The Holyrood Audit Committee has published a report into the finances at Registers of Scotland which forecasts continued deficits for the organisation as a result of the property downturn.

The report notes that whilst Registers of Scotland is self financed through registration fees, its income had diminished in financial year 2008-2009.

“RoS incurred a large operating deficit in 2008-09 and it plans further deficits in future. The deficits are larger than previously forecast as a result of the economic downturn,” report author Robert W Black, the Auditor General for Scotland said.

“However, RoS intends to use its accumulated reserves to meet the planned deficits and to continue to develop and improve its services in line with its corporate plan. RoS will need to continue to manage its income and expenditure plans in the light of future market movements to ensure that its plans remain realistic and supportable. I will continue to monitor RoS’s performance in the years ahead and, if conditions merit it, I may consider a further report to Parliament in due course.

The audit notes that Registers incurred an operating deficit of £10.6 million, compared to a budgeted surplus of £4.1 million. The deficit was met from its reserves, which amounted to £122.5 million at March 2009.

The Keeper of the Registers, Sheenagh Adams told the Audit Committee that the level of reserves had grown quickly, due to the expansion of the property market in the early to mid part of this decade, when house prices rose and there was growth in the remortgaging market.

She said that the reserves policy is designed to manage fluctuations in the property market, to ensure that it can invest in improving the registers and cover any indemnity claims made against the Keeper.