The cross-party committee delivered its verdict after examining the department's annual report and accounts for 2011-12.
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Mr Mercer was giving evidence on Scottish Water's Annual Report and Accounts 2011-12 on 14 November 2012.
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The usual small interval between the publication of the annual report and accounts and the meeting makes it hard to mount opposition.
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Most of these traders reported their annual income and loss on these accounts, but did not file an FBAR annual report with the Treasury.
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