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Seòmar agus comataidhean

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 4 May 2021
  6. Current session: 13 May 2021 to 5 February 2026
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Displaying 3715 contributions

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Public Audit Committee [Draft]

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

We have time for one final question, and I am going to indulge the deputy convener.

Public Audit Committee [Draft]

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

I welcome people back to the Public Audit Committee. Agenda item 3 is further consideration of the 2023-24 audit of UHI Perth College. I am very pleased to welcome our three witnesses: Dr Margaret Cook, former principal and chief executive of the college; Graham Watson, former chair of the college board; and Iain Wishart, the former vice principal for operations. I think that you were all in post during the financial year in which the audit was conducted. We have a number of questions to put to you, but I give you the opportunity, before we get to those questions, to make some opening remarks.

Public Audit Committee [Draft]

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

Okay. We will come on to some of the detail of that.

Dr Cook, I think that you mentioned this in your opening statement, but did you see the Auditor General’s evidence session at this committee on 8 October?

Public Audit Committee [Draft]

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

I wish to pick you up on your expression that this was just a snapshot in time. Given your professional background, do you recognise the point made in paragraph 18 of Audit Scotland’s report that weaknesses in the financial team went back to 2018? Do you recognise that the annual audit report from Deloitte, the external auditors, said:

“In response to the significant risks identified, no reliance was placed on the work of internal audit and we performed all work ourselves”?

That suggests to us that there was quite a systematic long-term problem.

11:00  

Public Audit Committee [Draft]

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

I will turn to you again, Dr Cook. Paragraph 4.8 of the UHI Perth financial regulations, which have an effective publication date of June 2021, says:

“The College Principal is responsible for the detailed administration of the College”,

including various headings, which we can explore. One of them is that

“The College has a sound system of internal management and control, including an audit committee”

and

“an effective internal audit service.”

It has been suggested to us that that did not exist.

Public Audit Committee [Draft]

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

We will get into more detail as the morning progresses. I invite Colin Beattie to put questions to you.

Public Audit Committee [Draft]

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

We are the Public Audit Committee and we are not talking here about an ideal world; we are talking about a world where there is some accountability. Even your own document, the June 2021 UHI Perth financial regulations, which I presume was signed off by the board, says that the very first responsibility of the finance director—it is bullet point 1—is

“preparing annual budgets and financial plans”.

Public Audit Committee [Draft]

“The 2023/24 audit of UHI Perth”

Meeting date: 3 December 2025

Richard Leonard

Thank you very much. We have heard quite a lot of useful evidence this morning and I think that you have been given an opportunity to put on the record some things that I know you feel inject some more balance into our committee considerations. As the deputy convener said, we very much appreciate you taking the time to come in and give us the benefit of your experience and your perspective on the Auditor General’s report.

As I said at the outset, in January 2026, I think, we are due to take evidence from some of the people who have taken your previous positions, as well as from the Scottish Funding Council and the wider University of the Highlands and Islands. That will give us an opportunity to put to them some of the things that you have said to us. You may wish to follow that with some interest.

Mr Watson, I think that you agreed to share with us the December 2024 letter. If any of you, on reflection after today, have anything else that you want to supply to us, we are quite happy to accept a note after today’s oral evidence session to help us prepare for the next round of evidence that we will take. Dr Cook, Mr Wishart and Mr Watson, thank you for coming in and for the evidence that you have presented to us this morning.

I move the committee into private session.

12:20 Meeting continued in private until 12:52.  

Public Audit Committee [Draft]

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

Thank you for that introduction. I will go straight to the deputy convener to kick off the questioning.

Public Audit Committee [Draft]

“Financial sustainability and taxes”

Meeting date: 3 December 2025

Richard Leonard

I will move on to an area that is highlighted in your report in exhibit 1, which is titled, “Progress on implementing devolved taxes in Scotland has been slower than planned”. That might be a bit of an understatement. For example, you refer to the devolved air departure tax, which was expected to be introduced on 1 April 2018. You refer to the assignment of VAT receipts, which was supposed to be sorted out with a transition year in 2019 and implemented by 2020. We are talking about seven and five years ago and neither of those taxes has been implemented. Could you shed some light on why there have been those delays, what the problems are, and who, if anybody, is to blame?