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Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Did you want to come back in, Mr Brannen?
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Other committee members will probe that matter later.
Mr Brannen, you said that the framework document for the commission is with the cabinet secretary for sign-off, but our understanding is that the Crofting Commission’s board has not yet agreed the document. Can you clarify the situation in that respect?
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
So, there was a board meeting this week at which the framework document was signed off.
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Thank you for clarifying that.
On a number of occasions, our predecessor committee raised concerns about the adequacy of sponsorship arrangements between the Scottish Government and public bodies. Our understanding is that the responsibility for such arrangements is clearly set out in the Scottish public finance manual. To what extent did the sponsorship arrangements for the Crofting Commission meet the requirements that are set out in that manual?
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Thank you for that helpful clarification, Mr Kerr.
I realise that, in the tone of what has been said so far, there has been a sense that we are looking back in history, but the fact is that we are concerned about ensuring that, in the contemporary dealings between the sponsor division and the Crofting Commission and in the relationships between the senior management team and the board, everything is in order. The Audit Scotland report has highlighted some quite alarming things about the failure to properly consult internally commissioners and members of the board, which, I have to say, rang alarm bells for us.
Before I bring in Craig Hoy, I will ask one final question. According to the auditor’s audit dimensions and best value report, when the CEO asked the sponsor division for backing, it was for “anticipated opposition” from the board when the CEO was attempting to drive through changes. It was also reported that the sponsor division suggested that
“the CEO ignore the Board’s opposition and proceed as he sees fit”.
Understandably, the auditor described that as undermining
“the role of the Board”
and overstating
“the role of the Sponsor Division”.
Can you explain how such a situation occurred?
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Actually, I think that Andrew Scott wants to come in at this juncture.
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Thank you for those answers. Colin Beattie has a series of questions about sponsorship arrangements.
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Thank you. We will dig a little deeper into some of those areas around governance, because it is an important concern that we have had in the light of the report that was produced.
One of the things in the report that is exercising us is the relationship between the Crofting Commission’s board and senior management team and the sponsor division of the Scottish Government. According to paragraph 14 of the report, the Scottish Government sponsor division
“appeared to view its relationship of consequence as being with the Senior Management Team rather than the Convener.”
I wonder what your response to that comment is, Mr Brannen. Please feel free to bring in your other colleagues.
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
Mr Kerr has indicated that he wants to contribute.
Public Audit Committee
Meeting date: 16 December 2021
Richard Leonard
We have a series of questions on business planning. Willie Coffey will come in, but I call Sharon Dowey first.