Recommendation 2

The Committee therefore recommends Highlands and Islands Enterprise (HIE) should continue to monitor the ongoing effectiveness of CMSL’s governance arrangements and review these within two years. It is also vital that the Scottish Government has oversight of the governance arrangements, as well as assuring itself that HIE’s financial management controls are appropriate to safeguard public funds and conform to the requirements both of propriety and of good financial management in accordance with the Framework Agreement between the Scottish Government and HIE.