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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 2 February 2026
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Displaying 3697 contributions

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Public Audit Committee

Decision on Taking Business in Private

Meeting date: 19 January 2023

Richard Leonard

Good morning. I welcome everybody to the second meeting in 2023 of the Public Audit Committee. The first item on our agenda is consideration of taking agenda items 3 and 4 in private. Do we agree to take those items in private?

Members indicated agreement.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

Colin Beattie has some questions, but I know that he has to give a presentation to another committee. Do you want to ask your questions now, or do you want to leave it?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

That is absolutely fine.

Auditor General, I turn to what seems to be a recurring section of these reports, which is the financial position of the Crown Office and Procurator Fiscal Service. People will, no doubt, be aware of outstanding cases against the Lord Advocate in connection with the acquisition of Rangers Football Club. The report states that the cases that have been resolved total £35.5 million in costs up to March 2022,

“with a further £24.5 million provided in respect of cases still to be finalised.”

First, what does that mean for the overall financial position of the office? Secondly, can you update us on where those outstanding cases are? Are there further cases yet to be settled?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

Okay. Finally, I just want to touch on the situation with GFG Alliance. I welcome your commitment this morning, Auditor General, that this is an area of continuing interest to you. In the financial year covered by this report, the supply chain banker to GFG Alliance, Greensill Capital, has gone into administration. As Michael Oliphant mentioned, the Serious Fraud Office is looking at GFG Alliance around concerns over fraud and money laundering. Quite unusually, GFG Alliance’s own auditors resigned. I think that its finance director left. Its corporate structure has been described by another parliamentary committee as “opaque”. I understand that the most recent accounts for the Lochaber smelter are not going to be audited. Do you have a view about the overall risk that we now seem to be facing here?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

Thanks very much, Willie. We will turn to you again, because you have questions about the replacement for the European Union structural funds and how that will be audited and overseen.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

Are you aware of any instances, since the framework was published in March, where the Government has decided against making an investment according to those criteria?

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

Thank you for your co-operation. We are against the clock. There are some areas that we will follow up on in writing for completeness, but we have questions on a couple of final areas that it would be useful to put to you this morning, so that that is on the record. Willie Coffey has questions about reporting on performance.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

The principal item on our agenda is consideration of a section 22 report, “The 2021/22 audit of the Scottish Government Consolidated Accounts”. I am pleased to welcome our witnesses this morning: the Auditor General for Scotland, Stephen Boyle; Michael Oliphant, audit director at Audit Scotland; and Helen Russell, senior audit manager at Audit Scotland. We have an extensive range of questions to put, but before we get to that, I ask the Auditor General to make a short opening statement.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

You go even further than that when you say that

“The Reserve balance is not disclosed within the Scottish Government consolidated accounts.”

It is a matter not only of where the reserve is and transparency over its movement, but of the figure itself not even being disclosed in the consolidated accounts.

Public Audit Committee

Section 22 Report: “The 2021/22 audit of the Scottish Government Consolidated Accounts”

Meeting date: 19 January 2023

Richard Leonard

Further in, the document talks about the comprehensive business case that needs to be made in order to give the green light for Government intervention in a commercial business. It talks about the strategic case, the economic case, the commercial case, the financial case and the management case. Were any of those cases the subject of proper scrutiny for the investments that are listed in your report?