A financial watchdog has discovered that millions of pounds of taxpayers’ money is missing from Police Scotland’s books amid fears the force is facing financial meltdown.
Experts at Audit Scotland warned they had never seen such “incomplete” and “poor quality” accounts from a public body.
And, despite bungling bookkeepers making “substantial changes” to their spending claims over the last year, £21million still remains unaccounted for.
The investigators have warned that without rapid improvement the force may struggle to “ensure its long-term financial sustainability” – with a looming funding gap of £85million.
Last night, the Scottish Police Authority (SPA) – the body responsible for overseeing the national force – insisted improvements were being made.
Caroline Gardner, the Auditor General for Scotland, said in her report: “The annual audit of the Scottish Police Authority’s 2014-15 accounts was challenging.
“Audit Scotland received the unaudited 2014-15 accounts, on time, on July 31, but these were incomplete, of poor quality and were subject to substantial changes.
“By the end of the audit, the majority of numbers in the primary financial statements had changed. This is exceptional in our wider experience of auditing public sector accounts.”
Ms Gardner said the Scottish Government handed over £67.5million of taxpayers’ money to the force to help pay costs such as early retirement and voluntary redundancy.
But her probe discovered that the force could not account for where more than 30% of that money – £21 million – was spent.
She added: “The Scottish Police Authority and Police Scotland must collectively provide stronger leadership both in terms of strategic and operational financial management.
“This is essential if they are to deliver effective modern policing for the public and ensure their long-term financial sustainability.”
Scottish Labour said the audit revealed Police Scotland was in an “impossible” position.
Justice spokesman Graeme Pearson said: “The auditor general for the second year records the disarray that is the SPA. To have no robust financial management or strategic plan to deliver on behalf of Police Scotland is nothing short of criminal.
“We’ve been told there will be a saving of more than £1billion by 2026 yet they cannot balance the books and cannot demonstrate where savings will come from.
“(Finance Secretary) John Swinney made a virtue of the additional funds he was giving to policing in his financial statement earlier this week. We now know the truth.
“Ahead of this publication the SNP have bought their way out of hock.
“Without the additional funding, the police would be facing impossible financial savings.”
New Scottish Police Authority chairman, Andrew Flanagan, said they would appoint a Chief Financial Officer “quickly” to address the issues raised in the report.
He added: “SPA’s annual report and accounts for 2014-15 demonstrates continued progress in the reform of policing and the delivery of further significant financial savings and efficiencies.
“The final accounts have also received an unqualified opinion from the appointed auditor which is welcome.
“However, we fully acknowledge the recommendations in the accompanying audit report that significant improvements are required in financial processes and controls within policing.
“Audit Scotland has described the issues identified in the audit as exceptional. I agree and the SPA board has taken immediate action to address them.”
A Scottish Government spokesman said the police budget would increase in real terms for every year of the next parliament.