A troubled police watchdog is facing sweeping boardroom changes after the chairman flagged up his colleagues’ lack of financial experience.
Andrew Flanagan said the Scottish Police Authority (SPA), which was set up to provide oversight of Police Scotland’s finances and performance, and is currently under fire for an £85 million funding gap in the single force’s budget, only had two board members with an accounting qualification.
The Sunday Herald can also reveal that two prominent board appointees – Paul Rooney and Jeane Freeman – stood down recently amid growing criticism of the body.
The SPA is perceived to have done a poor job since its creation in 2013 with Audit Scotland in December last year publishing an unflattering report of the SPA’s 2014/15 accounts and warning of “significant issues” to be addressed.
The report concluded that poor financial management and incomplete records had delayed the SPA accounts.
It also found that the SPA and Police Scotland faced a “critical” £85 million funding gap by 2018/19 and urged the two bodies to “provide stronger leadership”.
In a grilling last week by MSPs, Flanagan, a chartered accountant, bemoaned the limited skill-set of his board.
He said the SPA had a conventional committee structure, but added: “We have not had the depth of financial experience on those committees, or on the board as a whole, that I would have expected for an organisation of this size.
“Around my board, apart from myself, and I was only appointed in September, I only have one person who has an accounting qualification … For an organisation of our size, I don’t find that sufficient in terms of populating both a Finance and Investment Committee and an Audit and Risk Committee.”
He said an ongoing review of policing governance would consider the capabilities required of board members.
“I am looking at the committee structures and doing it from an entirely fresh skills-based approach in terms of what we need round the table.
“I’m recognising that that gap exists and moving to address it as quickly as possible”. One police source said new faces would be brought in and some board members may not have their terms renewed. Eight of the 12 board members have been in post from the beginning.
Labour MSP Graeme Pearson said: “Mr Flanagan’s new observation reinforces the points I have made about police reforms from the outset. Police Scotland is a £1 billion business being driven by financially illiterate office bearers incapable of preparing the governance and accountabilities necessary to ensure proper management.”
An SPA spokesperson said: “The initial appointments to the SPA board in 2013 brought a number of members with practical experience and knowledge of local government and the legacy police governance arrangements, which was understandable given the priority for a smooth transition.
“Going forward, it is important that the board now has a balance of skills and experience as policing enters its next phase of reform. That process is already underway. Last spring, three new members joined the board with additional financial management, policing, and global HR experience.”
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