Chapter 6 - Changes to Systems and Process and Audit and Accountability
Changes to Systems and Process
Scotland Act 2012/Scotland Act 2016
73. Within the Scottish Government, the Financial Management projects assessed the impact of each of the Scotland Act changes on each stage of the financial management cycle.
74. This was to ensure that the relevant processes are in place to accommodate these changes efficiently, making necessary adjustments to processes and systems and to ensure that processes are in place to support effective financial decision-making by Scottish Ministers at each stage of the financial cycle.
75. The 2017-18 Draft Budget process and documents set out the decisions made in respect of the first year of operation of new arrangements and the in-year financial management processes will manage these.
76. There is still on-going discussion with HM Treasury on some aspects of the Fiscal Framework and these will be concluded as soon as possible.
77. Progress was also made in relation to commitments to developing financial reporting, transparency and accessibility, through in particular the publication of "Scotland's Finances -Key facts and figures" on 14 December 2016  .
Audit and Accountability
Scotland Act 2016
78. Both the Scottish and UK Governments have agreed to update auditing and accountability arrangements in light of the fiscal framework and Scotland Act 2016. The technical annex to the fiscal framework sets out key principles on governance, accountability and audit that audit arrangements should be efficient and effective, avoid duplication, and should not result in auditors becoming overburdened once the Smith provisions are fully implemented.
79. We are currently considering with UK Government officials the production of guidance setting out how the principles in the technical annex should be applied practice. Detailed arrangements will then be agreed by Scottish and UK Ministers at the Joint Exchequer Committee ( JEC).
Email: David Ferguson
Phone: 0300 244 4000 – Central Enquiry Unit
The Scottish Government
St Andrew's House