Recent Disruption in Scottish Government and What Next? Sharon Fairweather, Director of Internal Audit
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1 Recent Disruption in Scottish Government and What Next? Sharon Fairweather, Director of Internal Audit
2 Agenda 1.Our Client Base 2.Recent History in Scottish Government 3.Fiscal Implications 4.What Next? 5.What Does All This Mean For Internal Audit 2
3 Our Client Base 3
4 SCOTTISH GOVERNMENT PERMANENT SECRETARY DG Economy Agriculture and Rural (inc. CAP) European Structural Funds Economic Development Fair Work, Employability and Skills Energy and Climate Change Environment and Forestry Marine Scotland Culture, Tourism and Major Events DG Education, Communities and Justice Advanced Learning and Science Children and Families Housing and Social Justice Learning Justice Local Government and Communities Safer Communities DG Health and Social Care Chief Medical Officer Chief Nursing Officer Chief Executive of the NHS Workforce and Strategic Change Health Performance and Delivery Health Finance Health and Social Care Integration Healthcare Quality and Improvement Population Health DG Constitution and External Affairs EU Office External Affairs Parliamentary Counsel Legal Strategy and Constitution DG Scottish Exchequer Financial Strategy Internal Audit DG Organisational Development and Operations Communications, Ministerial Support and Facilities People Digital Financial Management Chief Social Policy Advisor Social Security 4
5 European Commission Audit Authority on behalf of the European Commission for EU expenditure in Scotland: European Structural Funds European Regional Development Funds European Maritime Fisheries Fund 5
6 Other Public Sector Bodies 6
7 Recent History in Scottish Government
8
9 SNP forms a minority administration 9
10 The outcomes approach Sir John Elvidge, Permanent Secretary restructures Scottish civil service and leads the new focus on outcomes 10
11 Elections, Elections, Elections SCOTTISH PARLIAMENT 2014 INDEPENDENCE REFERENDUM minority majority minority UK PARLIAMENT 2016 EU REFERENDUM SCOTLAND ACT 2012 SCOTLAND ACT
12 Fiscal Implications 12
13 Tax matters more and more
14 THEN
15 NOW
16 What Next? 16
17 IMPACT OF BREXIT DG Economy Agriculture and Rural (inc. CAP) European Structural Funds Economic Development Fair Work, Employability and Skills Energy and Climate Change Environment and Forestry Marine Scotland Culture, Tourism and Major Events DG Education, Communities and Justice Advanced Learning and Science Children and Families Housing and Social Justice Learning Justice Local Government and Communities Safer Communities DG Health and Social Care Chief Medical Officer Chief Nursing Officer Chief Executive of the NHS Workforce and Strategic Change Health Performance and Delivery Health Finance Health and Social Care Integration Healthcare Quality and Improvement Population Health DG Constitution and External Affairs EU Office External Affairs Parliamentary Counsel Legal Strategy and Constitution DG Scottish Exchequer Financial Strategy Internal Audit DG Organisational Development and Operations Communications, Ministerial Support and Facilities People Digital Financial Management Chief Social Policy Advisor Social Security 17
18 Major Unknowns What will be the extent of any regulatory and legislative changes? Will there be further devolution of powers? Will there be further constitutional change? What will be the fiscal / financial implications? 18
19 What Does This Mean for Internal Audit? 19
20 2015 Strategic Review of Internal Audit recognised function was no longer fit for purpose given changes ahead needed to move away from traditional compliance approach required more senior level leadership and engagement increased resource professionalisation of the service offered higher profile across all stakeholders 20
21 Areas for Change social security wider strategic view less compliance, more advisory more flexible and responsive to change broader skill sets e.g. financial strategy / tax compliance alongside others like IT / cyber closure of European funding streams development of new (better) processes and controls for any replacement funding (CAP / ESF) risk management in wider context implementing changes to legislation and regulation 21
22 Any Questions? 22
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