Scottish Executive Accounts
Agenda item 5 is on the format of Scottish Executive accounts. At our meeting on 27 June 2000, we agreed that the Scottish Executive's accounts for 1999-2000 should follow the template that was suggested by the Executive, but that the format for the 2000-01 accounts should be discussed.
We requested and received a shadow set of accounts showing percentage changes. We have a letter from the Minister for Finance and Local Government with a mock-up of the accounts, and a letter from Mr Russell Frith, the director of audit strategy at Audit Scotland. Does Mr Frith wish to comment before we discuss the matter?
Russell Frith (Audit Scotland):
Yes. The committee raised the issue when it had only a skeleton set of accounts without numbers. The Executive agreed to provide a set with full numbers and the further information that the committee requested. The minister has given a fairly detailed explanation of why he feels that the additional information might not provide as much clarity as was first thought, and I agree with him.
The way in which the information is presented tends to confuse rather than to inform further, and might lead to some erroneous or misleading follow-ups to information—particularly when large percentage changes are produced from small numbers. Such changes are unimportant, whereas a smaller percentage change in a much larger number might be much more worthy of consideration.
The figures can be confusing enough, so we seek enlightenment. The easier they are to read, the better.
I remember that we were in the chamber when we debated the matter and that the committee was slightly larger. That point was made, although we did not have figures that illustrated it clearly. The old adage about "lies, damned lies and statistics" comes to mind. One can get statistics to say anything. Percentages can be misleading when a large increase in a small budget is being considered.
The minister mentions in his letter a 7,000 per cent increase. That appears to be huge, but when it is explained, it might or might not be noteworthy. If we are serious about the procedures being understandable not only to us, but to people outwith the parliamentary process, we should keep them as simple as possible. We want explanations about large variances, rather than large percentage differences.
Those points were worth making. The correspondence between the Executive and the committee has helped to clarify the situation. Is the committee satisfied with the Executive's response?
Members indicated agreement.
We have reached the end of the meeting. The Audit Committee's next meeting will be at 2 pm on Tuesday 18 September in the Hub.
The clerk to the committee is leaving to become clerk to the Transport and the Environment Committee. We will be notified of our new clerk once an appointment has been made. The Transport and the Environment Committee is gaining someone special. I thank Callum Thomson for his work. Clerks are often the unsung heroes of our committee system. They work quietly behind the scenes to ensure that committee business is conducted efficiently and effectively. Callum has done that and more for us. I congratulate him especially on the excellent work that was done on committee reports. We all wish Callum success in his new appointment and thank him for his work.
Callum is the second clerk whom we have seen off. I hope that that does not reflect on the committee.
Yes, that is rather too many clerks, but we treat them so well and give them so much experience that they have to be promoted.
I close the meeting and thank members for attending.
Meeting closed at 14:13.