Committee
Audit Committee, 13 Feb 2007
13 Feb 2007 · S2 · Audit Committee
Item of business
Audit Scotland<br />(Work Programme)
Mr Black:
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I am very aware of the concern in Parliament and among the public about the situation at James Watt College. I will take a moment or two to remind members of what we have said in the audit process in the past.The first year in which we had responsibility for the college was 1999-2000. In that year, it returned a fairly healthy surplus of more than £500,000, but at the time it had an accumulated deficit of £1.8 million. That pattern was set in the early days. Some of the early concerns that we expressed related to the need for the college to take on significant borrowing of more than £8 million in 2000, on an annual income of £23 million. We highlighted the fact that there was a risk at the college.In 2001, we mentioned James Watt College again in our overview reporting. The issue about which we were concerned at three colleges, one of which was James Watt College, was the significant debtor balances arising from delays in the payments relating to European Union funding. The college was clearly under significant pressure.In the various overview reports and in the work that the committee has undertaken, we have encouraged the Scottish Further and Higher Education Funding Council to be more proactive and strategic in its oversight of the colleges' business plans and issues of on-going concern. It has done so and has set up a team called FEDD—I forget what that stands for, but it is a wonderful title—which is more engaged with colleges than we are. Against that background, we need to be tuned into the need to avoid excessive auditing and inspection. We have worked hard to develop good working relationships with the funding council, given that it has developed a capacity in the area, and have good communication arrangements with it. The funding council is now quite active in requiring colleges that are under pressure to put in place recovery plans.As I am sure the committee will be aware, one of the colleges where a recovery plan has been required is James Watt College, because of the operating deficits that have emerged. For the record, the situation in James Watt College that we reported in our last overview of the FE sector was that it had a small accumulated surplus in 2005 and was forecast to have a small surplus again in July 2006, so the situation has gone downhill quite rapidly in the past year. That is why the funding council is actively engaged with James Watt College. We do not yet have the final audited accounts or the final report from the auditor on the college, but I intend to consider seriously issuing a section 22 report once the accounts are laid in Parliament.
In the same item of business
The Convener:
Ind
We will receive a briefing from the Auditor General on the Audit Scotland forward work programme and performance audits for 2007-08 in particular.
Mr Black:
The committee will recall that we consulted you last year on the forward work programme as part of a comprehensive consultation exercise that we carried out ...
Susan Deacon:
Lab
I am not sure whether this is a question; perhaps the Auditor General could regard it as user feedback. I have found it interesting to follow the evolution a...
Mr Black:
Thank you for those comments. Two or three thoughts occur to me. First, it has taken a few years for Audit Scotland to develop the capacity to deliver in som...
Margaret Smith:
LD
It is probably no great surprise that I want to offer thoughts about the report on "How government works: major capital projects", which is due to be publish...
Mr Black:
The extent to which the audit resource can comment in real time on the planning of major capital projects is one of the most significant and problematic issu...
Margaret Smith:
LD
I want to pick up on a couple of things that you have said. I think that we would all agree that the Parliament building is an exceptional case, but there wa...
Mr Black:
Your first question was about whether we would respond to invitations to become involved in projects. It is true that an essential pre-requirement for my ask...
Robin Harper:
Green
I have another interest to declare: I am a member of the Howard League for Penal Reform. I notice that prisoner population is one of your projected studies. ...
Mr Black:
Not at this stage. We are still at the scoping phase for that study so we are not yet in a position to provide any information.
Robin Harper:
Green
When do you think that the study will start?
Mr Black:
Perhaps Barbara Hurst can recall what the timing is for the study.
Barbara Hurst:
We are doing quite detailed desk research on the subject at the moment, so I think that we will have a project brief within the next couple of months. We sho...
Margaret Jamieson:
Lab
Obviously, the prisoner population rises and falls and that is all down to the determination of the courts. Will the study brief include sentencing by courts...
Mr Black:
It is appropriate for Audit Scotland to undertake that study because we are particularly well placed to examine the whole system. We can consider the impact ...
Margaret Jamieson:
Lab
My other question is about the study on strategic procurement. My interest lies in some of the issues that have been raised with me by small and medium-sized...
Mr Black:
Margaret Jamieson has expressed concerns about that issue in the past, and it is entirely reasonable that we should undertake to do our best to consider it. ...
Margaret Jamieson:
Lab
That would be welcome.I have a question about a report that is not in the book. Earlier, you spoke about having to undertake reports at the request of the Ex...
Mr Black:
I am very aware of the concern in Parliament and among the public about the situation at James Watt College. I will take a moment or two to remind members of...
Margaret Jamieson:
Lab
I welcome the comments on FEDD. However, my concern, which I think is shared by other committee members, is that it was perhaps not quick enough to act in re...
The Convener:
Ind
I can probably say on behalf of the committee without fear of contradiction that we would hope that the recommendations that we made with regard to Inverness...