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Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
We are talking about an organisation that is governed by the Public Finance and Accountability (Scotland) Act 2000 and is subject to the Scottish public finance manual. We are not talking about a private enterprise. We are talking about public money, which is why we expect certain standards to be met.
The Auditor General said:
“a budget gives an organisation an anchor with which to measure how it is progressing during the year.”
Margaret Cook, do you not accept that that is a fact?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
This is my final question before I bring in other members of the committee.
I would be interested in your view on the Auditor General’s comment:
“we cannot help but conclude that that”
budget’s
“absence must have been a significant factor in the board of management being less able to control financial arrangements during that time.”—[Official Report, Public Audit Committee, 8 October 2025; c 5, 6, 2.]
You are shaking your head, Mr Wishart. I take it that you do not agree with that view.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Okay, but my point is that you have set aside your own financial regulations, both in your position and the position of the former principal and chief executive. I would also suggest that the people on the board have set aside their obligations under those financial regulations.
I will invite Joe FitzPatrick to come in on this budget question, before I invite Graham Simpson to ask his questions.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you very much. Graham Simpson has some questions as well.
Public Audit Committee
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?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you. We now have a final set of questions from Joe FitzPatrick.
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Thank you for making that opening statement. That is now on the record. In the interests of openness, I should say that we expect to have an evidence session with UHI and the Scottish Funding Council, as well as with the new principal and chief executive, in the new year. Those are important points on the record that we will be able to put to them.
Before I turn to Mr Watson, to see whether he wants to add anything, do you accept the findings of the Audit Scotland section 22 report, Dr Cook?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Okay. We will get into that this morning. Are you saying that you do or you do not accept the findings and the recommendations in the section 22 report?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Did you read the Official Report?
Public Audit Committee
Meeting date: 3 December 2025
Richard Leonard
Mr Watson, would you be willing to give us a copy of that December 2024 letter and for it to be placed in the public domain? Also, did you write that letter on behalf of the whole board, or was it a personal letter?