Scottish Commission for
public audit publishes review of audit Scotland's corporate governance
News Release
(SCOTTISH COMMISSION FOR PUBLIC AUDIT PUBLISHES REVIEW OF AUDIT
SCOTLAND'S CORPORATE GOVERNANCE) issued by The Scottish
Parliament on 10 October 2008
The Scottish
Commission for Public Audit today published its report on a review
of Audit Scotland's corporate governance arrangements.
The review was prompted in part by a request from Audit
Scotland's board to consider the implications of a similar
review of the governance of the National Audit Office in England.
The Commission welcomed this as an appropriate opportunity, nine
years into the life of the Scottish Parliament, to reflect on the
operation of the public audit arrangements in Scotland.
The Commission recognises Audit Scotland's key role in
holding organisations to account for their use of public
resources, and has made a number of proposals for reform to
strengthen its governance.
The Commission's recommendations include that:
* In future the Auditor General for Scotland should be appointed
on a single non-renewable term of eight years.
* The Audit Scotland board should review its role and focus.
Legislation on its membership, and methods of appointing the
members, should be revised to allow for a clear, independent,
non-executive majority, with the Scottish Parliament to manage the
appointment of non-executive members.
* Responsibilities in the current public audit structure are not
clear or widely understood. The Scottish Government and the
Parliament should consider together how a more thorough review
could be accommodated within forthcoming legislation.
Convener of the Commission, Angela Constance MSP, said:
"The Commission values highly the work done by Audit
Scotland. We think that its governance arrangements need to be
seen to conform to best practice as it is an organisation that
sets the standards for the whole of the public sector.
"We have looked carefully at the current arrangements.
Throughout our work we have acknowledged the importance of public
confidence in the integrity of the audit process, and so have
considered arrangements that respect and support the independence
of the Auditor General.
"We believe that the proposals we make will strengthen the
appropriate checks and balances to ensure that the arrangements
are robust and transparent - they balance the independence of
audit with accountability."
Background
The Scottish Commission for Public Audit is a public body
established by the Public Finance and Accountability (Scotland)
Act 2000 to scrutinise the expenditure of Audit Scotland.
Four Commission members are appointed by the Scottish
Parliament's Corporate Body and the fifth is the person who
holds the office of Convener of the Parliament's Audit
Committee. The Commission currently comprises Convener Angela
Constance MSP, Robert Brown MSP, Derek Brownlee MSP, George
Foulkes MSP and Hugh Henry MSP.
The main responsibilities of the Scottish Commission for Public
Audit are to:
* examine the proposed budget of Audit
Scotland;
* appoint an accountable officer for Audit
Scotland;
* appoint the auditors of Audit Scotland;
*
initiate value for money examinations into Audit Scotland;
*
consider the audit and value for money reports and ensure such
reports are both laid before the parliament and published.
Under the current public audit structure in Scotland
responsibilities are split between the Auditor General and the
Accounts Commission, with both served by Audit Scotland.
The recommendations made by the Scottish Commission for Public
Audit relate to issues that are the responsibility of the Scottish
Parliamentary Corporate Body, the Scottish Parliament and the
Scottish Government. The Scottish Commission for Public Audit will
discuss with the Scottish Government and Scottish Parliament how
best to take the proposals forward.
A copy of the full report
is available at http://www.scottish.parliament.uk/s3/committees/scpa/index.htm
For further information on the Commission:
Mark Brough: 0131
348 5205
Email: mark.brough@scottish.parliament.uk
For public information enquiries, please contact: 0131 348 5000
For general enquiries, please contact 0845 278 1999 (local call
rate) RNID Typetalk calls welcome. 0131 348 5000
email:
sp.info@scottish.parliament.uk
Visit our website at: http://www.scottish.parliament.uk