SAAS Annual Report and Accounts 2013-2014 - page 12

017
Going concern
The Agency receives its funding from the Scottish Government and its annual operating budget is approved
and published each year, as part of the Scottish Government’s budget, by the Scottish Parliament.
Funding requirements have been agreed, with the Scottish Government, that give our Management Board
the reasonable expectation that the Agency will have adequate resources to continue in operational
existence for the foreseeable future. For this reason, we continue to adopt the going concern basis in
preparing the annual report and accounts.
Social, community and human rights
The Agency aims to place the needs of our customers at the centre of everything we do. As part of our
commitment to our customers we have invested heavily in our front-line customer service to deliver our
objective of preventing finance being a barrier to higher education.
We are an agency of the Scottish Government and therefore subject to the European Convention on
Human Rights and the UK Human Rights Act 1998. We work in line with the Scottish Government’s
objective to commit to creating a modern inclusive Scotland that protects, respects and realises human
rights for people in Scotland and the UK. We respect all human rights and in conducting our business we
regard these rights most relevantly when dealing with our customers and stakeholders.
Financial review
The budget approved by the Scottish Parliament for the Agency’s operating costs was £11.263m
(£8.212m in 2012-13) revenue and £0.417m (£0.718m in 2012-13) capital. The accounts also include
additional expenditure of £0.404m 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 £11.503m (£8.616m in 2012-13) being £11.099m (budget
£11.263m) plus £0.404m of allocated central government expenditure and audit fee. Costs for the year
increased by 33% from 2012-13 as we significantly increased front-line staffing to provide an improved
service to our customers. Overall, operating costs were within budget by 1.5%.
Capital expenditure for the year was £0.385m (budget £0.417m). This represents a decrease of £0.132m
from 2012-13.
Significant changes in assets
We have summarised the changes in assets in the notes to the financial statements. Additions were for
PCs, furniture and licences for additional front-line staff 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.
Consultancy
During the year we spent £37k on consultants. £30k was used for IT & digital communications and £7k
on a PR campaign to encourage early applications for student support. In 2012-13 we spent £121k on
IT consultancy and an independent review of the agency.
The purpose of these accounts is to detail the Agency’s administration expenditure. However, we also
administer income and expenditure for higher education student support which is accounted for in the
Scottish Government’s core accounts.
The budget we administered for student support in 2013-14 was as follows:
Cash
Budget £m
Student support and tuition fee payments
315.6
Student loans advanced net of loan repayments
408.3
Student Loans Company administration costs
4.5
Student loan interest subsidy to banks
1.9
Cash Total
730.3
Non-cash costs for student loans
64.5
Total
794.8
1...,2,3,4,5,6,7,8,9,10,11 13,14,15,16,17,18,19,20,21,22,...50
Powered by FlippingBook