3rd Report, 2008 (Session 3)

Annual Report 2007-08

Remit and membership

Remit:
The remit of the Audit Committee is to consider and report on-

(a) any accounts laid before the Parliament;

(b) any report laid before or made to the Parliament by the Auditor General for Scotland; and

(c) any other document laid before the Parliament concerning financial control, accounting and auditing in relation to public expenditure.

(Standing Orders of the Scottish Parliament, Rule 6.7)

Membership:
Claire Baker (20 September 2007 - 1 May 2008)
Willie Coffey
Murdo Fraser (Deputy Convener)
George Foulkes (3 October 2007 - present)
Trish Godman (20 September 2007 - 3 October 2007)
Charlie Gordon (Convener 20 June 2007 -  20 September 2007, Member 13 June         
2007 - 20 September 2007 and 1 May 2008 - present)
Hugh Henry (Convener 26 September 2007 - present, Member 20 September       
2007 - present )
Jim Hume
Stuart McMillan
Mary Mulligan (13 June 2007 - 20 September 2007)
Dr Richard Simpson (13 June 2007 - 20 September 2007)
Andrew Welsh

Committee Clerking Team:
Clerk to the CommitteeTracey Reilly
Senior Assistant Clerk Joanna Hardy
Assistant Clerk Rebecca Lamb
Committee Assistant Katie Packer

Annual Report 2007-08

The Committee reports to the Parliament as follows—

Introduction

1. The Audit Committee helps to ensure that public funds are spent wisely and holds those who are charged with spending taxpayers’ money to account. In the first year of the new parliamentary session the Committee has focused its work on reports by the Auditor General for Scotland (AGS).

2. The Committee has conducted a major inquiry into the 2006/07 Audit of Western Isles Health Board. The Committee has also held a number of evidence sessions with Accountable Officers regarding specific AGS reports including Dealing with offending by young people (AGS/20007/4), Police call management, an initial review (AGS/2007/8) and the Overview of Scotland’s health and NHS performance in 2006/07 (AGS/2007/10).

Inquiries and Reports

3. The Audit Committee considered 19 reports from the AGS this year. 13 of the reports were section 23 reports which examined the economy, efficiency and effectiveness of the public sector and six were section 22 reports which concerned the audit of accounts of individual public bodies. In addition, the Committee received a briefing from the Accounts Commission on its 2007 overview of local authority audits.

2006/07 Audit of NHS Western Isles
4. The Committee undertook a wide ranging inquiry into the AGS section 22 report on 2006/07 audit of NHS Western Isles. The inquiry demonstrated the Committee’s capacity to investigate the specific factors which lead to individual public bodies experiencing financial difficulties.

5. The Committee held four oral evidence sessions as part of its inquiry. One evidence session was held in the Comhairle nan Eilean Siar Chamber, Western Isles. This enabled members to engage more directly with those affected by the inquiry. The Committee heard from a number of witnesses including the Chair and Acting Chief Executive of NHS Western Isles and the Chief Executive of NHS Scotland.

6. The Committee’s report was published on 6 May 2008. The Committee found that there were serious failures in the running of NHS Western Isles, which had a cumulative deficit of £3.36 million at the end of the financial year 2006/07. The Committee’s report found that a number of factors contributed to the financial failings, including external cost pressures from changes in the wider NHS and issues stemming from the design of health services in the Western Isles. The Committee also found that the situation was exacerbated by inadequate internal control systems and weak financial management at the Board.

7. The Committee recommended that the Scottish Government work with the Western Isles Health Board to resolve the current situation whereby the Board has three Chief Executives, one suspended, one on secondment and one acting. The Committee expressed concerns over the lack of transparency in the way people were appointed to temporary posts and secondments and also recommended that the Government review its processes and procedures for dealing with incompetence, inefficiency and failures in performance.

Dealing with offending by young people
8. The Committee took oral evidence from the Minister for Community Safety and the Accountable Officer on the AGS report entitled Dealing with offending by young people (AGS/2007/4). The Committee’s questions focused on how the Scottish Government would tackle youth offending and secure value for money through the concordat agreement between the Scottish Government and COSLA. The Committee also sought assurances that offending by young people would be addressed by the Government’s move away from a narrow, persistent young offenders’ target towards a new set of broader measures.

Police call management
9. As part of the Committee’s consideration of the AGS report Police call management, an initial review (AGS/2007/8), the Committee held an oral evidence session with the Accountable Officer. The Committee explored issues around the use of the 999 and non-emergency numbers, response times to attend incidents, the provision of information to callers and attending officers, the national strategy for call management and issues regarding accountability and governance.

Overview of Scotland’s health and NHS performance in 2006/07
10. Throughout the parliamentary year the Committee dedicated considerable time to issues relating to the NHS in Scotland including consideration of AGS reports on managing long term conditions and primary care out-of-hours services. The Committee held an evidence session with the Accountable Officer on the AGS report Overview of Scotland’s health and NHS performance in 2006/07 (AGS/2007/10). The Committee explored issues surrounding: NHS accountability and performance information, the balance of funding in the NHS, the links between mortality rates and deprivation, and cost pressures in the NHS.

Consideration of the title and remit of the Audit Committee
11. The Committee considered its predecessor Committee’s recommendation that the Session 3 Committee should consider the extent to which the Committee’s title properly reflected its work and role in ensuring the efficient and effective use of public funds. The Committee agreed to propose to the Standards, Procedures and Public Appointments (SPPA) Committee that the name of the Audit Committee be changed to the Public Audit Committee and that the remit of the Committee be clarified to enable consideration of wider public audit policy matters. As part of the SPPA Committee’s consideration of the proposal, the Convener of the Audit Committee gave evidence to the SPPA Committee. The proposals are currently with the SPPA Committee for consideration.

Subordinate Legislation

12. During the parliamentary year, the Committee considered one Scottish Statutory Instrument which was subject to affirmative procedure. The Committee recommended that the Parliament approve the instrument. The instrument enables the AGS to audit the accounts of certain non-profit making non-departmental public bodies registered in Scotland that carry out functions of a public nature or are funded by bodies audited by the AGS.

Networks

13. The Convener of the Audit Committee visited the National Assembly for Wales to meet with colleagues from other public audit committees from the UK and Ireland to discuss working practices.

Bills and Petitions

14. The Committee did not consider any bills or public petitions during the parliamentary year.

Equalities

15. Audit Scotland is committed to valuing diversity and promoting equality across the organisation and in its work. Audit Scotland addresses equality and diversity issues by ensuring that its reports to the Audit Committee follow its own guidance on how to build diversity and equality into national performance audits. Audit Scotland’s Project Management Framework also requires it to consider any potential equalities issues at the scoping stage of each of its public reporting studies. Audit Scotland also works to ensure that the design surveys, which form part of its reports, get information from hard-to-reach groups and cover diversity and equality issues.

16. Audit Scotland briefings to the Committee also reflect any particular impacts of policies on equalities groups. These have included issues such as health care, youth offending and police call management which may have a disproportionate effect on the young, the elderly or those with disabilities or special needs. This ensures that any potential equalities issues are able to be picked up by members in considering how to take forward the recommendations in AGS reports.

17. The Committee’s inquiry into the Western Isles Health Board touched on the issues faced in delivering health care in remote and rural areas. Holding a meeting in the Western Isles increased the potential for engagement with local people, with over 60 members of the public attending.

Meetings

18. During the parliamentary year (from 9 May 2007 to 8 May 2008), the Committee met 17 times. Of these meetings, two were held entirely in public, 15 were held partly in private and none were held totally in private. The purpose of the majority of private items was to consider the approach to specific AGS reports and consider draft Committee reports.

19. All Committee meetings were held in Edinburgh, with the exception of its meeting in the Comhairle nan Eilean Siar Chamber, Western Isles on 11 January 2008.