Accountability
Accountability Report
The purpose of the accountability report is to meet key accountability requirements of the HM Treasury’s Financial Reporting Manual for 2023-24. It includes the Corporate Governance Report, the Remuneration and Staff Report and the Parliamentary Accountability and Audit Report.
Corporate Governance report
The Corporate Governance Report describes Transport Scotland’s governance structures and how they achieve the agency’s objectives. It comprises of the Directors’ Report, the Statement of Accountable Officer’s Responsibilities, and the Governance Statement.
Directors’ report
Relationship with Scottish Government
Scottish Ministers are responsible for determining the overall policy and resources framework within which Transport Scotland operates.
From the start of the 2023-24 Financial Year until 6 June 2023, Kevin Stewart MSP held the role of Minister for Transport, supporting Màiri McAllan MSP as the Cabinet Secretary for Transport, Net Zero and Just Transition (titled ‘Cabinet Secretary for Net Zero and Just Transition’ from 29 March 2023 until 13 June 2023). Following the resignation of Kevin Stewart MSP on 6 June 2023, Fiona Hyslop MSP was formally appointed as the Minister for Transport on 14 June 2023.
Following a Cabinet reshuffle on 8 February 2024, the Cabinet Secretary Portfolios changed, with Transport returning to cabinet, with Fiona Hyslop MSP becoming Cabinet Secretary for Transport. In this expanded role, the Cabinet Secretary is supported by Jim Fairlie MSP as Minister for Agriculture and Connectivity, with responsibility for Aviation and Air Services, Island Connectivity, Bus Services and Concessionary Fares and Scottish Canals. The Minister reports jointly to the Cabinet Secretary for Transport and for Rural Affairs, Land Reform, and Islands. The Minister has additional responsibilities sitting within the latter portfolio but that fall outwith the remit of Transport Scotland.
Throughout the 2023-24 reporting period, Patrick Harvie MSP, Minister for Zero Carbon Buildings, Active Travel and Tenants’ Rights, had responsibility for active travel and the Future Transport Fund, which fall within the remit of Transport Scotland.
Transport Scotland forms part of the Net Zero Portfolio overseen by Director General (DG) Net Zero, Roy Brannen. The relationship between Transport Scotland, DG Portfolio and the wider Scottish Government is outlined within the agency’s Framework Document.
The Chief Executive
The Chief Executive is the Accountable Officer for Transport Scotland. They are appointed by the Permanent Secretary as Principle Accountable Officer for the Scottish Government under the terms set out in their letter of appointment, in line with the Scottish Public Finance Manual.
The Chief Executive is supported by the Transport Scotland Senior Management Team, comprised of nine Executive Directors with specific responsibilities delegated from the Chief Executive, in addition to a direct support team and secretariat responsible for handling official correspondence. The Executive Directors are, in turn, supported by their own staff, with responsibilities aligned to Transport Scotland’s corporate objectives.
Transport Scotland Directors:
- Alison Irvine, interim Chief Executive (from 20 March 2023)
- Hugh Gillies, Roads (Director from 4 July 2022; resumed Roads Director role on 1 October 2023)
- Kerry Twyman – Finance and Corporate Services (FCS)
- Bill Reeve – Rail
- Lawrence Shackman – Major Projects
- Bettina Sizeland – Bus Accessibility and Active Travel (BAAT)
- Roddy Macdonald – Ferries
- Morna Cannon – Low Carbon Economy (LCE) (interim from 1 May 2023)
- Gary Cox – Aviation, Maritime, Freight and Canals (AMFC) (interim from 1 May 2023)
- Fiona Brown – Transport Strategy and Analysis (TSA) (interim from 11 January 2022)
- Stewart Leggett – Roads (interim from 29 November 2021 until 30 September 2023)
From the start of the reporting period until 1 May 2023, the director responsibilities for the vacant Directors of AMFC and LCE lay with the Chief Executive until the appointment of interim Directors.
Audit and Risk Committee
The external Members of the Transport Scotland Audit and Risk Committee provide the Chief Executive with further assurance in that role and are members of major project boards. Throughout the reporting period, the Audit and Risk Committee was chaired by John Matheson. He is joined on the Committee by Lesley MacLeod and Graeme Dickson.
Directors’ Register of Interests
| Name | Position | Interests |
|---|---|---|
| Fiona Brown |
Director of Transport Strategy and Analysis (interim) From 11 January 2022 |
|
| Hugh Gillies | Director from 4 July 2022 to 30 September 2023; Director of Roads from 1 October 2023 |
|
| Alison Irvine |
Chief Executive (interim) From 20 March 2023 |
|
| Stewart Leggett |
Director of Roads (interim) From 29 November 2021 to 30 September 2023 |
|
| Roddy Macdonald | Director of Ferries |
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| Bill Reeve | Director of Rail |
|
| Lawrence Shackman | Director of Major Projects |
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| Bettina Sizeland | Director of Bus, Accessibility and Active Travel |
|
| Kerry Twyman | Director of Finance and Corporate Services |
|
| Gary Cox |
Director of Aviation, Maritime, Freight and Canals From 1 May 2023 |
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| Morna Cannon |
Director of Low Carbon Economy From 1 May 2023 |
|
During periods of extended Director leave, arrangements are made to cover Director responsibilities, with key decisions reserved for the Accountable Officer.
Audit and Risk Committee External Members’ Register of Interests
| Name | Position | Interests |
|---|---|---|
| John Matheson | Chair; external Member |
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| Graeme Dickson | External Member |
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| Lesley MacLeod | External Member |
|
Other disclosures
Personal Data-Related Incidents
There were no personal data-related incidents reported to the Information Commissioner’s Office (ICO) in 2023-24 (2022-23: None).
Supplier Payment Policy
We are committed to prompt payment of bills for goods and services in compliance with the Scottish Government’s Public Finance Manual. We aim to settle all undisputed invoices within contract terms and in line with the Scottish Government 10-day payment policy. We settled 96% of invoices within this timescale within 2023-24 (2022-23: 95%).
Freedom of Information (FOI) Request Statistics
Under the Freedom of Information (Scotland) Act 2002 (FOISA), a person who requests information from a Scottish public authority which holds it is entitled to be given it by the authority, subject to certain conditions and exemptions set out in the Act. Within 2023-24, Transport Scotland received 590 FOI requests (2022-23: 509), 97% of which were responded to within the statutory working time of 21 working days (2022-23: 72%).
Basis of Accounts
The Transport Scotland accounts are prepared in accordance with the Accounts Direction issued by Scottish Ministers under section 19(4) of the Public Finance and Accountability (Scotland) Act 2000. This can be found at page 164.
Departmental Accounting
These accounts reflect the assets and liabilities of Transport Scotland as at 31 March 2024, and the financial results of the agency for financial year 2023-24, as required by and defined in the Government Financial Reporting Manual (FReM). As an Executive Agency of the Scottish Government, Transport Scotland falls within the reporting boundary and is consolidated within the Scottish Government accounts, as required by the FReM.
Auditors
The financial statements for 2023-24 were audited by auditors appointed by the Auditor General for Scotland. Audit Scotland carried out this audit and the notional fee for this service was £201,960 (2022-23: £190,640), which related solely to the provision of the statutory audit service. There were no payments made for non-audit work in the year.
Statement of Accountable Officer’s responsibilities
Under Section 19(4) of the Public Finance and Accountability (Scotland) Act 2000, the Scottish Ministers have directed Transport Scotland to prepare for each financial year a statement of accounts in the form and on the basis set out in the Accounts Direction. The accounts are prepared on an accruals basis and must give a true and fair view of the state of affairs of Transport Scotland and of its income and expenditure, Statement of Financial Position, and cash flows for the financial year.
In preparing the accounts, the Accountable Officer is required to comply with the requirements of the Government Financial Reporting Manual and in particular to:
- observe the Accounts Direction issued by Scottish Ministers, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis.
- make judgements and estimates on a reasonable basis.
- state whether the applicable accounting standards as set out in the Government Financial Reporting Manual have been followed and disclose and explain any material departures in the financial statements.
- prepare the financial statements on a going concern basis; and
- confirm that the Annual Report and Accounts as a whole is fair, balanced, and understandable and take personal responsibility for the Annual Report and Accounts and the judgements required for determining that it is fair, balanced, and understandable.
The Principal Accountable Officer for the Scottish Administration has designated the Chief Executive of Transport Scotland as Accountable Officer for the agency. The responsibilities of an Accountable Officer, including responsibility for the propriety and regularity of the public finances for which the Accounting Officer is answerable, for keeping proper records and for safeguarding the assets of Transport Scotland, as set out in the Memorandum to Accountable Officers issued by the Scottish Government.
As the Accounting Officer, I have taken all the steps that I ought to have taken to make myself aware of any relevant audit information and to establish that Transport Scotland’s auditors are aware of that information. So far as I am aware, there is no relevant audit information of which the auditors are unaware.
Under Section 15 of the Public Finance and Accountability (Scotland) Act 2000, the Principal Accountable Officer for the Scottish Administration has designated the Chief Executive of Transport Scotland as its Accountable Officer. She is personally answerable to the Scottish Parliament for the propriety and regularity of Transport Scotland activities and for the economical, efficient, and effective use of all associated resources. The Accountable Officer is also responsible for signing the accounts of Transport Scotland.
Governance statement
Corporate Governance Framework
The corporate governance framework is comprised of the systems, processes, culture, and values by which Transport Scotland is directed and controlled. It is concerned with the structures and procedures of decision-making and accountability. It is used to monitor the achievement of corporate outcomes within the organisation.
The framework includes, but is not limited to, the responsibilities of the Chief Executive, the Senior Management Team, the Investment Decision-Making Board and the Audit and Risk Committee.
According to the Scottish Government and Executive Agencies Accountability and Governance Policy, the Agency Chief Executive determines the appropriate structures for managing the operations of their Agency. This may take the form of a Management Advisory Board, which includes Non-Executive Directors, or by a Senior Management Team, operating as an advisory board without Non-Executive Directors. Transport Scotland adheres to the latter structure and therefore does not have a Board. Information relating to the Agency’s Senior Management Team is available below.
The Chief Executive
The Chief Executive, as the agency’s Accountable Officer, is responsible for maintaining a sound system of internal control that supports the achievement of Transport Scotland’s policies, aims and objectives as set out by Scottish Ministers, while safeguarding the public funds and departmental assets for which she is responsible, in accordance with the Scottish Public Finance Manual.
The Senior Management Team
The Chief Executive is supported in discharging their duties by a Senior Management Team (SMT), an advisory body of nine Directors. In 2023-24, the SMT met on a twice weekly basis and provided support, advice, and challenge on a number of areas, including:
- Transport Scotland’s values, vision, strategy, and objectives
- corporate performance, including policy across the remit of Transport Scotland’s remit and the operation of the transport network
- governance and delivery of projects
- ensuring that Transport Scotland has the necessary financial, human, infrastructural and physical resources to deliver on its objectives
- assurance on risk management, governance, and internal control.
Investment Decision Making Board
The Investment Decision Making Board (IDM) is a forum where Directors meet to agree on investment decisions within Transport Scotland, providing the Chief Executive Officer with assurances on:
- value for money
- financial implications (current year and future commitments)
- fit with overall transport policy and strategic aims
- technical assessment of options
- procurement strategy.
IDM is a management forum used to ensure delivery of the business targets and strategic direction agreed by the SMT and Ministers. It is not a sub-committee of the SMT, but minutes of IDM are circulated to SMT members for information.
The Chief Executive, as Accountable Officer, is the Investment Decision Maker within Transport Scotland. They may call on both Transport Scotland Directors and external experts to provide them with advice on the decisions to be made.
Project Boards
Some projects, due to their wider implications beyond Transport Scotland, have separately constructed Projects Boards. These operate within a bespoke Investment Decision Making structure but retain the Chief Executive as the Investment Decision Maker. The decision-making process for these structures is consistent with the principles of the IDM Board.
Audit and Risk Committee
The Audit and Risk Committee is comprised of external members who bring constructive challenge and independent judgement to the governance of Transport Scotland. It meets four times per year, although the Chair has the power to convene additional meetings if required. The Chair also meets regularly with the Chief Executive and the Director of Finance and Corporate Services to keep abreast of developments.
In addition to the Committee’s members, it is normally attended by the Chief Executive, the Director of Finance and Corporate Services, a representative of internal audit and a representative of Audit Scotland. Other Transport Scotland officials may also attend to support the consideration of specific issues as required.
The Audit and Risk Committee advises on risk management, control and governance, audit and the approval of the annual report and accounts, and assurances on corporate governance. The external members are also invited to participate in boards appointed for the governance, approval and oversight of major projects, investments, and climate change.
The Audit and Risk Committee receives copies of minutes of the weekly Senior Management Team meetings, as well as the monthly finance reports. It also meets with Directors biennially on an individual basis, as well as with representatives of internal and external audit privately on an annual basis.
The Committee produces an Annual Report, which supports this Governance Statement. This report summarises the Committee’s work over the reporting period and assesses:
- the reliability and comprehensiveness of assurances received
- issues pertinent to this governance statement
- financial reporting
- the quality of both internal and external audit
- its view of its own effectiveness.
The Audit and Risk Committee met four times over the reporting period on 20 April 2023, 21 August 2023, 3 November 2023, and 22 January 2024. Its members over this period were:
- John Matheson – Chair (attended all meetings)
- Lesley MacLeod – Member (attended all meetings)
- Graeme Dickson – Member (attended all meetings)
The Committee has considered the annual report and accounts, and the Accountable Officer has taken account of, and confidence from, their comments and observations prior to signing this governance statement and the other parts of the annual report and accounts.
Best value
Under the Scottish Public Finance Manual, Accountable Officers appointed by the Principal Accountable Officer have a specific responsibility to ensure that arrangements have been made to secure best value. Scottish Ministers expect all Accountable Officers to comply with the duty of Best Value placed upon them.
As part of this duty, arrangements are to be made to secure continuous improvement in performance whilst maintaining an appropriate balance between quality and cost; and in making those arrangements and securing that balance. Regard is also to be made to economy, effectiveness, the equal opportunities requirements, and to contribute to the achievement of sustainable development.
The Scottish Public Finance Manual groups Best Value characteristics to reflect the key themes which will support the development of an effective organisational context from which public services can deliver key outcomes and ultimately achieve Best Value. Each of these have been listed below, alongside some examples from the reporting year to demonstrate how these have been achieved by Transport Scotland.
Vision and Leadership
- Transformation Programme: This programme, launched in 2023-24, seeks to look collectively at our organisation and the way we work. This Programme is divided into six workstreams, which are a key driving force in securing Best Value through vision and leadership. These are: (1) Organisation Purpose; (2) Prioritisation Exercise; (3) Organisation Design; (4) Leadership and Managing Change; (5) Learning and Development; and (6) Wellbeing. Each of these workstreams has a Senior Management Team Lead to provide visibility and leadership through the process.
- Organisational Design: During the reporting year, we have been undertaking an Organisational Development programme within Transport Scotland to develop options for structural change, which will maximise efficiencies from flexible working across teams and economies of scale. This forms part of the wider Scottish Government’s Transformation programme. This programme has provided us with an opportunity to reset our priorities to align better with the second National Transport Strategy.
Governance and Accountability
- Investment Decision-Making: In supporting the Accountable Officer in making investment decisions, the Investment Decision Making (IDM) Board provides advice on the major capital and resource investment programme, ensuring value for money and accountability in the delivery of the agreed investment programme, and providing advice on the progression of individual projects to the next stage. Core to supporting these decisions is a suite of appraisals, assessments, and evaluations (some examples below).
- Appraisal, Assessment and Evaluation: The Scottish Transport Appraisal Guidance (STAG) supports the vision for transport in Scotland by providing a framework to identify and appraise transport interventions. It follows a structure and methodology that is consistent with the UK Government’s Green Book. The process is designed to provide investment decision-makers with the information they need in a clear, structured format. This forms a key part of a transport-related Business Case. STAG aligns with a Strategic Business Case (SBC) for interventions. An appraisal using STAG will generate the Strategic Case and the Socio-Economic Case included in the five-case model typically used in business case development. As part of the options appraisal, an assessment is required on how options perform against current Scottish Government policy objectives. In so doing, the Policy Assessment Framework (PAF) tool is used. The Scottish Trunk Road Infrastructure Project Evaluation (STRIPE) framework is used for the evaluation of road schemes costing over £5 million and considers whether the scheme’s Transport Planning Objectives were achieved and benefits realised; whether the outturns impacts of the project were as forecast; how well the project was implemented; what the impacts were on established policy directives; and what lessons can be learnt to improve decision-making.
- Grant payments: As a result of in year reviews, Transport Scotland identified improvements that could be made in relation to the monitoring and payments of certain grants. In some instances, the review of evidence provided by grantees was not carried out in line with all of the grant conditions. Transport Scotland have now rectified this and are satisfied that governance arrangements are appropriate.
Use of Resources
- Procurement: For Transport Scotland, procurement and commercial capability are key enablers to successfully delivering our business and securing Best Value. While a large part of our budget is allocated to other public and private sector organisations through grants and support, our procurement spend is significant and around £770 million was spent on contracts under our management in 2023-24. In line with the Procurement Reform (Scotland) Act 2014, Transport Scotland reports on its strategic direction of its procurement activity for each financial year in support of the Scottish Government’s goals. The Strategy for 2023-24 was published in July 2023 and sets out our strategic direction for procurement activity, taking into account our legal obligations, ensuring that we make the best use of public money, whilst protecting our climate and improving lives. Our Annual Procurement Reports provide a summary of our regulated procurement activity over each financial year. At the time of publication, the latest Annual Procurement Report was for 2022-23 and was published in February 2024.
- Continuous scrutiny of budgets: Throughout the reporting period, we have undertaken continuous scrutiny of budgets to drive efficiencies and ensure that our processes align with the Scottish Public Finance Manual (SPFM). Transport Scotland has used the Accountable Officer Spending Control templates as a key part of financial governance and to drive Best Value.
- Estates Strategy: Transport Scotland has reduced its estates requirement in terms of overall square footage. Additionally, plans have been developed during the reporting period for Transport Scotland to sub-let the second of its leased floors in its 177 Bothwell Street premises to two other public sector bodies, providing opportunity for collaboration and continued sharing of services and resources. This follows a similar arrangement with a separate public body within its interim offices in George House, Glasgow.
Partnership and Collaborative Working
- Role as a Sponsor: As an Executive Agency that sponsors other public bodies, Transport Scotland works collaboratively in and partnership with other organisations. This is achieved in part through a Transport Scotland sponsorship network, providing a support and advice network for our sponsor teams and providing a platform for working collaboratively on key matters, such as the Public Service Reform (PSR) agenda.
Working with Communities
- Consultations: We engage with people and stakeholder organisations as a key part of our policymaking approach. Consultations play a key role in this public engagement. Both our open and closed consultations can be viewed on our website.
Sustainability
- Fair Fares Review: Published in March 2024, the Fair Fares Review sets out a pathway to a public transport system which is financially sustainable in the long term and which provides affordable, frequent, and integrated services that are responsive to the needs of people and communities across Scotland, improving accessibility to employment, services and activities for lower income households. The Review is a key part of our strategy to develop a sustainable system that drives Best Value.
Fairness and Equality
- Mobility and Access Committee Scotland (MACS): This is an independent advisory non-departmental public body sponsored by Transport Scotland, whose members are appointed by the Cabinet Secretary for Transport. MACS considers matters relating to the needs of disabled people in relation to transport and gives advice to Scottish Ministers and Transport Scotland, reflecting the views and lived experience of disabled people and promoting fairness and equality within the transport system.
Risk management
Risks are managed at the level most able to deal with them, with the most serious risks being escalated to the Senior Management Team, and where appropriate, to the Director General Net Zero. Transport Scotland categorises risk in line with the Orange Book: Management of risk – Principles and Concepts.
Our Risk Management Framework seeks to set out our approach to risk management and it continues to be reviewed and enhanced (in line with arrangements in Scottish Government) to improve the transparency of our systematic approach, identify risks and to link them to Corporate Planning and Objectives. The Risk Framework provides additional guidance on assessing risks and their impact, with a scoring system that recognises both likelihood and impact.
There is a robust framework of responsibility for risk management in accordance with the Scottish Public Finance Manual. The system for assessment and control of risk is as follows.
- The Chief Executive reviews the strategic and operational risks to achieving the objectives of Transport Scotland, in conjunction with the Directors, regularly at Senior Management Team meetings.
- The Audit and Risk Committee provides oversight of our risk management processes and strategy and Corporate Risk Register.
- Managers identify and evaluate risks to delivering objectives successfully when they prepare and review their plans.
- The Chief Executive meets regularly with the Directors and Ministers, where both strategic and operational matters are discussed.
Risk Management Group
The Risk Management Group is appointed by the Senior Management Team to review, oversee and advise the SMT on the Transport Scotland Risk Register and risk management processes. Chaired by the Director of Finance and Corporate Services, it has representation from each of the Directorates and meets every three months, aligned to Directorate SMTs and the DG Assurance process.
Risk Review Group
Members of the Risk Management Group also attend the Risk Review Group. This is chaired by the Transport Scotland Risk Champion and meets on a monthly basis. The role of this group is to provide a forum for members to discuss the approach to risk in their Directorate, horizon scanning for potential emerging risks that may impact the organisation as a whole and identifying risks for recommendation for urgent escalation to the Transport Scotland Corporate Risk Register in between Risk Management Group meetings via the Director of Finance and Corporate Services.
Risk appetite
Within 2023-24, the Transport Scotland Risk Appetite Statement was updated. This Statement aligns with the agreed risk appetite for the wider Director General Net Zero Portfolio.
Key risks
Throughout the financial year 2023-24, we have continued to identify and manage organisational risks. The most significant risks identified from the period are outlined below.
- Commercial: Clyde and Hebridean Ferry Services Contract
- Financial: Staffing budget; 2023-24 Transport Scotland budget management; Future Transport Scotland budgets
- Operational: Response to significant incidents; Roads Asset Management
- Programme/project: Climate Change Plan
- Reputational: Climate Change; Future transport financial sustainability
- Security: Cyber Resilience
- People: Wellbeing
- Strategic: Sponsored Bodies
There are no significant events that have occurred during the reporting period.
Further detail on these risks is included in the performance report.
Managing information and information security
We are committed to ensuring information is managed and valued, with appropriate protection and use of our information assets. The handling of data and information carries significant risks, and we take information security very seriously, in compliance with Scottish Government sponsored and adopted Security Frameworks and Data Handling policies.
The Transport Scotland Agency Data Protection Officer oversees the process for handling personal data security incidents and staff guidance is available on what to do in the event of a breach. All information security incidents are logged, and lessons learned exercises are carried out for all reported security incidents.
In addition, we follow the Scottish Government key principles for good information management in that:
- we treat information as a Scottish Government resource
- we are all responsible for our information
- we make information accessible to others who have a need to use it
- we keep records of what we do
- our information is accurate and fit for purpose
- our information complies with regulations and legal requirements.
All our users of Information Technology must comply with the Scottish Government Code of Conduct.
All staff are required to complete a mandatory General Data Protection Regulation (GDPR) e-learning course on an annual basis. The Information Governance and Data Protection team regularly monitors completion rates and issues reminders where required.
During the year 2023-24, no incidents relating to personal data were reported to the Information Commissioner’s Office (ICO) (2022‑23: none).
Counter fraud
All cases of actual or suspected fraud are investigated promptly and appropriate action is taken, in accordance with our fraud, bribery and whistleblowing procedures, which specify how cases will be dealt with and how staff can report suspicions or concerns.
Our Fraud Officer updates these procedures in our Fraud Response Plan, which is reviewed annually, with updates communicated through staff notices and awareness sessions.
The Plan also includes a bespoke section on Cyber Resilience, in order to recognise its importance. Cyber Resilience retains a high profile throughout the Agency, and our ICT colleagues continue to improve staff awareness and monitor systems. We have joined forces with the Scottish Government and other Agencies in terms of developing and sharing best practice. The Agency is working towards maintaining Cyber Essentials in 2024.
The Plan also contains further guidance and advice in relation to emerging and increasing fraud risks as a consequence of the Covid-19 pandemic and the transition out of it. This has resulted in many significant new challenges for the public sector. We recognise that the need for heightened controls and robust governance is now greater than ever, so we continue to develop and to review mitigations in relation to potential Procurement and Mandate Fraud, as well as ensuring robust controls across all new ways of working and raising staff awareness.
We have continued to encourage staff to undertake training and review regular updates and staff notices distributed by the Fraud Officer, guiding colleagues, particularly to counter fraud eLearning training courses available on the Civil Service learning website.
Details of cases of actual or attempted fraud that become known during the financial year are reported within the Fraud Log that is reviewed by the Audit and Risk Committee, together with responses and any further mitigation. There were ten cases of suspected fraud highlighted during the year (2022-23: three). However, these continue to be investigated to ascertain if there is evidence of wrongdoing or malpractice, or if these can safely be closed. Information continues to be shared with Police Scotland where this is deemed appropriate.
There is a separate Concessionary Fares Fraud Team due its unique operating environment. We participate in the National Fraud Initiative (NFI) in Scotland, led by Audit Scotland, which matches electronic data within and between public and private sector bodies to prevent and detect fraud. This is also reflected in the contribution to the Scottish Government project designed to review and enhance the overall approach to fraud detection and prevention. This project is designed to assess all areas of fraud prevention, consider the need for new approaches to training and the potential resources available for increasing the awareness and profile of this work.
Business continuity
Our Business Continuity Plan sets out our approach to dealing with events that could cause business interruption in our response to:
- identify risks
- establish clear areas of responsibility
- ensure we can continue to provide essential functions and services
- identify measures to recover/repair assets damaged or lost
- identify a medium- and long-term recovery strategy.
The aim of the Plan is central to keeping the organisation safe, secure, and resilient. Transport Scotland requires all Directorates to develop, exercise and keep up-to-date the business continuity plan to deal with the consequences of business disruption. The Plan was updated within the 2023-24 financial year.
Our Business Continuity Plan has been successfully deployed and demonstrated to operate effectively, with lessons learned reflected in updated plans. We also have a Cyber Incident Response Plan, which details how we will respond to any live cyber threat and provides guidance on processes and procedures that should be followed in response to any cyber incident.
Internal audit
The Scottish Government’s Directorate for Internal Audit and Assurance (DIAA) reviews specific areas within Transport Scotland as identified and agreed in the Annual Audit Plan. After reviews have been undertaken, reports are submitted which provide an assurance rating to the Chief Executive.
The annual rating of Assurance Controls provided by DIAA were reported as ‘Reasonable’. This is defined as ‘controls are adequate but require improvement’. The annual rating was based on the assurance reviews and advisory activity undertaken over the year, the findings and actions put in place to address recommendations. A total of three assurance reviews were completed in-year as follows:
- Workforce Planning and Wellbeing – Reasonable Assurance (four medium-priority recommendations)
- Future of Public Transport – Reasonable Assurance (four medium-priority recommendations)
- Sponsorship Governance and Performance Management – Reasonable Assurance (four medium-priority recommendations)
Transport Scotland continues to work with DIAA to progress and build actions to implement the recommendations, received in-year, as well as those carried forward from previous years, into our future work programme.
External audit
Audit Scotland prepared an Annual Audit Report in August 2023 as part of their audit of the Annual Report and Accounts 2022-23 for Transport Scotland. The matters and recommendations that were raised have either been addressed by management or actions have been put in place to address these within Transport Scotland. It should be noted that an Audit Tracker was set up to track progress on this area and details were presented to Audit and Risk Committees throughout the year.
Whistleblowing
We are committed to ensuring a high standard of conduct in all that we do, with a duty to identify and remedy any area of malpractice. We achieve this through encouraging a culture in which employees feel confident to raise their concerns about potential wrongdoing. Employees can report any suspected wrongdoing through their own line management or via a Nominated Officer. All whistleblowing cases are investigated thoroughly, ensuring that lessons are learned to encourage continuous improvement. Transport Scotland follows the Scottish Government’s Raising a Concern under the Civil Service Code and Whistleblowing Policy.
In 2023-24, there were no cases reported under the Whistleblowing Policy within Transport Scotland (2022-23: none).
Review of effectiveness
I, as the Accountable Officer, have responsibility for reviewing the effectiveness of the system of internal control. This is informed by the work of Internal Audit, Directors’ assurance, the Audit and Risk Committee and external auditors.
Directors provide annual certificates of assurance covering their areas of responsibility. These are supported by completion of an internal control checklist on an annual basis, covering all areas of corporate governance.
In addition, we maintain an assurance map, which sets out both corporate and directorate processes that provide assurance on achievement of our objectives and identifies officers responsible for ensuring these are accurate and up to date. This document is shared with internal and external audit and reviewed by the Audit and Risk Committee.
Our internal audit is provided by the Scottish Government’s Directorate of Internal Audit and Assurance, and they submit regular reports to the Audit and Risk Committee on the adequacy and effectiveness of the organisation’s system of internal control, together with any recommendations for improvement. Follow-up work is carried out to confirm the effective implementation of recommendations agreed as a result of the audits.
The Performance Audit Group (Turner and Townsend working in association with the Waterman Group, WSP and PriceWaterhouseCoopers) audits, monitors, and reports on an independent basis on the financial, technical and performance aspects of the work carried out by the Trunk Roads Operating Companies, and this provides external assurance for trunk road maintenance.
The Office for Road and Rail also reviews and reports on an independent basis on the financial, technical and performance aspects of Network Rail undertaking the operation, maintenance, and renewal of railway infrastructure in Scotland to provide assurance on the adequacy and value for money of the discharge of these obligations.
Audit Scotland external auditors assess the extent to which they can place reliance on the individual reviews undertaken by Internal Audit to inform their opinion on the financial statements, depending on their relevance.
On the basis of these assurances, I can confirm that sound systems of governance, risk management and internal control, consistent with the requirements of the Scottish Public Finance Manual (SPFM) were operational over the year ended 31 March 2024 and up to the date of approval of the Annual Report and Accounts.