Limited Liability Partnership Registration No. SO302336 (Scotland)
SEEMIS GROUP LLP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
SEEMIS GROUP LLP
LIMITED LIABILITY PARTNERSHIP INFORMATION
Designated members
South Lanarkshire Council
The Highland Council
North Ayrshire Council
Inverclyde Council
Dundee City Council
Falkirk Council
Limited liability partnership number
SO302336
Registered office
CMS Cameron McKenna Nabarro Olswang LLP
1 West Regent Street
GLASGOW
G2 1AP
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
SEEMIS GROUP LLP
CONTENTS
Page
Members' report
1 - 2
Independent auditor's report
3 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Reconciliation of members' interests
10 - 11
Notes to the financial statements
12 - 23
SEEMIS GROUP LLP
MEMBERS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The members present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the limited liability partnership continued to be the provision of information technology solutions to its Member Councils.

Members' drawings, contributions and repayments

There shall be no distribution of any profits to any member until they have been a member of the LLP for a period of at least three full financial years.

 

In the event that the members decide to distribute profits of the LLP, these shall be divided among the members in proportion to their respective interests.

 

Any losses of the LLP shall be borne by the members in proportion to their respective interests.

 

Members are not required to contribute any capital to the LLP.

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

South Lanarkshire Council
City of Edinburgh Council
(Resigned 31 March 2023)
Perth & Kinross Council
(Resigned 31 March 2023)
The Highland Council
North Ayrshire Council
Glasgow City Council
(Resigned 1 April 2022)
Inverclyde Council
(Appointed 1 April 2022)
Dundee City Council
(Appointed 1 April 2023)
Falkirk Council
(Appointed 1 April 2023)
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008).

 

SEEMIS GROUP LLP
MEMBERS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Statement of members' responsibilities

The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:

 

 

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

Each of the members in office at the date of approval of this annual report confirms that:

 

Approved by the members on
11 October 2023
11 October 2023
and signed on their behalf by:
Carole McKenzie
On behalf of
South Lanarkshire Council
Designated Member
SEEMIS GROUP LLP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SEEMIS GROUP LLP
- 3 -
Opinion

We have audited the financial statements of SEEMIS Group LLP (the 'limited liability partnership') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the reconciliation of members' interests and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

 

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the limited liability partnership in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the members' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the limited liability partnership’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the members with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

SEEMIS GROUP LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEEMIS GROUP LLP
- 4 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the Members' Responsibilities Statement, the members are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the members determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the members are responsible for assessing the limited liability partnership’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the members either intend to liquidate the limited liability partnership or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report

Extent to which the audit is considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

 

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

SEEMIS GROUP LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEEMIS GROUP LLP
- 5 -

We obtained an understanding of the legal and regulatory frameworks that are applicable to limited liability partnership and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

We gained an understanding of how the limited liability partnership is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of the limited liability partnership’s board of management meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. We identified a heightened fraud risk in relation to:

 

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

SEEMIS GROUP LLP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SEEMIS GROUP LLP
- 6 -

Use of our report

This report is made solely to the limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to limited liability partnerships by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.

Christopher Wilkie (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
27 October 2023
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
SEEMIS GROUP LLP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
6,894,492
6,469,963
Administrative expenses
(6,381,503)
(6,288,239)
Operating profit
4
512,989
181,724
Interest receivable and similar income
7
74,192
1,942
Interest payable and similar expenses
8
(7,000)
(46,000)
Profit for the financial year before non-operational expenses, members' remuneration and profit shares
580,181
137,666
FRS 102 defined benefit pension adjustments
5, 8
(631,000)
(782,000)
Loss for the financial year before members' remuneration and profit shares
(50,819)
(644,334)
Loss for the financial year before members' remuneration and profit shares
(50,819)
(644,334)
Members' remuneration charged as an expense
6
50,819
644,334
Result for the financial year available for discretionary division among members
-
-

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SEEMIS GROUP LLP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
£
£
Other comprehensive income
Actuarial gain on defined benefit pension schemes
13
575,000
2,724,000
Transfer to deferred income
12
(382,660)
(527,125)
Total comprehensive income for the year
192,340
2,196,875
SEEMIS GROUP LLP
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
4,236,870
3,798,949
Current assets
Debtors
10
3,146,523
2,888,799
Creditors: amounts falling due within one year
11
(709,148)
(778,697)
Net current assets
2,437,375
2,110,102
Deferred income
12
(5,113,237)
(4,545,564)
Net assets before pension scheme asset
1,561,008
1,363,487
Pension scheme asset
13
-
56,000
Net assets attributable to members
1,561,008
1,419,487
Represented by:
Loans and other debts due to members within one year
Other amounts
1,561,008
1,419,487
Total members' interests
Amounts due from members
(1,847,080)
(1,659,148)
Loans and other debts due to members
1,561,008
1,419,487
(286,072)
(239,661)
The financial statements were approved by the members and authorised for issue on 11 October 2023 and are signed on their behalf by:
11 October 2023
Ruth Binks
Carole McKenzie
Andrew McClelland
On behalf of
On behalf of
On behalf of
Inverclyde Council
South Lanarkshire Council
North Ayrshire Council
Designated member
Designated member
Designated member
Limited Liability Partnership Registration No. SO302336
SEEMIS GROUP LLP
RECONCILIATION OF MEMBERS' INTERESTS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Current financial year
DEBT
TOTAL
Loans and other debts due to/(from) members
MEMBERS'
INTERESTS
Total 2023
£
£
Amount due to members
1,419,487
Amount due from members
(1,659,148)
Members' interests at 1 April 2022
(239,661)
(239,661)
Members' remuneration charged as an expense
(50,819)
(50,819)
Members' interests after loss for the year
(290,480)
(290,480)
Transfer to deferred income
(382,660)
(382,660)
Actuarial gain on pension fund
575,000
575,000
Net movement on balance with South Lanarkshire Council (see note 17)
(187,932)
(187,932)
Members' interests at 31 March 2023
(286,072)
(286,072)
Amounts due to members
1,561,008
Amounts due from members, included in debtors
(1,847,080)
(286,072)

Further information on members' interests

The members’ remuneration is charged and is divided among the members in proportion to their respective interests.

 

At 31 March 2023, there were 32 members (2022: 32 members).

 

In the event of a winding up the amounts included in “Loans and other debts due to members” will rank equally with unsecured creditors. All assets and liabilities in the balance sheet are owned by all member Councils of SEEMIS Group LLP and in the event of the organisation winding up, will be split proportionately based on their individual members’ interest share.

 

The members continue to adopt a policy in relation to deferred hardware funding so that the closing balance is equal to the closing net book value of fixed assets plus funding received in relation to future hardware refresh.

SEEMIS GROUP LLP
RECONCILIATION OF MEMBERS' INTERESTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Prior financial year
DEBT
TOTAL
Loans and other debts due to/(from) members
MEMBERS'
INTERESTS
Total
2022
£
£
Amount due from members
(2,218,202)
Members' interests at 1 April 2021
(2,218,202)
(2,218,202)
Members' remuneration charged as an expense
(644,334)
(644,334)
Members' interests after loss and remuneration for the year
(2,862,536)
(2,862,536)
Transfer to deferred income
(527,125)
(527,125)
Actuarial gain on pension fund
2,724,000
2,724,000
Net movement on balance with South Lanarkshire Council
426,000
426,000
Members' interests at 31 March 2022
(239,661)
(239,661)
Amounts due to members
1,419,487
Amounts due from members, included in debtors
(1,659,148)
(239,661)
SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Limited liability partnership information

SEEMIS Group LLP is a limited liability partnership incorporated in Scotland. The registered office is CMS Cameron McKenna Nabarro Olswang LLP, 1 West Regent Street, GLASGOW, G2 1AP.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008).

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. Monetary amounts in these financial statements are rounded to the nearest £ unless otherwise stated.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

FRS 102 includes a requirement for the financial statements to present a statement of cash flows. As explained in note 17, the LLP does not hold any cash or cash equivalent balances. Instead, it operates a facility with South Lanarkshire Council which facilitates all transactions on behalf of the LLP. Accordingly, as the LLP does not have any material cash flows, no statement of cash flows has been presented in these financial statements.

1.2
Going concern

At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future.

 

The members, being all 32 Scottish local authorities, have agreed a three year financial plan through to March 2026 under which they are committed to providing ongoing funding to the limited liability partnership. Under this financial plan the members have also secured the funding of the limited liability partnership's capital development projects shown within notes 9 and 16.

 

With this financial plan in place, the members continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

The turnover of the LLP represents the value of services provided under the principal activities of the LLP and is stated net of VAT. Turnover arises wholly within the United Kingdom.

 

Membership fee income is recognised on an accruals basis. Income from the provision of services is recognised when the service has been performed.

 

Deferred income relating to assets is recognised on a systematic basis over the assets' expected useful life. Deferred income relating to revenue expenditure is recognised in income as the related expenditure is incurred.

SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

 

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Office Equipment
10 years
Fixtures & Fittings
5 years
Hardware
3-10 years
Miscellaneous
5-10 years

Assets in the course of construction are not depreciated while they are being constructed.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Tangible fixed asset funding

Certain hardware used by the business is funded by the members and the funding is recorded as deferred income. The funding is released to the profit and loss account over the expected useful life of the assets.

1.6
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the profit and loss account.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the profit and loss account.

1.7
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's balance sheet when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include certain debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the profit and loss account.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the profit and loss account.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities are classified according to the substance of the contractual arrangements entered into.

SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities

Basic financial liabilities, including certain creditors, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.9
Retirement benefits and post retirement payments to members

The limited liability partnership participates in a defined benefit scheme for the benefit of its employees. The service cost of the pension provision relating to the period, together with the cost of any benefits relating to past service, is charged to the profit and loss account. A charge equal to the increase in present value of the scheme’s liabilities (because benefits are closer on settlement) and a credit equivalent to the limited liability partnership’s long term expected return on assets (based on the market value of the scheme’s assets at the start of the period) are included in the profit and loss account under ‘FRS 102 defined benefit pension adjustments’.

        

The difference between the market value of the assets of the scheme and the present value of accrued pension liabilities is shown as an asset or liability on the balance sheet. Any difference between the expected return on assets and that actually achieved is recognised in the statement of comprehensive income, along with the differences which arise from experience or assumption changes.

 

1.10

Grant income

Grants receivable are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Grants receivable are recognised in accordance with the accruals model. Grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

2
Judgements and key sources of estimation uncertainty

In the application of the limited liability partnership’s accounting policies, the members are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Pension scheme asset - 2023: £Nil (2022: £56,000)

As outlined at note 13, the LLP is a participating employer in the Strathclyde Pension Fund, a multi-employer defined benefit scheme, and has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including: life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. The LLP's designated members and the trustees of the pension fund take the advice of actuaries to estimate these factors so as to determine the net pension obligation in the balance sheet, and management rely on these estimates in preparing these financial statements. The assumptions reflect historical experience and current trends.

 

There is an £6,333,000 surplus as determined by the actuarial valuation. The closing asset is an actuarial calculation of future expected liabilities set against the LLP’s share of the pension scheme assets at 31 March 2023. This is not a recoverable asset for the LLP, the LLP has no entitlement to recover this amount from the pension scheme through a refund from the pension scheme or reduction of future contributions payable by the LLP to the pension scheme. In this situation, UK accounting standards explain that the LLP should not recognise the asset in the LLP’s financial statements.

Depreciation of tangible fixed assets - Carrying amount of fixed assets 2023: £4,236,870 (2022: £3,798,949)

The estimated useful lives of assets are outlined in note 1.5. Useful lives have been assessed based on historical experience and the periods over which management believe future economic benefits to be derived.

Deferred income - 2023: £5,113,237 (2022: £4,545,564)

The deferral of funding income requires management to exercise judgement over the period to which the income relates. Deferred income is amortised on a systematic basis over the periods which the related costs are incurred or related assets are depreciated. An analysis of deferred income is outlined at note 12.

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Provision of information technology solutions
6,894,492
6,469,963
2023
2022
£
£
Other revenue
Interest income
74,192
1,942
2023
2022
£
£
Turnover analysed by geographical market
UK
6,894,492
6,469,963
SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
13,750
11,300
Depreciation of owned tangible fixed assets
99,797
70,098
Amortisation of deferred income relating to Wellbeing application
-
(2,610)
Amortisation of deferred income relating to hardware funding
(99,794)
(67,489)
Operating lease charges
111,197
111,829
5
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2023
2022
Number
Number
Management
5
5
Operations
53
54
58
59

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,587,860
2,457,820
Social security costs
298,449
267,252
Pension costs
1,128,000
1,216,000
4,014,309
3,941,072

Included within the pension costs is an actuarial adjustment of £631,000 (2022: £782,000) in relation to the current service cost of the LLP's defined benefit pension obligations. These costs together with the interest charge on the LLP's defined benefit liability in note 8 has been separately presented in the LLP's profit and loss account.

6
Members' remuneration
2023
2022
Number
Number
Average number of members during the year
32
32
2023
2022
£
£
Automatic division of losses
(50,819)
(644,334)
SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from members
74,192
1,942
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Net interest on the net defined benefit liability
7,000
46,000

 

9
Tangible fixed assets
Office Equipment
Assets in the course of construction
Fixtures & Fittings
Hardware
Miscellaneous
Total
£
£
£
£
£
£
Cost
At 1 April 2022
196
3,540,976
2,405
1,295,993
22,421
4,861,991
Additions
-
464,697
-
73,021
-
537,718
Disposals
(196)
-
(470)
(1,000,584)
-
(1,001,250)
At 31 March 2023
-
4,005,673
1,935
368,430
22,421
4,398,459
Depreciation and impairment
At 1 April 2022
186
-
1,847
1,044,941
16,068
1,063,042
Depreciation charged in the year
10
-
428
94,875
4,484
99,797
Eliminated in respect of disposals
(196)
-
(470)
(1,000,584)
-
(1,001,250)
At 31 March 2023
-
-
1,805
139,232
20,552
161,589
Carrying amount
At 31 March 2023
-
4,005,673
130
229,198
1,869
4,236,870
At 31 March 2022
10
3,540,976
558
251,052
6,353
3,798,949
SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by members
1,847,080
1,659,148
Other debtors
168,440
180,673
Prepayments and accrued income
1,131,003
1,048,978
3,146,523
2,888,799

Included in amounts due from members above is £1,847,080 (2022: £1,659,148) owed from South Lanarkshire Council as outlined in note 17.

11
Creditors: amounts falling due within one year
2023
2022
£
£
Other creditors
144,387
125,441
Accruals and deferred income
564,761
653,256
709,148
778,697
12
Deferred income
ELC MIS Grant income
Hardware Funding
Total
£
£
£
Balance at 1 April 2022
1,234,133
3,311,431
4,545,564
Funding received in the year
155,057
129,750
284,807
Amortisation in the year in respect of revenue related items
-
-
-
Amortisation in the year in respect of capital related items
-
(99,794)
(99,794)
Transfer from members interest
-
382,660
382,660
Balance at 31 March 2023
1,389,190
3,724,047
5,113,237
13
Retirement benefit schemes

The limited liability partnership participates in a defined benefit pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.

SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Retirement benefit schemes
(Continued)
- 20 -
Defined benefit schemes

The valuation used for the disclosures has been based on the most recent actuarial valuation at 31 March 2023 performed by an independent qualified actuary to take account of the requirements of FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS102") in order to assess the liabilities of the scheme at 31 March 2023. Scheme assets are stated at their market value at 31 March 2023.

 

The financial position of the scheme is measured in accordance with the requirements of FRS102 which is based on the market value of the scheme’s assets at the balance sheet date with the liabilities being calculated using actuarial assumptions determined by the market conditions at that date. As such, it shows the value at a single point in time of a number which can vary significantly. The position disclosed is in accordance with the requirements of FRS102 and does not impact on the scheme’s future contribution requirements, this being determined by triennial actuarial valuations which are carried out on a long term basis.

Key assumptions
2023
2022
%
%
Discount rate
4.75
2.75
Expected rate of increase of pensions in payment
2.95
3.15
Expected rate of salary increases
3.65
3.85
Actual return on assets
-2.30
7.70
Mortality assumptions

The assumed life expectations on retirement at age 65 are:

2023
2022
Years
Years
Retiring today
- Males
19.30
19.60
- Females
22.20
22.40
Retiring in 20 years
- Males
20.50
21.00
- Females
24.20
24.50

The amounts included in the balance sheet arising from the limited liability partnership's obligations in respect of defined benefit plans are as follows:

2023
2022
£000
£000
Present value of defined benefit obligations
(12,593)
(18,863)
Fair value of plan assets
18,926
18,919
Surplus in scheme
6,333
56
Surplus not recognised
(6,333)
-
Total asset recognised
-
56
SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Retirement benefit schemes
(Continued)
- 21 -

Movements in the present value of defined benefit obligations:

2023
£000
Liabilities at 1 April 2022
(18,863)
Interest cost
(533)
Actuarial gains
7,868
Current service cost
(1,128)
Past service cost
-
Contributions by employees
(179)
Estimated benefits paid
242
At 31 March 2023
(12,593)

The defined benefit obligations arise from plans funded as follows:

2023
£000
Wholly unfunded obligations
(246)
Wholly or partly funded obligations
(12,347)
(12,593)

Movements in the fair value of plan assets:

2023
£000
Fair value of assets at 1 April 2022
18,919
Expected return on assets
526
Actuarial losses
(960)
Contributions by employees
179
Contributions by the employer
492
Contributions in respect of unfunded benefits
12
Estimated unfunded benefits paid
(12)
Estimated benefits paid
(230)
At 31 March 2023
18,926
SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Retirement benefit schemes
(Continued)
- 22 -

The major categories of plan assets as a percentage of total plan assets are as follows:

2023
2022
%
%
Equity instruments
60
64
Debt instruments
28
24
Property
10
10
Cash
2
2
100
100
14
Loans and other debts due to members
2023
2022
£
£
Analysis of loans
Amounts owed to members in respect of profits
1,561,008
1,419,487
1,561,008
1,419,487
15
Operating lease commitments

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
47,067
111,197
Between two and five years
-
47,067
47,067
158,264
16
Capital commitments
2023
2022
£000
£000

At 31 March 2023 the limited liability partnership had capital commitments as follows:

Contracted for but not provided in the financial statements:
Acquisition of fixed assets
111
98
SEEMIS GROUP LLP
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
17
Related party transactions

The principal activity of the limited liability partnership is the provision of information technology solutions mainly to local authorities. The turnover in the period is 100% (2022: 100%) with members.

 

The limited liability partnership has continued to operate with most funds received and disbursements made being processed through South Lanarkshire Council’s bank account. The amount due from South Lanarkshire Council as at 31 March 2023 was £1,847,080 (2022: £1,659,148). During the year, interest of £74,129 (2022: £1,942) was earned on this balance by the limited liability partnership.

 

South Lanarkshire Council also provides various accounting and finance services for the limited liability partnership. These are documented in a service level agreement between the two parties and services charged in the year ended 31 March 2023 were £83,940 (2022: £83,150). In addition, South Lanarkshire Council also charged £109,727 (2022: £109,727) which is mainly for property rental and services costs in relation to the primary business location at Almada Street, Hamilton.

 

Included within prepayments and accrued income is £414,120 (2022: £471,246) of accrued income relating to information technology solutions not yet invoiced to members as well as accrued grant funding of £155,057 (2022: £nil) due from members not yet received.

 

During the year grant income of £155,057 (2022: £30,975) was receivable from members, all of which was accounted for as deferred income.

 

During the year Renfrewshire Council as the Lead Authority for Scotland Excel, a joint committee formed by all 32 Scottish Local Authorities to act as a procurement consortia, charged the limited liability partnership £9,088 (2022: £500). The balance outstanding at the year end was £8,588 (2022: £nil).

 

The number of key management personnel during the year totalled 5 (2022: 5) and remuneration during the year totalled £501,274 (2022: £476,146). The chairman's allowance for the year totalled £10,992 (2022: £12,768).

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