The audit of HES’s 2024/25 accounts reported weaknesses in governance arrangements, including: procurement issues, data breaches, unclear processes for complimentary tickets to events at its venues, and no formal register of interests for the Executive Leadership Team. 

Auditors reported weaknesses in the financial management of electronic purchasing cards and hospitality. They also found that the HES board was not provided with a paper to scrutinise the cancellation of a specialist archive storage project, which has already cost £2.9 million, with a further £0.5m likely to be spent.  Together, these issues suggest a culture where organisational policies are not consistently applied or followed.

HES operated without a chief executive or accountable officer for almost six months in 2025. The Scottish Government should have appointed a substitute accountable officer to provide the necessary leadership and accountability in accordance with ministerial guidelines.

Stephen Boyle, Auditor General for Scotland, said: “Historic Environment Scotland is navigating a period of significant instability and challenge, with a number of staff-related matters that need to be resolved. This includes allegations of a toxic workplace culture which needs to be fully investigated and addressed.

“My report outlines unacceptable weaknesses in HES’s governance arrangements. It is critical that strong controls are now put in place to prevent the risk of fraud and demonstrate that value for money is being achieved.”