Annual Accounts 2024-25

Statement of Comprehensive Net Expenditure for the Period Ended 31 March 2025

All amounts relate to continuing activities. There have been no gains or losses other than those recognised in the Statement of Comprehensive Net Expenditure.

The accompanying Notes on pages 33 to 42 form an integral part of these Accounts.

Statement of Financial Position as at 31 March 2025

The accompanying Notes on pages 33 to 42 form an integral part of these Accounts. The accountable officer authorised these financial statements for issue on:

Kevin Hamilton
Scottish Road Works Commissioner and Accountable Officer
Date:

Statement of Cash Flows for the Period Ended 31 March 2025

Statement of Changes in Taxpayers’ Equity for the Period Ended 31 March 2025

Notes to the Accounts for 2024/25

Statement of Accounting Policies

1.1 Basis of Accounting

These financial statements have been prepared in accordance with the 2024/25 Government Financial Reporting Manual (FReM) issued by Scottish Ministers. The accounting policies contained in the FReM apply International Financial Reporting Standards (IFRS) 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 most appropriate to the particular circumstances of the Scottish Road Works Commissioner for the purposes of giving a true and fair view has been selected. The particular policies adopted by the Scottish Road Works Commissioner are described below. They have been applied consistently in dealing with items that are considered material to the Accounts.

The Accounts for the financial year ended 31 March 2025 are presented in accordance with paragraph 2(a) of Schedule 2 of the Transport (Scotland) Act 2005, and prepared in accordance with an Accounts Direction given by Scottish Ministers, refer to Annex 1.

These accounts are prepared on a historical cost basis.

1.2 Tangible Non-Current Assets

Capitalisation

Purchases of assets with a value exceeding £500 inclusive of irrecoverable VAT are treated as capital with the exception of land and buildings where the threshold is set at £10,000 and IT equipment where the group value exceeds £500.

Valuation

Assets are valued at depreciated historical cost as a proxy for current value in existing use.

Depreciation

Depreciation is provided on property, plant & equipment at rates calculated to write off costs or valuation in equal instalments over the remaining estimated useful life of the asset.

These are as follows:

Depreciation is calculated on a monthly basis starting the month after purchase or acquisition and ceasing in the month of disposal.

1.3 Right of use assets

Right-of-use assets are depreciated on a straight line basis over the associated lease term, or estimated useful life where this is shorter.

1.4 Cash and Cash Equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

1.5 Funding Receivable

Grant in Aid funding received from the Scottish Ministers quarterly, through the office sponsor unit, is credited directly to general fund in the period to which it relates.

1.6 Leases

Where a lease has been identified, the Commissioner recognises a right-of-use asset and a corresponding lease liability, except for short term leases and leases for which the underlying asset is of low value. For such leases, the lease payments are recognised as an expense on a straight line basis over the lease term. The Commissioner does not apply IFRS 16 to leases of intangible assets and recognises these in accordance with IAS 38 where appropriate.

1.7 Pension Costs

Defined Pension benefits are provided through the Principal Civil Service Pension Scheme (PCSPS) which is an unfunded multi-employer defined benefit scheme. MyCSP is the scheme manager for PCSPS.

The Commissioner is a member of the Civil Service Alpha Pension Scheme (MyCSP).

One member of staff is on the Civil Service Partnership Scheme (MyCSP). Remaining staff are members of the Civil Service Alpha Pension Scheme (MyCSP).

With defined contribution funding arrangements, it is not possible to identify or describe the extent to which MyCSP is liable for other entities obligations or any agreed allocations of deficit /surplus on the wind-up of the plan given the scale of the Commissioner’s office’s involvement in relation to the wider Scottish Government (SG). The exact proportion of the plan attributable to MyCSP is negligible in relation to SG and other related bodies within the plan. Further details on pension payments are included in Note 3.

A full actuarial valuation was carried out as at 31 March 2020. Details can be found in the resource accounts of the Cabinet Office; Civil Superannuation Civil Service Pensions : Scheme Valuations

1.8 Value Added Tax

The Scottish Road Works Commissioner is required to pay VAT on the purchase of goods and services. All VAT is charged to the Statement of Comprehensive Net Expenditure.

The Scottish Government considers that the Commissioner cannot be classed as a Government Department for the purposes of section 41(3) of the Value Added Tax Act 1994 and as such cannot gain the appropriate status to allow the recovery of VAT.

The Prescribed Fees and Amounts collected by the Commissioner are a statutory levy and therefore VAT cannot be applied to them.

1.9 Income Recognition

Income collected to fund the operation of the SRWR is based on the projected cost of running the register during the year in question. Whilst a balanced budget is desirable, any surplus/shortfall in the income collected is accrued and taken into account in setting the level of “Prescribed Fees and Amounts” for the following year.

1.10 Standards Issued

There are no new standards, amendments and interpretations effective in the current year.

1.11 Segmental Reporting

The Commissioner currently operates two segments, namely the office of the Scottish Road Works Commissioner and the Scottish Road Works Register. The office of the Scottish Road Works Commissioner is funded through Grant in Aid from the Scottish Government. The Scottish Road Works Register is funded through income collected from the road works community. The Scottish Road Works Register (Prescribed Fees) Amendment Regulations 2024 and The Scottish Road Works Register (Prescribed Fees and Amounts) Regulations 2008, were applied to the collection of the operation of monies for the collection of the register in 2024/25. IFRS 8 Segmental Reporting requires operating segments to be identified on the basis of internal reports which are regularly reviewed.

Details are shown in Note 15.

2. Income From Activities

3. Staff Costs

The office of the Scottish Road Works Commissioner employed 7 permanent members plus the Commissioner in 2024/25. The figure for 2023/24 was 7 plus the Commissioner.

Staff Costs

The total remuneration for 2023/24 has increased by £98k. Further detail and analysis of staff costs can be found in the Remuneration and Staff Report.

Pension Costs

For 2024/25 a total employer’s contributions of £103,494 was paid to MyCSP, the scheme manager for Principle Civil Service Pension Scheme (PCSPS) at a revised rate of 28.97% from 1 April 2024 for all salary bands. Employer contribution rates ranged from 27.1% and 30.3% depending on salary bands in 2023/24. In addition to this, £9,956 was paid to the Partnership pension scheme.

The salary bands for pension contributions were revised and implemented on 1 April 2024. The contribution rates reflect benefits as they are accrued, not when the costs are actually incurred, and reflect past experience of the scheme.

There were no outstanding or prepaid scheme contributions at 31 March 2025 (31 March 2024 £Nil).

On death after retirement, a pension and/or lump sum benefit is payable to the surviving spouse, dependant on the member’s circumstances and the scheme joined within PCSPS. On death in service, the scheme pays a lump sum benefit of at least twice pensionable pay, again dependant on the scheme joined. It also provides a service enhancement to the spouse’s pension. The enhancement depends on the length of service and cannot exceed 10 years. Medical retirement is possible in the event of serious ill health. In this case, pensions are brought into payment immediately without actuarial reduction and with service enhanced as for widow(er) pensions.

4. Register operation and Other Expenditure

4.1 Register Operation

This represents costs associated with the provision of the SRWR, including contracted costs paid to the provider Symology Ltd. The cost this year is £841k (2023/24 - £800k)

4.2 Other Expenditure

The above total does not include £18,530 for external auditor remuneration (2023/24 £18,083). This is included under Professional Fees in the Statement of Comprehensive Net Expenditure. External audit received no fees in relation to non-audit work.

5. Property, Plant and Equipment

Certain items of IT equipment were disposed of during the year. These were fully depreciated and there was no gain or loss on disposal.

6. Right of use assets

7. Trade receivables and other current assets

8. Cash and Cash Equivalents

9. Trade Payables and Other Liabilities

10. Payments to the Consolidated Fund

There were no Commissioner penalties imposed in this reporting period (31 March 2024: £138K).

11. Capital Commitments

There were no contracted capital commitments as at 31 March 2025 (31 March 2024: £nil).

12. Contingent Liabilities Disclosed Under IAS 37

There were no contingent liabilities as at 31 March 2025 (31 March 2024: £nil).

13. Financial Instruments

The SRWC relies on Grant in Aid to fund the operation of the office and has no borrowings. Subject to routine robust budget monitoring, the SRWC is not exposed to liquidity risk. The SRWC has no deposits and all assets are denominated in pounds sterling. Consequently, the office is not exposed to interest rate risk or currency risk.

14. Related-Party Transactions

The SRWC was constituted by Scottish Ministers. “Grant in Aid” funding is provided annually through Transport Scotland who are a Scottish Government Agency. This is accounted for through the Statement of Changes in Taxpayers Equity. The Commissioner is a related party. The only transactions in the year related to his remuneration.

15. Other Financial Commitments

There are no other financial commitments at 31 March 2025.

16. Segment Information

The following items show the main categories of expenditure split between the two segments of the organisation.

17. Critical Judgements in Applying accounting policies

In applying the accounting policies set out in these Notes, the Commissioner has had to make judgements about financial transactions or those involving uncertainty about future events. Pension benefits are provided through the Civil Service pension arrangements. The Civil Service pension arrangements are unfunded multi-employer defined benefit schemes in which the Commissioner’s office is unable to identify its share of the underlying assets and liabilities.

18. Critical accounting estimates

The Financial Statements contain estimated figures that are based on assumptions about the future or that are otherwise uncertain. Estimates are made taking account of historical experience, current trends and other relevant factors but cannot be determined with certainty. Actual results could be different from the assumptions and estimates, but are unlikely to be material. We have not identified any critical accounting estimates.