Auditor keen to ‘turn up dial’ on SIC’s pace of change
AN EXTERNAL auditor says she is keen to “turn up the dial” regarding Shetland Islands Council’s (SIC) “slow” pace of change.
Rachel Browne from Audit Scotland told councillors at a meeting on Tuesday progress has not been as fast as hoped.
An annual audit report on the SIC’s accounts for 2025/26 said the council has “appropriate arrangements in place for securing best value but to be fully effective, the pace of change needs to accelerate”.
The report however noted that the SIC’s “ambition exceeds its capacity to deliver change”.
“The pace and depth of improvement is poor, particularly in implementing the council’s change programme and best value recommendations,” it added.
Concern around pace of change is nothing new, given that it has featured in audit reports for a number of years.
Some councillors themselves have criticised the speed of action, particularly given the SIC continues to find itself in an unsustainable financial position.
Staff capacity has been cited as a factor in the past, while Browne previously said that the SIC’s ambition to benefit “Shetland as a whole” may impact on its own pace.
Speaking at Tuesday’s audit committee meeting, Browne said: “The pace of change at Shetland Islands Council is slow – I appreciate capacity can be limited in a small council, but we’re not seeing the intended progress that was spoken about say a year ago and indeed in earlier years.
“I’m just turning up the dial on that message in my report about the pace of change and the need to accelerate your change programme.”
However Browne reiterated that her focus was on financial sustainability, and that she recognised that service redesign was not always about savings.
During questioning Shetland West member Liz Peterson asked what could be done to increase the pace of change.
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SIC chief executive Maggie Sandison highlighted in response the ongoing management restructure within the council.
She said the structure of the SIC has “substantially changed” to make sure services are properly resourced and that management is supported to deliver change.
Sandison said prioritising work was also part of the equation, adding that “I think we still try to do everything”.
Generally Audit Scotland is proposing an unmodified opinion on the SIC’s draft 2025/26 accounts.
Browne said this is “positive assurance” to councillors and the public about how the SIC accounts for public money and stewards these funds.
She this was a “significant achievement”.
The report said that the council has “effective and appropriate arrangements” in place for areas like financial management, vision, leadership and governance.
But again auditors have highlighted the SIC’s continued reliance on using reserves to balance its budget.
Auditors meanwhile charged an extra £16,000 for the time taken to correct some errors from unaudited accounts.
Browne said this was in capital accounting – an area where issues and complications can often crop up, so it is “not unusual to have errors”.
When this £16,000 is added on, the total audit fee for Shetland Islands Council in 2025/26 came to £301,690.
Legislation in Scotland means that councils have to prepare and publish annual accounts that are subject to external audit.
Audit committee chairman Allison Duncan said the SIC accounts were a “mixed report”.
He pointed to increasing costs and the reliance on reserves.
“It is imperative that this issue along with others are urgently addressed,” Duncan said, adding that “difficult decisions will have to be made”.
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