But CAST is now starting. All attendees are in listen-only mode. Good afternoon or good morning from wherever you are in the country in participating. I want to thank everybody for attending this webinar. My name is Ed Hartman. I'm DAV's Inspector General. And we wanted to provide this opportunity to discuss the annual financial reporting procedures as many of you in your responsibilities as the department treasurer and or chapter treasurer seem to have many questions throughout the course of the process of completing your annual financial reports. So we wanted to have this webinar to maybe try to address some of those be a little proactive and assisting each and every one of you in completing your annual financial reports this year. I did note that there were some individuals that had registered for this webinar that indicated that they were from the auxiliary. Keep in mind this is a DAV specific form that we're going to be discussing today. The DAV auxiliary has their own unique annual financial reports. This information shared today will likely not be to the benefit of anybody attending and participating as a member of the auxiliary. Each and every year we all know that as department and chapter leaders and particularly the treasurer we receive the annual financial report kit from national headquarters. It does look like a very complicated and cumbersome document with a lot of information and some attachments. It really is a very simple document to complete. And so this webinar will kind of serve as a clips note variation if you will or interpretation of all of the instructions and schedules that accompany the annual financial report. One of the things that I always like to have the opportunity to do is just remind DAV chapter leaders all the time that the funds that we get as an organization at all levels are provided by the general public to support DAV's free programs of service to ill and injured veterans and their families for which we are known. Of course when we talk about the programs of service that we're known for I'm talking about our chapter department and national service officer program our DAV transportation network, DAVS programs, legislative programs, employment programs so on and so forth. Those programs that are very unique and very specific to DAV. So it's our responsibility, our fiduciary responsibility at all levels whether it be a chapter department or the national organization to apply those funds that are donated to us from the general public to be used primarily for those DAV programs of service. So we all know that the filing requirements for DAV entities are due within 90 days at the end of the accounting period which is September 30th. For DAV's purposes the accounting period is always July 1st through June 30th of the following year. So right now at this point in time if you haven't already all DAV entities should be working on their annual financial report for year in June 30th 2019. All departments are required to submit an annual financial report to the national organization. All chapters are required to provide an AFR to the department and departments are absolutely responsible for evaluating and reviewing the chapter annual financial reports. Those chapters that during the course of the accounting year have more than $10,000 of gross income for that year must also file an annual financial report with the national organization. We did have a resolution that came up from a department this year that might change that $10,000 figure to $25,000 which we hope will be favorably considered by the convention coming up. So that will require many chapters who are otherwise right now required to provide reports to national to no longer do so. Any and all entities that have more than $300,000 of income during the course of the year in addition to providing their annual financial report must also submit a CPA review along with their AFR. So when you take a look at the annual financial report that long legal size document legal size page document it's really broken down into three very unique sections. The very first section is has to deal with the income. The second or middle part of the form deals with all expenditures lines 11 through 21. And then finally the last section of the AFR is a section which allows the chapter of the department to reflect all the total liquid assets that it has. We will go through each of these unique sections line by line and provide examples of what information and what documentation would need to be submitted to accompany the annual financial report for each of those lines. Looking at the very first section of the annual financial report line one simply requires an ask for the total number of membership dues per capita that either the chapter received or the department received from the national organization. Line number two is very specific to forget me not income. And again we're looking for the gross total of what was collected during the forget me not efforts of the chapter or the department through the year. And when I say gross total there we on this line we cannot back out any expenses that we have associated with the forget me not drive because that's going to be reported and included in another line under expenditures associated with forget me not drive. Line three, four and five are specific to income that comes in from any bingo program thrift store operation or bar lounge operation again. This is dealing with gross total income so before any bills are paid. That would be the amount that would be reflected for each of those lines 335 as it relates to bingo thrift store bar in bar lounge operations. Line six is income and interest from checking savings and CDs only certificates of deposits. We have another section a little bit later on that's going to deal with investment portfolio income. So again, line six is just income from interest solely from checking accounts savings accounts and or certificates of deposits. Line number seven is primarily from for departments only. And this would include any and all funding from the national organization and this would include anything that comes to the department from the state service program that we provide to departments and or Columbia trust grants that are provided to the department. There may be an occasion where a chapter would have an amount to be reflected on this line because there are a very few handful of chapters that have applied for and receive grants from the Columbia trust for very unique and specific programs. So that is the information that we're looking for on line seven in total. Line number eight is promised is information reflecting any profits from any investment portfolios that the department or chapter may have and line number nine is any and all other income that is not otherwise addressed in lines one through eight. This would include information or this would include total amounts from grants received the quests that were received or general donations received from the public or through members. And there will be a schedule that would be required to reflect and break down what each one of those are for which we will get to momentarily here. And then simply line number 10 is just totaling up all of the income from lines one through nine and reflecting that value online number 10. And we talk but the only line item that requires a schedule in the income sample, as I just mentioned, is that related to line number nine other income, and a general listing is acceptable, this can simply just be a word document outlining the chapter received a request from an estate in the amount of $10,000 a grant from a county veterans service commission donations from members during chapter meetings. And you'll most notably on here. You'll see I used here as an example of a donation of a power wheelchair. That's very important to note because of course we have to report income for in kind donations of product or wheelchairs durable medical goods things of that nature so anytime that the chapter we sees anything of value from the public. We have to recognize that gift to the donor. And then of course reported as an asset or income for the chapter, and a little bit later, I'll provide you an example of how that amount you see listed there as a donation of a power wheelchair will be reflected as an expenditure. When we get into the expenses. Moving on the second section of the annual financial report is the expenses portion. And so if we look at the annual financial report will see that on line number 11. It asks for administrative salaries. Taxes and benefits and you'll see there a schedule be required and of course we'll get to an example of that after we cover all of these line items here. As to what that schedule can consist of and what it might look like. Administrative salaries, taxes everything on line seven is usually very typical or specific to a department as many chapters obviously do not have paid employees of the chapter operating that would justify an expense noted on line number 11. Line number 12 is all expenses associated with members or leaders participation and conventions and conferences for travel. Lodging meals and again we'll get into an example of what a schedule might look like and it can be a general schedule. We will get to that here momentarily. Line number 13 is all of the expenses associated with postage and office supplies such things as sending out newsletters buying business cards for leaders of the chapter, etc. Line number 14, which is the most very important expense line noted on the annual financial report. And that is the line specific to all of our expenses that were dedicated to service and shareable work. And it will be very form specific so in the packets that are received from the national organization by departments and chapters each and every year. There's a service schedule that is provided, which further goes into detail of what expenditures were included for line number 14. And we will again get into a sample of what items and what things we're looking for online 14 and it should be noted again as I mentioned previously that this is the most important line on the expense. Annual financial report section because of course as a non-profit veteran service organization we're obligated to spend our donors money for our federally chartered purpose. So a great percentage of good majority of the funds that we expend on an annual basis really ought to be reflected in line number 14. Line number 15 as we mentioned previously in the income chapters and those departments that do conduct forget me not drives may have expenses associated with their forget me not drives whether that includes buying supplies such as the forgive me not flowers posters to promote the forget me not drive collection buckets canisters things of that nature so that is where the amount of expenses would be reflected on those costs associated with your forget me not drives. Line number 16. There are a handful of chapters and maybe even a department or two out there that conduct bingo operations. Line number 16 is the location for to report any and all bingo expenses associated with their bingo operation such as salaries taxes and of course winnings payouts to winners at bingo. And of course there will be a schedule required. It's a general schedule and again will provide an example of what that would look like here in a few short moments. Line number 17 any chapter thrift store expenses including salaries. And again we will get into an example of what the schedule would look like and what kind of information should be reflected on that schedule. But again these are expenses directly related to the operation of any thrift store. We only have a handful of chapters and departments that have thrift store operations and existence. And when I say fortunately that's because in those instances those are programs that are generating revenue and are actually bringing an income to support our service programs. Those that were in the thrift store business previously found that they were losing money and obviously at that point we're no longer a valid fundraising activity of the chapter or the department and it's since gone away so. And likewise on line number 18 any bar expenses that a chapter may have associated with its chapter operation expenses associated with that including salaries would be reported online 18 and of course a schedule would be required for that. And I will provide a sample schedule. That you can use to help you with reporting on those again handful of chapters that do have bar lounge operations associated with their chapters. Let's see line number 19 chapter or department property expenses so any chapter any department that owns property or has property that it leases or rents for the conducting of its business. Any all expenses associated with that property or building would be reported online number 19 so things such as maintenance utilities insurance etc. And again we will get into an example of what a schedule may look like to accompany line number 19. And then number 20. Again member up top we were talking about with the income, any income that was received as a result of an investment portfolio that the chapter or the department might have. Likewise, if your investment portfolio lost money during the course of the year, that loss would be reflected online number 20. And then number 21 is any and all other expenses and of course this is a very broad category. And we will get into some examples of what items might be included in terms of all other expenses and will provide you a sample schedule, what that might look like. And then line number 22 of expenses. It's simply the culmination of all the expenses combined from lines 11 through 21. Okay, here's an example of online 11 of course that requires a schedule to be provided along with it and again it can just be a very simple general word document that outlines that the department had payroll expenses to the adjunct the amount of $40,000 payroll that that individual would be included any employee benefits that were associated with that individual would be included. And then also for any administrative staff that the department and or in some cases a chapter might have on the payroll. Now keep in mind this is for administrative administrative salaries so if the department or chapter had employees that were associated with a thrift store operation a bingo operation or bar lounge operation that would not be included under the salaries listed for line number 11. In addition to payroll, payroll taxes, employee benefits, any and other any and all other costs associated with an employment of an individual for the operation of the administration side would be also included under line 11 and also would be further noted on the schedule required for line 11. Line number 12. Again that's referring to expenses associated with conventions and conferences. And again a general listing is acceptable so again it can just simply be a word document that says for line number 12 we had expenses for the chapter commander to attend department convention in the amount of $800. We had expenses for the chapter commander to attend national convention in the amount of $1200 or $1200. And again that's just an example. Keep in mind that if they're since this is titled conventions and conferences and seminars online 12. Keep in mind that if you have a chapter service officer or department service officer that is participating in the CSO DSO certification annually at the department convention. Any costs associated with their attendance at that seminar or that conference for training would not be listed as a convention or conference expense because they are there getting information getting certification. As a chapter service officer. We can reflect that as a direct service expenditure which would be later reported underline 14 and the schedule associated with that we will get to a sample of that here in just a few moments. Line number 14 a sample of what a schedule might look for or look like for line number 14 and again a general listing is acceptable. And this has to do with postage and supplies so an example would be the chapter had a an expense of $40 for the purchase of a digital voice recorder to assist the adjunct in recording the minutes of the meetings. Something along those lines ink gent printer printer cartridges of $25. Copying paper $15. Anything that's associated with postage and supplies for the chapter would be listed online 13 and further described in a general schedule for line number 13. Line number 14 now here's the big one as I mentioned earlier. This is the line that should have a bulk of expenditures for chapters and departments. And this is also the line that has a separate and unique schedule that is provided along with the annual financial report that must be completed along with the annual financial report. So items that will be listed and included as service and charitable will be items such as donations to the medical centers. Donations or support financial support of the ABS programs. National transportation van grant programs so therefore if your chapter of the department. Provides funding to purchase a new van for the TV transportation network. That would certainly be a service expenditure service programs. That is where we were talking about any or I'm sorry this is when you have a very unique and specific service program that you offer in your community that otherwise isn't mentioned specifically as a. D. A. B. Recognize service program like our transportation network D. A. B. S. program something along those lines lines. Service officer salaries and benefits this primarily pertains to departments that employ department service officers. We would need to have a breakdown of the salaries and benefits associated with the employment of those individuals. Cost to attend service school so again we were mentioning previously that if you have expenses for your CSO your DSO is to attend the certification at department convention. That would certainly be listed as a service expenditure and not otherwise to be reported under the general conventions and conferences portion of the annual financial report. Any expenses to or any contributions to H. S. C. Salaries and their benefits Columbia Trust donations will also be listed as a expense underline 14. National service foundation donation. L. BAP program expenses and donations to state veterans homes. Any housing programs that the chapter department may have contributed to or be involved with any meal programs. Publications that educate our members on D. A. B. Related activities or legislative activities that are beneficial and would provide a service would be listed as a service expense under line 14. Any grants to homeless or media veterans and or any other charitable. Giveings of the chapter and if you recall when we were talking about income and other income in section number one. We talked about the gifts of. In kind products or durable medical goods such as a power wheelchair so if the chapter received a $1000 the value of $1000 for power wheelchair that was given to the chapter to provide to a homeless or needy veteran rather. When the chapter makes that donation to a veteran that is where that amount would be listed as a service expenditure for the chapter. So when we look at the actual service and charitable expense schedule which accompanies the annual financial report. It's very unique it's very specific at ask for information and there's a reason for which that we ask that information that we'll get into here towards the end of the presentation. Further down the expenses section of the annual financial report line number 16 through 18 has to deal with bingo operations thrift store operations and bar lounge operations and again. The general list standing is is acceptable. And so line number 16 as it deals with bingo. The schedule would outline the fact that we paid out as a chapter or in the case of the department $100,000 of prizes to bingo winners. We employed a bingo manager for $10,000 to operate that program. Those would be all included under the schedule for the expenses associated with line 16. Same thing for line 17 thrift store manager salary thrift store employee salaries benefits anything else that has to do with the employment or the operation of a thrift store would need to be noted in that. General accounting schedule for expenses associated with line number 17. The same holds true for line 18 if the chapter has a bar lounge operation. That is where line 18 is where all of the funds for the expenses associated with that are so the schedule would look like something to the effect of what bartender was paid as a salary. Or bartenders because I'm sure that you probably have more than one bartender. The total amount paid to the bartenders costs associated with product of beer wine liquor purchases snacks whatever the case might be any expenditure listed. Or associate with bar lounge would need to be included on that schedule. On line number 19 of course there is a schedule that is required for that line as well and again a general listing is certainly acceptable. And this is for again chapters or departments that own property have a building either own at least it rented. Whatever the case might be any and all expenses associated with that would be listed under the. Schedule for that so an example utilities for the year fifteen hundred dollars insurance for the property nine hundred any repairs that were made to the property would be reflected there. Lawn care exterior landscaping if the chapter or the department needed to provide or purchase new chairs for the meetings security monitoring fees you know new carpet exterior painting. You name it anything that the chapter had as an expenditure or an expense associated with the ownership lease or renting a meeting space would be reflected. In the schedule for line number nineteen line number twenty. And again these are the other expenses that are associated with the chapter or the department an example would be if your chapter typically purchases pizza or. You know provides a meal to the members attending the chapter meeting. If the chapter or the department hosts an entertainment or entertainment and provides a meal during the holidays. If the chapter or the department provides a meal or a luncheon or a recognition ceremony or celebration for volunteers. That is where all of the examples of expenditures would be listed for line number twenty and again just a simple word document outlining what the expenses were in the total amount of the expenses for each of those items. So the. Line number twenty three talks about. Total liquid assets so when we talk about liquid assets we're talking about anything and everything that the chapter or the department might own either in. A checking account a savings account. CDs investment portfolios so on and so forth and it's very important to note that. A statement a current statement be provided along with the annual financial report for each number of one of these accounts so the chapter or the department as a checking account. The total amount that the year end. Of June 30th would be reflected on that line plus any nominal cash on hand that might be maintained by the chapter of the department. A copy of the most recent bank statement ending June 30th of the accounting period we need to accompany that for line twenty three. Line number twenty four if you have a savings account. Line number twenty four if you have a savings account that balance should be reflected on line twenty four and again a year end June 30th bank statements should accompany the annual financial report reflecting the amount. Maintain in the savings account. Any CDs that are owned by a chapter department should be reflected on line twenty five and of course a copy of the June 30th statement for that CD or any number of CDs that the department or chapter may have. And a copy of the June 30th statement of the market value of any and all investment portfolios that the department or chapter must have. And of course line number twenty seven is simply totaling lines twenty three through twenty six the very end of the annual financial report just ask for another assets other assets schedule. So if we talked about or we talked previously at the department or a chapter owns any real estate or any property. We're simply asking for the address of the property when the property was purchased in the current market market value of the property. If the department or the chapter has any loans against the department or chapter or you know building improvement or whatever the case might be that loan balance should be reflected. And the information specific to the financial institution would also be included on that line as well furniture and equipment. Simply a brief description and estimated value of whatever that furniture and equipment might be whether it's laptop computers printers large electric devices that are owned by the chapter. Would be listed as furniture and equipment. Vehicles if the department or a chapter owns a vehicle. I know that there are many departments that have a vehicle that they make available for use by the department commander throughout the course of their years department commander. That is where the information would be conveyed in terms of assets of the department. We simply are asking for the year make model and the estimated value of the vehicle that's owned by the department and in some cases by the chapter. Miscellaneous a brief description and estimated value now miscellaneous is really just I mean it's anything that is not covered in real estate loans furniture and equipment or vehicles. So for those of you out there that have casos hanging in your chapter halls or in your department buildings or have Rolex watches laying around or fur coats laying around. That's where the that information would be included and calculated for miscellaneous that's the information that we're looking for. So again anything that is an other asset outside of cash outside of real estate loans furniture and equipment vehicles would be recorded under miscellaneous. So each and every year we talk about the importance of filing these annual financial reports why is it essential. A first and foremost we need to have as a chapter as a department and as a national organization we have to have a complete accounting of our funding because of course we have an obligation to our donors to provide information should they so request on what we are doing with our with their money or with our money. But I always refer to it as their money because of course anything and everything that we get from the general public comes in the form of a donation to DAB at all levels so I commonly refer to it as their money. DAB is just a steward of maintaining and holding those finances and applying them towards programs specific to DAB's federally chartered purpose. We need to have a complete accounting of expenses and distributions throughout the course of the year. And as I mentioned at least two times already being a nonprofit veteran service organization we have an obligation to spend our money on DAB service programs that for which we are known. Of course DAB is coming up on our 100 year anniversary and we have survived that long as a nonprofit veteran service organization simply because the general public believes in our mission. They continue to support us because they see the fruits of their donations. They see the fact that DAB provides funding to those programs for which we have come to be known for. Our DSO, CSO, our National Service Officer program, our Transition Service Officer program, the DAB Transportation Network, DABS programs, anything and everything. So we really need to if we have not done so already ensure that as a chapter as a department a majority of our expenses that are reflected on our annual financial reports show up on line number 14. Because again at the end of the day all of the funding that we receive comes from the general public and we really want to focus our efforts on funding DAB specific programs. Proper record keeping and documentation. This should really be done throughout the course of the year. It's an ongoing exercise primarily so that we as members when we come to our chapter meetings we know what we're doing as an organization, what money came in, what money went out, what it went out for. And certainly it makes it so much easier for the Treasurer and the Audit Committee at the end of the year and the preparation of the annual financial report to have at that time all of the documentation at their disposal to fully complete and provide the information necessary for the submittal of the annual financial report. We really need to support again I mentioned this again simply because again people donate to DAB because they believe in our mission. Supporting DAB's mission versus other organizations. There's certainly nothing wrong with a DAB chapter or department supporting a program being hosted by another veterans organization or another organization so long as that program is very specific to our federally chartered purpose of providing services free programs of services to ill injured veterans and their families. So even though our chapter or department might be providing some funding to another organization for a program that is going to benefit our demographic of constituents. You know there's certainly nothing wrong with that but we really ought to be focusing on supporting our very unique programs of service to veterans and their families. Annual financial reports are due 90 days at the end of the closing year and of course we all know that the financial year ends June 30 so by September 30. Annual financial reports would need to be provided to the appropriate receiving entity and as I mentioned previously all chapters need to provide a copy to their appropriate department. All departments would need to have provided a copy of their financial report to the national organization and any chapter that currently at this moment had more than $10,000 of income during the prior year in addition to filing a report with the department would also in turn file an annual financial report with the national organization but as I mentioned previously I'm very hopeful that a resolution that was submitted will increase that minimum amount to $25,000 which would likely result in most chapters only being required to provide an annual financial report to their department. As the national organization, it's our responsibility to ensure that finances of the organization at all levels are being provided in accordance with our federal charter. Each and every department, each and every chapter in our organization is under DAD Nationals group exemption number. So as the parent of that group exemption number it's our responsibility to ensure an accurate and full accounting of funding for all chapters and all departments. At this time as I promised and mentioned previously to many of you we will have the opportunity to address a few questions. Those of you that have logged on and are participating if you'll notice on the go to webinar box about three quarters of the way down that box you will see a chat link. If you click on that chat link the down arrow that will open up a window for you to type a message and you can certainly present any questions that you might have that I haven't already addressed or if you need further clarification on something that I mentioned. You can certainly type your message there send it to me and I'd be happy to address it and I noticed that there have been a few folks that have already identified that chat feature and have sent in a few questions already so let me just try to get for those here real quick while others might be composing their questions to be sent to me. Receive the question. Why do we need to provide detailed information for veterans we provide grants to on the service charitable expense schedule and they're referring to. The schedule that is provided along with the annual financial report to list all of the expenditures for line 14 on the annual financial report. One of the very last portions of that schedule. Ask for the listing of grants made to homeless or needy veterans and it also asks for the attachment of schedule by name and amount granted. And of course it's in the best interest of DAB at any and all levels to know where our funds are being provided in an effort to fully understand the needs of each chapter. And their chapters communities and also probably more importantly to have a method to validate the claimed expenditures of a chapter or department. So information we're looking for there is is simply we provided $500 to John Jones to pay his rent for the month. Or we provided $1000 to replace the transmission of Sarah Jones. And again, we don't need to go into detail in terms of that great of a detail in terms of information from the veteran that we are assisting. Just their name, the amount granted and what the grant was for would be sufficient. Have another question here. Why is it important to list donated goods such as wheelchairs or other items that we've received on our AFR? That's actually a very good question and probably most importantly is we must always give credit to our donors for any gifts that they provide to DAB, whether it be cash. Or donated items that we can otherwise accept and in turn turn around and provide to a disabled veteran or their family. So that's probably first and foremost why it's most important. So we give credit to an entity for providing a donated item to DAB. We have to reflect that on our books as income and then of course we have to reflect the expenditure once we donate that item to a veteran or their family. So we have to acknowledge their gift for their tax purposes obviously. Likewise, when we provide or when a donated item is provided to DAB such as a power wheelchair, that has a monetary value associated with it that the donor can use for their own tax purposes. Remember we should and must also fully report everything that is service related in order to fully take credit for our efforts as a chapter or as a department for our good works in the community. So unless you account for it as income and unless you include it as an expenditure on line number 14, nobody's going to have any idea that the chapter is receiving these kinds of donated goods and in turn making those donations to needy veterans or their families in the community. I'll see you next question here. Question is why are we required to provide recognition letters from donations we make to VA and state veterans homes. Again, it's a matter of validating donations made by chapters and departments and really to help keep everyone honest. More importantly, it's a matter of good record keeping and being able to justify expenditures to the members of the chapter. And also members of the audit committee should also be looking for this information during their audit of the chapter or the department's annual financial reports each and every year. So as just like DAB does at all levels at the chapter level of the department and the national level, if we receive a monetary donation, if we receive a donation of a durable medical good or something, we have to provide a recognition letter to that donor noting their donation for tax purposes. Just like our responsibilities, the responsibility of the VA or a state veterans nursing home to recognize the gifts that we provide as an organization. So if the chapter makes a thousand dollar donation to VA medical center for a new television for the rec room, the VA is obligated to in turn recognize that gift to DAB. And further, that just simply validates what is being reported on the annual financial report that the chapter did in fact make a $1,000 donation to the VA medical center. See, next question here, that was this one just came in. Can we provide a copy of a canceled check if we don't get a letter from VA? I'm assuming that that's associated with the issue that we just addressed if the chapter of the department does not receive a recognition letter from the chapter from the VA or the state veterans nursing home. Certainly, we would accept a copy of a canceled check showing or validating the issuance of a donation to whether VA, VA medical center or state veterans nursing home. So that would certainly be acceptable as well. This next question that came in, can we make donations to other organizations? As I mentioned previously, it all depends. If the donation is being made to support DAB's federally chartered purpose of serving ill and injured veterans and their dependents by we have supporting a particular program, then yes, we certainly can. What we cannot do is provide general donations to other organizations, be it other veterans service organizations or otherwise. We always have to be able to justify to our donors that we're good stewards of the funds that they provide to DAB at all levels. And so that being said, again, we have an obligation to spend our donors money on their intended programs of service. And that being said, it should be related to our service programs, our VAVS programs, our DV transportation network program, our transition service officer programs, our special events and activities programs like the Winter Sports Clinic. The National Veterans Tea Tournament that we're involved in. The only time that it would be acceptable to, as I mentioned previously, make a donation and I'll just give an example, maybe to help clarify it a little bit. Let's just say that there's another service organization in town that is hosting a homeless veterans stand down. And that other organization has come to DAB and asked for a $5,000 donation to provide meals or provide purchasing socks or toiletry items for the stand down. That would be an absolute, that would absolutely be fine to support and provide the donation to that other service organization specific for that purpose. We oftentimes see on annual finance reports and cringe often where donations have been made to other organizations just as a general donate donation. And unfortunately, many of these organizations, these other nonprofit organizations that funding is being provided to by way of a grant or donation from a chapter department have absolutely nothing to do with veterans. Many times we see donations to the local police fraternity or the local firefighters union or the Boy Scouts, Girl Scouts, churches. You know, again, these are organizations that have absolutely nothing to do with our federally chartered purpose and the quickest way to lose the support of our very generous donors in the communities at all levels would be to have it be made known public that DAB is making donations to organizations other than to support programs of service to disabled veterans and their families. The mindset is, in the donor's perspective anyway, is if I wanted my money to be given to a church if I wanted my money to go to the firefighters union or the local police fraternity fraternal or police. I would have given my donation directly to them. I didn't I wanted it to go to DAB to further support DAB's mission of providing free programs of service to ill and injured veterans and their families so I hope that helps clarify that issue. At this time, I don't have any other questions that have come in. However, if there are some questions that you have that either you didn't want to ask publicly via the webinar, certainly feel free to email your question to me at department at DAB.org and I will work for the next several days and reply into each and every one of those questions that you may or may not have. And certainly as always, do not hesitate to reach out to me or April Pierce here at our national headquarters. I'm going to assist you in the completion of your annual financial reports while you're actually in the progress of completing them. We certainly want to ensure that when you're completing them, you're providing accurate information the first time so that when you submit it to the department, it's accurate, it's correct. If you're submitting it to the national organization, it's accurate and correct and all the information is there that's required so we don't have to come back to the chapter later or come back to the department later and ask for further supporting documentation or other ones. So, again, I want to I hope this information was useful to you. I want to thank each and every one of you for your time and your commitment to DAB and your interest in this topic and I will certainly see you in Orlando for those of you that are attending our national convention coming up here in just a few short weeks. If you are headed that way, safe travels, and we will see you in Orlando. Again, thank you for participating.


Thank you, Presiding Officer. It's strengthening Scotland's economy so that it benefits all—in fact, say in those words—that's a very definition of inclusive growth. It's front and centre of what the Government is all about, and we are using all the levers at our disposal. Recent data shows that the economy is growing, though we want it to grow at a higher rate. The number of people on employment is at a record high, and unemployment is at a joint record low. Cities and their regions are the engines of our economy. Increasing jobs, investment and employment in our city regions will drive up national economic growth. City region deals are one of the key economic levers. 83 per cent of Scotland's population—that's 4.5 million people—live in the areas covered by existing or planned city region deals. To the latest figures in 2015, that same area equates to 86 per cent of Scotland's total GVA and 2.2 million jobs—85 per cent of total Scottish jobs. The investments that we have made in city region deals can be transformational. They will benefit Scotland as a whole, creating tens of thousands of jobs and upskilling labour markets. But deals can do much more than that. They can galvanise key partners to come together to drive regional economies in ways that go well beyond the investments that they deliver. So far, we, the Scottish Government, have committed over £1 billion over the next 10 to 20 years for city region deals in Glasgow, Aberdeen, Inverness and Edinburgh. Our investment exceeds UK Government investment in those deals. Indeed, the SG, the Scottish Government, is the biggest funder of city region deals in Scotland. Those deals are based on proposals developed by cities and their partners, harnessing local intelligence to identify what is needed to unlock inclusive growth. City deals are important investments, and they can attract significant private sector leverage. However, we have to see them in context. Over the last five years, local government in Scotland has received over £3.5 billion capital funding through the local government settlement. The Government itself has made significant investment to transform Scotland's infrastructure, with more than £4 billion being committed for 2017-18 alone, including the Queensferry crossing, the Aberdeen-Western peripheral route, the A9 dualling programme and rail improvements between Edinburgh and Glasgow. To cap at that list of deals, we have had three years where we have seen four deals. That is solid progress where we are making those deals, but it is also an expression of our commitment to deals for all our cities. Today, I want to confirm to Parliament that the Scottish Government will support city deals for Stirling and Clifmannanshire and for the Tay cities, which will be the first two-city deal in Scotland. In addition, I want to try to seek clarity and achieve consensus where possible with other partners on how all of Scotland can benefit from the deals that we strike. The first deal, of course, was Glasgow. It is now in its delivery stage. Along with the UK Government, we are supporting £1.13 billion of investment in Scotland's largest city and region, which is levering in around £3.3 billion of private sector investment. In Aberdeen, we are investing £125 million over the next 10 years, matched by a new UK Government to deliver projects including a new oil and gas technology centre and harbour infrastructure. We were clear when we struck that deal that more was needed for the north-east, so the Scottish Government alone committed to investing an additional £254 million in transport, digital and housing. I signed the Inverness and Highlands City region deal in January, committing up to £135 million over 10 years as part of a £315 million package. That investment will deliver jobs, it will also drive innovation and attract greater private sector investment, as well as, crucially for the Highlands, help to retain the young people who have the lifeblood of the region's future. In Edinburgh, after some hard negotiations with the UK Government to encourage them to match our ambitions, we signed a heads of terms agreement in July to invest £300 million over the next 15 years in the Edinburgh and South East Scotland city region deal as part of a £1.1 billion package. That is where we are and we plan to go further. The Enterprise and Skills Review, which the chamber has discussed on a number of occasions, was published in June. We set out then our commitment to support the creation of regional partnerships across the whole country. Our national economic development agencies have been challenged to align regionally to support regional partnerships, and they have been proactive in doing that. We are very clear that future city and regional deals would be expected to use our inclusive growth model to prioritise their investments and monitor their progress. We are also very clear that private sector involvement in the partnerships is absolutely crucial, and that any Scottish Government—and I think that that is also true for the UK Government—will make their funding contingent upon the involvement of the private sector. In each of the deals that I have talked about earlier, we have leveraged private investment to support regional development, and I am delighted with that. I am sure that we can do even more. The private sector has to be an engaged partner, providing drive and direction to our regional economies. In parallel, and very importantly, the Equality and Human Rights Commission is working with us to maximise the equality of opportunity within the city region deals. As I have said, we intend to achieve city region deals for sterling and club manager and for the taste cities of Dundee and Perth, alongside their partners in Angus and the north of Fife. Officials are now working with both sets of regional partners and with the UK Government, so that we can reach heads of terms agreements as soon as possible. I will continue to press the UK Government to match our commitment to transform those regional economies. Of course, our policy approach cannot be just about cities and the regions. It is important, extremely important, though they are. For our economy and all of our people to flourish, we need inclusive economic growth in all of Scotland, especially outside the traditional growth areas. Inclusive growth, as I said at the start of the statement, is about opportunities for everybody. To that end, we have said that we are supportive of a growth deal for the three Ayrshire councils, which would be the first regional deal in Scotland. Ayrshire's economy has lagged behind national growth for too long, and it is time to take decisive action. We are determined to deliver a deal that will bring jobs and investment to the area to reduce unemployment and to reinvigorate the local economy. We are also committed to tackling the economic challenges that are faced in the south of Scotland, so as well as our commitment to establish a new south of Scotland enterprise agency, the First Government, to do so, we are looking at a borderlands inclusive growth deal, and we are now entering into detailed discussions with Dumfries and Galloway and Scottish Borders to explore a deal that supports their aspirations. We have also had discussions with Murray, Falkirk, Argyll and Bute, and each of those has growth proposals, while Orkney, Shetland and the Western Isles, of course, are seeking an islands deal. From the Scottish Government's point of view, I am willing to play my part and to work closely with the UK Government to agree the next phase of deals. To this juncture, at least, we have had good co-operation previously with Andrew Dunlop when he was in post, but I am now calling on the UK Government to play their part, to match our commitment and to support inclusive economic growth for all of Scotland, and crucially to develop a coherent and planned programme. It is not clear to me, in different parts of Scotland, what role the UK Government wants to play, and it is useful to us to know that before we proceed with any further deals. I have given a clear picture of our plans today. Our existing deals are delivering jobs and investment for Scotland. The £1 billion that is committed so far to city region deals is a clear signal that we respect the knowledge of regional partners who are best placed to identify what is needed to unlock inclusive growth in their regions. The point is that the cities and their partners who come forward with the proposals of necessity both ourselves and the UK Government have to prioritise which ones we accept and support, but it is they who come up with them in the first place. It is not proposals put forward by either of the two Governments. We are also expanding our regional economic policy to go beyond city deals and will support the creation of regional partnerships across the country. However, I want to have a clear commitment from the UK Government that they will work in partnership with us to deliver transformational city region deals for Stirling, in Clomannanshire, for the T cities and to go further to the other areas that I have mentioned. We also, if we are to meet the aspirations of the industrial strategy, and I have said repeatedly that I am willing to work with relevant UK ministers to help in that regard, I would call on the UK Government to help develop a co-ordinated approach to all of Scotland, including working with us in relation to all the areas such as the Ayrshers, Argyllun Butes, Murray, Falkirk, the Borderlands and the Islands. I make the commitment from my part and on behalf of the Scottish Government to work collaboratively with all of our partners to ensure that we get the best deal for cities, for regions and, of course, for the whole of Scotland. The minister will not take questions. I thank the cabinet secretary for advance copy of his statement. We welcome the on-going collaboration between the UK and Scottish Governments in relation to the city deals. City deals represent an opportunity for transformational change in the regions that they cover. That is to be encouraged, because Scotland's economy continues to struggle under this S&P government, as shown by yesterday's economic figures showing growth of only 0.1 per cent for the second quarter. 0.1 per cent growth might be good news according to Keith Brown, but let me make it clear that it is not good enough for Scotland. With official forecasts for Scotland's economy showing that this underperformance under the S&P will continue in the years to come, let me ask the cabinet secretary two things. Can the cabinet secretary explain how the Scottish Government plans to use the city deals to deliver higher levels of economic growth across Scotland? Can the cabinet secretary clarify with respect to the sterling and click mannisher and the Tay cities deals when the government expects heads of terms to be finalised and what the level of investment will be from the Scottish Government with respect to those two city deals? It is indeed astonishing that the Tories are now crept back to the position of pretending that the UK Government has no role in the Scottish economy. It is absolutely—I defyce belief that people are meant to have a level of intelligence about economic debate and still think to this position. Dean Lockhart, of course, famously did it when he declared before the last GDP that came out. That was all on the S&P shoulders. Afterward, when it was three times the growth of the UK, it was suddenly both Governments that were involved. We are now back to one Government only being involved. When we have that level of myopia on the part of the Tories, we are not going to get that joint working that we need to have. Thankfully, some of their colleagues in the UK Government are a bit more economically savvy and realise the role they have hence the industrial strategy, hence the shared prosperity funding that has been announced. In relation to the city deals, I laid out some of the ways in which we hope to achieve exactly that, how we intend to achieve economic growth by some of the measures that we have taken. They are varied. They are more varied than the later city deals. I think that that is fair to say. They have developed over time. In relation to Stirling and Clugmanushire, both in terms of the consum and timing, we want to do this as soon as possible, but both things depend on all partners coming together. Whether councils are involved, or their partners, whether it is the UK Government or the Scottish Government, nothing is agreed until it is all agreed. One of the things that leads to the idea of the total amount that is available will depend, because the UK Government has put the stricture of trying to make it balanced as much between reserved and devolved issues, which it had no regard to when it struck a deal with the DUP putting in over £1 billion for strictly devolved issues, but in relation to the city deals in Scotland it will only fund reserved issues. That helps to determine the quantum that is eventually agreed upon. We are in the process of discussing that with both the UK Government and Stirling and Clugmanushire councils. Jackie Baillie will be followed by Bruce Crawford. I thank the minister for an advance copy of his statement. There is much on which we can agree. Scottish Labour believes that cities in their regions are the engine rooms for growth. We welcome all city region deals and area growth deals, and we believe that regional partnerships are good. However, where I park company with the cabinet secretary is about the state of our economy, because growth in the economy was just 0.1 per cent for the last quarter. It is not good news. Let me contrast that with the UK, because over the course of the year growth in the Scottish economy has been less than 0.5 per cent, while it is 1.5 per cent across the UK. The employment growth that it outlines, while welcome, is predominantly in part-time, temporary jobs, many of them on zero-hours contracts as part of the gig economy. I feel that we can and should do better. Let me ask the cabinet secretary what is the percentage level of growth that he thinks the city region deals will deliver, how many jobs will be created, what constitutes success and how will he measure it so that we know what it looks like. Finally, does he believe that this is a positive example of pooling and sharing resources across the UK? On the last point that Jackie Baillie raises, I would say that if that was done on an equitable basis, of course it would be a positive example. However, when you have a situation where the Government announces out of the blue that they are going to put over £1 billion into one part, one devolved part of the UK for strictly devolved purposes, then it is not being done in a fair and transparent basis. I think that that much is evident. Of course, it is good that we are working collaboratively. We have sought to do that, we will continue to do that, but it is not being treated the same way in different parts of the UK, and that is unfortunate. In her preamble to her question, she mentioned GDP. The simple fact is that over the past six months Scotland's GDP has increased by 0.7 per cent in the UK, it is 0.5 per cent. If she was wrong in her general assumption, she was also wrong, of course, in her description, if she cares to listen to what I am saying. She was also wrong in relation to the part-time workers. Part-time workers in Scotland represent a smaller proportion of those in employment that they do down south. There are more people who want to work part-time in Scotland, rather than more people who have to work part-time, as they are seeing in the rest of the UK. She did not mention, as she could have mentioned, that we have more businesses in Scotland than ever before. We have the second highest fund-direct investment here in Scotland. Each of the individual city deals will have, as they have come forward with the proposals, estimates of the amount of jobs growth, and they will have to be aggregated when we get to the end of the processes. At that point, we can give a sum total of the ambition that is encapsulated in all the deals that we do. However, we are still some way from knowing how many deals and what the basis of those deals were. For that reason, we need to get clarity from the UK Government. What is going to be their approach in Murray and Argyll and Bute? Are we going to be working together or not? We have said that we are willing to do that. If the UK Government says the same thing, then we can proceed. Bruce Crawford will be followed by Murdo Fraser. Thank you, Presiding Officer. I very much welcome the statement today by the cabinet secretary and the Scottish Government's clear commitment to ensure a successful outcome for the Stirling-Clack City region deal. Can the cabinet secretary please provide me with an update on how effective the working relationship has been between the council, the Scottish Government and the UK Government? What are the estimated timescales for successful delivery of the deal that is vital for the future, not only of the fabulous city and its fantastic surrounding rural communities in Clackmannshire? Is it a pity that Dean Shield has just concentrated on political pointscoring rather than talking about the Stirling-Clack City deal? Perhaps a pity has been a surprise. In relation to the Stirling-Clackmannshire region deal, we have constructive relationships with both the councils involved. One area in which we have seen some welcome flexibility is in relation to the fact that the UK Government, as I mentioned previously, now seeks to concentrate on reserved functions, not exclusively. There have been one or two exceptions to that. If that is the case, that creates a dilemma, not just in terms of Stirling-Clackmannshire, but also in the two cities deal. We will not be too stringent in applying that to each constituent part of the city deal. If one area has more reserved than devolved, as long as it balances up across the entire city deal, we have said that we would do that and made that suggestion. The UK Government, to its credit, Lord Duncan, or as he prefers to call himself, the Blue Baron, has said that he is also willing to support that as well. If that is the case, we can see a flexible approach being developed. In terms of the timescale, we have in place what we need to proceed to a deal in terms of the Scottish Government authority. I think that I am writing on understanding that the UK Government feels that it has to go through a budget statement or an autumn statement and make a statement at that point before it will proceed further. We are ready to go. I am not convinced at this point that both councils are ready to go with their proposals. I am not sure that the UK Government wants to proceed ahead of making that statement, which may well come in the next opportunity that it has, they call it a financial event. There is nothing that is holding us back from just getting those proposals finalised. As soon as we can get on with it, it is better for all concerned. Murdoff Rees is here to be followed by Mark Ruskell. The cabinet secretary mentioned in his statement that private investment had been levered in to the various city deals. Is he able to give us any figures for how much that amounts to? I can give a couple of examples. Perhaps, if he wants more detail, I can write to him on that detail. Perhaps the biggest contribution that is made through the Aberdeen Harbour Trust is £400 million. What we have done and the UK Government has supported that by some of the infrastructure works, which can make sure that we maximise that. The other deals have been more of a feature of the later deals than it has been of the earlier deals. We were not hugely involved in the development of the city deal that we committed half the money towards at half a billion pounds. We and the UK Government had, I think, it is fair to say, to put quite a bit of pressure on to make subsequent deals include private sector partners and will continue to do that with the future deals. I think that you will see in relation to the Stirling and Clutmanushire deal that there have been relationships developed with private sector partners like Codebase and others, and we welcome that. I am happy to give them the total of all the private sector involvement, but perhaps the biggest example of that would be the Aberdeen city deal and the Harbour Trust putting in £400 million. Our minister, there are 10 minutes left for 10 questions, just to be slightly brief with the answers. Mark Ruskell will be followed by Liam McArthur. Thank you, and I thank the cabinet secretary for advance copy of the statement. Clearly, city deals can be a strong driver for investment in low-carbon infrastructure and inclusive economic growth opportunities that come alongside that, but with the Edinburgh city deal, we saw proposals to support feasibility work on the Fife rail projects dropped. How will the Scottish Government ensure that feasibility work on St Andrews and Nubra rail re-opening is supported through the Tay cities deal, and does the cabinet secretary see opportunities to deliver feasibility work on the Stirling to Dunferman route through the Stirling and Clax deal? First of all, I reiterate the point that we have to take the deal that is proposed to us, and we decide which ones we will support. If the council does not put the projects that he has mentioned to us, we cannot be considered. I think that my colleague, Cymru, has already said different ways in which the leave-a-mouth rail link could potentially be taken forward, and he has addressed the chamber on that issue. However, as in terms of the other deals that are mentioned, whether it is in St Andrews or Alaw at Dunfermline, it would be down to the councils themselves to bring those forward. If they do bring them forward, we cannot guarantee to fund those things, but we can guarantee to look at all the projects that are submitted. Liam McArthur will be followed by Gail Ross. I thank the cabinet secretary for early sight of his statement and welcome confirmation of the on-going discussions with the island authorities about a possible islands deal that I hope will help to address, among other things, the need for improvements in internal ferry services. Can the cabinet secretary also confirm that the Scottish Future Trust will continue to engage proactively with the island authorities on the development of those proposals? Can he also ensure that a specific official within his department is assigned responsibility as the primary point of contact for the island's authorities in this process? Yes, on both the points that Liam McArthur seeks assurance on, first of all, in terms of the engagement of SFT, they do that in any event with all local authorities, where local authorities express a need for some support in relation to mainly estate matters but other financial matters as well, and yes, they will remain engaged in relation to that. In terms of the official, if it is not known already, there are two officials here in the chamber who are very key involved in all those city deals. I will make sure that both the councils importantly and Liam McArthur are made aware of the name of the official. Gail Ross, to be full by Pauline McNeill. Thank you, Presiding Officer. My constituents in Caithness, Sutherland and Ross have a perception that the Inverness City region deal is largely being used in Inverness, as opposed to supporting infrastructure and projects in remote and rural areas. What support does the Scottish Government give the local authority to make sure that the deal benefits the region as well as the city? I think that, first of all, with the caveat to Gail Ross, I have mentioned to others, we take the projects that local authorities and their partners bring forward. We do not seek to go behind that and suggest and propose projects, but given the point that she has raised, I think that two examples. First of all, the investment in the Highlands deal for the Science Skills Academy will provide young people with state-of-the-art teaching hubs for STEM subjects right across the region, and also the new innovative living project will deliver supported homes for people right across the region. Amongst other things, connectivity, as Gail Ross knows extremely well, is a huge issue in the Highlands, and helping to realise that Highland Council's ambition to be the best digitally connected rural region in Europe was behind some of the decisions that we, too, in terms of the digital projects that we are supporting in that deal. Pauline McNeill, to be full by Cath Gibson. Can the cabinet secretary confirm to Parliament that the access to Glasgow airport will be state-of-the-art and will be delivered by 2025? Can he confirm whether he or the Minister for Transport has met the new leader of Glasgow City Council to discuss delivering the key project for Glasgow City region? It may be helpful to Pauline McNeill if I lay out the basis on which the deals are made. The deals are made with support from the UK and Scottish Governments, but it is for the councils and their partners to bring forward the projects themselves. We have a role in what is called the assurance framework in trying to make sure that business cases are as robust as they can be, but it is for councils and their partners to bring forward those projects. Yes, there have been on-going discussions for many years on this issue, both myself and both of my predecessors involved with Glasgow City Council, both in its previous administration and in the new one. I welcome the cabinet secretary's commitment to Ayrshire and his statement. Can he advise the chamber what progress has been made in discussions with the UK Government on the delivery of the Ayrshire growth deal? It is the support of all three Ayrshire local authorities and the SNP Government, but it requires £359.8 million from the UK Government to bring it to fruition. At the request of the three Ayrshire authorities, we asked the UK Government, because the councils could not get a response if they wanted to be part co-partners in an Ayrshire growth deal, and the response was negative from the UK Government. However, since that time, they have, somewhat out of the blue, supported the Halo Cymarnic project to a lesser extent than the Scottish Government, but they have supported that. As things stand, my understanding of the UK Government is that they do not want to be part of that Ayrshire growth deal, although it may well be the case that the support is forthcoming for different projects through the industrial strategy. Discussions on the deal between the Scottish Government and regional partners began earlier this year, and we are currently working closely with those partners to understand their full ambitions for their deal. Brian Whittle, before by Colin Smyth. I start by thanking the Scottish Government for following the UK Government's lead in matching the £3.5 million investment in the Halo project in Cymarnic, in addition to the £1.8 million from the low-carbon infrastructure transition programme for the geothermal district heating system. Given that other projects within the Ayrshire growth deal are already approaching shovel readiness, and my on-going discussions with the UK Government suggest that they are ready and willing to move to the next phase, it is clear that decisive action and formal commitment to investment from the Scottish Government would accelerate that process and demonstrate a meaningful commitment to the Ayrshire growth deal. So is the Cabinet Secretary prepared to quantify that financial commitment to the people of Ayrshire? I notice that there was no quantification of this apparent deal that the UK Government is willing on the verge of agreeing when if you ask the councils involved, certainly if you ask the Scottish Government, the response from the UK Government has been to say, no, we will not be part of an Ayrshire growth deal. Interesting if the position of the UK Government is now to be revealed by a backbencher from the Conservative Party in this Parliament. Just to be clear about the Ayrshire Halo Cymarnic project, of course, the Scottish Government put in £5.3 million as opposed to the £3 million. The reason that Brian Whittle can say that we followed the UK Government is because any collaborative working broke down completely, a pure isle attempt to get a headline to go ahead with it before the due diligence was done led to the UK Government announcing instead of working with the Scottish Government to get a conjoined announcement.  Okay, okay. Members will behave please. Colin Smyth will be followed by Ben Macpherson. Thank you, Presiding Officer. Not quite yet, not quite yet. A few more minutes. Colin Smyth, Presiding Officer. The cabinet secretary will be aware that local councils in the borderlands—I'm freezing Galloway, Scottish Borders in Scotland and Calil, Cumbria, Northumbria and England—have been working together for some time to develop a borderlands growth deal. Given the cabinet secretary's comments and his statement about inclusive growth and his pledge to work closely with the UK Government, will he give a commitment today that the proposals for a borderlands growth deal will be considered as part of the Scottish Government's budget process this December? Will he encourage the UK Government to ensure that the proposals are considered as part of its budget in November, so that we see investment in the economy of the south of Scotland sooner rather than later? I think that, first of all, we have to see those proposals and have the chance to consider them. That's the only responsible thing that the Government can do. Of course, we have said that we're supportive of the idea of a borderlands deal. It does raise the anomaly of the fact that, of course, Scottish Borders, if that's agreed, will have had two deals when parts of Scotland have had no deal, so that's what underlies my point about trying to get a bit of coherence about that. However, we have said in good faith that we will look closely and sympathetically at the proposals that are made, but we have to have time to consider that. People will expect that, if we're about to make a financial commitment, we do it in the right terms for the taxpayer, but that willingness to work with the borderlands proposal is there and is on the record. To ask the Scottish Government how its investment in the Edinburgh and South East Scotland city region deal will benefit the whole area, but particularly in regard to how it will increase the housing supply? Given the shortness of time, if I can focus on the last part of Ben Macpherson's question, the commitments will include providing £50 million of investment in loans to unlock housing in seven strategic sites across the region, guaranteeing on a risk-sharing basis up to £150 million of investment to unlock up to 5,000 new homes in Winchborough and supporting the City of Edinburgh Council to establish a new regional housing vehicle to deliver a minimum of 1,500 homes with the Scottish Government committing £50 million capital grant and a consent to on-lend up to £248 million real support for housing in Edinburgh. Will the cabinet secretary update us on the prospects for the decommissioning of oil and gas infrastructure being part of the city's deal? Bill Bowman knows the details of that. All I can say is that we are considering the details of that. There are a number of proposals made from different parts of the country in relation to decommissioning. I remind people that 90 per cent of decommissioning work comes to the UK, a large proportion of which comes to Scotland. Most of that is plugging and abandonment, not so much the decommissioning of big rigs, but we want to have that business as well. We will support initiatives that will bring that business to Scotland. In terms of the cabinet secretary's reference to those areas out with the city region deals, can I welcome his comments to write with regard to Murray? Can you reflect on his recent meeting with the Murray council and elaborate on what steps have been taken to ensure that the UK Government is co-ordinating with the Scottish Government so that there is no undue delay? Cabinet secretary, without too much elaboration. As Richard Lochhead mentioned, I met the Murray council on 14 September. I think that there has been a collaborative approach so far, but one thing that is fairly obvious is that when you get a list of things that are largely in the devolved sector, then what that does is limit the potential for a deal. If the UK Government wants to come on board, if it wants to stick with reserved areas, then the most balanced proposals are the ones that are likely to get the greatest support. I have said to Murray council at that time that we are very happy to work with them and develop the proposals that they are currently working on, and we hope that the UK Government will be a partner in that as well. I thank the members for their contributions and the cabinet secretary for getting through all those points. I would like to put the record straight. I am obsessed with a family and athletic football club when I referred to Dean Schieles earlier. I should have, of course, referred to Dean Lockhart. I apologise to Dean Schieles. Of course, Dean Lockhart. The point was noted by the chair, and I think that the member was probably flattered to be compared to Dean Schieles. We will now move on to the next item of business, which is a debate on motion 8062, in the name of Roseanna Cunningham, on stage 1 of the Wild Animals and Travelling Circuses Bill. We will just take a few moments for members to change seats.


My name is Sam Vaknin, and I am the author of Malignant Self-Labbi, Narcissism Revisited.  Such paranoia serves two psycho-dynamic purposes. It upholds the narcissist's grandiosity and his inflated self-image on the one hand, and on the other hand, it fends off intimacy, which he dreads. Start with the grandiosity-enhancing type of paranoia. Being the target of relentless, ubiquitous, and unjust persecution proves to the paranoid narcissist how important and feared he is. Being haunted by the mighty and privileged validates his pivotal role in the scheme of things. Only vital, weighty, crucial, essential people are thus bullied and intimidated, followed and harassed, stalked and intruded upon, goes the narcissist in an unconscious dialogue. The narcissist consistently baits authority figures into punishing him, and thus into upholding his delusion of self-image as worthy of their attention. This provocative behavior is what we call projective identification. The paranoid delusions of the narcissist are always grandiose, cosmic, or historical. These pursuers and persecutors are always influential and formidable. They are after his unique positions, or they are out to exploit his expertise in special trades or occult knowledge, or they are there to force him to abstain and refrain from certain actions which endanger them or their interests. The narcissist feels that he is at the center of intrigues and conspiracies of colossal worldwide magnitudes. Alternatively, the narcissist feels victimized by mediocre bureaucrats and intellectual dwarves who consistently fail to appreciate his outstanding, really his unparalleled talents, skills and accomplishments. Being haunted by his challenged inferiors, substantiates the narcissist's cooperative superiority. Draven by a pathological envy, these pygmies collude to defraud the narcissist, badger him, deny him his due, denigrate, isolate and ignore him. The narcissist projects onto this second class of lesser persecutors his own deleterious emotions and transformed aggression. He attributes to them the very negative emotions that see the inside himself. He says that they are hateful, they are rageful, they are teeming and seething with jealousy, but actually this is exactly what's happening inside him. Narcissist's paranoid streak is likely as to erupt when he lacks narcissistic supply. The regulation of his labious sense of self-worth is dependent upon external stimuli, adoration, adulation, affirmation, applause, notoriety, fame, infamy and in general attention of any kind. When such attention is missing, lacking, deficient, the narcissist compensates by confibrillating. He constructs ungrounded narratives in which he is a protagonist and he uses these stories, these narratives, these fictions to force his human environment into complicity. Put simply, the narcissist provokes people to pay attention to him by misbehaving, or by behaving oddly or eccentricly, or by claiming that he is the victim of conspiracies. And then there's the intimacy retarding paranoia. Paranoia is used by the narcissist to ward off something he dreads, which is intimacy. The narcissist is threatened by intimacy because it reduces him to ordinariness by exposing his weaknesses and shortcomings and by causing him to act like everyone else, normally. The narcissist also dreads the encounter with his deep buried emotions, hurt, envy, anger, aggression, likely to be foisted on him in an intimate relationship, so he seeks to reverse intimacy once it has happened or to avoid it altogether. The paranoid narrative legitimizes intimacy-repelling behaviors, such as keeping one's distance, secrecy, aloofness, reclusion, aggression, intrusion on privacy, lying, desultoriness, itineracy, unpredictability, and idiosocratic or eccentric reactions. All these are fully justified when one finds himself at the center of a conspiracy or persecution. Gradually, the narcissist succeeds to alienate and wear down all his friends, colleagues, well-wishers, and mates, which is precisely what he wanted. The narcissist wants to be left alone. Even his closest, his nearest and dearest, his family, feel emotionally detached and burnt out after a certain period of time. The paranoid narcissist ends his life as an oddball recluse derided, feared and loathed in equal measures. The narcissist's paranoia, exacerbated by repeated rejections and by the process of aging, pervades his entire life and diminishes his creativity, adaptability, and functioning. The narcissistic personality, buffeted by paranoia, becomes ossified and brittle. Finally, atomized, isolated, and useless, this personality succumbs and gives way to a great void. The narcissist is consumed and is no more.