FOI24/25 061 Information on Current Financial Situation

Date published: 09/09/2024

“Like many public bodies in Scotland, SQA is taking necessary steps to make efficiencies.”

This was the final line of an SQA statement received on 28 June in response to an enquiry I had put in. I would like to understand the SQA financial position better. Could you please provide me with the most recent reports the SQA holds setting out its current financial position and the details of the “efficiencies” referenced in the above statement.

The response should include – but not be limited to – reports on the SQA’s financial position shared with its board of management this calendar year.

For instance, the minutes from the board of management meeting on April 24 state that Mr Baxter (Director of Finance and Corporate Services) provided the board with “an overview of the current funding position and projected additional requirement from the Scottish Government”. I would like to receive the detail of that overview (be that papers shared with the committee or slides from a presentation, for example).

I would also like to receive any communication between the SQA and the Scottish government regarding the SQA’s financial position and the projected additional requirement. Please include any communications from the last three months.

For clarity I’m looking to understand how much additional grant in aid the SQA is looking for from the Scottish government, as well as how much funding has been requested by the body in respect of education reform. I’m also looking to understand if these sums have been approved; refused; or if the SQA is still waiting to hear from the government.

We are unable to provide the information requested as this is considered exempt under section 30 (b)(i) and (ii) and section 33 (1)(b) of the Act.

The information requested is considered exempt under section 30(b)(i) as it relates to our budget, which is currently being updated, involving discussions both internally within the SQA and externally with the Scottish Government. The discussions relate to the budget being updated in line with the financial situation facing the organisation at this time. Discussions relating to budgets when being drawn up are considered exempt as it is important that these are permitted to be undertaken in a safe space which allows open discussions on sensitive matters. Whilst the budget changes are being discussed it is important that they are able to be carried out outside the public view. This will ensure that all the discussions are carried out in a free and frank manner as the information being discussed is considered to be sensitive.

It is also considered exempt under section 33 (1)(b) as providing details of the financial situation and the discussions could adversely affect our commercial interest. SQA is involved in many commercial contracts throughout the world and any adverse effect on any of these contracts would cause an issue with our commercial interests and reduce the organisation’s income levels. It is important that these interests are not affected, particularly in the current financial climate.

When section 30 and 33 exemptions are applied a public interest test must be carried out. We have considered the public interest and whether on balance it is in the public interest to withhold or release the requested information. FOISA does not define the term “public interest” but it is described as “something which is of serious concern and benefit to the public”. Additionally, the public interest does not mean ‘what is of interest to the public, but what is in the interest of the public.

It is understood that there will be interest in the financial situation of SQA, particularly at this time, as the organisation affects a large number of people and there is a requirement for transparency on how public organisations deal with public money. There is a large amount of financial information placed into the public domain by SQA on a regular basis, particularly in our annual report and accounts. However, financial information that is under discussion is not placed in the public domain whilst those discussions are ongoing. It is important that these discussions can be undertaken without being made public to ensure that they are in a way that allows the free and frank provision of views and deliberation. If it was being made public whilst the discussions are going on, it could prevent the discussions being able to take place as there would be a reluctance to share views and opinions in the discussions.

It is also important that the discussions are not placed in the public domain at this time as it may have an adverse effect on our commercial contracts. If the financial information was made available, it could affect our ability to compete for contracts across the world. Where we compete for business could be hindered if our fincial information is being placed into the public domain and could allow others competing to gain information giving them an advantage in any tender processes. SQA would not have the same information on other organisations and this would place SQA at a disadvantage.

Accordingly, the public interest in disclosing the information is outweighed by maintaining the exemption.