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Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
Can I move on to another area that we want to ask about? Reference is made in the proposal to efficiency improvements. In paragraph 19 on page 8, the proposal says:
“Action has already been implemented to secure efficiency improvements in the delivery of audit work, particularly in relation to financial statements audits.”
Will you describe some of the features of those efficiency improvements and how they relate to the fees charged to the bodies that are being audited?
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
Okay—thanks.
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
To go back to my original question on the controller of audit post, that was housed inside Audit Scotland’s budget, and it will now be transferred to the Accounts Commission. You are asking us for a net increase, which in part is constituted by the additional cost of that salary. Is that not simply an internal transfer from a salary ascribed to Audit Scotland that will now in future, if the budget is passed, be ascribed to the Accounts Commission?
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
How much of that £250,000 goes into the salary of the new controller of audit and how much goes into other areas of expenditure?
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
But the proposal has come to this commission from the board of Audit Scotland.
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
Yes, and then I will go on to my next question.
The reason why we are interested in those costs is because, from one year to the next, there is a massive increase of 57.5 per cent. That sounds massive. Does that tell us that there has been a failure in the preceding period? It sounds a lot more than an adjustment; it sounds like a substantial leap in the fees that are charged to FE colleges.
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
Okay. You have described that the increase will meet the salary of a controller of audit. What is the rest of the additional expenditure for?
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
You say that it is tangled up, but a lot of the work that you do either is work that you commission Audit Scotland to do or is badged as a joint report.
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
As a commission, we have a strategic interest in the relationship between the Accounts Commission and Audit Scotland. You talk about pulling apart. It is not a separation that we are talking about, is it?
Meeting of the Commission
Meeting date: 14 December 2022
Richard Leonard
I have one final process question. I presume that this is the will of the Government minister who is responsible for local government. How does that work in the environment of the Audit Scotland board, for example? Does the minister sit on the board or is a directive issued to the board? Are you the missionary for the minister on that board, Mr Moyes?