Magazine article Public Finance

'Management Errors' Led to Agency's £33M Deficit

Magazine article Public Finance

'Management Errors' Led to Agency's £33M Deficit

Article excerpt

Chief officials of Scottish Enterprise have admitted that management errors have led to it overspending by £33m.

Finance director lan Carmichael told members of the Scottish Parliament's enterprise committee this week that there was no evidence of money having been spent recklessly, irregularly or improperly. However, there was a problem with the phasing of expenditure, for which the economic development agency regretfully had to accept responsibility.

Carmichael said problems had arisen as a result of a new system of resource accounting. He said: 'We didn't realise the serious implications of it partly because we didn't fully understand it.'

Leaders of Scottish Enterprise, including chair Sir John Ward and chief executive Jack Perry, were grilled for more than two hours at a tense meeting of the Holyrood committee in Edinburgh.

The Scottish Executive had to step in earlier this year and give the agency permission to take cash from its budget for the next financial year after the £33m overspend (6% of budget) was disclosed. …

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