Thank you, convener. Today’s report is about the management of an information and communications technology programme in the Scottish Social Services Council. The external auditor gave an unqualified opinion on the 2017-18 accounts, which means that she is satisfied that the accounts provide a true and fair view of the body’s financial position and that there are no significant errors in the accounts. However, the council fell short of the expected standards of governance and transparency in implementing a new digital strategy.
The Scottish Social Services Council and the Care Inspectorate share a building in Dundee. They also share services, including finance, human resources and ICT, and they have joint posts across the two organisations.
In June 2017, the council agreed a digital transformation strategy, which covered new infrastructure, an update to Microsoft Office and a new case management system, but the strategy did not clearly set out the intended benefits. In March 2018, the council decided that implementing the strategy meant that it needed to end the shared ICT service.
A service level agreement covered the shared services, but there was a lack of formal governance arrangements. That meant that there was no clear process for ending the shared service, and the council did not consider the implications for value for money. The decision to end the shared services also meant that the digital transformation project had to be expanded to include setting up a new network. That incurred on-going ICT support costs, which were not factored into the strategy.
Overall, the council’s planning, monitoring and reporting of its digital transformation project were inadequate. In the absence of a proper business case and a fully costed budget, the council cannot demonstrate that the project, which is expected to cost at least £4.1 million, has delivered value for money.
I am joined today by Jo Brown from Grant Thornton, who is the appointed auditor, and by Jillian Matthew from Audit Scotland. Between us, we will do our best to answer the committee’s questions.