AGS: DEALING WITH DRAFT AGS REPORTS
Contents:
Scope
Key points
Background
Comments on Draft Reports
Recording Areas of Disagreement
Publication
Publicity
Scope
1. This section gives guidance on the handling of
Auditor General for Scotland (AGS) reports - mainly those
related to economy, efficiency and effectiveness (3E)
examinations - in the period leading up to reports being
finalised and submitted to the Scottish Parliament.
Key Points
2. Departments will see draft 3E related reports and
should agree facts and comment on presentation, opinions
and conclusions with which they disagree.
3. Remaining concerns over presentation, opinions and
conclusions may be brought to the attention of the Audit
Committee.
4. Departments should minute Ministers prior to
publication summarising the findings in the report and
drawing attention to any points of concern
5. Departmental responses to the publication of 3E
related reports should where possible avoid comment that
could pre-empt evidence to the Audit Committee.
Background
6. The AGS may report to the Parliament on any
qualification of an audit certificate and on other matters
relating directly to the annual accounts. Departments - via
the Scottish Executive Finance Director (SEFD) - will be
given the opportunity to comment before any such reports
are finalised. However, most reports will be concerned with
examinations on economy, efficiency and effectiveness (3E).
(See the section on dealing with
3E
examinations and related studies.) In reaching a
decision as to whether and what is reported the main
factors taken into account by the AGS include the size,
nature and general importance of the subject, whether or
not the Parliament has already been made aware of the
issues involved, and the extent to which the particular
case illustrates wider weaknesses in systems of financial
information and control.
7. Under section 23 of the Public Finance and
Accountability (Scotland) Act 2000 the AGS may initiate
examinations into the economy, efficiency and effectiveness
with which the Scottish Administration and certain other
office-holders and bodies have used their resources in
discharging their functions. In carrying out the
examinations the examiner authorised by the AGS is not
entitled to question the merits of the policy objectives of
the body in question but may consider the appropriateness
of any criteria used by the body to assess use of
resources.
8. The AGS is not obliged to report the results of
examinations to the Parliament but it should be assumed
that all such reports will be laid before the Parliament
and considered by the Audit Committee. The Audit Committee
has indicated that, while it does not wish to adopt the
Westminster convention where reports are effectively
agreed, more or less line by line, between the National
Audit Office and Departments before submission to the
Public Accounts Committee, it would not wish to take AGS
reports on which Departments had not been given the
opportunity to comment. In particular the Audit Committee
would expect that any facts stated had been agreed as being
accurate.
9. The AGS reports generally include all matters on
which he or she considers the Parliament should be
informed. However, in practice the AGS does not normally
disclose certain information classified on security
grounds, unpublished opinions relating to the formation of
policy, or advice given to Ministers by Departments. It is
not the role of the AGS to question policy decisions
although the basis for such decisions may be brought to
notice in the reports.
Comments on Draft Reports
10. The examiner will let Departments see reports in
draft form seeking agreement on factual matters and
comments on presentation, opinions and conclusions. The
test of facts should be that the statements are verifiable
and/or that all parties agree what actually happened.
11. Departments should examine draft reports extremely
carefully and challenge any interpretation, opinion or
conclusion, whether implicit or explicit, with which they
disagree. And they should look at the overall presentation
and balance of the report and challenge any instances where
they consider that undue or insufficient emphasis is being
given to any specific point. Responses to the examiner
should be cleared by the relevant Finance Team and, at the
final stage, by the relevant Accountable Officer. Normally
the period allowed for the final stage of 3E reports is
three weeks. The period allowed for reports on accounts may
be less depending on the complexity of the issues
raised.
Recording Areas of Disagreement
12. Any continuing concerns that Departments have over
presentation, opinions and conclusions should be brought to
the attention of the Audit Committee in the opening
statements of Accountable Officers at any subsequent Audit
Committee hearing. In the event of the Audit Committee
deciding not to hold a hearing and deal with the report in
correspondence any areas of disagreement should be clearly
recorded in Departments' written evidence. Accountable
Officers also have the right to submit a written statement
to the Audit Committee prior to any hearing in which they
could offer observations on the AGS report generally and
put on record any concerns they might have with
presentation, opinions expressed and conclusions reached.
Any such written statement should be cleared in advance
with Finance Teams, the relevant Accountable Officer and
the responsible Minister.
Publication
13. Audit Scotland shall provide the earliest possible
notification to Departments of the report's publication
date. They will also let Departments and bodies have the
final version of reports a minimum of 1 week in advance of
publication.
14. Prior to publication Departments should, in
consultation with Finance Teams, do the following:
- minute Ministers, including the First Minister,
Deputy First Minister and Minister for Finance and
Public Service Reform, informing them of the impending
publication, summarising the findings, and drawing
attention to any points of concern; and
- prepare a "line to take" (see below) for use in
response to press inquiries.
Publicity
15. Audit Scotland will seek media coverage of AGS
reports on their publication but their press notices and
media briefing should be carefully presented to avoid
encouraging sensationalist and unbalanced coverage. Advance
copies of Audit Scotland press notices will be furnished to
Departments a minimum of 24 hours before being issued but
there will be no opportunity to comment on drafts.
16. Departmental responses to the publication of 3E
related reports should where possible avoid comment that
could pre-empt evidence to the Audit Committee. Press
briefing should therefore normally be restricted to
acknowledging the publication of the report, noting that it
may be considered by the Audit Committee, quoting or
paraphrasing material in the AGS report setting out the
Department's position, providing relevant information and
correcting any mis-statements of fact or interpretation in
media coverage. Ministers, however, may wish to comment in
certain circumstances.
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Page Published/ Updated on: 21st December 2001