Student Awards Agency for ScotlandAnnual Report & Accounts 2012-2013

© Crown copyright 2013

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

SAAS

SAAS

Student Awards Agency for ScotlandAnnual Report & Accounts 2012-2013

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 July 2013

SG/2013/118

SAAS

© Crown copyright 2013

You may re-use this information (excluding logos and images) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or e-mail: psi@nationalarchives.gsi.gov.uk.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This document is also available from our website at www.saas.gov.uk

Produced for SAAS by APS Group Scotland

Published by SAAS, October 2013

Contents

Chief Executive’s Foreword 01

Values and Key Functions 02

Management Commentary 04

Management Board Report 14

Remuneration Report 16

Key Performance Targets 24

Statement of Accountable Officer’s Responsibilities 25

Governance Statement 26

Environment and Sustainability Report 30

Independent Auditor’s Report 34

Annual Accounts 36

Notes to the Accounts 40

applications

01

applicationsSAAS deals with applications for undergraduate and postgraduate support as well as NHS Bursary Scheme, Disabled Students Allowance and Part-Time Fee Grant.

159, 316

Chief Executive’s ForewordAs my first year leading the Agency, 2012-13 has been an interesting and challenging year for SAAS.

If I was writing this following a ‘normal’ year I would be telling you here that our performance as an Agency had improved in some key areas:

• We once again delivered the support package for our ‘guarantee group’ of students – those who have provided fully completed and evidenced applications by the end of June deadline. We delivered this earlier than in previous years;

• We increased the number of applications that were processed within 21 days;

• We improved our performance in handling mail; and

• We improved our speed in responding to complaints.

The Agency has also successfully implemented the most significant changes to the student support package, the Post-16 reforms, in Scotland in time for the 2013-14 session. This is a major undertaking and at the time of writing over 60,000 students had already applied for their new support package.

But what 2012-13 also did was tell us that our customers did not feel that incremental improvements were sufficient. It re-set the expectations of our service delivery and following the Independent Review of SAAS, which was published in May 2013, improving the service and increasing our focus on outcomes for customers is our priority for the coming years.

The Review also recognised that the Agency was limited in delivering these aims by the funding available to it. In publishing the Review Michael Russell MSP, Cabinet Secretary for Education and Lifelong Learning, announced an injection of an additional £2m funding for the Agency in 2013-14. We are investing this funding across the Agency and this will bring service improvements to customers. We are also looking ahead to the longer term and in particular will be looking at options on how we can improve our IT and digital services to give customers a better experience.

I and the staff in SAAS look forward to working with students, colleges, universities and other stakeholders as we move forward.

David WallaceChief Executive27 June 2013

02

Values and Key Functions

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

Our ValuesHow people perceive SAAS will be determined by how we, as employees, communicate with our customers and stakeholders. Each of us working in SAAS will uphold our values of:

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

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

• Honesty – being truthful and open• Objectivity – basing advice and

decisions on rigorous analysis of the evidence

• Impartiality – acting solely according to the merits of the case

SAAS Key FunctionsThe SG’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. SAAS’s main functions contribute to the Government’s key objective of creating a Smarter Scotland.

Smarter Scotland: Expand opportunities for Scots to succeed from nurture through to lifelong learning, ensuring higher and more widely shared achievements.

To support the outcomes, and provide a framework to assess progress, the objectives are underpinned by the National Performance Framework (NPF). Of the SG’s sixteen National Outcomes, the work undertaken by SAAS contributes to the following five:

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

• Tackling the significant inequalities in Scottish life

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

• 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

SAAS aims to support the above by delivery of our key functions; which can be split into the following activities:

• Assessing and processing applications for student support for eligible full-time higher education students

• Assessing and processing applications for student support from eligible part-time students

• Achieving best value services to customers

• Supporting Ministers and SG policy colleagues

03

HeatherCustomer Engagement

04

Management Commentary

Review of the BusinessWe received 159,316 applications for student support this session, a marginal increase on 2011-12. This continues a trend over the last 7 years of increasing numbers of applications to the Agency as shown below.

Undergraduate SupportWe received 147,519 applications for undergraduate support for academic session 2012-13 and 9,131 applications from nursing and midwifery students. We continued our commitment to have funding in place for the start of the autumn term for all students applying in full by the guarantee date of 30 June 2012. 105,000 students took advantage of this service, and we successfully processed these applications as far as possible with the information provided prior to course start dates in August, September and October.

However, a significant proportion of applications received before 30 June required us to seek further information in order to fully assess eligibility. In these cases, we provided an initial award before the course start date, completing the full process once the additional information was returned to us.

In November 2012 Michael Russell MSP, Cabinet Secretary for Education and Lifelong Learning, announced an Independent Review into the processing of late and complex applications. SAAS worked closely with the Review, until its publication in May 2013, to consider what improvements could be made.

Postgraduate SupportStudents on eligible postgraduate courses, who meet our award conditions, can apply for tuition fee loan support and we received 2,666 applications for session 2012-13.

NHS Bursary SchemeDuring session 2012-13 we processed 645 applications from dental and biomedical students eligible for support under the NHS Bursary Scheme.

Disabled Students Allowance (DSA)Extra support may be available to students who incur extra costs while studying as a result of a disability. DSA applications increased again slightly during 2012-13 with 5,772 applications received.

165,000

160,000

155,000

150,000

145,000

140,000

135,000

130,000

125,000

120,000

160,000

155,000

150,000

145,000

140,000

135,000

125,000

03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13

Total Applications Received 2003-2013

03-04125,000

130,000

135,000

140,000

145,000

150,000

155,000

160,000

04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13

05

Individual Learning Accounts (ILA)In partnership with Skills Development Scotland (SDS) we assess and pay learning providers under the ILA scheme. There were some changes to the eligibility criteria for ILA funding in July 2012 to refocus on lower paid, and unemployed people outwith the UK Government’s Work Programme. These changes were implemented with no disruption to the applicants or training providers. This year we received and processed 75,053 applications and 18,114 income reassessments.

Part-Time Fee GrantWe processed 7,219 Part-Time Fee Grant applications in 2012-13.

RecoveriesStudent support is an entitlement set out in the relevant legislation. However the system of paying bursaries in advance of confirmation of student attendance, and the inevitable withdrawal of some students, means that some students get paid funds to which they are no longer entitled. It is a responsibility of SAAS to pursue recovery of any overpayment made to students. The chart below shows the amount of debt we have recovered in the period 2006-07 to 2012-13.

During 2012-13 we recovered £3,554,581 – an increase of 6.3% on the previous year.

At the end of March 2013, outstanding debt totalled £14.7m. Of that total, £3.7m (25%) is attributable to student nurses and midwives whose bursaries we administer on behalf of the Scottish Government’s Health and Social Care Directorate. This high proportion can be attributed to the nature of the support package offered to nurses and midwives.

Information and AdviceOur focus has been to make sure students and their parents are aware of what funding is available and to encourage students to apply early with a correctly completed application. We produced and distributed posters, postcards and booklets across Scotland. In addition, we contacted continuing students through emails and new students through our website, guidance booklets and attendance at events across the country. We attended over 200 events at institutions, schools and career conventions. This involved speaking to future students and their families, giving them information about student support and how we can help them. For the first time we had a student finance section in the UCAS application.

We have completed stage one of revamping our website, ensuring it is streamlined and easy to navigate.

07-08 08-09 09-10 10-11 11-12 12-13£1.4m

£1.8m

£2.2m

£2.6m

£3.0m

£3.4m

06-07

Cash recovered 2006-2013

06

We are aware that students use many different ways of communicating, particularly through social media. We engage with students through our Facebook and Twitter pages and our YouTube channel. We have developed a number of in-house videos to help students find out what funding is available and how to correctly complete our application forms.

Academic year 2013-14 will see significant changes to the student support package therefore we created some catchy new videos to help highlight the changes. Social media is ever changing and evolving; we will evaluate how successful 2012-13 was and make any enhancement required for 2013-14.

The SAAS Helpline, operated by our Contact Centre, became the main route for all undergraduate queries and this presented its own challenges in terms of customer expectation and call volumes, however we have been able to gather good management information on caller demand. Analysis of this data and increased budget has allowed us to make very significant changes as well as a flexible workforce for 2013-14 which will allow us to provide more call handlers and extend opening hours.

Complaints and AppealsWe publish our complaints and appeals procedure on our website (www.saas.gov.uk). Our Compliance and Complaints Team handles complaints and appeals and produce regular reports to the Management Board. Board members look at whether there are patterns or trends that would require a change to our working practices. During 2012-13 we received 274 complaints and 298 appeals, 97% of which we answered within our target of 14 working days. We saw a significant increase in the number of complaints received towards the end of 2012 following some media coverage of the Agency.

Freedom of InformationOur publication scheme is available on our website as required under the Freedom of Information (Scotland) Act 2002. During the period April 2012 to March 2013, we received 26 requests for information under the Act and in 96% we responded within the statutory period of 20 working days. We also received 1 request for a review during this period.

Human ResourcesDuring the period 1 April 2012 to 31 March 2013, SAAS appointed 29 permanent staff. Of these appointments, 19 are female and 10 are male; 3 of the appointees declared a disability and 3 were from an ethnic minority. In addition 26 Modern Apprentices were appointed of which 12 are female and 14 are male.

Some of this recruitment can be attributed to the Independent Review of SAAS which highlighted the need for additional resources in some key areas.

As at 31 March 2013, 196 permanent employees were employed by SAAS. 34 employees work part time, with varied working patterns of 2 to 5 days, covering a minimum of 15 hours to a maximum of 35 hours per week. In addition, 1 member of staff works annualised hours and 4 work a full-time compressed week.

In March 2013, staff in the main undergraduate processing team moved to Saughton House, a Scottish Government building in Edinburgh. SAAS, in its entirety, will move to Saughton House towards the end of financial year 2014-15 as part of the wider Scottish Government’s plan to maximise occupation and efficiency from the Scottish Government estate.

07

In the meantime this interim move provided a cost effective solution to the need to recruit some additional permanent and temporary members of staff as a result of the Independent Review.

We continue to promote and encourage staff to lead healthy lifestyles and arrange for a podiatrist and a masseuse to visit the agency regularly to allow staff to book sessions, at their own time and expense.

Average Days Sickness AbsenceThe average working days (full time equivalent) lost due to sickness absence for 2012-13 is 10.6 days, down from 12.4 days in 2011-12. In an attempt to secure further reductions in sick absence levels we ran a number of information sessions for staff highlighting the absence management arrangements.

Disabled EmployeesThere are 6 members of SAAS staff (7 staff in 2011-12) recorded as disabled on the Scottish Government electronic HR system for 2012-13.

Financial ReviewThe budget approved by the Scottish Parliament for the Agency’s operating costs was £8.212m (£7.837m in 2011-12) revenue and £0.718m (£0.518m in 2011-12) capital. The accounts also include additional expenditure of £0.359m for central government expenditure and the audit fee which are allowed for in the Scottish Government’s budget.

Our actual operating costs for the year were £8.616m (£7.999m in 2011-12) being £8.257m (budget £8.212m) plus £0.359m of allocated central government expenditure and audit fee. Costs for the year increased by 7.7% from 2011-12 as we augmented staffing and strengthened our IT capability to support the business going forward. Overall, operating costs slightly exceed the budget by 0.5%.

Capital expenditure for the year was £0.517m (budget £0.718m). Expenditure increased by £0.05m from 2011-12 resulting from the further development of our student awards processing system, StEPS, and investment in the enhancement of our IT infrastructure to support the student application process.

The purpose of these accounts is to detail the Agency’s administration expenditure. We administer income and expenditure for student support which is accounted for in the Scottish Government’s core accounts. Budget for 2012-13 was as follows:

Budget £m

Cash

Student Support & Tuition Fee Payments 331.8

Student Loans Advanced net of Loan Repayments 241.3

Student Loans Company Administration Costs 4.9

Student Loan Interest Subsidy to Banks 4.5

Cash Total 582.5

Non-Cash costs for student loans 164.9

Total 747.4

08

Significant Changes in AssetsWe have summarised the changes in assets in the notes to the financial statements. Additions were for the further development of our student awards processing system, StEPS, and investment in the enhancement of our IT infrastructure to support the student application process. Disposals in the year were in respect of furniture and fittings and IT equipment that was fully depreciated and now considered obsolete.

Future Business Developments2012-13 saw an independent Review of the Agency in light of concerns about the time taken to process student financial support in some cases during 2012-13. The Review has sought to establish the factors underlying SAAS delivery times and to identify lessons learned. Our future focus will therefore be on improving service delivery to customers in both the short term and longer term, taking account of improvement activities already underway so as to forge a clear and sustainable path towards a modern service. This will include undertaking a full options appraisal to determine the future direction of our online services.

We will also continue to work in partnership with the Student Loans Company (SLC) on the Pay Loans Project. This project will see SAAS take over the payment of maintenance loans to eligible Scottish students in 2014, creating one point of contact for students during their period of study.

Research and DevelopmentOpen and transparent decision making is a key aim for the Agency and to maintain and further develop our stakeholder relationships. We have strong links with our policy colleagues in Higher Education Learner Support Division of the Scottish Government and we meet regularly to discuss policy proposals and the possible impact on the Agency and our customers. We host an annual Stakeholder Conference for key institutional staff in which we provide an overview of the latest student support policy initiatives and changes. The format of the conference is designed to also allow the attendees to share information and experiences. Workshops this year included Business Delivery, Fraud Awareness, Career Management and Improving the Learner Journey.

In building links with the wider sector, we often also attend and/or facilitate workshops at a number of conferences hosted by organisations such as the SLC and the Scottish Funding Council. Our Customer Engagement Team also delivers a significant number of more informal information sessions around Scotland in institutions offering higher education, schools and career conventions.

ConsultancyDuring the year we spent £121k on consultants. Of this £87k was spent on IT consultants and £34k on the consultant who worked on the independent Review of the Agency. In 2011-12 we spent £24k, all on IT consultancy.

Risk and ControlWe maintain a risk register which identifies the key risks to the organisation, the actions required to mitigate these risks and the impact should these risks become issues. We also have a business continuity plan. Both the risk register and the business continuity plan are reviewed and updated by the Management Board and Audit Committee. We also keep our IT and procedural systems of control under continuous review and amend and improve when necessary.

09

Personal Data Related IncidentsOne minor incident resulted in a customer being able to view another customer’s document when logged onto our web service. Mitigation and remedial action has been implemented to avoid recurrence.

Key Performance IndicatorsFull details of SAAS targets and performance can be found at page 24.

David WallaceChief Executive27 June 2013

10

SAAS attended over 200 events at institutions, schools and career conventions.

200

11

200 events

(Left) BeverelyBusiness Delivery Caseworker

MichaelEvents Team

12

Management Board

1 2 3 4

1 Audrey Shimmons Head of Finance

Audrey took up post as Head of Finance at SAAS in 2007 and is responsible for the Finance, Fraud and Recoveries teams.

Before joining the Agency, she spent 6 years as Financial Analysis Manager with the Regulation & Inspection Division of Communities Scotland, now the Scottish Housing Regulator. Prior to this, Audrey spent most of her career in the private sector.

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

2 Maureen Shevas HR Manager

Maureen Shevas has spent 35 years working with the Scottish Government. In that time she has worked in a variety of posts before taking up post as SAAS HR Manager in February 2008. Having begun her Civil Service career in a Statistics Branch, her Personnel/HR work experience began in 1990 and includes 5 years with the Scottish Agricultural Science Agency where she was the HR Officer.

She is a member of the Chartered Institute of Personnel and Development (CIPD).

3 Anne Ward Head of Business Support Unit

Anne joined the Agency as Head of Business Support Unit in January 2012 and is responsible for the ICT Support, Development and Test teams along with the Analysis and Change team. She joined the Civil Service in 1979 as an Administrative Officer and in the intervening years have 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.

4 David Wallace Chief Executive

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

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

Immediately prior to joining the Agency, he spent 7 years as Deputy Chief Executive at the Accountant in Bankruptcy where he headed up the Corporate Services function. Before that he spent six years with the Executive’s Enterprise, Transport and Lifelong Learning Department.He is graduate of both Glasgow and Strathclyde Universities and is a member of the Chartered Institute of Personnel and Development (CIPD).

5 Miriam Craven Head of Customer Engagement

Miriam Craven has spent 9 years working with the Scottish Government. She has worked in a variety of posts in SAAS during that time before taking up post as the Head of Customer Engagement in February 2012. Miriam is responsible for the Agency’s Contact Centre, the Customer Engagement team and the Operational Policy team.

Before joining the Scottish Government Miriam worked for Odeon Cinema as a Duty Manager and also spent a year as a fundraiser for a cancer charity.

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

13

5 6 7

6 Derek Smeall Non-Executive Board Member

Derek Smeall was appointed as a Non-executive Board Member at SAAS in April 2010. He is also a member of the Agency’s Audit Committee.

He is currently the Assistant Principal of Cumbernauld College and has spent the past thirteen 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.

7 Sandra Bell Head of Business Delivery

Sandra joined SAAS as Head of Business Delivery in March 2012. She is responsible for delivering the end to end student application cycle supported by the Electronic Document Management team, the Application Processing teams; and the Fulfilment Team.

After nearly 20 years private sector experience within the recruitment sector, Sandra has spent 5 years working with the Scottish Government. Prior to joining SAAS she worked within HR and more recently, the Employability, Skills and Lifelong Learning Directorate.

Geoff Holliman Non-Executive Board Member

Geoff Holliman was appointed a Non-Executive Board Member at SAAS in December 2011. He is also a member of the Agency’s Audit Committee.

His career has encompassed a wide range of sales and marketing roles within the broadcast media and the hospitality industries working in England, Ireland and Scotland. Although now semi-retired he has served on a variety of Boards over the last 35 years, including the Board of Glasgow Metropolitan College serving as chairman of the Learning and Teaching Committee and as a member of the Finance and Estates Committees

Dugald Mackie Non-Executive Board Member

Dugald Mackie took up his role as a Non-Executive Board Member at SAAS and Chair of the Audit Committee in 2008. He is also currently Chair of Legacy Trust UK and has recently been made interim Chair of the Spirit of 2012 Trust.

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

Dugald and Geoff are not included in the photograph.

14

Management Board Report

Accounts Direction The accounts have been prepared in accordance with a direction given by the Scottish Ministers in accordance with Article 19(4) of the Public Finance and Accountability (Scotland) Act 2000.

History and Statutory Background We were established as an Executive Agency on 5 April 1994. Our operating framework, including financial delegations, is established in the Agency’s Framework Document. As Chief Executive I am the Agency’s Accountable Officer, responsible to the Government’s Principal Accountable Officer and Scottish Ministers.

Principal ActivitiesWe provide financial support to full-time students in higher education by administering the Students’ Allowances Scheme; the Postgraduate Students’ Allowances Scheme; the Nursing and Midwifery Student Bursaries Scheme; and the NHS Bursary Scheme. We administer the Part-Time Fee Grant and we distribute Discretionary and Childcare Funds to Scottish universities and Discretionary Funds to Scottish colleges. We provide resources to the Student Loans Company Limited for both loan funding and administration costs and we also administer the Individual Learning Accounts Scotland Scheme, in partnership with Skills Development Scotland.

Principal Risks and UncertaintiesThe cyclical nature of our business and our reliance on IT systems coupled with the need for more robust management information as a basis for process improvement work have all created challenges for the Agency over the last year.

SAAS Board 2012-13David Wallace Chief Executive (Chair)Geoff Holliman Non Executive Board MemberDugald Mackie Non Executive Board Member & Audit Committee ChairBruce Nelson Non Executive Board Member (until 1 March 2013)Derek Smeall Non Executive Board MemberSandra Bell Head of Business Delivery Miriam Craven Head of Customer EngagementMaureen Shevas Human Resources and Accommodation ManagerAudrey Shimmons Head of FinanceAnne Ward Head of Business Support

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

Company Directorships and Other Significant InterestsNo members of the SAAS Board recorded any significant interests or had undertaken any material transactions with the Agency.

Audit Committee SAAS has an Audit Committee which supports me as Accountable Officer in monitoring and reviewing corporate governance, risk and control systems within the Agency. The Committee meets four times a year in accordance with best practice guidance from the Scottish Government. Its membership comprises our non-executive board members and it is chaired by Dugald Mackie. SAAS senior managers and representatives of Audit Scotland and Scottish Government Internal Audit normally attend Committee meetings although the Committee has the right to meet in private should it so wish.

15

Equal OpportunityWe are an executive agency of the Scottish Government. We can 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.

Consulting with Employees We recognise the importance of good industrial relations and consulting fully with staff. The Management Team holds both formal and informal meetings, and regularly communicates with all staff and their representatives.

Workforce PlanningIn 2012-13 the Scottish Government ran a number of voluntary exit schemes 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 schemes.

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

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

Paying InvoicesWe are committed to paying all supplier invoices, not in dispute, within the terms of the relevant contract. We process invoices using the Scottish Executive’s Accounting System (SEAS) and pay within 10 days of receipt of the invoice, or delivery of the goods or services, whichever is later. During the year we paid 97.7% (98.4% in 2011-12) of supplier invoices within 10 days.

Charitable Donations We made no charitable donations in 2012-13 or in 2011-12.

Auditors Our accounts are audited by auditors appointed by the Auditor General for Scotland. Further details on audit remuneration can be found in Note 3 to the Accounts.

Disclosure of Relevant Audit Information 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 ensure that I myself am aware of any relevant audit information and to establish that the auditors are also aware of this information.

16

Remuneration Report

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

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.

17

The following is subject to audit

Remuneration (including salary) and Pension Entitlements

Senior Management SalariesThe salary, pension entitlements and benefits in kind of the executive members of the SAAS Management Board were as follows:

Senior management

2012-13 2011-12

Salary

£000

Bonuspayments

£000

Benefits in kind£000

Salary

£000

Bonuspayments

£000

Benefits in kind£000

David WallaceChief Executive 65-70 - - - - -

Audrey Shimmons (part-time)Head of Finance 35-40 - - 35-40 - -

Anne WardHead of Business Support 5-10 - - - - -

Sandra BellHead of Business Delivery 55-60 - - - - -

Miriam CravenHead of Customer Engagement 45-50 - - - - -

Maureen ShevasHuman Resources & AccommodationManager

40-45 - - 35-40 - -

Tracey SlavenFormer Chief Executive - - - 80-85 - -

Graham Gunn Former Head of IS and Operational Policy

- - - 50-55 - -

Audrey Heatlie Former Customer Services Manager

- - - 40-45 - -

David Wallace, Miriam Craven and Sandra Bell joined the Management Board on 1 April 2012. Anne Ward, our Head of Business Support, is on secondment from the Registers of Scotland (RoS). Her salary to 31 January 2013 was met in full by RoS and from 1 February 2013 SAAS reimbursed RoS the cost of her salary including employer national insurance & pension costs. Tracey Slaven left the Agency on 30 March 2012 and Graham Gunn retired on 3 February 2012. Audrey Heatlie remains a Senior Manager in SAAS; however following a restructure in 2011-12 her role no longer sits at Board level.

18

Following best practice and advice from the Scottish Government, and in order to attract a wide range of candidates for future appointments, the Minister agreed in October 2008 that we should remunerate our Non-Executive Board Members by paying a daily attendance fee.

Our non executives received the following attendance fee payments during financial year 2012-13. No other fees were paid to Non-Executive Board Members in the year.

Non-executive director2012-13

£2011-12

£

Bruce Nelson 1,000 1,200

Dugald Mackie 800 1,000

Derek Smeall 1,000 800

Geoff Holliman 1,600 200

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

Benefits In KindThe monetary value of benefits in kind cover any benefits provided by the employer and treated by the HM Revenue and Customs as a taxable emolument. None of our senior managers received any such benefit in 2012-13 or 2011-12.

BonusesNo bonuses were paid in 2012-13 or 2011-12.

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

The banded midpoint remuneration of the highest paid senior manager in SAAS during the financial year 2012-13 was £62,500 (2011-12, £82,500). This was 3.4 times (2011-12, 4.6 times) the median remuneration of the workforce, which was £18,132 (2011-12, £17,882).

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

The structure of the workforce was changed in 2012-13 to strengthen the senior management team and there was a change to the highest paid senior officer on 31 March 2012 who received a different salary package from the previous incumbent.

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

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

19

Accrued pension at pension age as at 31/3/13

and related lump sum

£’000

Real increase in pension

and related lump sum at pension age

£’000

CETVat

31/3/13

£’000

CETV at 31/3/12

£’000

Real increase in

CETV

£’000

Employercontribution

topartnership

pensionaccount

Nearest £100

David WallaceChief Executive

15-20plus lump

sum of 45-50

0-2.5plus lump

sum of5-10

217 178 27 -

Audrey Shimmons(part-time)Head of Finance

10-15 0-2.5 157 136 11 -

Sandra BellHead of Business Delivery

2.5-5 0-2.5 43 29 9 -

Miriam CravenHead of Customer Engagement

5-10 0-2.5 58 48 6 -

Maureen ShevasHuman Resources and AccommodationManager

15-20plus lump

sum of 50-55

0-2.5plus lump

sum of0-2.5

301 275 11 -

No pension is included for Anne Ward, Head of Business Support, who is on secondment from the Registers of Scotland (RoS). Her salary to 31 January 2013 was met in full by RoS and from 1 February 2013 SAAS reimbursed RoS the cost of her salary including employer national insurance & pension costs.

All information disclosed in the table above has been audited by Audit Scotland. The other sections of the Remuneration Report were reviewed by Audit Scotland to ensure that they were consistent with the financial statements.

Civil Service PensionsPension benefits are provided through the Civil Service pension arrangements. From 30 July 2007, civil servants may be in one of four defined benefit schemes; either a final salary scheme (classic, premium or classic plus) or a whole career scheme (nuvos). These statutory arrangements are unfunded with the cost of benefits met by monies voted by Parliament each year. Pensions payable under classic, premium, classic plus and nuvos are increased annually in line with Pensions Increase legislation. Members joining from October 2002 may opt for either the appropriate defined benefit arrangement or a ‘money purchase’ stakeholder arrangement with a significant employer contribution (partnership pension account).

Employee contributions are salary-related and range between 1.5% and 3.9% of pensionable earnings for classic and 3.5% and 5.9% for premium, classic plus and nuvos. Increases to employee contributions will apply from 1 April 2013. Benefits in classic accrue at the rate of 1/80th of final pensionable earnings for each year of service. In addition, a lump sum equivalent to three years initial pension is payable on retirement. For premium, benefits accrue at the rate of 1/60th of final pensionable earnings for each year of service. Unlike classic, there is no automatic lump sum. Classic plus is essentially a hybrid with benefits for service before 1 October 2002 calculated broadly as per classic and benefits for service from October 2002 worked out as in premium. In nuvos a member builds up a pension based on his pensionable earnings during their period of scheme membership. At the end of the scheme year (31 March) the member’s earned pension account is credited with 2.3% of their pensionable earnings in that scheme year and the accrued pension is uprated in line with Pensions Increase legislation. In all cases members may opt to give up (commute) pension for lump sum up to the limits set up by the Finance Act 2004.

20

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

The accrued pension quoted is the pension the member is entitled to receive when they reach pension age, or immediately on ceasing to be an active member of the scheme if they are already at or over pension age. Pension age is 60 for members of classic, premium and classic plus and 65 for members of nuvos.

Further details about the Civil Service pension arrangements can be found at the website www.civilservice.gov.uk/pensions

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. 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.

21

Real Increase in CETVThis reflects the increase in CETV that is funded by the employer. It does not include the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Compensation for Loss of OfficeDuring 2012-13, six (2011-12, four) members of staff left under the Scottish Government’s non-compulsory exit schemes at a total cost of £130k (2011-12, £87k). Details are provided in note 2 to the accounts.

David WallaceChief Executive27 June 2013

22

75,053In partnership with Skills Development Scotland we assess and pay learning providers under the Individual Learning Accounts Scheme.

InnesCustomer EngagementSandra (Right)Senior Management Team

23

ILA applications

24

Performance against our Key Performance Targets

Targets 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Key Targets

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

Not available Not available Not available100% 100% 100%

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

88% 93% 98% 98% 37%* 39%*

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

95% 98% 96% 93% 93% 97%

Management Performance Targets

Processing

To process 90% of applications within 21 days of receipt

83% within 21 days

95% within 21 days

75% within 21 days

56% within 21 days**

52%within 21

days**

56%within 21

days**

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

£37.58 £37.12 £36.13 £36.54 £39.64 £39.04

Complaints

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

0.94 per 1,000

applications

0.69 per 1,000

applications

0.76 per 1,000

applications

0.69 per 1,000

applications

0.80 per 1,000

applications

2.2 per 1,000 applications

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

Not available Not available3 received0 upheld

2 received0 upheld

3 received1 upheld

2 received1 upheld

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

Not available Not available

87%ministerial

replies

100% official replies

98%ministerial

replies

100% official replies

100% ministerial

replies

100% official replies

95% ministerial

replies

97% official replies

Financial Performance

100% of invoices to be paid within 10 days (30 days prior to Dec 08)

95.6% 99.8% 96.9% 98.4% 97.7%

30% of opening debt to be recovered during the year

29% 31% 25% 30% 26% 24%

* In previous years, only mail that required a response was monitored within this target. From 2012-13 all mail will be measured within this target therefore we have restated the 2011-12 figure to provide a comparator.

** The Management Board, in conjunction with the Scottish Government, recognised that the 21 day target could no longer be sustained with the introduction of the Guarantee Date in 2010-11 and agreed that the Guarantee Date was now the primary customer service target.

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Statement of Accountable Officer’s Responsibilities

In accordance with section 19(4) of the Public Finance and Accountability (Scotland) Act 2000, the Scottish Ministers have directed the Student Awards Agency for Scotland 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 for 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 for Scotland’s assets, are set out in the Accountable Officer’s Memorandum issued by the Scottish Ministers.

David WallaceChief Executive27 June 2013

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Governance Statement

Scope of Responsibilty As Accountable Officer, I have responsibility for maintaining a sound system of internal control. This system supports the achievement of my Agency’s aims and objectives as agreed by Scottish Ministers, whilst safeguarding the public funds and assets for which I am personally responsible, in accordance with the responsibilities assigned to me.

I am accountable for the proper, efficient use of resources provided to my Agency and for the provision of administration and debt recovery services for nursing & midwifery students and those receiving health bursaries. I am also responsible for ensuring that the relevant guidance and requirements of advice issued by Scottish Government Finance Directorate are met and for putting into effect any recommendations accepted by Ministers or the Scottish Parliament. The Chief Executive’s 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 & Justice and the Director-General Health & Social Care as Accountable Officers.

Corporate Governance FrameworkAs Accountable Officer I ensure organisational compliance with the Scottish Public Finance Manual (SPFM). The SPFM is issued by the Scottish Ministers to provide guidance to the Scottish Government and other relevant bodies on the proper handling and reporting of public funds. It emphasises the need for efficiency, effectiveness and economy, and promotes good practice and high standards of propriety.

The BoardI am supported in this by a number of Non-Executive Board Members and internal senior managers who together form the Management Board. Its principal functions are to provide strategic leadership, direction, support and guidance to the Agency, monitor performance against our agreed objectives and targets and to promote commitment to proper standards of corporate governance.

The Board met quarterly during 2012-13 and agreement has been reached to increase the frequency of meetings for 2013-14. Meetings are open to staff observers.

The Board did not carry out a formal assessment of its effectiveness or arrangements. However, executive and non-executive members contributed collectively and individually to an independent Review of SAAS over the last quarter of the year. A formal skills assessment is now underway and this process will continue to be developed.

The Audit CommitteeThe Board is supported by the Audit Committee which currently consists of all the Non-Executive Board Members (NEBMs), one of whom is also Chair. The Committee is responsible for overseeing and reviewing the risk, control and governance processes in operation throughout the Agency. It also receives reports on any fraudulent activity and considers our exposure and responses. It met 4 times during the year. I attended the meetings as Accountable Officer along with relevant senior members of the Senior Management Team and the internal and external auditors.

The Audit Committee did not carry out a formal assessment of its effectiveness or arrangements. However, members contributed to an independent Review of SAAS over the last quarter of the year. Additionally, during the year the Chair of the Audit Committee and the Chief Executive agreed to strengthen the Audit Committee and a public sector Director of Finance has now been appointed as an independent member of the Audit Committee.

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Fraser Figure In addition, quarterly meetings were held throughout the year with our “Fraser Figure”, who for 2012-13 was the Deputy Director for Higher Education and Learner Support. In preparation for these meetings, we provided the Fraser Figure with a quarterly report detailing the Agency’s performance against key activities and targets.

The Fraser Figure role is designed to facilitate relations between the Agency and the Scottish Government and from 2013-14, our Fraser Figure is the Director for Employability, Skills and Lifelong Learning.

Internal AuditThe objective of Internal Audit is to provide independent assurance on the adequacy and effectiveness of the systems of governance, controls and financial management established to manage the risks of the Agency and to ensure accountability for public funds.

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

Assessment of Corporate Governance ArrangementsI was new to the Agency last year and reported that I would be keeping the governance arrangements in operation under review to make sure that they were fit for purpose.

Having done so, I believe that the corporate governance arrangements can be strengthened to better meet with generally accepted best practice principles and relevant guidance. My assessment is informed not just by my own scrutiny over the last year but also from the findings of an Independent Review of SAAS.

This Review was commissioned in November 2012 after concerns from students about the service levels of “late and complex” student support applications. The Review team was supported by a steering group which met 4 times between December 2012 and March 2013. I attended those meetings. The findings of the Review have since been submitted to me and published on our website. The Review made a number of recommendations to strengthen the corporate governance arrangements of the Agency.

I have since recruited a Governance Manager to lead on this work. Changes for 2013 include but are not limited to:

• A comprehensive review of the Agency’s corporate governance framework has commenced to include the Review’s recommendations;

• The Agency Framework document will be fully updated;• Fraser Figure role, and Agency CE line management strengthened at a more

senior level of the Scottish Government;• Board meeting frequency will be increased to monthly;• A Skills analysis is underway to identify skill and knowledge gaps at Board level;• Recruitment of additional Non-Executive Board Members is underway;• Customer representation, which in the form of NUS (National Union of Students)

Scotland has been appointed to the Board; and• We have recruited an Independent Audit Committee member with public sector

finance experience.

I am committed to delivering improvement in our corporate governance arrangements for 2013-14 and beyond.

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Risk AssessmentAll bodies to which the SPFM is directly applicable must operate and maintain a risk management system in accordance with the general principles set out within the SPFM. My Agency therefore maintains a risk register which records internal and external risks we are exposed to and identifies the mitigating actions required to reduce the threat of these risks occurring and their impact. The risk register is regularly updated and reviewed by our Management Board on a quarterly basis. Each risk is allocated an owner, category, type and description along with an assessment of the likelihood of its happening and its impact on our operations. Mitigating actions to minimise risks are recorded as action points along with details of who will carry them out and when. Each risk is allocated a status and a date for review.

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

The Agency also has a Business Continuity Plan which was tested in part during 2012-13. However, it was not formally reviewed and updated. We will do so during 2013-14. The Board will be asked to approve it.

The main risks for the Agency and mitigating actions are:

• The cyclical nature of our business. We employ both permanent and temporary staff to enable us to process student applications, as the bulk of the applications arrive with us during April to June each year, to be processed ready for payment by course start dates which are generally in September. In light of the service levels experienced by some students in 2012-13, we have secured further funding which has allowed us to recruit additional staff in preparation for the 2013-14 session.

• We are heavily reliant on IT systems to deliver our business and considerable development resource is required each year to make sure that our IT systems continue to be “fit for purpose”. We recognise however, as did the Review, that the expectations of students for online services have been heightened in the digital age. I have therefore engaged an experienced programme manager from elsewhere in the Scottish Government to provide an options appraisal on the future of our digital services. I aim to have high-level options available within the next 6 months.

• The management information and the processes used to produce it are complex due to the underlying data set. We will therefore be increasing the Agency statistician resource to review and consolidate the Agency’s management information requirements in order to allow early identification of any emerging issues around processing volumes and capacity. We need to balance the need to pay students quickly and efficiently with the need to enhance financial controls and fraud prevention & detection measures.

• The need to review and improve our business continuity planning, especially around delivery of our telephony service. However, we have access to alternative Scottish Government buildings and this allows for business continuity should we be unable to use our premises at Gyleview House.

Personal Data Related IncidentsIn 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 two minor data issues. One incident during the year resulted in a customer being able to temporarily view another customer’s document when logged onto our web service. The second incident took place in May 2013 and resulted in a customer’s information being sent to the wrong recipient. Mitigation and remedial action has been implemented in both cases to avoid recurrence.

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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 Senior Management Team who have responsibility for the development and maintenance of our internal control framework;

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

• The Management Board which considers the plans, risks and strategic direction of my Agency;

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

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

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

• Regular reports on managing risks on key projects; • The risk register in place for all critical elements of our operations. This is reviewed

by the Management Board quarterly and will also be reviewed by the Audit Committee in future;

• The Independent Review of SAAS.

The Agency’s risk and control framework is based on an on-going process designed to identify the principal risks to the achievement of the Agency’s polices, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. It can, however, only provide reasonable and not absolute assurance of effectiveness. More generally, my organisation is committed to a process of continuous development and improvement. Our focus over the coming year will be on responding to the findings of the Review and in developing and improving our corporate governance arrangements to meet best practice standards.

David WallaceChief Executive27 June 2013

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Environment and Sustainability Report

Environmental PolicyThe SAAS Environmental Policy is to ensure that continuous environmental improvement is made by reducing the impact of our operations on the environment. Our actions will contribute to the achievement of the Scottish Government’s National Outcome of reducing the local and global environmental impact of our consumption and production.

To achieve this we will:

• make a commitment to continuous environmental improvement and prevention of pollution;• ensure that we comply with all relevant legislation and other requirements;• purchase products and services having regard to their environmental impact;• raise and maintain staff awareness of our policy;• make our policy available to the general public through our website.

Table 1 Utilities comparison 2009-10 to 2012-13

2009-2010 2010-2011 2011-2012 2012-2013

Usage(kWh)

CO2

emissions (Tonnes)

Usage(kWh)

CO2 emissions(Tonnes)

Usage(kWh)

CO2 emissions (Tonnes)

Usage(kWh)

CO2 emissions(Tonnes)

Electricity 402,532 163.63 446,650 232.76 399,550 171.81 407,946 220.70

Gas 270,945 38.18 291,708 53.44 223,742 44.41 319,528 68.87

Total 665,377 201.81 705,368 286.20 604,955 216.22 727,474 289.37

Water (m3) 818 851 731 898

Table 2 Consumption per full time equivalent staff member 2009-10 to 2012-13

2009-2010 2010- 2011 2011-2012 2012-2013

Average FTE staff 168 158 162 176

Office Space (m2) 26.5 28.2 27.5 25.2

Electricity usage (kWh) 2,396 2,529 2,757 2,318

Gas usage (kWh) 1,613 1,416 1,801 1,815

Water usage (m3) 4.9 5.4 4.5 5.1

Note: The figures used to work out CO2 emissions are as recommended by the Carbon Reduction Commission (CRC). Electricity is kwh multiplied by 0.000541. Gas is kwh multiplied by 0.0001836 to give tonnes of CO2 emissions.

31

Table 3 Total waste comparison 2009-2010 to 2011-2013

2009-2010(Metric tonnes)

2010-2011(Metric tonnes)

2011-2012(Metric tonnes)

2012-2013(Metric tonnes)

Total waste recorded 53.165 55.095 64.842 61.373

Recycled 49.997 (94.04%)

41.029 (74.20%)

48.462 (72.85%)

42.733 (69.01%)

Landfill 3.168 (5.96%) 14.065 (25.80%)

17.400 (27.15%)

18.640 (30.99%)

Total waste per person(based on average staff numbers) 0.316 0.349 0.400 0.349

Gas UsageGas consumption rose in 2012-13 due to extended working patterns which resulted in the gas central heating being switched on for longer hours. Heating is reduced to ‘frost protection’ level at weekends and over Christmas when the office is closed.

Electricity Usage Through SG procurement, we purchase 100% of the electricity required to run our building from “green” sources. Electricity consumption per full time equivalent member of staff has reduced due to the electric saving measures we have in place.

Water UsageWater usage has been stable since the introduction of water saving initiatives in 2008. This year the water usage is averaging 2.47m3 per day. There has been an increase in staff numbers over the last quarter of the reporting year and this has led to the increase in water usage.

Waste ManagementThe procedure used for measuring waste under the present SG framework document, of which SAAS is a collaborative partner, is that all waste is aggregated and the only guaranteed figures are for confidential waste that is shredded on site.

BiodiversityOur landscape contractor uses native plants produced in Scotland and recycles 90-100% of green waste – nothing goes to landfill. Biodegradable systemic herbicides are used rather than pesticides and we have installed birdhouses in trees in the area surrounding the office to encourage birds to nest locally.

TravelIn 2012-13 the Agency issued 193 train tickets and 187 bus tickets to staff attending meetings or training events outwith the office and travelling by public transport. We have bike racks which are currently being used regularly by staff. We arrange ‘Bike Doctor’ maintenance sessions regularly to encourage staff to use their bikes for commuting or leisure and we promote the Cycle2work scheme which has been improved to provide tax savings for staff buying bicycles. We have put up a notice board giving information on local cycle paths and free cycle maps of surrounding areas are available.

CommunicationOur environmental policy is part of induction training for all new staff. The environmental notice board is kept up to date with relevant notices, leaflets etc. We publish high level details of our environmental performance in our annual report and accounts.

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£331.8mThe budget for tuition fees and bursary payments.

SeanSystems AdministratorGrant (Right)Facilities Officer

33

34

Independent Auditor’s Report

Independent Auditor’s Report to the Student Awards Agency for Scotland, the Auditor General for Scotland and the Scottish Parliament I have audited the financial statements of the Student Awards Agency for Scotland for the year ended 31 March 2013 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 2012/13 Government Financial Reporting Manual (the 2012/13 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 the 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. If I become aware of any apparent material misstatements, irregularities, or inconsistencies I consider the implications for my report.

35

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 2013 and of its net operating cost 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 2012/13 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 Regularity In 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 Report to be audited has been properly prepared in accordance with the Public Finance and Accountability (Scotland) Act 2000 and directions made thereunder by the Scottish Ministers; and

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

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

• adequate accounting records have not been kept; or • the financial statements and the part of the Remuneration Report to be audited

are not in agreement with the accounting records; or • I have not received all the information and explanations I require for my audit; or • the Governance Statement does not comply with guidance from the Scottish

Ministers.

I have nothing to report in respect of these matters.

Mark FerrisAudit Scotland18 George StreetEdinburghEH2 2QU

28 June 2013

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Student Awards Agency for Scotland Annual Accounts 2012-13

Statement of Comprehensive Net Expenditure for the year ended 31 March 2013

Note2012-13

£0002011-12

£000

Administrative costs

Staff costs 2 4,804 4,434

Other administrative costs 3 2,836 2,609

Depreciation and amortisation 4,5 976 956

Net operating costs 8,616 7,999

Other Comprehensive Expenditure

Note2012-13

£0002011-12

£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 2013 8,616 7,999

The above results relate to continuing activities.

The notes on pages 38 to 49 form part of these accounts.

37

Student Awards Agency for Scotland Annual Accounts 2012-13

Statement of Financial Position as at 31 March 2013

As at: Note 31 March 2013£000

31 March 2012£000

Non-current assets

Property, plant and equipment 4 435 438

Intangible assets 5 2,502 2,958

Total non-current assets 2,937 3,396

Current assets

Trade and other receivables 6 283 202

Total current assets 283 202

Total assets 3,220 3,598

Current liabilities

Trade and other payables 7 374 401

Provisions for liabilities and charges 9 20 30

Total current liabilities 394 431

Total assets less current liabilities 2,826 3,167

Non-current liabilities

Provisions for liabilities and charges 9 987 975

Total non current liabilities 987 975

Assets less liabilities 1,839 2,192

Taxpayers equity

General reserve SOCTE 1,820 2,173

Revaluation reserve SOCTE 19 19

Total taxpayers equity 1,839 2,192

The notes on pages 38 to 49 form part of these accounts.

David WallaceChief Executive27 June 2013

38

Student Awards Agency for Scotland Annual Accounts 2012-13

Statement of Cash Flows for the year ended 31 March 2013

Notes 2012-13£000

2011-12£000

Net cash outflows from operating activities (7,395) (6,742)

Net cash outflows from investment activities (509) (662)Cash flows from financing activities 17 7,904 7,404

Increase/(decrease) in cash in period - -

Reconciliation of operating costs to operating cash flowsNet operating cost (8,616) (7,999)Adjust for non cash transactions 1,335 1,294(Increase)/decrease in receivables and other current assets 6 (81) (76)

Increase/(decrease) in trade and other payables 7 (35) 88 Increase/(decrease) in provisions 9 2 (49)

Net cash flows from operating activities (7,395) (6,742)

Analysis of cash flows from investing activitiesPurchase of property plant and equipment

4 (155) (190)

Purchase of intangible assets 5 (354) (472)Net cash flows from investing activities (509) (662)

Analysis of cash flows from financing activities

From Scottish Consolidated Fund 17 7,904 7,404

Cash flows from financing activities 7,904 7,404

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

39

Student Awards Agency for Scotland Annual Accounts 2012-13

Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2013

Note General reserve

£000

Revaluationreserve

£000

Total

£000

Balance at 1 April 2012 2,173 19 2,192

Changes in taxpayers equity for 2012-13:

Non cash charges – auditors remuneration

3 21 - 21

Non cash charges – notional costs 3 338 - 338Net operating cost for the year (8,616) - (8,616)

Total recognised expenditure for 2012-13 (6,084) 19 (6,065)

Parliamentary funding 17 7,904 - 7,904Net parliamentary funding drawn down 7,904 - 7,904

Balance at 31 March 2013 1,820 19 1,839

Statement of Changes in Taxpayers’ Equity for the year ended 31 March 2012

Note General reserve

£000

Revaluationreserve

£000

RestatedTotal£000

Balance at 1 April 2011 2,429 19 2,448

Changes in taxpayers equity for 2011-12:

Non cash charges – auditors remuneration

3 22 - 22

Non cash charges – notional costs 3 317 - 317

Net operating cost for the year (7,999) - (7,999)

Total recognised expenditure for 2011-12

(5,231) 19 (5,212)

Parliamentary funding 17 7,404 - 7,404

Net parliamentary funding drawn down 7,404 - 7,404

Balance at 31 March 2012 2,173 19 2,192

40

NOTES TO THE ACCOUNTS for the year ended 31 March 2013

1 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 50) these accounts have been prepared in compliance with the principles and disclosure requirements of the Government Financial Reporting Manual (FReM), which follows generally accepted accounting practice as defined in International Financial Reporting Standards (IFRS) as adopted by the European Union and the Companies Act 2006 to the extent that it is meaningful and appropriate in the public sector context. The particular accounting policies adopted by the Agency are described below. They have been applied consistently in dealing with items considered material in relation 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 property, plant and equipment, intangible assets, and, where material, current asset investments and inventories to fair value as determined by the relevant accounting standard.

1.2 Property, Plant and Equipment (PPE)

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

CapitalisationPPE assets comprise computer equipment, hardware and plant and machinery. They are capitalised at their cost of acquisition and installation. Furniture and fittings purchased prior to financial year 2004-05 are also capitalised. However, following a decision by the Scottish Government, with effect from financial year 2004-05 all purchases of furniture and fittings are treated as current expenditure and are no longer capitalised.

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

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

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

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

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DepreciationDepreciation is provided on all PPE assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life as follows:

Furniture and fittings - 10 years Information technology - 5 yearsPlant and machinery - 5 years

From financial year 2004-05 all purchases of furniture and fittings are treated as current expenditure and are no longer capitalised. Therefore furniture and fittings depreciation relates only to historic purchases.

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

Impairment reviewsImpairment reviews are carried out each year. In 2012-13 no impairment of our PPE assets was required.

1.3 Intangible Assets

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

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

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

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

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

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 2012-13 no impairment of our intangible assets was required.

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

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

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

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

1.8 New Accounting StandardsA number of new accounting standards have been issued or amendments made to existing standards, but have not yet been applied in these financial statements. The standards that are considered relevant and the anticipated impact on the accounts are as follows: IAS 1 – Presentation of Financial Statements (Other Comprehensive Income) Mandatory for accounting periods commencing on or after 1 July 2012. The adoption of this standard may result in presentational changes to the accounts. IAS19 – Post-employment Benefits (pensions)Mandatory for accounting periods commencing on or after 1 January 2013. The adoption of this standard may result in presentational and disclosure changes to the accounts. IFRS 9 – Financial InstrumentsMandatory for accounting periods commencing on or after 1 January 2015. The adoption of this standard could change the classification and measurement of financial assets. The impact on the accounts has not been determined, and the full IFRS has not yet been issued.

IFRS 13 – Fair Value MeasurementMandatory for accounting periods commencing on or after 1 January 2013. The adoption of this standard could change the measurement techniques used when determining fair value. The impact on the consolidated accounts has not been determined.

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2 Staff Numbers and CostsThe average number of full-time equivalent (FTE) staff employed during the year was as follows:

2012-13 2011-12

Senior management 6 5

Other permanent staff 160 152

Agency staff 10 5

Total 176 162

Our FTE staff were employed in the following business areas during 2012-13:

Business Delivery

FinanceCustomer

EngagementCE Office

& HRBusiness Support

Senior management 1 1 1 2 1

Other permanent staff 87 16 29 4 17

Staff working on capital projects - - - - 7

Agency staff 2 2 5 1 0

Total 90 19 35 7 25

Our FTE staff were employed in the following business areas during 2011-12 (amended to reflect the 2012-13 organisation structure):

Business Delivery

FinanceCustomer

Engagement CE Office

& HRBusiness Support

Senior management 1 1 0 2 1

Other permanent staff 84 13 24 6 22

Staff working on capital projects - - - - 3

Agency staff 4 1 0 0 0

Total 89 15 24 8 26

The total payroll costs for our staff was as follows:

2012-13£000

2011-12£000

Salaries and wages 3,888 3,582

Social security costs 247 231

Other pension costs 629 600

Agency staff 220 114

Total 4,984 4,527

Less: capitalised within non-current assets (180) (93)

Total - Statement of comprehensive net expenditure 4,804 4,434

The PCSPS is an unfunded multi-employer defined benefit scheme. SAAS is unable to identify its share of the underlying assets and liabilities. A full actuarial valuation was carried out at 31 March 2007. Details can be found in the separate scheme statement for the PCSPS (Cabinet Office: Civil Superannuation) (www.civilservice-pensions.gov.uk).

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For 2012-13, normal employer contributions of £629,316.24 were payable to PCSPS (2011-12: £600,093.28) at one of four rates in the range; 16.7 to 25.8% of pensionable pay, based on salary bands.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that “the period between formal actuarial valuations shall be four years, with approximate assessments in intervening years”. The last formal actuarial valuation undertaken for the PCSPS was completed in 2007. Consequently, a formal actuarial valuation would have been due by 2011. However, formal actuarial valuations for unfunded public service pension schemes have been suspended by HM Treasury on value for money grounds while consideration is given to recent changes to public service pensions and while future scheme terms are developed as part of the reforms to public service pension provision. The primary purpose of the formal actuarial valuations is to set employer and employee contribution rates, and these are currently being determined under the new scheme design. Approximate actuarial assessments in intervening years between formal valuations using updated membership data are accepted as providing suitably robust figures for financial reporting purposes. However, as the interval since the last formal actuarial valuation now exceeds four years, the amounts recognised in these financial statements have been prepared using full membership data as at 31 March 2013, such as would have been provided for a formal valuation. In undertaking this valuation, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

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

Compensation for Loss of Office

Reporting of Civil Service compensation scheme – exit packages 2012-13

Exit package cost bandCompulsory

redundanciesOther

departuresTotal

Less than £10,000 - 1 1

£10,000 to £25,000 - 2 2

£25,000 to £50,000 - 3 3

£50,000 to £100,000 - - -

£100,000 to £150,000 - - -

£150,000 to £200,000 - - -

Total number of exit packages - 6 6

Total resource costs - £130k £130k

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Reporting of Civil Service compensation scheme – exit packages 2011-12

Exit package cost bandCompulsory

redundanciesOther

departuresTotal

Less than £10,000 - - -

£10,000 to £25,000 - 4 4

£25,000 to £50,000 - - -

£50,000 to £100,000 - - -

£100,000 to £150,000 - - -

£150,000 to £200,000 - - -

Total number of exit packages - 4 4

Total resource costs - £87k £87k

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

3 Other Administration Costs

2012-13£000

2011-12£000

Accommodation including rent and rates 877 883

IT Running costs 921 701

General office expenditure 648 686

Discount on provisions 31 -

Other costs – notional charges 338 317

Audit fee 21 22

Total 2,836 2,609

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.

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4 Property, Plant and Equipment

2012-13 Informationtechnology

£000

Plant andmachinery

£000

Furniture and fittings

£000

Total£000

Cost or valuationAs at 1 April 2012 1,794 245 291 2,330Additions 112 24 - 136Transfers - - - -Disposals (635) - (185) (820)

At 31 March 2013 1,271 269 106 1,646

DepreciationAt 1 April 2012 1,430 174 288 1,892Charged in year 117 20 2 139Disposals (635) - (185) (820)

At 31 March 2013 912 194 105 1,211

NBV at 31 March 2013 359 75 1 435

NBV at 31 March 2012 364 71 3 438

2011-12 Informationtechnology

£000

Plant andmachinery

£000

Furniture and fittings

£000

Total£000

Cost or valuationAs at 1 April 2011 1,728 345 291 2,364Additions 66 - - 66Transfers - - - -Disposals - (100) - (100)

At 31 March 2012 1,794 245 291 2,330

DepreciationAt 1 April 2011 1,314 247 285 1,846Charged in year 116 27 3 146Disposals - (100) - (100)

At 31 March 2012 1,430 174 288 1,892

NBV at 31 March 2012 364 71 3 438

NBV at 31 March 2011 414 98 6 518

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5 Intangible Assets

2012-13 Purchasedsoftwarelicences

£000

In-housedeveloped

software£000

Assets under

construction£000

Total£000

Cost or valuation

As at 1 April 2012 426 18,725 - 19,151Additions 134 67 180 381Transfers - - - -

At 31 March 2013 560 18,792 180 19,532

AmortisationAt 1 April 2012 276 15,917 - 16,193Charged in year 74 763 - 837At 31 March 2013 350 16,680 - 17,030

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

NBV at 31 March 2012 150 2,808 - 2,958

2011-12 Purchasedsoftwarelicences

£000

In-housedeveloped

software£000

Assets under

construction£000

Total£000

Cost or valuation

As at 1 April 2011 337 15,657 2,756 18,750Additions 89 219 93 401Transfers - 2,849 (2,849) -

At 31 March 2012 426 18,725 - 19,151

AmortisationAt 1 April 2011 224 15,159 - 15,383Charged in year 52 758 - 810

At 31 March 2012 276 15,917 - 16,193

NBV at 31 March 2012 150 2,808 - 2,958

NBV at 31 March 2011 113 498 2,756 3,367

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

2012-13£000

2011-12£000

Prepayments 283 202

Total 283 202

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

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

2012-13£000

2011-12£000

Accruals for goods or services 230 279

Employee benefits 144 122

Total 374 401

Analysis of accruals

2012-13£000

2011-12£000

Balances with bodies external to government 223 274

Balances with other central government bodies 7 5

Total 230 279

8 Cash and Cash EquivalentsThere were no cash or cash equivalent balances in 2012-13 or 2011-12.

9 Provisions for Liabilities and Charges

Early Retirement Costs A provision was created in 2005-06 to take account of the early retirement severance cost of the previous Head of Finance and Personnel. The provision was increased in 2010-11 to cover the costs of two members of staff who left under an approved early retirement scheme. The provision is based on the annual value of payments incurred by SAAS until the staff reach retirement age. The provision was increased in 2012-13 to discount future cash flows.

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DilapidationsA provision was set up during 2008-09 to meet the anticipated dilapidation costs of ending the Gyleview House lease which was originally due to end in November 2013 A short term lease extension has been agreed with the landlord and will now end in May 2015. The provision has been increased in 2012-13 in order to discount future cash flows of the lease.

2012-13 Early retirement

provision£000

Dilapidationsprovision

£000Total£000

Balance as at 1 April 2012 62 943 1,005

Provision utilised in the year (30) - (30)Borrowing costs (unwinding of discount) 1 31 32

Balance as at 31 March 2013 33 974 1,007

Analysis of expected timing of discounted flows

Current liabilities – within one year 20 - 20

Non-current liabilities – later than one year and not later than five years 13 974 987

Balance as at 31 March 2013 33 974 1,007

2011-12 Early retirement

provision£000

Dilapidationsprovision

£000Total£000

Balance as at 1 April 2011 111 943 1,054

Provisions not required written back (13) - (13)Provision utilised in the year (36) - (36)

Balance as at 31 March 2012 62 943 1,005

Analysis of expected timing of discounted flows

Current liabilities – within one year 30 - 30

Non-current liabilities – later than one year and not later than five years 32 943 975

Balance as at 31 March 2012 62 943 1,005

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

2012-13£000

2011-12£000

Building lease expiring within:One year 438 438Two to five years 485 511Over five years - -

Total 923 949

This operating lease is a non-cancellable lease and refers to the premises occupied by SAAS at Gyleview House. A short term lease extension has been agreed with the landlord and the lease will now end in May 2015. SAAS has no finance leases. Not included in the above is the cost of around £15,000 per year payable to the Scottish Government under a Memorandum of Temporary Occupation (MOTO) for the temporary occupation of additional premises at Saughton House Edinburgh.

11 Contingent LiabilitiesThere were no contingent liabilities at 31 March 2013 that require to be disclosed under IAS37.

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

Financial liabilities – trade payables2012-13

£0002011-12

£000

Fair value through OCS - -Loans & payables 230 269

Total 230 269

13 Capital CommitmentsThere were no capital commitments at 31 March 2013 or 31 March 2012.

14 Post Statement of Financial Position EventsThere were no material post statement of financial position events that require to be adjusted in the accounts or to be disclosed.

15 Financial LossesNo financial losses were incurred during financial year 2012-13 or in 2011-12.

16 Related Party TransactionsSAAS is an executive agency of the Scottish Government (SG) and is part of the SG’s Education and Lifelong Learning Portfolio. The SG is regarded as a related party and during the year SAAS had various material transactions with them.

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

17 Reconciliation to Draft Portfolio AccountThe agency’s expenditure is included within the consolidated accounts of the SG. The financing of £7.904m (£7.404m for 2011-12) as recorded in the Agency’s Statement of Cash Flows, has been agreed with the Education & Lifelong Learning Directorate on behalf of the SG.

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18 Intra-government Balances

Intra-government balances2012-13

£0002011-12

£000

Trade payable due within one year 7 5

Student Awards Agency for ScotlandDirection by the Scottish Ministers

in accordance withsection 19(4) of the Public Finance and Accountability (Scotland) Act 2000

1. The statement of accounts for the financial year ended 31 March 2006 and subsequent years shall comply with the accounting principles and disclosure requirements of the edition of the Government Financial Reporting Manual (FReM) which is in force for the year for which the statement of accounts are prepared.

2. The accounts shall be prepared so as to give a true and fair view of the income and expenditure, recognised gains and losses, and cash flows for the financial year, and of the state of affairs as at the end of the financial year.

3. This direction shall be reproduced as an appendix to the statement of accounts. The direction given on 29 March 2001 is hereby revoked.

Signed by the authority of the Scottish Ministers

Dated 17 January 2006

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Contact Information

Our offices are open for business between 8.30 a.m. and 5.00 p.m. Monday to Thursday, and 8.30 a.m. to 4.30 p.m. on Fridays.

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

Student Awards Agency for ScotlandGyleview House3 Redheughs RiggEdinburghEH12 9HH

Telephone: 0300 555 0505

Fax no: 0131 244 5887

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

Website: www.saas.gov.uk

Student Awards Agency for ScotlandAnnual Report & Accounts 2012-2013

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