Annual Report - Student Awards Agency For Scotland · Annual Report & Accounts 2015/2016 ... Key...

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STUDENTAWARDSAGENCYSCOTLANDAnnual Report & Accounts 2015/2016

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 2016

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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 2016

SG/2016/102

StudentAwardsAgencyScotland (SAAS)Annual Report & Accounts 2015/2016

02 Annual Report and Accounts 2015/2016 Student Awards Agency Scotland

CONTENTS

www.saas.gov.uk

Annual Report and Accounts 2015/2016 Student Awards Agency Scotland 03

Chief Executive’s Foreword 04

Performance Report – Overview 06

Summary of the Organisation 07

Performance Summary 11

Performance Report – Analysis 15

Performance Measures 16

Key Performance Indicators 17

Accountability Report – Governance 26

Directors’ Report 27

Statement of Accountable Officer’s Responsibilities 33

Governance Statement 35

Accountability Report – Remuneration and Staff 41

Remuneration 42

Remuneration Policy 42

Board Remuneration 43

Staff Report 49

Accountability Report – Parliamentary Accountability and Audit 53

Parliamentary Accountability 54

Independent Auditor’s Report 55

Annual Accounts 2015/2016 58

Notes to the accounts for year ended March 2016 63

Accounts Direction 72

Contact Information 74


Chief Executive’s Foreword


I am pleased to present the Annual Report and Accounts 2015/2016, my first since taking up post as Chief Executive in February 2016.

This year SAAS has delivered further improvements in terms of the quality and efficiency of the services we provide. The Agency undertakes a distinct and pivotal role in Higher Education, providing vital information resources and over £800m in funding support to students. Through our funding services we contribute to the achievement of broad participation in an education system based on merit and enable individuals to realise their potential.

In 2015/2016 the Agency dealt with a record number of applications, which was just under a quarter of a million. In doing so we still ensured that those who applied to us under the Guarantee Date Scheme, secured their funding packages in time for the start of their courses. A further significant achievement this year was the payment of an additional £125 bursary payment to an excess of 37,000 to students from lower income households.

During the course of the year we have strengthened our services for students through the greater use of technology. We introduced the facility for students to download their funding award letter from their account. We also introduced the capability to communicate directly with students through their SAAS account, making it easier to progress cases in a more customer focused and efficient manner. Our teams have also worked effectively using a range of social media channels to address both general and personal queries.

We have also delivered improved services aided by our people. This year our staff attended over 300 sessions at schools, colleges and universities to provide advice and information about student support. Our dedicated contact centre service was also extended to deal with enquiries from students under the Nursing and Midwifery and Disabled Student Allowance schemes. This gave these groups access to an advice service operating over extended opening hours during the peak application period.

SAAS works closely with a range of key stakeholders to improve the quality of student support services. In March 2016 we launched our Stakeholder Strategy at our National Conference, committing us to delivering further improvements for our partners and students. We have also worked with Young Scot to greater publicise student funding queries to their membership. This year we have visited over 80% of schools with a low progression rate to university across Scotland, working in partnership with the Schools Higher Education Programme (SHEP) supported by the Scottish Funding Council (SFC).

SAAS also undertakes an important role to safeguard public funds and ensure that those who are entitled receive support, while robustly dealing with cases of fraud. This year we launched our first Counter Fraud Strategy focusing on the five key objectives in countering fraud; to Deter, Prevent, Detect, Investigate and Enforce.

These achievements are the result of concerted planning and hard work by the team at SAAS, supported by our partners and stakeholders and I would like to thank them all for their advice and assistance over the course of this year, for which I am most grateful.

Paul LoweChief Executive8 July 2016

06 Annual Report and Accounts 2015/2016 Student Awards Agency Scotland06

PERFORMANCE REPORT OVERVIEW

Annual Report and Accounts 2015‑2016 Student Awards Agency Scotland 07

Summary of the Organisation

Timing of the ReportThis Annual Report and Accounts covers the period from 1 April 2015 to 31 March 2016 and has been prepared in accordance with the direction given by Scottish Ministers in accordance with Article 19(4) of the Public Finance and Accountability (Scotland) Act 2000.

History and Statutory BackgroundThe Student Awards Agency Scotland (SAAS) was established as an Executive Agency of the Scottish Government (SG) 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.

Change in Senior StaffDavid Wallace, Chief Executive, left the organisation in December 2015, to take up post as Chief Executive of Disclosure Scotland.

For the period from December 2015, until the appointment of the new Chief Executive in February 2016, the role of Accountable Officer was discharged on an interim basis by Keith Jenkinson, Director of Corporate Services.

Paul Lowe commenced his role as Chief Executive on 22 February 2016.

How We Relate to the Scottish GovernmentThe 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.

This purpose is achieved through a defined set of Strategic Objectives and National Outcomes. These objectives and outcomes make up the statutory National Performance Framework and provide a clear and consistent set of priorities across the government and its associated organisations.

166,127full-time applications


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 SAAS contributes to the following National Outcomes:

• 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 values of the Civil Service Code:

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

• 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:

KPIKPI

NATIONAL OUTCOMES

KEY FUNCTIONS

SAAS CORPORATE PLAN

BRANCH PLAN

EMPLOYEE OBJECTIVES

SG

306,000 More than

calls received


As a service delivery organisation, we recognise the importance of the customer and that perceptions of SAAS and their experience of accessing Higher Education is shaped by the services we provide and how effectively we engage with our customers and stakeholders. For this reason we uphold the value of customer focus – putting customers at the centre of everything we do.

Principal ActivitiesWe provide financial support to full-time and part-time students in higher education by administering the Students’ Allowances Scheme. Our key activities include:

• assess and process applications for student support for eligible full-time higher education students, providing financial support in terms of:

– 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 Funds and Discretionary 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

Key Risks to the AgencyThe Agency undertakes risk management activities in order to identify and manage key risks. We have identified the controls and actions to mitigate these risks and their impact should they become issues. These are documented within the SAAS corporate risk register. Our risk management approach and activities are overseen by an Audit and Risk Committee, chaired by a Non-Executive Board Member, which reports to the Management Board.

The Agency introduced a new Risk Management Framework and accompanying corporate risk register in 2015/2016, consistent with the Scottish Government’s approach and the guidelines set out within the Scottish Public Finance Manual. A risk needs to threaten the achievement of the Agency’s business objectives to warrant inclusion in the corporate risk register. Individual executive team members were appointed as owners for each of the corporate risks, with responsibility for assessing existing controls and determining the appropriate response/controls to be put in place for each risk.

256permanent staff

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


The new corporate risk register was regularly tabled at Audit and Risk Committee who assessed it for gaps or omissions, providing the Management Board and the Accountable Officer with assurance that the Agency’s risk management arrangements are working effectively. The register was also presented to the Strategic Board twice during the year.

In particular we have recognised and continued to monitor our resource position, ensuring that there is a focus on staff training and the provision of guidance. We have undertaken further training this year in respect of data protection and information security. We have built in robust security processes to our systems to protect our own and our customers’ information.

We also have in place a dedicated Counter Fraud Team to ensure we have appropriate safeguards in place. This team undertakes regular training and awareness sessions with our staff in support of our Counter Fraud Strategy, which was launched this year.

Through our risk management approach seven key organisational risks have been managed during the course of this year:

• insufficient budget

• a loss of key individuals or expertise

• insufficient staff resource

• significant changes in policy and legislation from Scottish Ministers

• inadequate controls in place to ensure accurate payment of funds

• failure of internal systems; and

• inadequate protection of personal data

Further information is contained within the ‘Performance Report – Analysis’ section (page 15) of this document and within the Governance Statement (page 35).

55,116Individual Learning Accounts applications


Performance Summary

Chief Executive Statement on PerformanceAs an Agency of the Scottish Government, Student Awards Agency Scotland is committed to achieving the Government’s Strategic Objective of a Smarter Scotland.

The Agency’s performance can be measured, in simple terms by the number of student support applications received and successfully processed and the amount of student support funds we distributed to students. In this respect we again achieved 100% compliance in terms of meeting the Guarantee Date, despite a 3,000 increase in the number of applications received this year. We also improved our compliance against the Key Performance Indicators (KPI) to process applications within 21 days of receipt, increasing from 56% in 2014/2015 to 69% this year (see page 17). There remains work to be done to improve performance further and meet the target but encouraging progress has been made this year.

SAAS received 242,786 applications between 1 April 2015 and 31 March 2016. These included applications for full-time study at undergraduate and postgraduate level, applications under the Nursing and Midwifery Scheme, the Part-Time Fee Grant and applications under the Individual Learning Account (ILA) scheme.

The graph on the next page shows the rate of receipt of applications for full-time undergraduate and postgraduate study, including applications under the Nursing and Midwifery Scheme. This shows that the vast majority of these applications are received by the Agency over a three-month window, concluding at the Guarantee Date of 30 June 2015. A much reduced volume of applications is then received right up to the end of March 2016, coinciding with the close down of the application period.

215suspected fraud cases received


Cumulative number of full‑time applications received by week, 2015/2016

The majority of applications received were calculated/processed within the published service target, as detailed on page 24.

During 2015/2016 SAAS successfully awarded tuition fees to 133,940 students, bursaries and grants to 56,787 students and arranged loans in partnership with the Student Loans Company for 94,358 students.

This year we put in place a highly successful PR campaign, (see page 24) with the aim of encouraging students to submit their applications by the Guarantee Date of 30 June, which is our primary mechanism to ensure that individual funding support is in place for students by the start of their course.

While the PR campaign was successful, by encouraging increased participation and earlier engagement this placed additional pressure on our front line processing teams. We responded to this by adopting and utilising other staff from within the Agency to aid the teams with this task.

Over 306,000 telephone calls were received by the Agency throughout the year (see page 17). Calls increased in the lead up to the 30 June Guarantee Date before falling and then peaked again as the students commenced their studies in August/September.

160,000

120,000

80,000

40,000

001/04 30/06 01/09 25/12 31/03

15,496Part-Time Fee Grant applications


Number of calls received by week, 2015/2016

The number of complaints and appeals rose considerably in the reporting year. This was mainly due to strengthening our complaints recording processes in line with new Scottish Public Services Ombudsman (SPSO) guidance. Encouragingly however, despite an increase in recorded complaints, the Agency improved performance against the KPI for responding to complaints and appeals within relevant timescales to 99%, from 96% in the previous year (see page 17).

In 2015 it was announced that students from lower income households would receive an additional £125 funding. The additional payment was successfully made to over 37,000 students in February 2016. This followed the Scottish Government’s decision to increase the bursary for eligible students. This additional £125 payment will be fully embedded into the bursary element for 2016/2017.

Going ConcernThe Agency receives its full funding from 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.

24,000

18,000

12,000

6,000

001/04 30/06 01/09 25/12 31/03

£3,724,680recovered debt


Financial Review

Description2015/2016

Budget2015/2016 Expenditure

2014/2015 Budget

2014/2015 Expenditure

Direct revenue costs £12.022m £11.615m £15.080m £13.926m

Notional revenue costs n/a £0.489m n/a £0.448m

Total revenue costs £12.104m £14.374m

Capital costs £1.200m £1.131m £1.000m £0.795m

Total expenditure £13.235m £15.169m

Direct revenue costs for the year reduced by 17% from 2014/2015, reflecting savings being made after moving from commercially leased premises to a shared Scottish Government building in December 2014. Costs were within budget by 3.4%.

Capital expenditure for the year increased by £0.336m from 2014/2015 reflecting costs for developing an enhanced online service for students applying for support which is planned to go live for applications being received in April 2017.

£0.489m of allocated central government expenditure and audit fee are identified as ‘notional costs’ and are met from the central Scottish Government’s budget.

The 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 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 2015/2016 was as follows:

Cash Budget £m

Student support & tuition fee payments 328.3

Student loans advanced net of loan repayments 476.3

Student Loans Company administration costs 3.2

Student loan interest subsidy to banks 3.0

Cash Total 810.8

Non-cash costs for student loans 161.6

Total 972.4

5,450Disabled Students’ Allowance applications


PERFORMANCE REPORT ANALYSIS


Performance MeasuresSAAS has adopted a number of Key Performance Indicators (KPIs), which are measurable values that demonstrate how effectively the Agency is achieving its business objectives. These KPIs are defined within the SAAS Framework Document 20121.

Achievement against these KPIs is provided in the Key Performance Indicators section (page 17) of this report.

SAAS utilises a balanced scorecard methodology to measure, monitor and report on performance. The SAAS Balanced Scorecard is a strategic reporting tool, produced on a quarterly basis for the SAAS Management and Strategic Boards. It provides a high level overview of SAAS performance and delivery against a number of key and other performance indicators. The balanced scorecard is structured under four themes:

• customers and stakeholders

• delivering value

• internal processes; and

• learning and growth

The SAAS Balanced Scorecard is in turn supported by a number of more detailed management information reports. In particular, the SAAS State of Play Report is a weekly report that provides an overview of SAAS operational performance and delivery. There are also regular reports to Management Board on issues such as financial performance, complaints and appeals handling, fraud and recoveries activity and IT system performance. Any amendments to the SAAS Balanced Scorecard are agreed through the SAAS Management Board.

The Management Board undertook a review of the performance measure approaches within the Agency. This considered the indicators reported through the SAAS Balanced Scorecard and how these related to the KPIs.

1 www.saas.gov.uk/_forms/framework_doc.pdf

http://www.saas.gov.uk/_forms/framework_doc.pdf


Key Performance IndicatorsTargets 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

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)

100% 100% 100% 100% 100%

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

37% 39% 92% 79% 80%

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

93% 97% 94% 96% 99%

Management Performance Targets

Processing

To process 90% of applications within 21 days of receipt

56% within 21 days

52% within 21 days

80% within 21 days

56% within 21 days

69% within 21 days

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

£ 39.64 £ 39.04 £ 56.47 £ 56.32 £ 58.92

Complaints

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

0.80 per 1,000 applications





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

3 received 1 upheld

2 received 1 upheld

3 received 0 upheld

1 received 0 upheld

6 received 0 upheld

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

100% Ministerial

replies 100% official

replies

95% Ministerial


replies

100% Ministerial


replies

100% Ministerial


replies

99% Ministerial


replies

Financial Performance

100% of invoices to be paid within 10 days 98% 98% 99% 99% 99%

30% of opening debt to be recovered during the year

26% 24% 24% 27% 36%

* From 2014/2015 onwards, response targets for 1st stage complaints are five working days. 2nd stage complaints are 20 working days. These are set as a formal directive from Scottish Public Service Ombudsman (SPSO). Both 1st and 2nd stage appeals are 10 working days.


Detailed Analysis and Explanation of PerformanceAgainst a backdrop of significant change, the Agency has had a challenging year however has met the Guarantee Date and continued to deliver our core business to our customers. We received, and processed, 242,786 applications for student support this session covering both full-time and part-time students.

Of the 242,786 applications, a total of 166,127 applications for full-time student support (covering undergraduate, postgraduate and Nursing and Midwifery Student Bursary schemes) were received, an increase of 1.9% on 2014/2015. This continues a trend over the last eight years of increasing numbers of full-time student applications to the Agency.

Undergraduate SupportOf the 166,127 applications received for full-time student support, 151,336 applications were for undergraduate support, an increase of 1.2% from 2014/2015.

In addition, 2,376 applications either had insufficient information to allow an assessment to be made, or were assessed and found to be ineligible for support. This reflected an 11% rise from 2014/2015.

Postgraduate SupportStudents on eligible postgraduate courses, who meet the award conditions, can apply for tuition fee and maintenance loan support. We received and processed 3,006 applications for this session, an increase of almost a quarter (24.2%) from 2014/2015.

Part‑Time Fee Grant SupportWe received and processed 15,496 applications for part-time fees, an increase of 6.4% from 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 travel to computer software, hardware, consumables to non-medical personal help. During 2015/2016, 5,450 applications were received compared to 5,340 applications in 2014/2015, an increase of 1%.

Nursing and Midwifery Bursary SchemeWe received and processed 9,409 applications from nursing and midwifery students, an increase of 5.6% on 2014/2015.


NHS Bursary SchemeThis scheme assists undergraduate dental students who undertake a contract to work with NHS Scotland after graduating. During session 2015/2016 we processed 597 applications from students eligible for support under the NHS Bursary Scheme. This was a decrease of 0.4% on the previous year.

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 43,846 applications and 11,270 income reassessments on behalf of this scheme. This represents a combined reduction in applications and reassessments of 15% from the previous year.

Contact CentreWe received over 306,000 calls in 2015/2016 (an increase of 13% from the previous year). Of these, 99.8% of complaints were answered within the Scottish Public Service Ombudsman (SPSO) response target times and 97.4% of appeals were answered within the SAAS response target times. 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 2015/2016 we received 541 complaints and 618 appeals (267 complaints and 487 appeals in 2014/2015). Of these, 99.8% of complaints and 97.4% of appeals were answered within the Scottish Public Services Ombudsman (SPSO) response target times. We are committed to meet the requirements of the SPSO complaints handling procedure recognising that complaints provide a valuable source of feedback. In line with the SPSO’s best practice we publish our complaints procedure on our website (www.saas.gov.uk) and we use the information gathered through this process to identify any patterns or trends that require a change to our working practices.

Financial Management TeamThe Financial Management Team processed 927 invoices for payment by colleagues in the Scottish Government, made over 600,000 individual payments to students and colleges and universities and received over 100,000 repayments from students and third parties.

http://www.saas.gov.uk


Counter FraudThe Agency continues its work to protect public funds from fraudulent activity. This year we launched our first Counter Fraud Strategy focusing on the five key objectives in countering fraud; to Deter, Prevent, Detect, Investigate and Enforce.

We received 215 cases of suspected fraud for investigation including four cases identified through the National Fraud Initiative2. Our caseload from referrals has increased by 49% from the previous year; the chart below provides a snapshot of cases received in the past five years.

Suspected fraud cases received for investigation by year

We submitted cases for criminal prosecution to the Crown Office and Procurator Fiscal Service (COPFS) that have resulted in the successful prosecution of individuals who provided false information and fake documentation to SAAS claiming lone parent or residency eligibility status to receive student support. Twelve cases remained with COPFS at March 2016 waiting to be heard. We also deemed 16 individuals to be ‘not fit for support’ meaning they will not be entitled to receive SAAS support in the future. Through identification of fraud or error, we prevented further loss of £353,000.

In addition to investigating potential fraud that has been committed against SAAS, we also work closely with other public bodies to assist with their investigations. We responded to 341 requests for data from partners and provided 14 witness statements to be used in court proceedings.

2 The National Fraud Initiative (NFI) is a biennial data matching exercise that is operated by the Audit Commission and Audit Scotland to assist in the prevention and detection of fraud and other crime. SAAS has been involved in this data matching exercise since 2002.

2011/2012 2012/2013 2013/2014 2014/2015 2015/2016

300

250

200

150

100

50

0

NFI

Investigation Referrals


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 from fraud; and ensures that where fraud occurs, it is identified and dealt with quickly and effectively.

RecoveriesWe recover overpayments that have been made for student support, to recycle into the funding programme for future students. To assist us in the recovery process, we took legal action against 1,807 debtors, enforcement action against 952 individuals and arrested the earnings of 262 debtors. The chart below shows the amount of debt we have recovered in the period 2007/2008 to 2016/2017.

Cash recovered by year – £

During the year we recovered £3,724,680 an increase of 5.8% on the previous year.

Transformation ProgrammeTo achieve the desired outcomes for our learners and for Scotland as set out within our National Performance Framework, SAAS is committed to the National Strategic Objective of a Smarter Scotland.

To contribute fully to the achievement of this objective we ensure that all project and change activities are in alignment with this aim. The Transformation Programme ensures that the Agency’s services meet the current and future needs of our customers and the people of Scotland.

The programme of work spans three years and will transform services, enhance interfaces with partners and reduce the cost of student application processing. The use of public finances will be better targeted, data will be more secure, business continuity and resilience will be improved and we will ensure continued operation of Agency business without disruption.

4,000,000

3,000,000

2,000,000

1,000,000

02007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16


The current SAAS online service was introduced in April 2002 and was used by the public to apply for student support funding. A redesign of this system was initiated in 2014/2015 to take advantage of advancements in IT and communications. The new online service will be launched in time for the opening of the 2017/18 academic session.

Changes to the student support packages are driven by new Scottish Government policies and initiatives. These inform the development of the Agency’s IT systems and business processes. This year there were changes to household income bands, the status of independent and dependent students living together and an increase in the number of postgraduate courses eligible for SAAS funding. These changes were all introduced successfully.

Future SAAS – Future Developments, Trends and Factors Affecting Future Performance

Internal Future DevelopmentsThe development work for 2016/2017 will continue to focus on enhancing the service we deliver to students. The first phase of the Online Services portal, an enhanced interface for students to submit applications online, will be implemented for the start of the 2017/18 session. The student portal is a key element of our longer term aim to have all our services to all our customers available online.

The scope of the project will include engagement with students and other stakeholders to assist with the implementation of the new system, making sure that a comprehensive awareness raising approach is in place prior to going live. The system will include changes needed to support recommendations made within the ‘Blueprint for Fairness’ report of the Commission on Widening Access; as well as changes needed to support policy changes.

Work on improving SAAS’ Business Continuity and Disaster Recovery capability will also feature in the 2016/2017 development work. Business Continuity Management is a tool used to determine what is important to the delivery of the organisation’s products and services to its customers and the critical processes that underpin them. By understanding what’s important to the Agency we can effectively plan to make these processes and services more resilient and develop incident and recovery plans to respond to disruptions. This will ensure that the Agency is best placed to maintain business operations going forward.

The Agency’s change ambition and spending plans for the next three years will be considered as part of the Scottish Government’s Spending Review, which will take place in the autumn.


Trends and Factors Affecting Future PerformanceWith the outcome of the Scottish Parliament elections in May 2016, a number of manifesto pledges have been made which may have an impact on the operation of the Agency. These include:

• implementation of recommendations from the Commission on Widening Access report

• introduction of full bursary/grant funding for care leavers

• increase in the loan repayment threshold; and

• retention of nursing bursaries

Partnership WorkingWe recognise the importance of good industrial relations and consulting fully with staff. We are committed to conducting good 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.

Customer EngagementSAAS receives over 37,000 first-time applications each year. To help this large cohort of customers understand funding policies and application procedures, the Funding Awareness Team attends a wide range of outreach events across Scotland each year. These events raise funding awareness to students, parents, carers, guardians and college and university staff.

During the 2015/2016 session, the team hosted/attended over 300 events providing this information to a range of students. Whilst these events focus primarily on prospective or potential students, other products provided by the team are accessible across all student groups.

The SAAS You Tube channel has nine help videos which provide practical support through the application process across a range of funding packages. In 2015/2016 videos were viewed over 16,000 times. In addition, the SAAS Funding Guide was published and was distributed to each and every secondary school, college and university in Scotland. Over 55,000 guides were distributed.


SAAS PR Campaign 2015/2016The SAAS annual PR campaign commenced in April 2015. The aim of the campaign was to encourage the earlier submission of fully completed applications. The campaign used a combination of conventional and social media channels.

The PR campaign had a number of objectives:

• Raise awareness with students and key influencers that SAAS was open for business and to apply early

• Raise awareness of the need to submit applications and supporting evidence by 30 June to guarantee funding by the start of the academic year

• Signpost students to the SAAS helpline for help and advice on the application process

• Remind students to submit their forms

• Encourage students to submit any changes that may affect their support

• Raise awareness of the SAAS website and the facility to upload documents

• Raise awareness of the new online award letter and notification service

To address these objectives a range of external and internal channels were utilised. External channels included platform radio, outdoor advertisements, printed and digital postcards/posters, as well as digital stakeholder and student media toolkits, social media activity, bulk emails, open days, presentations and events. SAAS brought in the services of Des Clarke, a well-known radio DJ, comedian and columnist and various YouTubers/vloggers to highlight to our young audience the importance of the application process.

Collaborative work ensued with Young Scot, to develop reward points for those students who submitted their application early. Students were then able to redeem their points through the Young Scot website. Following this short-term pilot it has been agreed to deploy this approach in full for 2016/2017.

Social, Community and Human RightsThe Agency aims to place the needs of our customers at the centre of everything we do. As part of our commitment to customers we have invested heavily in our front-line customer service to deliver our objective of preventing finance being a barrier to higher education.

We are an Agency of the Scottish Government and therefore subject to the European Convention on Human Rights and the UK Human Rights Act 1998. We work in line with the Scottish Government’s objective to commit to creating a modern inclusive Scotland that protects, respects and realises human rights for people in Scotland and the UK. We respect all human


rights and in conducting our business we regard these human rights most relevantly when dealing with our customers and stakeholders.

A number of events/activities were arranged during the reporting year to bring staff together. In September 2015 we held our annual Macmillan’s coffee morning. There was significant staff involvement with £570 being raised for the charity. This was a great achievement and the largest amount raised since SAAS started to hold the event.

To celebrate National Carers Week in October 2015, a number of sessions were made available to staff with the aim of raising the awareness of support available to care leavers and to better understand them and their circumstances. This followed the pledge made by David Wallace at the SAAS 2014 Conference, to listen to the needs of care leavers.

Who Cares? Scotland held an Edinburgh Christmas Dinner event, which provided Christmas dinner for a group of young people in care. One member of staff from SAAS attended on Christmas Eve to help the organisers set up the venue and then agreed to assist in giving out the presents on Christmas morning. Each year, Who Cares? Scotland also send out over 600 Christmas cards, again to those who would not normally receive one. Volunteers from SAAS attended the Who Cares? Scotland office in Glasgow to assist with this venture.

In February 2016 SAAS formed its own football team with an aim to encouraging healthy living and wellbeing for any staff interested in the sport, developing better teamwork, increasing staff engagement and developing links within the local community.

In March 2016 the Agency held its sixth National Stakeholder Conference. The event provides an opportunity for the higher education sector to come together to network, share best practice and hear about the Agency’s plans for the future. The theme for this year’s conference was ‘Partnership Building and Widening Access’. Approximately 150 stakeholder delegates attended and were predominantly front line managers from colleges and universities, who interact with SAAS on a daily basis.



ACCOUNTABILITY REPORT GOVERNANCE


Directors’ ReportSAAS Management Board 2015/2016

Chief Executive & Accountable Officer (Chair)

David Wallace (until December 2015)Paul Lowe (from February 2016)

Interim Accountable Officer

Keith Jenkinson (from December 2015 to February 2016)

Non-Executive Board Members

Dugald MackieChair – Strategic Board Chair – Audit Committee (to April 2015)Edward McGrachanJanet MatthewsKathy PattersonDerek SmeallChair – Audit and Risk Committee (from May 2015)Janet Unsworth

Director of Policy and Engagement

Miriam Craven

Director of Corporate Services

Keith Jenkinson

Head of Governance Roslyn McCracken

Director of Finance Audrey Shimmons

Director of Operations Anne Ward

Information on salary and pension entitlement can be found in the Accountability Report – Remuneration and Staff.

Company Directorships and Other Significant InterestsNo members had undertaken any material transactions with the Agency.

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 the Notes to the Accounts section of this report.

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

The Chief Executive is the Accountable Officer of the Agency and is supported by the Management Board. Full details of the governance structure and risk management arrangements in operation in the Agency are provided as part of the Governance Statement (page 35).


Incidents Reported to the Information Commissioners OfficeThere were no breaches notified to the ICO during the reporting year.

Environment and Sustainability ReportAs an Agency of the Scottish Government we remain committed to ensuring we contribute to the achievement of the Government’s National Outcome of reducing the local and global environmental impact of our consumption and production.

Since relocating to Saughton House, our energy, waste and water consumption are not separately metered, but form part of the overall footprint of Saughton House which is included within the Scottish Government’s reporting. We therefore cannot provide detailed figures for 2015/2016.

For more information about energy consumption on the Scottish Government estate, see the Scottish Government’s Public Sector Climate Change Duties Report, 2014/2015 http://www.gov.scot/Publications/2015/11/4451

http://www.gov.scot/Publications/2015/11/4451


Introduction to the Management BoardPaul LoweChief Executive (from February 2016)

Paul joined the Civil Service in 1999 after a short career in healthcare.

He took up post as Chief Executive of SAAS in February 2016.

He has worked for a number of government organisations including the Crown Office and Procurator Fiscal Service, Scottish Court Service, Scottish Government and the Department of Work and Pensions.

Paul is a graduate of Glasgow University and holds degrees in Dental Surgery and Experimental Pathology. Paul is registered with the Scottish Government Centre for Expertise in Project and Programme Management as a Gateway Reviewer.

David WallaceChief Executive (until December 2015)

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

He performed the role of Chief Executive of SAAS from March 2012 until December 2015.

Immediately prior to joining the Agency he worked in Accountant in Bankruptcy, and before that worked with the Enterprise, Transport and Lifelong Learning Department.

David 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 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 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.

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.

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 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.

Roz McCrackenHead of Governance

Roz joined the Agency (for a second time) as Governance Manager in March 2013 having 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.


Dugald MackieNon-Executive Board Member

Dugald took up his role as a Non-Executive Board Member at SAAS in 2008 and is the Chair of our Strategic Board. He was Chair of our Audit Committee until April 2015. 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 of the University of Manchester, having previously spent over 30 years working in higher education administration and management in a number of universities, including Strathclyde and Glasgow.

Janet MatthewsNon-Executive Board Member

Janet took up her role as a Non-Executive Board Member at SAAS in 2014 and has recently become the Supply Chain Director for the Balfour Beatty Group, having previously held senior consultancy roles at KPMG, Capgemini, and her own business Expedience 21; and in industry with Philips Electronics, PernodRicard and Scottish and Newcastle. She specialises in supply chain, shared services and business improvement and has worked extensively with the Scottish public sector including to establish Digital and Procurement Shared Services.

Edward McGrachanNon-Executive Board Member

Ed joined the SAAS Board in June 2014 and sits on the Strategic Board and Management Board, as well as the Audit and Risk Committee and the Transformation 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 the Strategic Board, the Management Board and the Audit and Risk Committee. Until her retirement in December 2014, she was Academic Registrar & Deputy Secretary at Heriot-Watt University, with a major focus on student services. She previously held posts as Departmental Administrator for the Civil & Offshore Engineering department at Heriot- Watt University and for Veterinary Pathology at the University of Edinburgh. Her first career was as a Crown Servant at the Ministry of Defence.

Derek SmeallNon-Executive Board Member

Derek was appointed as a Non-Executive Board Member at SAAS in April 2010. He has also been a member of the Agency’s Audit and Risk Committee and assumed the role of Chair of the Committee from May 2015.

He is currently the Vice Principal, Strategy and Corporate Performance at New College Lanarkshire and has spent the past 16 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 Management Board as well as the Transformation Board. Janet has other board positions with Qikserve, who provide mobile ordering technology for the hospitality industry, Changing the Chemistry, a charity promoting improved board effectiveness by increasing diversity and FourSquare Scotland, an Edinburgh-based homelessness charity who have hostels for young people, advisory services and a thriving social enterprise function. She established and chairs Foursquare’s audit and risk committee. She sits on the Children’s Panel.

Janet co-founded, grew and then sold a successful internet-based holiday letting business. Her earlier executive career was technology based. Her specialism was the delivery and implementation of technology based major cultural change. She worked for Deloitte, Oracle and RBS.


STATEMENT OF ACCOUNTABLE OFFICER’S RESPONSIBILITIES


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

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 Memorandum issued by Scottish Ministers.

As 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.

I confirm that the annual report and accounts as a whole are fair, balanced and understandable and I take responsibility for the annual report and accounts and the judgements required for determining that they are fair, balanced and understandable.



GOVERNANCE STATEMENT


Scope of ResponsibilityI 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 and Risk Committee, a Transformation Board and an Executive Team within the Agency. The Strategic Board and Audit and Risk Committee are chaired by Non-Executive Board Members.

Strategic BoardThe Strategic Board consists of the Chief Executive, Non-Executive Board Members and Senior Civil Servants (SCS) from across the Scottish Government with a policy interest in the delivery of our service.

The Board is chaired independently by a Non-Executive Board Member and membership includes the Agency’s ‘Fraser Figure’, currently the Scottish Government’s Director of Advanced Learning and Science.

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

The President of the National Union of Students (NUS) Scotland is invited to attend both Strategic Board and Management Board to provide customer representation at both meetings.

The Board met quarterly during 2015/2016.

The Management BoardThe Management Board comprises of the Chief Executive, as Chair and the Agency’s Non-Executive Board Members and Executive Team, whose role is to support me in the operation of the Agency.

This Governance Statement outlines and evaluates the governance, risk management and internal control arrangements in place during 2015/2016.


Key functions of the Board include the development of Strategy, providing leadership, direction, support and guidance to the Agency; monitoring performance against our agreed objectives and targets; and to promote commitment to proper standards of corporate governance.

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

During 2015/2016 the Management Board met monthly, with the exception of the months where a Strategic Board met. Meetings are open to staff observers.

The Management Board continued its practice of self-assessment evaluation of its effectiveness during 2015/2016 and agreed that the Board was operating effectively.

The Audit and Risk CommitteeThe Management Board is supported by an Audit and Risk Committee which consists of three Non-Executive Board Members and an Independent Audit Committee Member, who has 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.

The Committee is responsible for overseeing and reviewing the risk, control and governance processes in operations throughout the Agency. It also receives reports on any fraudulent activity throughout the year. I attend the meetings as Accountable Officer along with relevant members of the Executive Team and representatives from Internal and External Audit.

This year the Committee reviewed its role and the decision was made that the Committee should become an Audit and Risk Committee, to provide greater focus on risk management. The Terms of Reference were amended to reflect this revised role and the Chair now provides formal reports to the Management Board.

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. The Board is chaired by the Chief Executive.

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


Internal AuditThe objective of Internal Audit is to provide independent assurance of 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.

Internal Audit carried out three audits during 2015/2016. The assurance level assessed for the ‘IT Security’ and ‘Disabled Students’ Allowance’ audits was ‘reasonable’ while the assurance level for the ’Data Interchange & Data Files’ audit was assessed as ‘substantial’. Internal audit also undertook a refresh of our assurance map in the 2015/2016 audit year.

External AuditThe Auditor General for Scotland is responsible for auditing the Agency’s accounts. The appointed auditors are currently Audit Scotland.

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. A full governance review will take place in 2016/2017. This governance review will include reviewing the Agency’s compliance with equality legislation to ensure that changes to policy and practice are screened for equality relevance. We will focus on developing and strengthening our capability and knowledge, in order to better assess what we can do to mainstream the equality agenda across all our services.

Risk AssessmentGuidance on the basic principles of risk management is included in the Scottish Public Finance Manual. During 2015/2016 the Agency has continued to develop and strengthen its risk management approach.

Throughout the year, the Management Board, Executive Team and the Audit and Risk Committee have continued to lead on risk management. A focus of activity has been to ensure these approaches are embedded across the Agency.

The Agency maintains a corporate risk register which records internal and external risks and identifies the mitigating action needed to reduce the threat from these risks and the impact they have on the organisation. The risk register is reviewed on a quarterly basis by both the Management Board and the Audit and Risk Committee.


The following details are recorded against each risk:

• Description

• Cause

• Impact on the Agency

• Trigger for escalation

• Rating score (likelihood of the risk happening against the impact on operations)

• Mitigating action

• Status

• Date for review

As well as the corporate register, each area of the Agency maintains its own risk register. These provide the means to report risks to the management and to have them assessed and escalated as needed to ensure that preventative action is taken.

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 no data issues in 2015/2016 that required the Agency to make a formal notification to the Information Commissioner’s Office.

All staff members are required to complete mandatory online training covering both data protection and information management on an annual basis. In addition, the non-executive Board Members completed training and we have continued to roll out a programme of bespoke information management training sessions, tailored to the individual needs of business areas.

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

• formal assurances from my Executive 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 and Risk 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 and Risk Committee

• 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

• regular reports on managing risks on key projects; and

• the Gateway Review assurance process which has been undertaken in respect of 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 policies, 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.



ACCOUNTABILITY REPORT REMUNERATION AND STAFF


RemunerationRemuneration PolicyService 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.

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.

http://www.civilservicecommission.org.uk


Board RemunerationSenior management salariesThe salary, pension entitlements and benefits in kind of the executive members of the SAAS Management Board were as follows:

Salary (£’000)

Pension benefits (£’000)1

Total (£,000)

Officials 2015/2016 2014/2015 2015/2016 2014/2015 2015/2016 2014/2015

Paul LoweChief Executive from February 2016

5-10 - 29 - 35-40 -

David WallaceChief Executive to December 2015

50-55 70-75 21 52 70-75 125-130

Audrey Shimmons(part-time)Director of Finance

45-50 40-45 22 74 65-70 55-60


55-60 55-60 28 9 80-85 60-65

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

55-60 25-30 41 28 95-100 55-60

Keith JenkinsonDirector of Corporate Services(from 7 July 2014)

55-60 35-40 32 10 85-90 45-50

Roslyn McCracken(part‑time) Head of Governance

35-40 35-40 31 28 65-70 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.

MyCSP reported prior year changes made to pension benefit calculations for 2014/2015. Audrey Shimmons’ calculation was revised as a result of a retrospective service change. Keith Jenkinson’s calculation was revised due to a transposition error. Miriam Craven’s calculation was revised as a result of a retrospective change in salary. Pension benefits are reported based on a full year equivalent.

David Wallace’s full-year salary is in the range £70k-£75k. Paul Lowe’s full-year salary is in the range £65k-£70k. Audrey Shimmons’ full-time salary is in the range £55k-£60k. Roslyn McCracken’s full-time salary is in the range £45k-£50k. Miriam Craven was appointed to the Board on 1 September 2014. Her full-year salary for 2014/2015 was in the range £50k-£55k. Keith Jenkinson was appointed to the Board on 7 July 2014. His full year salary for 2014/2015 was in the range of £50-£55k.


Non‑Executive Board MembersOur Non-Executive Board Members were remunerated for the following attendance fee payments for financial year 2015/2016. No other fees were provided to Non-Executive Board Members in the year.

Non‑Executive Board Member2015/2016

£2014/2015

£

Dugald Mackie (to 2 March 2016)

1,652 1,818

Derek Smeall 2,652 3,030

Geoff Holliman (to 30 November 2014)

- 1,212

Ed McGrachan 4,464 3,030

Janet Unsworth 4,674 4,242

Janet Matthews 2,040 2,424

Kathy Patterson 3,674 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.

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.

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 2015/2016 or 2014/2015.

BonusesNo bonuses were paid in 2015/2016 or 2014/2015.

Compensation for loss of officeNo members of the Board were compensated for loss of office in 2015/2016.


PensionsDetails of pensions and Cash Equivalent Transfer Values are disclosed based on information supplied by MyCSP.

Accrued pension at

pension age as at 31/3/16 and related lump sum

£’000

Real increase in pension

and related lump sum at pension age

£’000

CETVat

31/03/16£’000

CETV at 31/3/15

£’000

Real increase in CETV£’000

Employercontribution

topartnership

pensionaccount

Nearest £100

Paul LoweChief Executive(from 22 February 2016)

10-15Plus lump

sum of 35-40

0–2.5Plus lump

sum of0-2.5

209 185 14 -

David WallaceChief Executive(left 8 December 2015)

15-20Plus lump

sum of55-60

0-2.5Plus lump

sum of0-2.5

300 283 8 -

Audrey Shimmons(part-time)Director of Finance

15-20 0-2.5 309 247 16 -


20-25Plus lump

sum of70-75

0-2.5Plus lump

sum of2.5-5

482 421 24 -

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

10-15 0-2.5 133 100 19 -

Keith JenkinsonDirector of Corporate Services(from 7 July 2014)

30-35Plus lump

sum of90-95

0-2.5Plus lump

sum of2.5-5

697 623 32 -

Roslyn McCracken(part-time) Head of Governance

10-15Plus lump

sum of35-40

0-2.5Plus lump

sum of0-2.5

205 170 18 -


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

These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus, nuvos and alpha are increased annually in line with pensions increase legislation. Existing members of the PCSPS who were within 10 years of their normal pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who were between 10 years and 13 years and 5 months from their normal pension age on 1 April 2012 will switch into alpha sometime between 1 June 2015 and 1 February 2022. All members who switch to alpha have their PCSPS benefits ‘banked’, with those with earlier benefits in one of the final salary sections of the PCSPS having those benefits based on their final salary when they leave alpha. (The pension figures quoted for officials show pension earned in PCSPS or alpha – as appropriate. Where the official has benefits in both the PCSPS and alpha the figure quoted is the combined value of their benefits in the two schemes.) Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a ‘money purchase’ stakeholder pension with an employer contribution (partnership pension account).

Employee contributions are salary-related and range between 3% and 8.05% of pensionable earnings for members of classic (and members of alpha who were members of classic immediately before joining alpha) and between 4.6% and 8.05% for members of premium, classic plus, nuvos and all other members of alpha. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum. classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme


membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. Benefits in alpha build up in a similar way to nuvos, except that the accrual rate in 2.32%. In all cases members may opt to give up (commute) pension for a lump sum up to the limits set by the Finance Act 2004.

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

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

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

Cash Equivalent Transfer 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


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.

Note: The factors used to calculate the CETV were reviewed by the scheme actuary in 2015, so the tables of factors used to calculate the CETV in 2015 are not the same as those used to calculate the CETV in 2016. Taking account of inflation, the CETV funded by the employer has decreased in real terms.


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

2015/2016 2014/2015

Senior management 6 6

Other permanent staff 232 207

Agency staff 38 53

Total 276 266

The following table shows our FTE staffing by business areas during 2015/2016:

Operations FinancePolicy &

Engagement CE OfficeCorporate

Services

Senior management 1 1 1 2 1

Other permanent staff 147 24 19 5 37

Agency staff 25 2 - 1 10

Total 173 27 20 8 48

Our FTE staff were employed in the following 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

Agency staff 32 2 2 1 16

Total 168 22 16 6 54

The total payroll costs for our staff were as follows:

2015/2016 £000

2014/2015 £000

Salaries and wages 5,944 5,289

Social Security costs 368 340

Other pension costs 1,128 847

Agency staff 1,424 1,942

Total 8,864 8,418

Total – Statement of comprehensive net expenditure 8,864 8,418


The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other Pension Scheme (CSOPS) – known as ‘alpha’ are unfunded multi-employer defined benefit schemes in which SAAS is unable to identify its share of the underlying assets and liabilities. The scheme actuary valued the schemes as at 31 March 2012. Details can be found in the resource accounts of the Cabinet Office:

Civil Superannuation (http://www.civilservicepensionscheme.org.uk/about-us/resource-accounts/).

For 2015/2016, employers’ contributions of £1,128,193.89 were payable to PCSPS (2014/2015 £846,892.82) at one of four rates in the range 20.0 to 24.5 per cent (2014/2015: 16.7 to 24.3 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 2015/2016 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.

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. Five members of staff left under the scheme at a total cost of £188,000. There was no scheme in 2015/2016.

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.

http://www.civilservicepensionscheme.org.uk/about-us/resource-accounts/

http://www.civilservicepensionscheme.org.uk/about-us/resource-accounts/


Fair pay disclosures

Pay multiplierIn accordance with the Government Financial Reporting Manual (FReM), reporting bodies are required to disclose information together with prior year comparatives in relation to fair pay disclosures.

Staff remuneration in 2015/2016 ranged from £16,842 to £86,000.

The banded midpoint remuneration of the highest paid Director at the reporting date was £67,500 (2014/2015, £67,500). This was 3.5 (2014/2015, 3.6) times the median remuneration of staff. The median remuneration based on annualised, full time equivalent remuneration of staff, including temporary and Agency staff, is £19,182.

The current year median remuneration includes temporary and Agency staff as at the reporting date, which was not disclosed in 2014/2015. As a result, the comparable median remuneration figure is not available. The consequential impact on the ratio is not material.

Equal opportunities/Diversity/DisabilityAs an Executive Agency of the Scottish Government all our permanent employees are Scottish Government Civil Servants. We can 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.

We are committed to increasing the diversity of staff within the organisation. We will develop all our staff, ignoring all irrelevant differences in their management and development. Furthermore we will positively value the different perspectives and skills of all staff and make full use of these in our work.

We are a Disability Symbol user, which recognises our commitment to both the letter and spirit of the law and lets us demonstrate our positive attitude towards our staff with disabilities. We meet our requirements as a Symbol user by guaranteeing interviews to all disabled staff who meet the minimum criteria for any post; reminding line managers of their management responsibilities; helping staff balance their work and their disability; and offering advice and training to staff and managers about issues related to disability.


Staff numbers (by grade and gender)During the period 1 April 2015 to 31 March 2016, SAAS appointed 25 permanent members of staff. Of these appointments, 13 were male and 12 were female. In addition, the Agency appointed 29 Modern Apprentices of which 17 were male and 12 female.

As at 31 March 2016, 256 permanent employees and 20 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 eight work a full-time compressed week. Six staff declared a disability.

Breakdown of permanent staff by gender as at 31 March 2016

Female Male Total

Senior Civil Service 0 1 1

Senior management 5 1 6

Employees 131 118 249

Total 136 120 256

Sickness absenceDuring the year, a total of 3,480 business days were lost due to sickness absence, an average of 15 days per employee. This was an increase from 14 days in the previous year. We continue to monitor and seek ways to reduce days lost.

ConsultancyDuring the year we spent £24k on consultants to assist us with the Online Services Project, a digital solution to improve the customers’ experience with SAAS and a follow up from the Independent Review of SAAS. In 2014/2015 we spent £41k.

The Remuneration report (page 41 to 49) and the Fair pay disclosures (page 51), Voluntary exit scheme (page 50) and Staff numbers and costs (page 49) have been subject to audit. The remaining information within the Remuneration and Staff Report has been reviewed for consistency.


ACCOUNTABILITY REPORT PARLIAMENTARY ACCOUNTABILITY AND AUDIT


Parliamentary Accountability

Expenditure TrendsA significant proportion of SAAS expenditure is incurred on staffing costs. In recent years staffing costs have risen significantly, as a result of the implementation of Scottish Government pay awards and mandatory increases to pension and national insurance contributions. These unavoidable cost increases have placed our baseline budget under pressure requiring additional budget to be transferred to the Agency to cover. This will continue to be a significant issue in 2016/2017.

We will be entering into a Spending Review in the Autumn of 2016 for the financial years 2017/2018 to 2019/2020 when our medium-term budget and financial plans will be agreed.

Regularity of ExpenditureOur financial transactions are in accordance with the relevant legislation and regulations governing our activities and expenditure was incurred or applied in accordance with applicable enactments and guidance issued by Scottish Ministers. Sums paid out of the Scottish Consolidated Fund were applied in accordance with the Scotland Act 1998.

Accounts DirectionThe accounts have been prepared in accordance with a direction given by Scottish Ministers in accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000. The direction is provided at page 72.



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

Independent Auditor’s ReportI have audited the financial statements of the Student Awards Agency Scotland for the year ended 31 March 2016 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 2015/2016 Government Financial Reporting Manual (the 2015/2016 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 auditor As 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.


Scope of the audit of the financial statements An 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 statements In 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 2016 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 2015/2016 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 matters In my opinion:

• the part of the Remuneration and Staff 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 Performance Report 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 and Staff 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.

k f'J/b�Rachel Browne Senior Audit Manager Audit Scotland 4th Floor 102 West Port Edinburgh EH3 9DN 8 July 2016


ANNUAL ACCOUNTSSTUDENT AWARDS AGENCY SCOTLAND


Statement of comprehensive net expenditure for the year ended 31 March 2016

Administrative costs Notes2015/2016

£0002014/2015

£000

Staff costs Remuneration and Staff Report

8,864 8,418

Other administrative costs 2, 9 2,190 4,949

Depreciation and amortisation 3, 4 1,050 1,007

Net operating costs 12,104 14,374

Other comprehensive expenditure

Administrative costs Notes2015/2016

£0002014/2015

£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 2016 12,104 14,374

The above results relate to continuing activities.

The notes from page 63 form part of these accounts.


Statement of financial position 31 March 2016

As at: Notes31 March 2016

£00031 March 2015

£000

Non‑current assets

Property, plant and equipment 3 821 841

Intangible assets 4 1,306 1,205

Total non‑current assets 2,127 2,046

Current assets

Trade and other receivables 5 239 203

Total current assets 239 203

Total assets 2,366 2,249

Current liabilities

Trade and other payables 6, 11,15 462 634

Provisions for liabilities and charges 8 3 5

Total current liabilities 465 639

Total assets less current liabilities 1,901 1,610

Non‑current liabilities

Provisions for liabilities and charges 8 1 1

Total non‑current liabilities 1 1

Assets less liabilities 1,900 1,609

Taxpayers’ equity

General reserve SOCTE 1,900 1,609

Revaluation reserve SOCTE - -

Total taxpayers’ equity 1,900 1,609

The notes starting from page 63 form part of these accounts.


The Accountable Officer authorised these financial statements for issue on 8 July 2016.


Statement of cash flows for the year ended 31 March 2016

Notes2015/2016

£0002014/2015

£000

Cash flows from operating activities

Net operating cost (12,104) (14,374)

Adjust for non-cash transactions 1,539 1,495

(Increase)/decrease in receivables and other current assets 5 (36) 88

Increase/(decrease) in trade and other payables3 6 (203) 131

Increase/(decrease) in provisions 8 (2) (979)

Net cash outflows from operating activities (10,806) (13,639)

Cash flows from investing activities

Purchase of property plant and equipment3 3 (193) (477)

Purchase of intangible assets 4 (907) (299)

Net cash flows from investing activities (1,100) (776)

Cash flows from financing activities

From Scottish Consolidated Fund 14 11,906 14,415

Cash flows from financing activities 11,906 14,415

Decrease/(increase) in cash and cash equivalents 7 ‑ ‑

3

3 Adjusted for movement of £31k in trade payables for capital expenditure.


Statement of changes in taxpayers’ equity for the year ended 31 March 2016

Notes

General reserve

£000

Revaluationreserve

£000Total£000

Balance at 1 April 2015 1,609 1,609

Changes in taxpayers’ equity for 2015/2016:

Non-cash charges – auditors remuneration 2 21 - 21

Non-cash charges – notional costs 2 468 - 468

Net operating cost for the year (12,104) - (12,104)

Revaluation reserve released to General reserve - - -

Total recognised expenditure for 2015/2016 (11,615) ‑ (11,615)

Parliamentary funding 14 11,906 - 11,906

Net parliamentary funding drawn down 11,906 11,906

Balance at 31 March 2016 1,900 ‑ 1,900

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 2 21 - 21

Non cash charges – notional costs 2 427 - 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 (13,907) ‑ (13,907)

Parliamentary funding 14 14,415 - 14,415

Net parliamentary funding drawn down 14,415 14,415

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


Notes to the Accounts for the year ended 31 March 20161 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 73) these financial statements have been prepared in accordance with the 2015/2016 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, office equipment and fixtures and fittings. They are capitalised at their cost of acquisition and installation.

Furniture purchased prior to financial year 2004/2005 was also capitalised, but was disposed of by 31 March 2015. All plant and machinery was disposed of in 2014/2015. Depreciated historic cost has been used as a proxy for the fair value of PPE assets as required by IFRS 13.

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:

Fixtures and fittings – 10 yearsInformation technology – 5 yearsOffice equipment – 5 years


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 2015/2016 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 as required by IFRS 13.

Expenditure on software development is capitalised if it meets the criteria specified in the FReM which is 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.

Costs for an Online Service being developed for applicants are included as an asset under development. The Service is planned to go live in April 2017.

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 and bespoke developed software − 5 yearsPurchased software licences − 3 years

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

Impairment reviewsImpairment reviews are carried out each year. In 2015/2016 no impairment of our intangible assets was required.

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 LeasesWe have an operating lease for the Agency’s accommodation. 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 Civil Service Pensions (page 46). 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 16 – LeasesThis standard was issued in January 2016 and is effective from 1 January 2019 with the purpose of improving the financial reporting of leases. IFRS 16 replaces the previous leases standard IAS 17 and related interpretations, and is not expected to have a material impact on the SAAS accounts.

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 Other administration costs

2015/2016 £000

2014/2015 £000

Accommodation including rent and rates 387 3,097

IT running costs 879 1,074

General office expenditure 435 803

Dilapidations provision – reversed unutilised - (513)

Loss on disposal of non-current assets - 40

Other costs – notional charges 468 427

Audit fee – notional charge 21 21

Total 2,190 4,949

Included in the accommodation costs for 2014/2015 were 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.


3 Property plant and equipment

2015/2016

InformationTechnology

£000

Office Equipment

£000

Fixtures and Fittings

£000Total £000

Cost or valuation

As at 1 April 2015 1,613 33 52 1,698

Additions 224 - - 224

Disposals - - - -

At 31 March 2016 1,837 33 52 1,922

Depreciation

At 1 April 2015 834 22 1 857

Charged in year 234 5 5 244

Disposals - - - -

At 31 March 2016 1,068 27 6 1,101

NBV at 31 March 2016 769 6 46 821

NBV at 31 March 2015 779 11 51 841

2014/2015

InformationTechnology

£000

Plant and Office Equipment

£000

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


4 Intangible assets

2015/2016

Purchasedsoftwarelicences

£000

In‑housedeveloped

software £000

Assetsunder

development £000

Total £000

Cost or valuation

As at 1 April 2015 530 18,913 - 19,443

Additions 19 - 888 907

At 31 March 2016 549 18,913 888 20,350

Amortisation

At 1 April 2015 359 17,879 - 18,238

Charged in year 95 711 - 806

At 31 March 2016 454 18,590 ‑ 19,044

NBV at 31 March 2016 95 323 888 1,306

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

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

Asset additions were for IT hardware and software, including desk top monitors for PCs, audio visual equipment, printers, servers and server storage.


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

2015/2016 £000

2014/2015 £000

Prepayments 239 203

Total 239 203

6 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.

2015/2016 £000

2014/2015 £000

Accruals for goods or services 206 316

Trade payables 39 111

Employee benefits 217 207

Total 462 634

Analysis of accruals

2015/2016 £000

2014/2015 £000

Balances with bodies external to government 242 414

Balances with other central government bodies 3 13

Total 245 427

7 Cash and cash equivalentsThere were no cash or cash equivalent balances in 2015/2016 or 2014/2015.


8 Provisions for liabilities and chargesEarly retirement costsThe provision relates to a member of staff who left in 2010/2011 under an approved early retirement scheme and 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. The Agency vacated the building in March 2015 with dilapidation costs being paid in full. The provision was therefore fully released in March 2015.

2015/2016

Early retirementprovision

£000

Dilapidationsprovision

£000Total £000

Balance as at 1 April 2015 6 ‑ 6

Provision reversed, unutilised - - -

Provision utilised in the year (2) - (2)

Balance as at 31 March 2016 4 ‑ 4

Analysis of expected timing of discounted flows:

Current liabilities – within one year 3 - 3

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


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)


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



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

2015/2016 £000

2014/2015 £000

Building lease expiring within:

One year 451 414

Two to five years - -

Over five years - -

Total 451 414

We 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.

10 Contingent liabilitiesThere were no contingent liabilities at 31 March 2016 that require to be disclosed under IAS37.

11 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

2015/2016 £000

2014/2015 £000

Fair value through the Statement of Comprehensive Net Expenditure - -

Loans & payables 245 427

Total 245 427

12 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.

13 Related party transactionsSAAS is an executive Agency of the Scottish Government (SG) and is part of the SG’s Advanced Learning and Science 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.

14 Reconciliation to draft portfolio accountThe Agency’s expenditure is included within the consolidated accounts of the SG. The financing of £11.906m (£14.415m for 2014/2015) as recorded in the Agency’s Statement of Cash Flows, has been agreed with the SG.

15 Intra‑government balances

Intra‑government balances

2015/2016 £000

2014/2015 £000

Trade payable due withing one year 3 13


ACCOUNTS DIRECTION



CONTACT INFORMATION


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

Student Awards Agency ScotlandSaughton HouseBroomhouse DriveEdinburghEH11 3UT

Telephone: 0300 555 0505

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

© Crown copyright 2016

This document is also available on the SAAS website: www.saas.gov.uk

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