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Audit Scotland sees no need for special focus on Dundee V&A project

The V&A has been pulled back on land from its original offshore location in a bid to control costs.
The V&A has been pulled back on land from its original offshore location in a bid to control costs.

Scotland’s public spending watchdog has said it will monitor spending on the V&A at Dundee but only as part of annual review of Dundee City Council accounts.

It was revealed earlier this year that the cost of the museum had risen from £45 million to more than £80 million.

A review by procurement expert John McClelland into the rising bill concluded the way the costs were estimated was not “sufficiently robust” to address the “unique challenges” of building Kengo Kuma’s museum on the Tay.

The independent review also said that more frequent and direct reporting to councillors about the escalating costs “would have been helpful”.

Mr McClelland made a number of recommendations to Dundee City Council, including appointing a full-time project manager and reviewing the cost of fixtures and fittings, which are currently estimated at £4.8 million.

Dundee-based MSP Jenny Marra told the Scottish Parliament this week that she believes Audit Scotland should look at management of the project, which is the centrepiece of Dundee’s £1 billion waterfront redevelopment, as the project is being managed by a public body.

She said: “There are concerns about the spiralling costs of the project; there are also concerns about governance.

“The V&A project fits exactly into Audit Scotland’s definition of an arm’s-length external organisation.”

Culture secretary Fiona Hyslop said that was a decision for Audit Scotland, but added: “On governance, the McClelland report identified a number of areas, particularly in relation to the original budget costs to which the member referred.

“The underestimates in the original budget were one of the key aspects of the increase in the overall budget costs.

“On reporting and corporate governance arrangements, the McClelland report also concludes that more frequent direct reporting on the V&A to members would have been helpful.

“Following adoption, the council has taken forward the project board since 2015 in order to ensure that there is more openness and transparency.

An Audit Scotland spokesman said they would monitor expenditure on the V&A as part of the annual review of Dundee City Council accounts.

“We have been monitoring the V&A project through our annual audits of Dundee City Council.

“The McClelland review examined in detail the cost increases thus far.

“At this time, we do not feel there is a need for further audit work in this area.

“However, we will continue to keep a close eye on the implementation stage of the project as part of our annual audit of the council.”