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Scotland’s new Chief Constable, Phil Gormely appeared before the Public Audit Committee
Finance, constitution and economy ministers took the hot seat for portfolio questions
Labour led a debate calling on education spending to be protected in real terms over the next five years
Labour MSP Margaret McCulloch led a member’s debate marking International Day of Zero Tolerance for Female Genital Mutilation.
SNP MSP Sandra White says the auditor general said there was an exceptionally high cash held figure.
Scottish Police Authority chief executive John Foley says it is a high figure but there is no detriment to the authority.
Image source, PASource - Scottish Police Authority
New Chief Constable Phil Gormley says the way the committees are structured look rational and familiar to others he has seen in his career.
Mr Gormley says the structure looks sensible but it is the quality that perhaps needs to be addressed.
Paul Johnston, the Scottish government's Interim Director-General Learning & Justice, says an overarching structure for accountability has been put in place.
Mr Johnston says the government plays a very active role with Police Scotland and the SPA in relation to these structures.
Scottish Police Authority chair Andrew Flanagan says the SPA finance function consists of two people so it is a small finance function.
Mr Flanagan says there should only be one financial function.
There needs to be better and improved information flows to the SPA, he says.
The new head of Police Scotland was formally sworn in on the 5th January during a ceremony at the Scottish Police College at Tulliallan Castle in Fife.
Phil Gormley has taken over from Sir Stephen House, who stood down as chief constable at the end of November after three years in the job.
Mr Gormley was previously the deputy director of the National Crime Agency. He has also served as the chief constable
SNP MSP Stuart McMillan says the situation over the course of last year has been "quite appalling" in terms of internal controls.
Mr McMillan asks for assurances that this will not be repeated.
Scottish Police Authority chair Andrew Flanagan says the auditor general said there had been improvements but there were still issues around fixed assets.
Mr Flanagan says there is now a solid foundation for moving forward around fixed assets.
He says a chief financial officer has been appointed to create a much better position.
Scotland's chief constable Sir Stephen House stepped down after 35 years as a police officer in November.
His departure followed a turbulent time for Police Scotland.
Sir Stephen confirmed details of his departure at a meeting of the Scottish Police Authority
Sir Stephen, 57, had been criticised for the force's expansion of its stop and search policy and failings related to a fatal crash on the M9.
Phil Gormley previously of the National Crime took up the role in January.
In 2013, Scotland's former police chief had dismissed claims of a power struggle with the head of the police authority, classing it as "constructive tension".
Sir Stephen House said he had not hidden the fact there was tension with the then SPA head Vic Emery, but insisted relations were positive.
His comments came in the wake of concerns over Scotland's newly-merged national police force.
At the time Mr Emery said relations were "good and getting better".
Ms Scanlon asks how long the new chief constable has been in place.
Police Scotland's Chief Constable Philip Gormley says: "I started on the 5th of January."
Ms Scanlon says there must be no more arguments between the SPA and the chief constable over job descriptions.
Mr Gormley and Mr Flanagan both stress they will work collaboratively.
The chief constable says: "The relationship must be predicated on trust and transparency."
Scottish Police Authority chair Andrew Flanagan says he the situation has improved in recent months.
Mr Flanagan again says he is confident that the £1.1bn of savings will be made by 2026.
Conservative MSP Mary Scanlon asks Paul Johnston, the Scottish government's Interim Director-General Learning & Justice, how long he has been in post.
Mr Johnston says June 2015 and my predecessor had held that role since prior to the merger of Police Scotland.
Ms Scanlon says the same promises were made three years ago by Vic Emery and Sir Stephen House and there is still not a financial strategy.
What is your annual salary, Paul Martin asks Mr Foley.
The SPA chief executive says his annual salary £110,000.
The Labour MSP ask if he takes responsibility for the gap in audit.
Mr Foley replies: "Clearly I do have responsibility as accountable officer to have resources and assets in place."
Scottish Police Authority chair Andrew Flanagan says there was a gap in internal audit and there were procurement issues.
The previous internal auditors were Price Waterhouse Coopers but the procurement process decided Scott-Moncrieff was a better fit going forward says Mr Flanagan.
Committee convener Paul Martin asks if Mr Foley accepts there were issues with the financial reporting.
Committee convener Paul Martin
Mr Foley says: "Yes indeed I fully accept that could have been improved.
"From this year on all reform expenditure will be broken down in more detail."
Committee convener says MSPs have heard similar promises in the past so what makes this different.
Scottish Police Authority chief executive John Foley says he is "absolutely confident" that the savings will be made.
Mr Foley says the work to date suggests "85% of £1.1bn is in the bag".
In December Audit Scotland warned of "significant issues" in Scottish police accounts, with a potential funding gap of £85m developing by 2018/19.
Auditor General Caroline Gardner said Police Scotland and the Scottish Police Authority "must provide stronger leadership" on financial management.
The report came as the Inspector of Constabulary warned of budget savings impacting on police effectiveness.
Image source, PAThe SPA said "immediate action" would be taken over "weaknesses" identified.
The group is to appoint an interim chief financial officer to oversee the management of the SPA and Police Scotland.
Deputy Chief Constable Neil Richardson said the "overall performance of Police Scotland remains strong".
Scottish Police Authority chair Andrew Flanagan says he is confident of making savings of £1.1bn by 2026.
Mr Flanagan says the plan is to have a balanced budget by next year.
He says this can be delivered by the end of March.
Scottish Police Authority, external chair Andrew Flanagan says he has been a chartered accountant for 40 years and he has never received such a serious audit report.
Mr Flanagan says he accepts all the recommendations in the Audit Scotland report.
He says he does not expect the report to be repeated and he will do everything possible to make sure it is not.
Mr Flanagan details the recruitment of staff to tackle the issues and a firm of accountants to look at the books.
Public Audit Committee convener introduces the witnesses:
