Scottish Public Finance Manual

Delegated authority

Scope

This section gives information on the delegation of authority.

Applicability

The guidance is aimed primarily at the constituent parts of the Scottish Administration (i.e. the core Scottish Government (SG), the Crown Office and Procurator Fiscal Service, SG Executive Agencies, and non-ministerial offices) and bodies sponsored by the SG. However, other organisations to which the Scottish Public Finance Manual (SPFM) is directly applicable should ensure compliance with any relevant provisions and follow procedures consistent with the guidance.

Definitions:

Shall/must: denotes a requirement; a mandatory element
Should: denotes a recommendation; an advisory element
May: denotes approval
Might: denotes a possibility
Can: denotes both capability and possibility
Is/are: denotes a description  

Links to relevant guidance:

Principles:

• Defined in the Public Finance and Accountability Act (PFA Act) under sections 1-20

SG guidance:

• is available on the SG intranet
• the below public secor guidance

Public sector bodies guidance:

• Accountability section of the SPFM

• Certificates of Assurance section of the SPFM

• Annual budgeting process section of the SPFM

Review/update

Lead area: Scottish Government Finance Directorate; Risk Control and Assurance Division – Governance and Accountability Branch.

For update/review of this principle please refer to the Guidance and Procedure available on the SG intranet or from the Governance and Accountability team, this includes information on ministerial approval.

Accessibility guidance is available on the SG intranet.

Background

Appropriate delegation of authority is fundamental to corporate governance arrangements i.e. the way in which organisations are directed and controlled. Delegated authority must be supported by formal delegation letters that clearly define the scope, thresholds, and exclusions of the authority granted, ensuring decisions and actions can be taken efficiently and by the appropriate people. Delegated authority for budgets does not confer purchasing authority, which should be the subject of separate delegations.

Delegated authority may be withdrawn if misused or if governance standards are not met.

Accountable Officers

Accountable Officers for public sector organisations should delegate authority for budgets and associated strategic and financial management responsibilities to senior executives for further sub-delegation as considered appropriate. While an Accountable Officer can delegate authority the responsibilities of an Accountable Officer cannot be delegated or shared. Detailed guidance on Accountable Officer arrangements is included in the Accountability section of the SPFM.

Strategic management responsibilities

Delegated authority must be in  alignment with the principles of regularity, the relevant Budget Act and the Annual budgeting process section of the SPFM.

At the higher levels of public sector organisations, financial responsibilities should be discharged in the context of wider risk and strategic management considerations. Senior executives, within their area of responsibility, should therefore be delegated responsibility for:

• proposing objectives, priorities, outcomes, and performance indicators for the organisation which square with the organisation's aims, policy, and management objectives;
• making plans and ensuring that adequate systems are in place to achieve these objectives effectively, efficiently, and economically;
• delivering major projects;
• ensuring that adequate systems for internal control and risk management, both financial and otherwise are in place and are monitored and reviewed regularly; and
• monitoring and reporting of performance to the organisation's management board and/or Accountable Officer.

Financial management responsibilities

The general financial responsibilities associated with delegated authority for discrete budgets include the following:

• ensuring proper financial procedures are followed and compliance with relevant guidance, in particular the SPFM;
• ensuring functions are discharged with due regard to regularity, propriety, and value for money (economy, efficiency and effectiveness) within an overall framework of Best Value;
• ensuring funds and assets are properly managed and safeguarded, with checks as appropriate; and
• ensuring any relevant risks, whether to achievement of business objectives, regularity, propriety or value for money, are identified and effectively managed.

Scheme of Delegation

The Scottish Government has put in place a Scheme of Delegation (see Annex A and also available on the Scottish Government Intranet) detailing internal structures for the delegation of authority to senior executives across the Scottish Government. This includes the option of further sub-delegation as appropriate., but can also be varied through express permission (such as where the resources delegated to an SRO through their formal appointment letter exceed the standard grade-based delegation), these should be monitored and reviewed regularly to ensure a proportionate approach to financial risk is taken.

Public sector organisations to which the SPFM is directly applicable should establish documented internal delegated authority arrangements appropriate to their circumstances. The Accountable Officers will determine precisely how authority should be delegated to individual managers.

The delegation of financial responsibilities is undertaken annually at the start of the financial year once the budget is in place. The framework in the scheme is then tested by the Certificates of Assurance  process. These arrangements form part of the assurance cycle organisations and support the signature of the Governance Statement the Accountable Officer must provide as part of the annual accounts.

Executive Agencies and Non-Ministerial Offices (NMOs)

Scottish Government Executive Agencies and non-ministerial departments (NMOs) should adopt the principles of the Scottish Government Scheme of Delegation for their own internal executives. The delegation of financial limits conferred by the Scottish Government should be covered in the framework documents setting out the key relationships between the entity and the core Scottish Government. Such delegations must be approved by the relevant Scottish Government Finance Business Partner (or equivalent).

Prior approval of the relevant Scottish Government Finance Business Partner (or equivalent) is always necessary for novel, contentious or repercussive financial transactions, even if they fall within previously agreed delegated limits.

Novel or contentious

Regarding a financial transaction as novel or contentious involves a degree of judgement but the following definitions can support your judgement:

Novel:

Novel can be defined as, but not limited to, activities which might;

• set a precedent not previously established
• are new or unusual in nature
• have not been previously undertaken by the business area or public body
• may raise questions of principle, require special scrutiny, or pose risks of wider implications across government

Contentious:

Contentious can be defined as, but not limited to, activities which:

• are likely to provoke debate or disagreement, either within government or externally
• may raise concerns about propriety, legality, or public perception
• could cause reputational risk or political sensitivity
• might impact other business areas or public bodies, leading to wider repercussions

Repercussive:

Repercussive can be defined as, but not limited to, activities which;

• could cause ripple effects or wider consequences across the public sector
• might impact other business areas, bodies, or sectors, either financially or operationally
• have the potential to set a precedent that influences future decisions or expectations elsewhere in government

It is important therefore if contemplating undertaking a transaction which could be defined as novel, contentious or repercussive you seek appropriate advice and approval from the relevant SG Finance Business Partner (or equivalent). This must be obtained for any financial transaction undertaken by constituent parts of the Scottish Administration and bodies sponsored by the SG. Accountability for such transactions remains with the relevant Accountable Officer. The relevant Accountable Officer should therefore be made aware of all such transactions.

Sponsored bodies

Bodies sponsored by the SG are required to establish documented internal delegated authority arrangements. SG sponsor teams, on behalf of their Portfolio Accountable Officers and in consultation with SG Finance Business Partners (or equivalent), are separately required to put in place appropriate delegated limits on sponsored bodies' use of funds as part of the framework documents setting out the key roles and responsibilities which underpin the relationship between sponsored bodies and the SG. Delegated limits must enable the sponsor team to fulfil its responsibilities towards the Portfolio Accountable Officer and allow the sponsored body freedom to manage under the terms of the framework document. 

Authority cannot be delegated to sponsored bodies where the SPFM requires the prior approval of the SG (e.g. compensation schemes for severance, early retirement, or redundancy) or novel, contentious or repercussive financial transactions as noted above, even if they fall within delegated limits. Any expenditure undertaken without the necessary delegated authority from the SG may be deemed irregular and lead to the accounts being modified and an investigation by the Scottish Parliament's Public Audit Committee. 

Sponsor teams must ensure that oversight mechanisms are in place to monitor the use of delegated authority limits by sponsored bodies, including regular reporting and assurance processes as referenced in the framework document.

Transparency in the use of delegated authority and delegated limits is essential. Sponsored bodies should maintain records of decisions and provide information to support parliamentary scrutiny where required.

Review

Internal delegated authorities should be updated every year in line with the budget process, and external delegated limits should be reviewed in line with the regular review of the framework document to make sure that they remain up to date and appropriate.

Page updated: August 2026