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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 14 September 2025
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Displaying 3314 contributions

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Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Canals”

Meeting date: 24 February 2022

Richard Leonard

There are still quite a few unanswered questions and we will need to consider how best to respond to them. Willie Coffey has questions to raise.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Canals”

Meeting date: 24 February 2022

Richard Leonard

That would be helpful.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”

Meeting date: 24 February 2022

Richard Leonard

I do not think that anybody disputes that, Mr Cook, and I will call on Jackie McAllister in a second, but the facts of the matter are that, in the past couple of weeks, the GFG Alliance has been brought to book by Her Majesty’s Revenue and Customs and it is the subject of a Serious Fraud Office investigation. As you said earlier, permanent secretary, Greensill Capital has collapsed, and there are question marks around the GFG Alliance’s governance structure. Given that the Scottish Government is almost a partner in the enterprise, as it is party to a deal with the GFG Alliance, what contingency plans are you making?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”

Meeting date: 24 February 2022

Richard Leonard

Colin Beattie would like to come in.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”

Meeting date: 24 February 2022

Richard Leonard

Thank you very much. If you feel the need, as you might, to bring in any of your colleagues over the next hour or so, please do so. Similarly, if Lesley Fraser or Alyson Stafford, who are online, wish to come in at any point, they should put an R in the chat function, and we will make sure that they are called to give their evidence.

I want to begin with a short question before I hand over to the rest of the committee. You mentioned governance as an issue and an area in which more work might be required. On 27 January, Michael Oliphant, the audit director in Audit Scotland, told the committee about concerns about “overambition”. He said that target dates and scores could sometimes be “overambitious” and that, as a result, there could be an implementation gap, which is something on which the Auditor General for Scotland has previously reflected.

Will you reflect on the part of the Audit Scotland report on the consolidated accounts? Will you look at the need for more clarity on the action that has been taken in order to allow us to understand better how risk management is being carried out and how risks are being addressed by the Scottish Government?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Government Consolidated Accounts”

Meeting date: 24 February 2022

Richard Leonard

Jackie McAllister wants to come in.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Canals”

Meeting date: 24 February 2022

Richard Leonard

Thanks, Auditor General. As usual, feel free to call on Joanne Brown and Graeme Greenhill as appropriate. If they wish to come in at any point, they should put an R in the chat box function and we will ensure that they are called.

Sharon Dowey will ask the first question.

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Canals”

Meeting date: 24 February 2022

Richard Leonard

For clarity, FReM is “The Government Financial Reporting Manual”. I just want everyone to be clear about that.

10:45  

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Canals”

Meeting date: 24 February 2022

Richard Leonard

I want to probe the fact that we are sitting with a report that has a disclaimer attached to the audit opinion. Paragraph 3 of the report says:

“Scottish Canals had not obtained a valuation for around £51 million of specialist operational assets which had been capitalised between 2012 and 2021.”

Would you have expected a public corporation—as Scottish Canals was during that period—to have had those assets valued?

Public Audit Committee

Section 22 Report: “The 2020/21 audit of Scottish Canals”

Meeting date: 24 February 2022

Richard Leonard

The value of the canal network in its entirety has never been disclosed in accounts produced by Scottish Canals. What is the reason for that? Is that because the network consists of old, Victorian structures that have never been properly assessed since they were built centuries ago, or is there another reason? Why is that?