This statement of accounts reports the results of the Scottish Commission on Social Security (“SCoSS“) for the year from 1 April 2020 to 31 March 2021. It has been prepared in accordance with the Accounts Direction given by the Scottish Ministers under section 19(4) of the Public Finance and Accountability Scotland Act 2000.

These financial statements were authorised for issue by Ian Davidson as the Accountable Officer, on 3 November 2021.

No activities were discontinued during the year.

Ian Davidson

Deputy Director, Social Security Policy (Accountable Officer)

In line with Schedule 1, Chapter 4 of the Social Security (Scotland) Act 2018, and in accordance with the accounts direction issued by the Scottish Ministers under section 19(4) of the Public Finance and Accountability (Scotland) Act 2000, these financial statements have been prepared in accordance with the Government Financial Reporting Manual (FReM) 2020-21 issued by HM Treasury.

The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRSs) as adapted or interpreted for the public sector context. Where the FReM permits a choice of accounting policy, the accounting policy which is judged to be the most appropriate to the particular circumstance for the purpose of giving a true and fair view has been selected. The particular policies adopted by SCoSS are described below. They have been applied consistently in dealing with items that are considered material to the accounts.

In accordance with the FReM these accounts have been prepared on a going concern basis, which provides that the organisation will continue in operational existence for the foreseeable future.

(a) Accounting convention

The accounts are prepared under the historical cost convention modified to account for the revaluation of property, plant and equipment and intangible assets to fair value as determined by the relevant accounting standard.

(b) Value added tax

SCoSS is registered for VAT as part of the Scottish Government VAT group registration which is responsible for recovering VAT on behalf of the Commission. Irrecoverable tax is charged to the relevant expenditure category.

(c) Receivables

The accounts have been prepared on an accruals basis and all material amounts due as at 31 March 2021 have been brought into the account irrespective of when actual payments were received. These can be found below in Note 4.

(d) Payables

The accounts are prepared on an accruals basis and all material amounts outstanding as at 31 March 2021 should be brought into account irrespective of when actual payments were made. These can be found below in Note 5.

(e) Pensions

Pension benefits are provided through the Principal Civil Service Pension Scheme (PCSPS) and the Civil Service and Other Pension Scheme (CSOPS). These are unfunded multiemployer defined benefit schemes in which SCoSS is unable to identify its share of the underlying assets and liabilities of the scheme. Therefore SCoSS has accounted for the contributions to the scheme as if it was a defined contribution scheme. This is in accordance with FReM requirements.

(f) Short Term Employee Benefits

A liability and an expense are recognised for holiday pay and other short term benefits when employees render their service thereby increasing their entitlement to these benefits. Accruals are recognised for material amounts in respect of these benefits earned but not taken or paid at the date of the Statement of Financial Position.

(g) Going concern

The accounts have been prepared on the going concern basis, which provides that the organisation will continue in operational existence for the foreseeable future. SCoSS has no reason to believe that Scottish Ministers intend to withdraw support to the organisation, and funding for 2021-22 has been confirmed in the Budget Act. It is therefore considered appropriate to prepare the accounts on a going concern basis. An operating budget will be set annually as part of the SG‘s normal budget process.

(h) Disclosure of new accounting standards

SCoSS have considered the expected impact of new accounting standards issued but not yet in effect. SCoSS consider the impact is not material. These include: IFRS 16 – Leases: It is expected that this standard will be adopted by the Financial Reporting Manual with effect from 1 April 2022. Initial assessment of the new standard on leases indicates that this will not have a significant impact on SCoSS as it currently does not have any lease agreements.

Staff costs in 2020-21 amounted to £159,603 (2019-20 £177,639). Staff costs include directly-employed staff, interim managers & staff related expenditure such as travel & subsistence. A breakdown of these costs is given in the Remuneration and Staff Report.

£13,958 (2019-20 £9,043) other receivables is for cash from Scottish Government Funding that will be used to cover 2020-21 accruals balance when paid next year.

SCoSS does not have any assets and have been no impairments.

SCoSS does not have any Other Operating Expenditure.

SCoSS did not have any assets, as at 31 March 2021.

SCoSS is a non-departmental public body and it considers that the Scottish Government is a related party within this context. During the year the Commission has had a number of material financial transactions with the Scottish Government including;

• All permanent staff are Scottish Government employees
• SCoSS uses Scottish Government estates, HR & Financial systems and relies on a number of other Scottish Government services.
• SCoSS ledger is part of the wider SG Core accounts hierarchy
• All financial transactions are set up, processed and paid via Scottish Government financial systems

Neither the Board Members nor any key managerial staff have undertaken any material transactions with SCoSS during the year.

There are no capital commitments or contingent liabilities.

SCoSS has no third party assets to report.

The financial statements were authorised for issue on 3 November 2021 by Ian Davidson. There have been no further events to report.