FLAWS found in the way the public body in charge of Scotland’s inland waterways recorded and valued its assets meant auditors could not give an opinion on its accounts, Audit Scotland has said.
Scottish Canals’ status changed from a public corporation to a non-departmental public body in 2020-21. That came with a requirement to follow HM Treasury’s accounting guide, including the methodology to be used to value the canal infrastructure and inland waterways.
Audit Scotland said that although the required valuations for investment properties and land and buildings were conducted, it found Scottish Canals did not get valuations for around £51 million of specialist assets. These included dredging equipment, lock gates and canal basin widening works.
A subsequent valuation, aimed at estimating the cost of replacing these assets, then raised concerns about the accuracy of Scottish Canal’s fixed asset register, amongst other valuation flaws. This meant auditors, in a highly unusual step, had to issue a disclaimer of opinion on the accuracy of Scottish Canal’s financial statements.
Audit Scotland said turnover in Scottish Canals’ finance team during this period increased the challenge of fully adopting HM Treasury’s accounting rules. A new valuation process of the canal infrastructure estate in its entirety will now be undertaken during 2022.
Stephen Boyle, Auditor General for Scotland, said: “Scottish Canals’ core role is to manage infrastructure assets. To plan effectively for the future, it is clearly important that it has a robust record of those assets and their values.
“Scottish Canals’ Board must also be able to satisfy itself that the body has sufficient skills and capacity to deliver the valuation project, and provide the appropriate support to ensure it is delivered to plan.”
A spokesperson for Scottish Canals said: “Our external auditors, Grant Thornton, raised queries over the nature of the capital and revenue expenditure on the unique, operational, assets in our care and in the way they have been valued since we became a standalone public body in 2012.
“We are now working, with the support of Transport Scotland, Scottish Government, and Grant Thornton, to resolve this highly complex matter and agree a new way of valuing our entire asset estate. Once this is in place it will inform the way we prepare our annual report and accounts going forward.”
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel