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The accounts have been prepared in accordance with direction given by the Treasury in pursuance of section 5(1) of the Exchequer and Audit Departments Act 1921. The direction is reproduced as an annex to the accounts.
1. History and Statutory Background
The Scottish Office Pensions Agency (SOPA) was launched on 1 April 1993 as part of the Government's Next Steps Initiative. Its operating framework, including financial delegations, are established in the Agency's formal Framework Document. The Secretary of State for Scotland provides funding under Class XIII Vote 3.
2. Principal Activities
SOPA administers the superannuation, injury benefit and compensation schemes for the NHS in Scotland, the superannuation scheme covering teachers in Scotland, and a closed scheme covering former staff of colleges which were grant-aided by The Scottish Office Education Department. Two smaller superannuation schemes are also administered; the Scottish Legal Aid Board and The Scottish Office Agriculture and Fisheries Department schemes. It also regulates public service pension schemes in Scotland and advises Scottish Office Departments and Ministers on pensions policy. SOPA is also responsible for the payment of teachers' pensions and compensation payments.
3. Financial Review
The Agency's expenditure is funded from The Scottish Office Education and Industry Vote. The Scottish Office provide services to the Agency. These services are funded from the Department's Administrative Vote and their cost is reflected in the Agency Expenditure Account as notional charges.
Accounting systems are in place to support the production of accrual accounts. These are enhanced each year as part of a wider upgrade of the accounting systems in The Scottish Office.
4. Business Review
The Agency's performance against key targets is reported at Section 4 of the Annual Report.
5. Post Balance Sheet Events
There were no important events occurring after the year-end.
6. Future Developments
The Agency's strategy for business development is set out at Section 8 of the Annual Report.
7. Year 2000 Issues
The Government's stated objective in dealing with the millennium date problem is to ensure that the national infrastructure and public services are not materially disrupted as a result of the Year 2000 date change. It is driving forward action through a vigorous programme of investigation, testing and rectification within the public sector; and awareness raising measures across the economy and the country as a whole.
The millennium problem is being taken very seriously within the Agency and its internal Year 2000 project is being managed by, and monitored at the most senior levels.
As part of The Scottish Office the Pensions Agency is committed to ensuring all critical, in this case payment, computer systems were tested for compliance before the end of March 1999. We have already tested and, where appropriate, replaced the hardware, the actual personal computers and servers on which the pensions application runs. We have recently completed a series of checks to confirm that the software, the pensions administration and payment application will function through and beyond the millennium date change.
The work has been undertaken using existing resources and any future expenditure on the Year 2000 project is not estimated to exceed £32,250.
Although unlikely, if despite all the above preparations some systems fail or malfunction, contingency plans are also being prepared to
ensure that the impact on the Agency and on the public is minimised so that as far as possible it will be 'business as usual' come the Millennium.
More detailed information on The Scottish Office
plans, including expected timetables and costs can be found at the
website www.ccta.gov.uk
(see Year 2000)
8. Business Development
The activities of the Agency involve little requirement for research and development although all staff are encouraged to keep abreast of innovative techniques especially in the area of information technology. Progress continues to be made towards developing an integrated software package dedicated to SOPA's work and the package is due to go fully live within the next reporting year. Details of the project are contained in the body of the report.
9. Payment to Suppliers
SOPA follows the CBI Prompt Payment Code and ensures that all invoices not in dispute are settled within 30 days, or the agreed contractual terms if otherwise specified.
During the year ended 31 March 1999 SOPA paid 98.9% of all invoices within the terms of its payment policy.
10. Significant Changes in Fixed Assets
The movements in fixed assets are set out in note 7 to the financial statements. There is no significant difference between the value of the tangible fixed assets shown in the financial statements and their current market value.
11. Audit
The accounts are audited by the Comptroller and Auditor General. Internal audit is covered by a service level agreement with the Scottish Office Audit Unit.
12. Senior Management Team
The Agency's Senior Management Team is detailed at Section 3 of the Annual Report.
13. Disabled Employees
The Agency observes The Scottish Office policy on the employment of disabled people. Disablement is not regarded as a bar to recruitment or advancement which are based entirely upon the ability to do the job.
14. Consultation with Employees
The Agency recognises the importance of good industrial relations and effective communication with all its staff. Regular meetings are held with representatives of the trade unions in line with normal Civil Service Whitley arrangements. In addition, there is a continuous dialogue between the Directorate and staff including consultation via formal meetings, training events and informal briefings.
Ralph Garden
Chief Executive
13 July 1999
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