013‑2014 we spent £37k.

Management of Delegated BudgetsThe purpose of our accounts is to detail the Agency’s administration expenditure. However, we also administer income and expenditure for Higher Education Student Support (HESS) and the student nursing bursary scheme on behalf of the Health & Social Care Directorate, both of which are accounted for in the Scottish Government’s core accounts.


The budget we administered for HESS in 2014‑2015 was as follows:

Cash Budget £m

Student support & tuition fee payments 318.0

Student loans advanced net of loan repayments 468.3

Student Loans Company administration costs 4.1

Student Loan interest subsidy to banks 1.5

Cash Total 791.9

Non‑cash costs for student loans 61.1

Total 853.0

Environmental & Sustainability ReportWe aim to reduce the impact of our operations on the environment. In doing so, our actions contribute to the achievement of the Scottish Government’s National Outcome of reducing the local and global environmental impact of our consumption and production.

Our gas and electricity consumption dropped in 2014‑2015 while still based at Gyleview House. This was partly due to weekend working being carried out at Saughton House thus reducing the amount of time that Gyleview House was open. In addition, heating was reduced to “frost protection” level at weekends and public holidays. We purchased 100% of the electricity required to run Gyleview House from “green” sources.

Having relocated to Saughton House and as a tenant of the Scottish Government, our energy supplies are now included within the Scottish Government portfolio. Our energy, waste and water consumption are not separately metered and so form part of the overall footprint for Saughton House and are included in the Scottish Government’s reporting. We cannot therefore provide full figures for 2014‑2015.

5,340Applications for Disabled Students Allowance


Table: Utilities comparison 2011-2012 to 2014-2015

2011-2012 2012-2013 2013-2014 2014-2015

Usage(kwh)

CO2 emissions(Tonnes)

Usage(kwh)


Usage(kwh)


Usage(kwh)


Electricity 399,550 171.18 407,946 220.70 403,200 193.53 303,844 161.98

Gas 223,742 44.41 319,528 68.87 309.544 56.96 253,586 46.80

Total 623,292 215.59 727,474 289.57 712,744 250.49 557,430 208.78

Water (m3) 731 898 992 818

Note: The figures used to work out CO2 emissions are as recommended by Carbon Reduction Commission (CRC). Electricity is kwh x 0.0005331. Gas is kwh x 0.00018456


KEY PERFORMANCE INDICATORS


Key Performance IndicatorsPerformance against our key performance targets

Targets 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Key Targets

All applications received by 30 June, our Guarantee Date, to be processed in time for courses starting in the new academic session (earliest start date 1 August)**

Not available

100% 100% 100% 100% 100%

All email or written enquiries to be replied to within 21 days*

98% 98% 37% 39% 92% 79%

All formal complaints and appeals to receive a response within 14 days

96% 93% 93% 97% 94% 96%

Management Performance Targets

Processing

To process 90% of applications within 21 days of receipt

75% within 21 days

56% within 21 days**





Average unit cost of less than £40 to process an application based on relevant costs

£36.13 £36.54 £39.64 £39.04 £56.47 £56.32

Complaints

Less than 1 in 1,000 applications to generate a formal complaint to SAAS

0.76 per 1,000 applications






Less than 10 formal complaints to be received/upheld by the Scottish Public Sector Ombudsman

3 received 0 upheld

2 received 0 upheld

3 received 1 upheld

2 received 1 upheld

3 received 0 upheld

1 received 0 upheld


Targets 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Key Targets

100% of ministerial correspondence to be delivered within target: ministerial replies (10 working days) official replies (20 working days)

87% ministerial

replies 100% official

replies

98% ministerial


replies

100% ministerial


replies

95% ministerial


replies

100% ministerial


replies

100% ministerial


replies

Financial Performance

100% of invoices to be paid within 10 days (30 days prior to December 2008)

100% 97% 98% 98% 99% 99%

30% of opening debt to be recovered during the year

25% 30% 26% 24% 24% 27%

* Until 2010‑2011 only mail that required a response was monitored within this target. From 2011‑2012 all mail is measured within this target.

** The Management Board, in conjunction with the Scottish Government, recognised that the 21 day target could no longer be sustained with the introduction of the Guarantee Date in 2010‑2011 and agreed that the Guarantee Date was now the primary customer service target.

Accounts DirectionThe accounts have been prepared in accordance with a direction given by the Scottish Ministers in accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000. The direction is provided at page 75.



MANAGEMENT BOARD REPORT


SAAS Management Board 2014-2015David Wallace Chief Executive (Chair)

Geoff Holliman Non‑Executive Board Member (until 30 November 2014)

Dugald Mackie Non‑Executive Board Member & Audit Committee chair

Ed McGrachan Non‑Executive Board Member (from 17 June 2014)

Janet Matthews Non‑Executive Board Member (from 17 June 2014)

Kathy Patterson Non‑Executive Board Member (from 17 June 2014)

Derek Smeall Non‑Executive Board Member

Janet Unsworth Non‑Executive Board Member (from 17 June 2014)

Sandra Bell Head of Business Delivery (until 6 July 2014)

Miriam Craven Director of Policy and Engagement (from 1 Sept 2014)

Keith Jenkinson Director of Corporate Services (from 7 July 2014)

Roz McCracken Head of Governance (from 1 April 2014)

Audrey Shimmons Director of Finance

Anne Ward Director of Operations

Information on salary and pension entitlement can be found in the Remuneration Report and Note 2 in the Notes to the Accounts.

Company directorships and other significant interestsThe interests of the SAAS Board members are provided above. No members had undertaken any material transactions with the Agency.

The Chief Executive is the Accountable Officer of the Agency and is supported by the Management Board, the membership of which is shown opposite. Full details of the governance structure and risk management arrangements in operation in the Agency is provided as part of the Governance Statement at page 45.


Equal opportunityAs an Executive Agency of the Scottish Government all our permanent employees are Scottish Government Civil Servants. We directly recruit staff up to salary Band C in line with Scottish Government equal opportunity policy and the Civil Service Recruitment Code. We do not regard sex, marital status, age, race, ethnic origin, sexual orientation, disability, religion or belief, working patterns, employment status, gender identity (transgender), caring responsibility or trade union membership as a bar to employment, training or advancement. We recruit staff solely on their ability to do the job.

Partnership WorkingWe recognise the importance of good industrial relations and consulting fully with staff. We are committed to conducting positive employee relationships and fully endorse and support the goals and principles laid down by the Scottish Government. A formal Partnership Agreement between SAAS and the Council of Scottish Government Unions is in place. We meet on a quarterly basis to discuss operational and strategic issues facing the Agency.

Sick AbsenceDuring the year, a total of 2,936 business days were lost due to sickness absence, an average of 14 days per employee. This was an increase from 10.8 days in the previous year. This will be an area of focus for the Agency in 2015‑2016.

Voluntary Exit SchemeIn 2014‑2015 the Scottish Government ran a voluntary exit scheme to reduce their overall Administration budget. As SAAS is an Executive Agency of the Scottish Government our staff are entitled to apply for voluntary exit under the scheme.

The scheme was conducted in accordance with Civil Service Compensation Scheme rules, available at www.civilservice.gov.uk/pensions. All leavers under voluntary exit schemes left under the appropriate terms as set out in these rules.

Full details of the total number of staff leaving over the course of the year and associated costs are set out in Note 2 to the accounts.

Personal data related incidentsThere were three data breaches during 2014‑2015 and one since.

The first involved a Higher Education Institution receiving an incorrect file of student data. This was noticed immediately and the information securely destroyed. Training and a review of the business processes involved is underway.

http://www.civilservice.gov.uk/pensions

http://www.civilservice.gov.uk/pensions


In the second incident, a technical issue resulted in a small number of phone calls to the SAAS Fraud Hotline being recorded without consent. The data has since been erased and action taken to disable this function while we investigate how to prevent this happening in future.

The third case saw up to 13 students having the non‑sensitive details of other students printed on the reverse of their award letters. Students were notified of this and technical measures were brought in to avoid recurrence.

Finally, going into session 2015‑2016, SAAS offered students a pre‑populated shortened application form upon re‑application. In a small percentage of cases, the pre‑populated forms pulled through loan contact details to the wrong student account. This was caused by a very specific technical issue and again, the data was non‑sensitive. Preventative action has since been taken and remedial action monitored for success. Action has also been taken to ensure the affected records are corrected.

In each case actions were taken to ensure that the probable impact of any breach was minimised and appropriate procedures were put in place to minimise the likelihood of any future recurrence. None of the incidents constituted a significant lapse in data security.

Appointed AuditorsOur Annual Report and Accounts are audited by auditors appointed by the Auditor General for Scotland. Details on audit remuneration can be found in Note 3 to the Accounts.

Internal audit services are provided by the Scottish Government Internal Audit Directorate, the scope of work is determined following discussion with management and is subject to approval by the Audit Committee.

Disclosure of relevant audit informationAs Accountable Officer I am not aware of any relevant audit information of which our auditors are unaware. I have taken all necessary steps to make myself aware of any relevant audit information and to establish that the auditors are also aware of this information.



Introduction to the Management BoardDavid WallaceChief Executive

David Wallace has spent over 20 years working with the Scottish Government in a variety of posts.

He took up post as Chief Executive of SAAS in March 2012.

Immediately prior to joining the Agency, he spent seven years at the Accountant in Bankruptcy, latterly as Deputy Chief Executive. Before that he spent six years with the Executive’s Enterprise, Transport and Lifelong Learning Department, three of these as Private Secretary to the Head of the Department covering corporate governance, business planning, financial management and operations of the Department.

He is a graduate of both Glasgow and Strathclyde Universities and is a member of the Chartered Institute of Personnel and Development (CIPD).

Miriam CravenDirector of Policy and Engagement

Miriam Craven re‑joined the Agency in October 2014 as Director of Policy and Engagement having spent a period working in the Higher Education and Learner Support Division of the Scottish Government. Prior to that, she spent nine years with SAAS, working in a variety of posts. Before joining the Civil Service, Miriam worked for Odeon Cinema as a Duty Manager and also spent a year as a fundraiser for a cancer charity.

She is a graduate of both Scottish Agricultural College (SAC) and the University of Glasgow.

Keith JenkinsonDirector of Corporate Services

Keith joined SAAS in May 2013, originally heading up the newly formed Change Management Team before assuming his current position as Director of Corporate Services. He has been in the Civil Service for “many years” and during that time has occupied a variety of posts including sponsorship of the Scottish Agricultural Colleges, firearms legislation, security policy and relocation project manager. More recently and prior to joining SAAS, Keith was Change Programme Manager at the Accountant in Bankruptcy in Kilwinning.


Roz McCrackenHead of Governance

Roz joined the Agency (for the second time!) as Governance Manager in March 2013 and has spent over 20 years working with the Scottish Government.

Immediately prior to joining the Agency, she spent eight years at the Accountant in Bankruptcy as the Head of Organisational Development and Communications. She held a variety of posts around the Scottish Government before that, including three years in the Higher Education and Student Support Division.

Audrey ShimmonsDirector of Finance

Audrey joined the Agency in 2007 and is responsible for the Finance, Fraud and Recoveries teams.

Before joining the Agency, she spent six years as Financial Analysis Manager with the Regulation & Inspection Division of Communities Scotland, now the Scottish Housing Regulator. Prior to this, Audrey spent most of her career in the private sector managing the finances of different businesses including architects, engineers, solicitors and property developers. She also worked as an accountant with The University of Edinburgh.

She is a fellow of the Association of Chartered Certified Accountants (FCCA).

Anne WardDirector of Operations

Anne joined the Agency as Head of Business Support Unit in January 2012 and is now the Agency’s Director of Operations. She joined the Civil Service in 1979 as an Administrative Officer and in the intervening years has held a variety of posts, mostly within the Registers of Scotland (RoS). Before leaving to join SAAS, she was RoS Programme Manager with responsibility for managing the RoS ICT service provider and a major change programme and project portfolio.


Dugald MackieNon‑Executive Board Member

Dugald Mackie took up his role as a Non‑Executive Board Member at SAAS in 2008 and he was Chair of our Audit Committee until March 2015. He Chairs the Agency’s Strategic Board. Dugald is also Chair of the Spirit of 2012 Trust and is a Consultant to the University Grants Committee of Hong Kong.

Before retiring in 2007, he was Registrar and Secretary then Vice Principal at the University of Manchester, having previously spent over thirty years working in higher education administration and management in a number of universities, including Strathclyde and Glasgow.

Janet MatthewsNon‑Executive Board Member

Janet Matthews took up her role as a Non‑Executive Board Member at SAAS in 2014. She is a management consultant specialising in business improvement, supply change and shared services with experience across both the public and private sector. She is currently working with the Scottish Government as Project Lead to design and implement the Central Government Digital Transformation Service.

She is Director of Expedience 21 Ltd and prior to this, held senior roles at KPMG, Capgemini, Philips Electronics, Pernod Ricard, and Scottish and Newcastle.

Ed McGrachanNon‑Executive Board Member

Edward McGrachan joined the SAAS Board in June 2014 and sits on the Audit Committee, Transformation Board and Management Board. He has worked with various public and charitable organisations as Governor, and Chair of Audit at South Devon College of Further Education, Member of the Diocesan Board of Education for the Church of England in Devon and Lead Governor of South Western Ambulance Service NHS Foundation Trust. Currently he holds a Ministerial appointment from the Ministry of Defence as Chairman of the Veterans Advisory and Pensions Committee for the West of Scotland.

He is a retired Chartered Engineer who has had an international career in IT, Telecommunications and Business; with time spent working for Nortel Networks and BT on major Business re‑engineering programmes in North America, Continental Europe and the UK.


Kathy PattersonNon‑Executive Board Member

Kathy joined SAAS in June 2014 and sits on both our Management Board and our Audit Committee. Until her retirement in December 2014, she was Academic Registrar and Deputy Secretary at Heriot Watt University and previously held posts as Departmental Administrator for Civil and Offshore Engineering department at Heriot Watt University and for Veterinary Pathology at the University of Edinburgh.

She started her career as a Crown Servant at the Ministry of Defence in London, with postings to Northern Ireland and the British Embassy in Moscow.

Derek SmeallNon‑Executive Board Member

Derek Smeall was appointed as a Non‑executive Board Member at SAAS in April 2010. He has also been a member of the Agency’s Audit Committee and has assumed the Chair of the Committee from April 2015.

He is currently the Vice Principal, Strategy and Corporate Performance at New College Lanarkshire and has spent the past fifteen years working within the Scottish College Sector in a variety of posts. Prior to working in education he worked in the defence industry as a development engineer and as an engineer in the Royal Air Force.

He is a graduate of both Stirling University and the Open University studying both Engineering and Education.

Janet UnsworthNon‑Executive Board Member

Janet joined the Agency in 2014 and sits on the Transformation Board as well as the Management Board. She is a member of the Children’s Panel and is a Trustee with Four Square (Scotland) and Changing the Chemistry.

She established an internet based holiday letting agency having had a successful career in Information Technology. She held senior roles with RBS and Oracle after 10 years as a Management Consultant with Deloittes.


REMUNERATION REPORT


All permanent appointments within SAAS are on Scottish Government terms and conditions.

The officials covered by this report, with the exception of our Non‑Executive Board Members, hold appointments which are open‑ended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme.

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

Service contractsThe Constitutional Reform and Governance Act 2010 requires Civil Service appointments to be made on merit on the basis of fair and open competition. The Recruitment Principles published by the Civil Service Commission specify the circumstances when appointments may be made otherwise.

http://www.civilservicecommission.org.uk


Remuneration (including salary) and pension entitlementsSenior management salariesThe salary, pension entitlements and benefits in kind of the Executive Members of the SAAS Management Board were as follows:

Single total figure of remuneration

Salary (£’000)

Bonus Payments

(£’000)

Benefits in kind (to nearest

£100)

Pension benefits (£’000)1

Total (£,000)

Officials2014-2015

2013-2014

2014-2015

2013-2014

2014-2015

2013-2014

2014-2015

2013-2014

2014-2015

2013-2014

David WallaceChief Executive

70‑75 70‑75 ‑ ‑ ‑ ‑ 52 8 125‑130 75‑80

Audrey Shimmons(part‑time)Director of Finance

40‑45 40‑45 ‑ ‑ ‑ ‑ 12 11 55‑60 50‑55


55‑60 50‑55 ‑ ‑ ‑ ‑ 9 1 60‑65 55‑60

Sandra BellHead of Business Delivery(to 6 July 2014)

15‑20 60‑65 ‑ ‑ ‑ ‑ 7 19 20‑25 75‑80

Miriam CravenDirector of Policy and Engagement(from 1 September 2014)

25‑30 30‑35 ‑ ‑ ‑ ‑ 27 17 55‑60 45‑50

Keith JenkinsonDirector of Corporate Services(from 7 July 2014)

35‑40 ‑ ‑ ‑ ‑ ‑ 10 ‑ 45‑50 ‑

Roslyn McCracken(part‑time) Head of Governance

35‑40 ‑ 28 ‑ 60‑65 ‑

1. The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.

Following a business reorganisation from 7 July 2014 Sandra Bell is no longer a member of the SAAS Management Board. She does, however remain with SAAS and her full year salary is in the band £60K‑£65K. Sandra’s pension contributions for 2013‑2014 have been adjusted, an inflationary amendment was applied by MyCSP in error and has now been corrected. Keith Jenkinson was appointed to the Management Board on 7 July 2014, his full year salary is in the range £50k‑£55k. Miriam Craven was re‑appointed on 1 September 2014, her full year salary is in the band £50k‑£55k. These changes have all been reflected in the table on page 28. Roslyn McCracken was appointed on 1 April 2014, her full‑time salary is in the band £40k‑£45k. Audrey Shimmons’ full‑time salary is in the range £50k‑£55k. Due to a National Insurance modification Anne Ward’s pension benefits for 2013‑2014 have been adjusted by MyCSP.


Non-Executive Board MembersOur Non‑Executive Directors received the following attendance fee payments during financial year 2014‑2015. No other fees were paid to Non‑Executive Board Members in the year.

Non-Executive Board Member2014-2015

£2013-2014

£

Dugald Mackie 1,818 2,618

Derek Smeall 3,030 2,020

Geoff Holliman(to 30 November 2014) 1,212 2,618

Ed McGrachan(from 17 June 2014) 3,030 ‑

Janet Unsworth(from 17 June 2014) 4,242 ‑

Janet Matthews(from 17 June 2014) 2,424 ‑

Kathy Patterson(from 17 June 2014) 2,424 ‑

Salary“Salary” may include gross salary; any performance pay or bonuses; overtime; recruitment and retention allowances; private office allowances and any other allowance to the extent that it is subject to UK taxation.

Benefits in kindThe monetary value of benefits in kind covers any benefits provided by the employer and treated by HM Revenue and Customs as a taxable emolument. None of our senior managers received any such benefit in 2014‑2015 or 2013‑2014.

BonusesNo bonuses were paid in 2014‑2015 or 2013‑2014.

Pay multiplierIn accordance with the Government Financial Reporting Manual (FReM), reporting bodies are required to disclose the relationship between the remuneration of the highest‑paid senior manager in their organisation and the median remuneration of the organisation’s workforce.

The banded midpoint remuneration of the highest paid senior manager in SAAS during the financial year 2014‑2015 was £67,500 (2013‑2014, £67,500). This was 3.6 times (2013‑2014, 3.7 times) the median remuneration of the workforce, which was £18,782 (2013‑2014, £18,382). Taxable expenses are excluded from remuneration for the purposes of the median pay calculation.

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


Compensation on Loss of OfficeNone of our Board Members received any compensation payments for loss of office during the year.

PensionsDetails of pensions and Cash Equivalent Transfer Values are disclosed based on information supplied by the Department for Work and Pensions.

Accrued pension at

pension age as at 31/3/15 and related lump sum

£’000

Real increase in pension

and related lump sum at pension age

£’000

CETVat

31/03/15£’000

CETV at 31/3/14

£’000

Real increase in CETV£’000

Employercontribution

topartnership

pensionaccount

Nearest £100

David WallaceChief Executive

15‑20Plus lump

sum of55‑60

0‑2.5Plus lump

Sum of5‑10

283 237 32 ‑

Audrey Shimmons(part‑time)Director of Finance

10‑15 0‑2.5 197 177 9 ‑


20‑25Plus lump

sum of65‑70

0‑2.5Plus lump

sum of0‑2.5

421 394 6 ‑

Sandra BellHead of Business Delivery(to 6 July 2014)

5‑10 0‑2.5 65 58 4 ‑

Miriam CravenDirector of Policy and Engagement(from 1 September 2014)

5‑10 0‑2.5 99 81 14 ‑

Keith JenkinsonDirector of Corporate Services(from 7 July 2014)

25‑30Plus lump

sum of80‑85

0‑2.5Plus lump

sum of0‑2.5

622 587 10 ‑

Roslyn McCracken(part‑time) Head of Governance

10‑15Plus lump

sum of30‑35

0‑2.5Plus lump

sum of2.5‑5

170 144 18 ‑


Due to an inflation adjustment included in last year’s balance which should not have been included, Sandra Bell’s opening CETV balance has been adjusted by MyCSP.

All information disclosed in the tables on page 36 and 38 have been audited by Audit Scotland. The other sections of the Remuneration Report were reviewed by Audit Scotland to ensure that they were consistent with the financial statements.

Civil Service PensionsPension benefits are provided through the Civil Service pension arrangements. From 30 July 2007, civil servants may be in one of four defined benefit schemes; either a final salary scheme (classic, premium or classic plus); or a whole career scheme (nuvos). 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 and nuvos are increased annually in line with Pensions Increase legislation. 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 1.5% and 6.85% of pensionable earnings for classic and 3.5% and 8.85% for premium, classic plus and nuvos. 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. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set up 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% (depending on the age of the member) into a stakeholder pension product chosen by the employee from a panel of three 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 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 and 65 for members of nuvos.

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

New Career Average pension arrangements will be introduced from 1st April 2015 and the majority of classic, premium, classic plus and nuvos members will join the new scheme. Further details of this new scheme are available at www.civilservicepensionscheme.org.uk/members/the‑new‑pension‑scheme‑alpha/

Cash Equivalent Transfer ValuesA 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.

http://www.civilservicepensionscheme.org.uk/members/the-new-pension-scheme-alpha/

http://www.civilservicepensionscheme.org.uk/members/the-new-pension-scheme-alpha/


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 CETVThis 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.

Compensation for Loss of OfficeIn 2014‑2015, five members of staff left under the Scottish Government’s non‑compulsory exit schemes at a total cost of £188,000. No members of staff left under such schemes in 2013‑2014. Details are provided in Note 2 to the accounts.



STATEMENT OF ACCOUNTABLE OFFICER’S RESPONSIBILITIES


The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of SAAS and of its net resource outturn, application of resources, changes in taxpayers’ equity and cash flows for the financial year.

In preparing the accounts the Agency is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:

• observe the accounts direction issued by the Scottish Ministers, 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 Government Financial Reporting Manual have been followed, and disclose and explain any material departures in the financial statements;

• prepare the accounts on a going concern basis.

The Principal Accountable Officer of the Scottish Government has appointed the Chief Executive of the Student Awards Agency Scotland as the Accountable Officer for the Agency. The responsibilities of an Accountable Officer, including responsibility for the propriety and regularity of the public finances for which the Accountable Officer is answerable, for keeping of proper records, and for safeguarding the Student Awards Agency Scotland’s assets, are set out in the Accountable Officer’s Memorandum issued by the Scottish Ministers.


In accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000, the Scottish Ministers have directed the Student Awards Agency Scotland to prepare for each financial year a statement of accounts in the form and on the basis set out in the accounts direction.


GOVERNANCE STATEMENT


Scope of ResponsibilityAs Accountable Officer for SAAS, I have responsibility for maintaining the corporate governance system that supports the achievement of the Agency’s objectives and targets whilst safeguarding the public funds and assets for which I am personally responsible, in accordance with the responsibilities assigned to me.

I am accountable for the proper, efficient use of resources provided to my Agency. I ensure organisational compliance with the Scottish Public Finance Manual (SPFM) which is issued by Scottish Ministers to provide guidance to the Scottish Government and other relevant bodies on the proper handling and reporting of public funds. I am also responsible for ensuring that the relevant guidance and requirements of advice issued by Scottish Government Finance Directorate are met.

My accountability is subject to the respective overall responsibilities of the Permanent Secretary of the Scottish Government as the Principal Accountable Officer, the Director‑General Learning and Justice and the Director‑General Health and Social Care as Accountable Officers.

Corporate Governance FrameworkThe Agency’s corporate governance framework is underpinned by a Strategic Board, a Management Board, an Audit Committee, a Transformation Board and the senior management team within the Agency. The Strategic Board and Audit Committee are chaired by Non‑Executive Directors.

Strategic BoardThe Strategic Board brings together our Non‑Executive Board Members with Senior Civil Servants (SCS) from across the Scottish Government with a policy interest in the delivery of our service. It is chaired independently by a Non‑Executive Board Member and membership includes the Agency’s “Fraser Figure”, the Scottish Government’s Director of Advanced Learning and Science.

The Strategic Board approves the budget allocation to the Agency; sets and monitors the performance targets; and ensures that the Agency is informed and prepared for potential policy changes to student support funding.

The Strategic Board met quarterly during 2014‑2015.

This governance statement outlines and evaluates the governance, risk management and internal control arrangements in place during 2014-2015.


The President of the NUS (National Union of Students) Scotland attends both Strategic and Management Board providing customer representation at both meetings.

Management BoardThe Management Board acts in an advisory capacity to support me in the operation of the Agency. The membership comprises myself as Chair, the Agency’s Non‑Executive Board Members and the Senior Management Team. It was strengthened in 2014‑2015 with the appointment of four new Non‑Executive Directors. Its primary functions are to provide leadership, direction, support and guidance to the Agency, monitor performance against our agreed objectives and targets and to promote commitment to proper standards of corporate governance.

The Non‑Executive Board Members are there to provide an external perspective, bring constructive challenge, help develop proposals on strategy and bring specific expertise to discussions. They are independent of management.

During 2014‑2015 the Management Board met monthly with the exception of the months where Strategic Board met. Meetings are open to staff observers.

Board effectivenessBoth the executive and non‑executive directors have played a full part in the Board’s business through their attendance and contributions at meetings. In addition to the formal meetings, the Management Board held and took part in a two day development session to consider specific issues and challenges, including how the Board operates.

The Management Board also carried out a self‑assessment evaluation of its effectiveness during 2014‑2015, the results of which were then discussed and debated at the following Management Board meeting. Members concluded that the Board was operating effectively.


The Audit CommitteeThe Management Board is supported by an Audit Committee which consists of three Non‑Executive Board Members and an Independent Audit Committee Member who has recent relevant financial experience in line with the HM Treasury Code of Good Practice on Corporate Governance. The Committee is Chaired by a Non‑Executive Board Member. A new Chair has been appointed in April 2015.

The Committee is responsible for overseeing and reviewing the risk, control and governance processes in operation throughout the Agency. It also receives reports on any fraudulent activity and considers our exposure and responses. It met four times during the year. I attended the meetings as Accountable Officer along with relevant members of the Senior Management Team and the internal and external auditors.

The Audit Committee carried out a formal assessment of its effectiveness during the year and concluded that it was operating effectively.

The Transformation BoardThe Management Board is further supported by a Transformation Board which currently consists of two Non‑Executive Board members and the Agency’s four Executive Directors. I Chair the Board.

The Board is responsible for overseeing and reviewing the Agency’s Transformation Programme and it meets monthly.

Internal AuditThe objective of Internal Audit is to provide independent assurance on the adequacy and effectiveness of the systems of governance, controls and financial management established to manage the risks of the Agency and to ensure accountability for public funds. The work of Internal Audit is informed by the Agency’s corporate Risk Register, Assurance Map and by the audit needs assessment undertaken by the auditors themselves.

External AuditThe Auditor General for Scotland is responsible for auditing the Agency’s accounts.


Assessment of Corporate Governance ArrangementsThe governance arrangements continue to be strengthened and I will keep them under review to make sure that they remain fit for purpose.

Changes in 2014‑2015 include, but are not limited to:

• strengthening of the senior leadership within the Agency with the recruitment of three new executive posts at SG C2 grade. In doing so, we have now created four Director posts designed to better reflect, in particular to our external stakeholders, the scope and responsibility of these roles;

• recruitment of four additional Non‑Executive Board Members providing strategic expertise across a range of skills;

• becoming a member of the Scottish Government’s shared procurement service. As part of this arrangement we have an embedded procurement specialist on site;

• the creation of the Transformation Board to support the Management Board. SAAS is undergoing a period of significant change and the Transformation Board will oversee the management and delivery of this change;

• a review of the Agency’s Risk Management arrangements to support improved identification and mitigation of risks. A new Risk Management Framework has been approved in April 2015 and will be rolled out across the Agency. This new Framework sets out the Agency’s risk strategy and provides guidance on: clarifying objectives; identifying, assessing and addressing risks; and reviewing and reporting requirements. It also documents organisational roles and responsibilities; and the preparation and maintenance of risk registers;

• Risk Management training for all unit heads and above;

• a review of the assurance framework in operation within the Agency and the creation of an overarching Assurance Map documenting all the sources of assurance in use within the Agency.

I am committed to delivering continued improvement in our corporate governance arrangements.


Risk AssessmentGuidance 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 Agency has been developed, documented and is about to be published on our intranet.

Throughout the reporting period, the Management Board, the senior management team and the Audit Committee have continued to take an active lead in embedding risk management across the Agency. My Agency maintains a corporate risk register which records internal and external risks we are exposed to and identifies the mitigating actions required to reduce the threat of these risks occurring and their impact. The risk register is regularly updated and reviewed by our Audit Committee and Management Board. Each risk is allocated an owner, category, type and description along with an assessment of the likelihood of its happening and its impact on our operations. Mitigating actions to minimise risks are recorded as action points along with details of who will carry them out and when. Each risk is allocated a status and a date for review.

As well as the main risk register, individual risk registers are used for specific projects as a management control tool to ensure successful outcomes. These provide a mechanism to report risks to the project’s board for assessment and to escalate high level/high impact risks to project sponsors or senior Agency management to take preventative action.

The Agency has a Business Continuity Plan. However, following our move to Saughton House, there is a need to review and develop our arrangements to ensure our continued capability to respond to incidents and business disruptions.

Counter Fraud ActivityWe have a designated Fraud Team which aims to ensure that timely and effective action is taken in the event of a fraud. The staff within the team are available to advise, guide and assist in efforts to counter fraud. All cases of actual or suspected fraud are investigated and appropriate action is taken. A documented Fraud Strategy is in the process of being developed and the team is being strengthened.


The Agency has continued to be engaged in the cross‑public sector Counter Fraud Forum. This forum raises the profile of the counter fraud agenda; shares good practice collaboratively to stop fraud; raises awareness of the risks of fraud; and ensures that where fraud occurs, it is identified and dealt with quickly and effectively.

The Agency also participated in the 2014‑2015 National Fraud Initiative exercise led by Audit Scotland.

Data Security FrameworkIn line with Scottish Government guidance on managing risk to information, the Agency has a Senior Information Risk Owner (SIRO) and we have an Information Security Policy.

There were three data issues during 2014‑2015 (see pages 28‑29) and one since.

In each case actions were taken to ensure that the probable impact of any breach was minimised and appropriate procedures were put in place to minimise the likelihood of any future recurrence. None of the incidents constituted a significant lapse in data security.

All staff members are required to complete mandatory online training covering both data protection and information management on an annual basis. In addition, we have delivered a number of team specific information management training sessions, tailored to the individual needs of business areas. This programme of work continues into 2015‑2016.

Review of Effectiveness

As Accountable Officer, I have responsibility for reviewing the effectiveness of the risk and control framework. My review is informed by:

• formal assurances from my senior management team who have responsibility for the development and maintenance of our internal control framework;

• the business managers within the organisation who have responsibility for the development and maintenance of the risk and control framework;


• Strategic Board which considers the overall strategic direction and performance of the Agency;

• Management Board which considers the plans, risks and management of the Agency;

• Audit Committee which meets quarterly to consider the internal controls of the Agency and how effective those controls are;

• Transformation Board which oversees the Transformation Programme;

• the work of our internal auditors who submit regular reports to the Agency’s Audit Committee. These reports provide independent and objective opinion on the adequacy and effectiveness of the Agency’s systems of risk management and internal control together with recommendations for improvement;

• comments made by our external auditors in their management letters and other reports;

• the corporate risk register in place for all critical elements of our operations. This is reviewed by the Audit Committee and Management Board each year;

• regular reports on managing risks on key projects;

• the Gateway Health Check on the Online Services Project.

The Agency’s risk and control framework is based on an ongoing process designed to identify the principal risks to the achievement of the Agency’s polices, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. It can, however, only provide reasonable and not absolute assurance of effectiveness. More generally, my organisation is committed to a process of continuous development and improvement and as such we will continue to focus improving our corporate governance arrangements.



INDEPENDENT AUDITOR’S REPORT


I have audited the financial statements of the Student Awards Agency Scotland for the year ended 31 March 2015 under the Public Finance and Accountability (Scotland) Act 2000. The financial statements comprise the Statement of Comprehensive Net Expenditure, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Taxpayers’ Equity and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the European Union, and as interpreted and adapted by the 2014/2015 Government Financial Reporting Manual (the 2014/2015 FReM).

This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and for no other purpose. In accordance with paragraph 125 of the Code of Audit Practice approved by the Auditor General for Scotland, I do not undertake to have responsibilities to members or officers, in their individual capacities, or to third parties.

Respective responsibilities of Accountable Officer and auditorAs explained more fully in the Statement of Accountable Officer’s Responsibilities, the Accountable Officer is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and is also responsible for ensuring the regularity of expenditure and income. My responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) as required by the Code of Audit Practice approved by the Auditor General for Scotland. Those standards require me to comply with the Auditing Practices Board’s Ethical Standards for Auditors. I am also responsible for giving an opinion on the regularity of expenditure and income in accordance with the Public Finance and Accountability (Scotland) Act 2000.

Independent auditor’s report to the Student Awards Agency Scotland, the Auditor General for Scotland and the Scottish Parliament


Scope of the audit of the financial statementsAn audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the body’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Accountable Officer; and the overall presentation of the financial statements. It also involves obtaining evidence about the regularity of expenditure and income. In addition, I read all the financial and non‑financial information in the Annual Report and Accounts to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by me in the course of performing the audit. If I become aware of any apparent material misstatements, irregularities, or inconsistencies I consider the implications for my report.

Opinion on financial statementsIn my opinion the financial statements:

• give a true and fair view in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers of the state of the body’s affairs as at 31 March 2015 and of its net expenditure for the year then ended;

• have been properly prepared in accordance with IFRSs as adopted by the European Union, as interpreted and adapted by the 2014/2015 FReM; and

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

Opinion on regularityIn my opinion in all material respects:

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

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


Opinion on other prescribed mattersIn my opinion:

• the part of the Remuneration Report to be audited has been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers; and

• the information given in the Management Commentary for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which I am required to report by exceptionI am required to report to you if, in my opinion:

• adequate accounting records have not been kept; or

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

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

• the Governance Statement does not comply with guidance from the Scottish Ministers.

• I have nothing to report in respect of these matters.

Rachel Browne Senior Audit Manager Audit Scotland 18 George Street Edinburgh EH2 2QU 23 July 2015

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ANNUAL ACCOUNTSSTUDENT AWARDS AGENCY SCOTLAND


Statement of comprehensive net expenditure for the year ended 31 March 2015

Administrative costs Note2014-2015

£0002013-2014

£000

Staff costs 2 8,418 6,824

Other administrative costs 3,10 4,949 3,675

Depreciation and amortisation 4,5 1,007 1,004

Net operating costs 14,374 11,503

Other comprehensive expenditure

Administrative costs Note2014-2015

£0002013-2014

£000

Net gain/(loss) on revaluation of property, plant and equipment ‑ ‑

Net gain/(loss) on revaluation of intangibles ‑ ‑

Net gain/(loss) on revaluation of available for sales financial assets

‑ ‑

Total comprehensive expenditure for the year ended 31 March 2015 14,374 11,503

The above results relate to continuing activities.

The notes on pages 61 to 73 form part of these accounts.


Statement of financial position as at 31 March 2015

As at: Note31 March 2015

£00031 March 2014

£000

Non-current assets

Property, plant and equipment 4 841 594

Intangible assets 5 1,205 1,704

Total non-current assets 2,046 2,298

Current assets

Trade and other receivables 6 203 291

Total current assets 203 291

Total assets 2,249 2,589

Current liabilities

Trade and other payables 7,12,18 634 484

Provisions for liabilities and charges 9 5 979

Total current liabilities 639 1,463

Total assets less current liabilities 1,610 1,126

Non-current liabilities

Provisions for liabilities and charges 9 1 6

Total non-current liabilities 1 6

Assets less liabilities 1,609 1,120

Taxpayers’ equity

General reserve SOCTE 1,609 1,101

Revaluation reserve SOCTE ‑ 19

Total taxpayers’ equity 1,609 1,120

The notes on pages 61 to 73 form part of these accounts



Statement of cash flows for the year ended 31 March 2015

Notes2014-2015

£0002013-2014

£000

Net cash outflows from operating activities (13,639) (9,892)

Net cash outflows from investment activities (776) (488)

Cash flows from financing activities 17 14,415 10,380

Increase/(decrease) in cash in period - -

Reconciliation of operating costs to operating cash flows

Net operating cost (14,374) (11,503)

Adjust for non cash transactions 1,495 1,427

(Increase)/decrease in receivables and other current assets 6 88 (8)

Increase/(decrease) in trade and other payables 7,12,18 131 213

Increase/(decrease) in provisions 9 (979) (21)

Net cash flows from operating activities (13,639) (9,892)

Analysis of cash flows from investing activities

Purchase of property plant and equipment 4 (477) (321)

Purchase of intangible assets 5 (299) (167)

Net cash flows from investing activities (776) (488)

Analysis of cash flows from financing activities

From Scottish Consolidated Fund 17 14,415 10,380

Cash flows from financing activities 14,415 10,380

Decrease/(increase) in cash and cash equivalents 8 - -


Statement of changes in taxpayers’ equity for the year ended 31 March 2015

Note

General reserve

£000

Revaluationreserve

£000Total£000

Balance at 1 April 2014 1,101 19 1,120

Changes in taxpayers’ equity for 2014-2015:

Non cash charges – auditors remuneration 3 21 ‑ 21

Non cash charges – notional costs 3 427 ‑ 427

Net operating cost for the year (14,374) ‑ (14,374)

Revaluation reserve released to General reserve 19 (19) ‑

Total recognised expenditure for 2014-2015 (12,806) - (12,806)

Parliamentary funding 17 14,415 ‑ 14,415

Net parliamentary funding drawn down 14,415 14,415

Balance at 31 March 2015 1,609 - 1,609

Statement of changes in taxpayers’ equity for the year ended 31 March 2014

Note

General reserve

£000

Revaluationreserve

£000Total£000

Balance at 1 April 2013 1,820 19 1,839

Changes in taxpayers’ equity for 2013-2014:

Non cash charges – auditors remuneration 3 21 ‑ 21

Non cash charges – notional costs 3 383 ‑ 393

Net operating cost for the year (11,503) ‑ (11,503)

Total recognised expenditure for 2013-2014 (9,279) 19 (9,260)

Parliamentary funding 17 10,380 ‑ 10,380

Net parliamentary funding drawn down 10,380 10,380

Balance at 31 March 2014 1,101 19 1,120


Notes to the Accounts for the year ended 31 March 20151 Statement of accounting policiesIn accordance with the accounts direction issued by Scottish Ministers under section 19(4) of the Public Finance and Accountability (Scotland) Act 2000 (reproduced at page 75) these financial statements have been prepared in accordance with the 2014‑2015 Government Financial Reporting Manual (FReM) issued by HM Treasury. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) as adopted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be the most appropriate to the particular circumstances of the Student Awards Agency Scotland for the purpose of giving a true and fair view has been selected. The particular policies adopted by the Student Awards Agency Scotland are described below. They have been applied consistently in dealing with items that are considered to be material to the accounts.

The accounts are prepared using accounting policies, and, where necessary, estimation techniques, which are selected as the most appropriate for the purpose of giving a true and fair view in accordance with the principles set out in International Accounting Standard 8: Accounting Policies, Changes in Accounting Estimates and Errors. Changes in accounting policies which do not give rise to a prior year adjustment are reported in the relevant note.

1.1 Accounting conventionThese accounts have been prepared under the historical cost convention modified to account for the revaluation of investment property, property, plant and equipment, intangible assets and certain financial assets and liabilities to fair value as determined by the relevant accounting standard.

1.2 Property, Plant and Equipment (PPE)

RecognitionAll PPE assets will be accounted for as non‑current assets unless they are deemed to be held for sale.


CapitalisationPPE assets comprise computer equipment, hardware and plant and machinery. They are capitalised at their cost of acquisition and installation. Furniture and fittings purchased prior to financial year 2004‑2005 are also capitalised. However, following a decision by the Scottish Government, with effect from financial year 2004‑2005 all purchases of furniture and fittings are treated as current expenditure and are no longer capitalised.

Depreciated historic cost has been used as a proxy for the current value of plant and machinery.

The lower threshold for capitalising PPE assets is £1,000. Computer equipment hardware includes individual assets whose costs fall below the threshold, but if they are of a similar nature they are grouped together and capitalised.

The Agency does not own any land or buildings. A charge for the rental of accommodation is included in the expenditure account.

Subsequent CostSubsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Agency and the cost of the item can be measured reliably. The carrying amount of any replaced parts will be derecognised as an asset. All other repairs and maintenance are charged to the operating cost statement during the financial period in which they are incurred.

DepreciationDepreciation is provided on all PPE assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life as follows:Furniture, fixtures and fittings – 10 yearsInformation technology – 5 yearsPlant and machinery – between 5 and 10 years

From financial year 2004‑2005 all purchases of furniture are treated as current expenditure and are no longer capitalised. Therefore furniture depreciation relates only to historic purchases.

ComponentisationWhere it is appropriate to do so, the Agency will componentise its property, plant and equipment assets and separately depreciate each item.

Impairment reviewsImpairment reviews are carried out each year. In 2014‑2015 no impairment of our non‑current assets was required.

1.3 Intangible assetsRecognitionFuture economic benefit has been used as the criteria in assessing whether an intangible asset meets the definition and recognition criteria of IAS 38 where assets do not generate income. IAS 38 defines future economic benefit as, “revenue from the sale of products or services, cost savings, or other benefits resulting from the use of the asset by the entity.”

Non income generating assets are carried at amortised replacement cost. These valuation methods are considered to be a proxy for fair value.

Expenditure on software development is capitalised if it meets the criteria specified in the FReM which are adapted from IAS 38 to take account of the not‑for‑profit context. Expenditure which does not meet the criteria for capitalisation is treated as an operating cost in the year in which it is incurred.

The development costs for designing, building and enhancing the in‑house student awards processing system, StEPS, are included in intangible assets. Staff costs for those working directly on the project are capitalised. Salaries for (Band C) management would only be capitalised in exceptional circumstances if actively involved in the technical development of the system.


AmortisationIntangible assets are amortised at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life as follows:In‑house developed software – 5 yearsPurchased software licences – 3 years

1.4 Trade payablesTrade payables are recognised at fair value and are for goods or services received by the Agency. We apply the Scottish Government’s policy of paying invoices within 10 days of receipt of the invoice or delivery of the goods or services, whichever is later.

1.5 LeasesAll leases are operating leases and the rentals are charged to the operating cost statement on a straight line basis over the term of the lease.

1.6 PensionsPast and present employees are covered by the provisions of the Principal Civil Service Pension Schemes (PCSPS) which are described in Note 2. The defined benefit schemes are unfunded and are non‑contributory except in respect of dependants’ benefits. The Agency recognises the expected cost of these elements on a systematic and rational basis over the period during which it benefits from employees’ services by payment to the PCSPS of amounts calculated on an accruing basis.

1.7 Short term employee benefitsA liability and an expense is recognised for holiday days, holiday pay, bonuses and other short‑term benefits when an employee renders a service that entitles them to these benefits. As a result, an accrual has been made for holidays and flexible working time credits earned but not taken.

1.8 New accounting standardsA number of new accounting standards have been issued or amendments made to existing standards, but do not come in to force until future accounting periods and therefore are not yet applied. All new standards issued and amendments made to existing standards are reviewed by Financial Reporting and Advisory Board (FRAB) for subsequent inclusion in the FReM in force for the year in which the changes become applicable. The standards that are considered relevant to SAAS and the anticipated impact on the accounts are as follows:

IFRS 9 – Financial InstrumentsThis standard was issued in November 2014, and is effective from 1 January 2018. The adoption of this standard could change the classification and measurement of financial assets. The interpretation for the public sector is still under consideration and the impact has not been determined

IFRS 13 – Fair Value MeasurementThis standard will come into effect from 1 April 2015, with the purpose of defining fair value and providing guidance on fair value measurement techniques. Although IFRS 13 applies to public sector bodies without adaptation, IAS 16 and IAS 38 have been adapted and interpreted for the public sector context to limit the circumstances in which a valuation is prepared under IFRS 13.

1.9 Going concernThe accounts are prepared on the going concern basis, which provides that the entity will continue in operational existence for the foreseeable future.


2 Staff numbers and costsThe average number of full‑time equivalent (FTE) staff employed during the year was as follows:

2014-2015 2013-2014

Senior Management 6 6

Other permanent staff 207 180

Agency staff 53 55

Total 266 241

SAAS underwent a business area reorganisation in July 2014. The following table shows our FTE staffing by new business areas during 2014‑2015:

Operations FinancePolicy &

Engagement CE OfficeCorporate

Services

Senior management 1 1 1 2 1

Other permanent staff 135 19 13 3 37

Staff working on capital projects ‑ ‑ ‑ ‑ ‑

Agency staff 32 2 2 1 16

Total 168 22 16 6 54

Our FTE staff were employed in the following business areas (re‑stated) during 2013‑2014

Operations FinancePolicy &

Engagement CE OfficeCorporate

Services

Senior management 1 1 1 2 1

Other permanent staff 119 17 12 1 30

Staff working on capital projects ‑ ‑ ‑ ‑ ‑

Agency staff 47 2 ‑ 1 5

Total 167 20 13 4 37

The total payroll costs for our staff was as follows:

2014-2015 £000

2013-2014 £000

Salaries and wages 5,289 4,414

Social Security costs 340 281

Other pension costs 847 724

Agency Staff 1,942 1,425

Total 8,418 6,844

Less: capitalised within non‑current assets ‑ (20)

Total – Statement of comprehensive net expenditure 8,418 6,824


The Principal Civil Service Pension Scheme (PCSPS) is an unfunded multi‑employer defined benefit scheme in which SAAS is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the scheme as at 31 March 2012. Details can be found in the resource accounts of the Cabinet Office: Civil Superannuation (www.civilservice‑pensions.gov.uk).

For 2014‑2015, employers’ contributions of £846,892.82 were payable to PCSPS (2013‑2014 £724,322.29) at one of four rates in the range 16.7 to 24.3 per cent (2013‑2014: 16.7 to 25.8 per cent) of pensionable pay, based on salary bands. The scheme’s Actuary reviews employer contributions usually every four years following a full scheme valuation. The contribution rates are set to meet the cost of the benefits accruing during 2014‑2015 to be paid when the member retires and not the benefits paid during this period to existing pensioners.

Employees joining after 1 October 2002 could opt to open a partnership pension account, a stakeholder pension with an employer contribution. No one from the Agency opted to join this scheme.

Compensation for Loss of OfficeThe following table details Civil Service compensation scheme – exit packages during 2014‑2015. There were no exit packages in 2013‑2014.

Reporting of Civil Service compensation scheme – exit packages

2014-2015 2013-2014Exit packageCost band

CompulsoryRedundancies

OtherDepartures

Total Total

Less than £10,000 ‑ ‑ ‑ ‑

£10,000 to £25,000 ‑ 2 2 ‑

£25,000 to £50,000 ‑ 2 2 ‑

£50,000 to £100,000 ‑ 1 1 ‑

£100,000 to £150,000 ‑ ‑ ‑ ‑

£150,000 to £200,000 ‑ ‑ ‑ ‑

£200,000 to £250,000 ‑ ‑ ‑ ‑

Over £250,000 ‑ ‑ ‑ ‑

Total number of exit packages ‑ 5 5 ‑

Total resource cost ‑ £188,000 £188,000 ‑

Redundancy and other departure costs have been paid in accordance with the provisions of the Civil Service Compensation Scheme, a statutory scheme made under the Superannuation Act 1972. Exit costs are accounted for in the year that departure is agreed. Where the department has agreed early retirements, the additional costs are met by the department and not the Civil Service pension scheme. Ill‑health retirement costs are met by the pension scheme and are not included in this table.

http://www.civilservice-pensions.gov.uk


3 Other administration costs

2014-2015 £000

2013-2014 £000

Accommodation including rent and rates 3,097 1,176

IT Running costs 1,074 1,041

General office expenditure 803 1,055

Discount on provisions ‑ (1)

Dilapidations provision – reversed unutilised (513) ‑

Loss on disposal of non‑current assets 40 ‑

Other costs – notional charges 427 383

Audit fee 21 21

Total 4,949 3,675

Included in the accommodation costs for 2014‑2015 are exceptional one‑off costs for the relocation of the Agency to Saughton House in December 2014. The leased building at Gyleview House was returned to the landlord in March 2015 following termination negotiations and a dilapidations payment was agreed. The negotiated settlement was lower than the provision set aside for dilapidations. Some assets were disposed of as part of the move resulting in a loss.

The notional charges are for services provided by the Scottish Government.

Audit Scotland, who audit our accounts, did not receive any remuneration for non‑audit work.


4 Property Plant and Equipment

2014-2015

Informationtechnology

£000Plant and

machinery

Furniture, fixtures and

fittings £000

Total £000

Cost or valuation

As at 1 April 2014 1,313 235 106 1,654

Additions 444 ‑ 52 496

Disposals (144) (202) (106) (452)

At 31 March 2015 1,613 33 52 1,698

Depreciation

At 1 April 2014 777 177 106 1,060

Charged in year 195 13 1 209

Disposals (138) (168) (106) (412)

At 31 March 2015 834 22 1 857

NBV at 31 March 2015 779 11 51 841

NBV at 31 March 2014 536 58 ‑ 594

2013-2014

Informationtechnology

£000Plant and

machinery

Furniture, fixtures and

fittings £000

Total £000

Cost or valuation

As at 1 April 2013 1,271 269 106 1,646

Additions 322 ‑ ‑ 322

Disposals (280) (34) ‑ (314)

At 31 March 2014 1,313 235 106 1,654

Depreciation

At 1 April 2013 912 194 105 1,211

Charged in year 145 17 1 163

Disposals (280) (34) ‑ (314)

At 31 March 2014 777 177 106 1,060

NBV at 31 March 2014 536 58 - 594

NBV at 31 March 2013 359 75 1 435


5 Intangible assets

2014-2015

Purchasedsoftwarelicences

£000

In-housedeveloped

software £000

Assetsunder

development £000

Total £000

Cost or valuation

As at 1 April 2014 404 18,740 ‑ 19,144

Additions 126 173 ‑ 299

At 31 March 2015 530 18,913 - 19,443

Amortisation

At 1 April 2014 269 17,171 ‑ 17,440

Charged in year 90 708 ‑ 798

At 31 March 2015 359 17,879 - 18,238

NBV at 31 March 2015 171 1,034 - 1,205

NBV at 31 March 2014 135 1,569 ‑ 1,704

2013-2014

Purchasedsoftwarelicences

£000

In-housedeveloped

software £000

Assetsunder

development £000

Total £000

Cost or valuation

As at 1 April 2013 560 18,792 180 19,532

Additions 31 12 20 63

Transfers ‑ 180 (180) ‑

Impairment ‑ ‑ (20) (20)

Disposals (187) (244) ‑ (431)

At 31 March 2014 404 18,740 - 19,144

Amortisation

At 1 April 2013 350 16,680 ‑ 17,030

Charged in year 106 735 ‑ 841

Disposals (187) (244) (431)

At 31 March 2014 269 17,171 - 17,440

NBV at 31 March 2014 135 1,569 - 1,704

NBV at 31 March 2013 210 2,112 180 2,502


6 Trade and other receivablesAll our receivables are prepayments. As they are all prepayments, there is no provision for bad debts.

2014-2015 £000

2013-2014 £000

Prepayments 203 291

Total 203 291

7 Trade and other payablesTrade payables are for goods or services received. All invoices are due to be paid within 10 days of receipt of the invoice or delivery of the goods or services, whichever is later.

Also included is an accrual for employee benefits being annual leave earned but not taken and flexible working time credits.

2014-2015 £000

2013-2014 £000

Accruals for goods or services 427 277

Employee benefits 207 207

Total 634 484

Analysis of accruals

2014-2015 £000

2013-2014 £000

Balances with bodies external to government 414 276

Balances with other central government bodies 13 1

Total 427 277

8 Cash and cash equivalentsThere were no cash or cash equivalent balances in 2014‑2015 or 2013‑2014.


9 Provisions for liabilities and chargesEarly retirement costsProvision was created in 2005‑2006 for the early retirement severance cost of the previous Head of Finance and Personnel with additional provision created in 2010‑2011 for two members of staff who left under an approved early retirement scheme. Two of the three individuals reached retirement age in 2013‑2014 allowing provisions relating to their early retirement costs to be released. Provision for the other member of staff is based on the annual value of payments incurred by SAAS until retirement age.

DilapidationsProvision was created in 2008‑2009 for the anticipated dilapidation costs of ending the lease for Gyleview House in November 2013. The lease was subsequently extended to May 2015 and the Agency vacated the building in March 2015 with dilapidation costs being paid in full. The provision was therefore fully released in March 2015.

2014-2015

Early retirementprovision

£000

Dilapidationsprovision

£000Total £000

Balance as at 1 April 2014 11 974 985

Provision reversed, unutilised (513) (513)

Provision utilised in the year (5) (461) (466)

Balance as at 31 March 2015 6 - 6

Analysis of expected timing of discounted flows:

Current liabilities – within one year 5 ‑ 5

Non‑current liabilities – later than one year and not later than five years 1 ‑ 1

Balance as at 31 March 2015 6 - 6


2013-2014

Early retirementprovision

£000

Dilapidationsprovision

£000Total £000

Balance as at 1 April 2013 33 974 1,007

Provision utilised in the year (21) ‑ (21)

Borrowing costs (unwinding of discount) (1) ‑ (1)

Balance as at 31 March 2014 11 974 985

Analysis of expected timing of discounted flows:

Current liabilities – within one year 5 974 979

Non‑current liabilities – later than one year and not later than five years 6 ‑ 6

Balance as at 31 March 2014 11 974 985


10 Commitments under leasesTotal future minimum lease payments under operating leases are given below:

2014-2015 £000

2013-2014 £000

Building lease expiring within:

One year 414 438

Two to five years ‑ 47

Over five years ‑ ‑

Total 414 485

The operating lease for 2013‑2014 was a non‑cancellable lease and refers to the premises previously occupied by SAAS at Gyleview House. Following negotiations with our landlord we ended the lease for Gyleview House in March 2015.

We now occupy offices at Saughton House, a Scottish Government owned building, under a Memorandum of Terms of Occupation (MOTO). We share the facilities with the other occupiers of the building and are charged for our utilities and service costs under the MOTO agreement.

11 Contingent liabilitiesThere were no contingent liabilities at 31 March 2015 that require to be disclosed under IAS37.

12 Financial instrumentsSAAS is exposed to minimal amounts of financial risk, largely because of the non‑trading nature of its activities and the way Government is financed.

Financial liabilities – trade payables

2014-2015 £000

2013-2014 £000

Fair value through the Operating Cost Statement ‑ ‑

Loans & payables 427 277

Total 427 277


13 Capital commitmentsThere were no capital commitments at 31 March 2015 or 31 March 2014.

14 Events after the reporting periodThere were no material events that require to be adjusted in the accounts or to be disclosed after the reporting period.

15 Financial lossesNo financial losses were incurred during financial year 2014‑2015 or in 2013‑2014.

16 Related party transactionsSAAS is an Executive Agency of the Scottish Government (SG) and is part of the SG’s Learning and Justice Directorate. The SG is regarded as a related party and during the year SAAS had various material transactions with them.

In addition, the Agency had a small number of non‑material transactions with other government departments and other central government bodies.

During the year, no members of the Management Board, key members of staff or related parties have undertaken any material transactions with the Agency.

17 Reconciliation to draft portfolio accountThe Agency’s expenditure is included within the consolidated accounts of the SG. The financing of £14.415m (£10.380m for 2013‑2014) as recorded in the Agency’s Statement of Cash Flows, has been agreed with the Learning and Justice Directorate on behalf of the SG.

18 Intra-government balances

Intra-government balances

2014-2015 £000

2013-2014 £000

Trade payable due withing one year 13 1


ACCOUNTS DIRECTION


CONTACT INFORMATION


You can contact us by letter, telephone, fax, email or in person by appointment.

Student Awards Agency ScotlandSaughton HouseEdinburghEH11 3UT

Telephone: 0300 555 0505

Fax no: 0131 244 5887

Email: www.saas.gov.uk/contact.htm

Website: www.saas.gov.uk

Our offices are open for business between 8.30 a.m. and 5 p.m Monday to Thursday, and 8.30 a.m. to 4.30 p.m on Fridays.

http://www.saas.gov.uk/contact.htm

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