Audit Committee, 08 Jun 2004

Meeting date: Tuesday, June 8, 2004

Official Report 144KB pdf

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“Individual Learning Accounts in Scotland”

Agenda item 2 is consideration of the Scottish Executive's response to our first report of 2004, which was entitled "Individual Learning Accounts in Scotland". Members will recall that the report concerned the eventual shutdown of the individual learning account service.

We have a response from the Executive's Enterprise, Transport and Lifelong Learning Department and a letter that is part of the papers for today's meeting. After members have commented, the Auditor General and his team will speak, and then we will decide what action—if any—we propose to take. Do members wish to make any observations about individual learning accounts?

Given that the department did not initially respond in the way that the committee wanted, the letter is humble pie to an extent. The letter marks closure, because it shows that the lessons that were learned are being put into practice, especially through the gateway review. I am happy enough with the letter.

I support what Margaret Jamieson said. I am pleased that a progress report on the new ILA scheme will be provided to the Audit Committee and the Enterprise and Culture Committee when the scheme has been signed off. The new approach through the gateway review reassures me. I hope that it will pick up flaws in the system, unlike before, when the scheme had major problems from day one. At least the tone of the letter is more conciliatory than that of the previous response. I am perfectly happy with the department's response now.

I agree with others that the response enables us to move on. Much has been learned about the experience because of the committee's work, and the Executive has engaged effectively with that.

I read with interest that the new scheme will be the first to be developed through the project management methodology that has been adopted. I have always taken an interest in and had views on whether the necessary capacity exists in the Executive to undertake the complex and outward-facing project management that is increasingly required in 21st century Scotland. I note that a new methodology is being adopted, about which it would be interesting to learn more. I do not know whether the Auditor General will examine further project management in general throughout the public sector.

One of our concerns was over the lack of Education Department involvement in the project at the planning stage. I am still unclear about that, although I can see how the department is involved in the gateway review process. I may be missing something. In the letter from Mr Frizzell, I see the reference to a "regular forum", but that seems to relate more to a review of the process rather than to planning. The Auditor General may want to comment on that.

Recommendation 4 in our report referred to lines of accountability and, if we chose to, we could press further on that point. However, page 2 of Mr Frizzell's letter refers to a progress report on the new ILA scheme. If I interpret correctly what members have just said, they seem to regard the letter as an advance on the department's previous position and as an indication of an improvement in lines of accountability. Do members feel that we should be content with that?

Members indicated agreement.

I invite the Auditor General to comment.

It might be as well to begin by stating something fairly obvious: we will continue to conduct audit examinations in the sector. I expect that progress with the new ILA scheme will be the subject of an audit review in due course.

I turn to the specific points raised by members. At the moment, we have no plans to undertake an audit examination of project management as such. However, a number of the studies in the pipeline contain an element of project management. We can certainly bear it in mind that an audit of project management could be part of a future cross-cutting theme.

A question was asked about gateway reviews so I will give members a brief outline of the idea. About four years ago, the Office of Government Commerce piloted what it called "gateway reviews". Such reviews are, in essence, stopping points in any project when progress can be scrutinised by an arm's-length group that is expert in the area. The idea is for that group to satisfy itself that the business need for the project still exists and that the project is being well managed. The group has to identify the big risk issues.

I am not party to detailed developments within the Scottish Executive, but the principle of gateway reviews has now been adopted across the whole of Government. It is expected that such reviews will apply to any major projects. As the letter from Mr Frizzell reports, the Scottish Executive now has new project management arrangements. Those arrangements will certainly incorporate the gateway review concept. That is to be welcomed.

The committee has commented on the seeming lack of joined-up government and issues to do with quality. We felt that such issues could have been addressed by engaging earlier with Her Majesty's Inspectorate of Education. As I suggested, there seems to be linkage at the review stage, but I am not sure about the earlier planning stages.

As the committee will understand, Audit Scotland has not undertaken any audit activity on the new project, which is still in the process of being introduced. However, when we come to consider the new scheme, we could well take into account the cross-cutting approach to quality standards.

It will be for the committee to decide what further action, if any, is required and whether we are happy with the spirit and content of the department's response. Members should be aware that the minutes and the Official Report of this meeting will be read by the department. I suggest that the concerns that have been raised and the comments of the Auditor General are best dealt with in that way, rather than through our formally writing to the department yet again. The committee seems to approve of the department's response this time. It may be that we can now draw a line and look forward to the successful introduction of the new scheme. Do members agree?

Members indicated agreement.