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Chamber and committees

Audit Committee, 08 Feb 2005

Meeting date: Tuesday, February 8, 2005


Contents


Audit Scotland (Study Programme)

Item 4 is a brief explanation of and discussion on Audit Scotland's study programme for 2005-06. I understand that Caroline Gardner will brief the committee.

Caroline Gardner:

The 2005-06 study programme presents the committee with its first opportunity to consider our forward work programme as a whole. Members may recall that, back in the summer, we consulted the committee on the items that we were considering for inclusion in the programme. After a wide-ranging consultation exercise with all our stakeholders, the Auditor General and the Accounts Commission have approved the joint programme, which will take Audit Scotland through to about the end of 2006.

I will draw to the committee's attention a handful of key points before I do my best to answer any questions that members might have on the detail. First, the continuing development of our overview reporting will build on what the committee has already seen in the health sector. In November 2005, the committee will receive an integrated overview report that will bring together our financial and performance overview reporting, on which the committee has based its work in the past few months.

We aim to extend that integrated overview approach across the rest of the public sector; we will start by looking at key policy areas within the Scottish Executive. We will take an area of policy and follow it through from departmental responsibilities to the range of bodies that implement policy on the department's behalf. That will provide an opportunity to examine performance in the round so that we get both vertical and horizontal integration in the ways in which organisations work together to deliver policy objectives. We hope that the integrated overview report will help the committee to get a better handle on how resources are used and the impact they have on public services.

Linked to that is our commitment to update the report "How government works in Scotland", which we produced in November 2002. We plan to take that forward through a series of linked pieces of work, each of which will be quite short and focused. Those will examine key issues such as financial management, performance management and probably, first, leadership development—I know that that is a matter of interest to some committee members. That will give the committee a different lens through which it can examine the performance of the public sector.

A number of studies will follow up issues in which the committee has already expressed an interest. For example, we plan to produce work on the new consultant contract, the use of information technology in the health service and—topically, following today's discussion—the impact of relocation on public bodies.

We plan to produce for the Auditor General and the Accounts Commission a number of joint reports that will pick up key areas of public policy, such as implementation of the teachers pay agreement and a review of housing stock transfer. We also plan to look at the impact of community planning partnerships in moving on from the process aspects of their work to being able to deliver improvements for the communities that they serve.

Finally, the study programme covers the Accounts Commission's responsibilities for local government. It is worth noting that the programme of best-value audits will get fully up to speed during 2005. That will provide an important source of information about local government performance to add to the studies that we already carry out and our work on statutory performance indicators. The results of all our work in local government will continue to be pulled together in an annual overview report. The chairman of the Accounts Commission has given a commitment that he will be happy to discuss that with the committee to provide a source of dialogue on how local government contributes to the delivery of public services throughout Scotland.

The programme pulls together work that is currently under way and work that is planned for the future in order to give the committee an overview of what is going on. I hope that I have given a sense of the key thinking behind why the programme looks as it does, but I am happy to try to answer any specific questions that members might have on the studies that it contains.

Which area or department will be covered in the pilot integrated overview report of the Scottish Executive, which is due to start in spring 2005 and finish in winter 2005? Has an area been selected for that first piece of work?

Caroline Gardner:

The intention is that all the integrated overview reports will move beyond the department to look at the integrated policy approach. We are still considering options, but transport is a front-runner. Transport seems to be important enough for us to be able to say something useful on it and it also seems to be on a scale that a pilot could get to grips with.

Susan Deacon:

A number of the studies that are mentioned in the paper will be very interesting and useful. As I recall, the earlier paper on Audit Scotland's planned future work programme placed great emphasis on considering ways in which service users might be involved in order to find out more about their experiences. Can we get an update on where you have got to on that?

Caroline Gardner:

We want that theme to run through each of the elements that make up the study programme, rather than its being a study in its own right. When the committee was discussing the prisons report, you might have noticed that prisoners were included in the focus groups. The work on colorectal cancer that will come through soon places a good deal of weight on focus groups and interviews with patients with colorectal cancer about their experiences of using services. We want a direct view of how it feels to be on the receiving end of a service as well as of the responsible body's view of how it is aiming to achieve service-user and public engagement with service delivery and development.

Susan Deacon:

I am pleased to see that the "How government works in Scotland" study is to be updated. I realise that the list is not exclusive, but you highlight financial management and performance management. Will you also consider human resource management and some of the people and culture issues that are involved?

Caroline Gardner:

That strand of work is to allow us to take a horizontal look across some of the issues that affect all public bodies. We have plans to examine leadership development, which is a key aspect of what Susan Deacon described. The future elements of that programme will keep developing and reflecting the issues that seem to be most important, as well as reflecting what we learn from the more detailed drill-down studies and overview reports.

Susan Deacon:

I have a final question. You have a study on the efficiency and effectiveness of initiative funding. I am slightly concerned that the use of the term "initiative funding" might suggest something different from your descriptor of the project, which strikes me as being much more about getting behind how innovation is fostered and supported. The phrase "initiative funding" has become jargon and is almost a loaded phrase. I suppose I am just making an observation about the name.

Caroline Gardner:

We are still consulting on the report and what it might cover. You are right that the title is causing some confusion; people have very different interpretations of what it might mean. As with any of our studies, getting the starting point right is the key to success, so watch this space. That is as much as I can say just now.

George Lyon:

I have a general question. One of the themes that recur during all Audit Committee investigations into various reports is the inability to drill down into Scottish Executive money that is allocated to policy areas that are delivered by local government. We have consistently been unable to get good-quality information that would help us to take a view on whether the outcomes are being delivered at the grass roots. Has there been any consideration of how we might address that or does that take us into policy, in which case Audit Scotland does not take a view? The subject has come up during every study that we have been involved in recently. We have been unable to get good-quality information to evaluate whether money is spent well and directed at the relevant areas.

Caroline Gardner:

I will attempt to answer that first, but Bob Black might want to add to it.

One of the reasons why a number of studies are set up as joint studies is so that we can follow through from the Executive's policy intention to delivery by a range of bodies. The clearest example of that is probably the study of the McCrone agreement, through which a significant amount of money is being invested with the intention of improving teaching in schools. The Auditor General and the Accounts Commission have agreed that that should be a joint study because of the joint interests that it covers. However, there is clearly still a question about different accountabilities for local government relative to the other bodies that make up the public sector. The Accounts Commission has specific responsibility for picking up on reporting by the 32 councils that make up Scottish local government.

Robert Black:

Caroline Gardner has covered the point perfectly adequately. It is important to bear in mind the provisions whereby the Accounts Commission, through best-value reporting, reports to Scottish ministers. Through that process—for example, during preparation of the local government overview report—it would be perfectly appropriate for the committee to take evidence from the appropriate accountable officer, probably from the Finance and Central Services Department, on the performance of local authorities in the aggregate. That includes how well the money is used and how satisfied the Executive is that funds are being used to deliver value for money in the intended areas. There is a subtle but important distinction between the holding to account of individual democratically elected local authorities for the use of resources, and the holding to account of the rest of the Executive.

That is a mechanism that we have not used, at least in my time on the committee.

Mr Black:

I beg your pardon?

I do not think that we have used that mechanism.

Mr Black:

Of course, the best-value legislation is a relatively new development.

So that gives us an opportunity.

Mr Black:

There is a new opportunity and an expectation that the overview reporting that is produced by Audit Scotland in the name of the Accounts Commission will, increasingly, consider performance issues as well as financial management issues.

Margaret Jamieson:

To pick up on Susan Deacon's point about the efficiency and effectiveness of initiative funding, how will Executive departments work with one other to deliver initiatives on the ground? We all have experiences of initiatives to which all the partners are signed up, but when they come to Edinburgh they all have to go in through different doors and if one individual gets a no, the whole thing comes down like a house of cards. Is that the type of thing that you will examine, rather than a specific area?

Caroline Gardner:

I need to say, as a caveat, that we are still consulting on the scope of what we might do, but we are interested in what the Executive aims to achieve by funding services in such a way, how easy or otherwise it is for the organisations on the receiving end to make applications, how clearly the Executive monitors the achievement of its objectives, and the proportionality of the process of applying for funding and reporting back what has been done, relative to the amounts of money that are involved.

Will the delivery aspects feed in to the work that you do on the community planning process?

Caroline Gardner:

Absolutely.

Mr Welsh:

I do not have a question. I just want to say thank you to Audit Scotland, which covers a massive range of topics and subject areas. In a few short years, you have certainly saved Scottish taxpayers a large amount of money—I do not know whether you measure that—and you have shed light on Scottish public services, which was simply not possible under the Westminster Government. You have also encouraged efficiency of resource management and service delivery so, on behalf of us all, I wish you success in your work.

Hear, hear.

Enjoy that.

Susan Deacon:

I have a brief final comment to make, but I think I should wait until the blushes have died down a little.

I am struck by the fact that the committee has repeatedly returned, not least in our discussion about NHS data, to the need for measurement and monitoring systems to drive performance in the right direction. I want to check with you one of the themes that runs through that. Would it be fair to say that Audit Scotland is making a discernible shift towards trying to look more at outputs and outcomes? The committee keeps on saying that that needs to happen more throughout all public services, but I think that all of us tend to default back to drilling into inputs rather than into the results. Is that a reasonable observation on the overall direction of the programme and the way in which it, in turn, might help to drive performance in the Scottish public sector?

Caroline Gardner:

That is certainly a fair reflection of our intention, but it is important to say that it is not always possible to focus on outcomes as much as we would like. The prison service report is not a bad example of that, because the information is not available as a starting point. That is increasingly where we place our attention, but the dilemma that we face is that if that information is not available, we end up with a pretty dull report, which says that people need better information to evaluate the impact of what they do. We sometimes step back down the chain and say, "This is the best report that we have been able to produce in terms of inputs, process and outputs." Outcomes are often more difficult; we are making a gradual push in that direction, but we cannot solve the problem quickly.

Mr Black:

To return to the point that George Lyon made earlier, it is also fair to say that we intend increasingly to take the service-user perspective into account in our studies wherever possible. It is an important discipline for us to keep in mind the key question whether an activity makes a difference for citizens and users of services. We use focus groups and study groups occasionally, when we can.

The Convener:

It falls to me to thank Caroline Gardner and Audit Scotland for presenting its forward work programme. It is fair to say that the programme meets with the general approval and support of the committee, given the way in which the work is developing, and I ask the committee to note the report.

Meeting suspended until 11:31 and thereafter continued in private until 12:23.