Framework Document between The Scottish Government and Crown Estate Scotland

4. Plans, budgets and control

4.1 The Corporate Plan

Crown Estate Scotland shall agree with the Scottish Government the issues to be addressed in the Corporate Plan (normally covering a 5 year period) and the timetable for its preparation and review. The finalised plan shall reflect Crown Estate Scotland’s strategic aims and objectives as agreed by the Scottish Ministers, indicative budgets and any priorities set by the Scottish Ministers. The Corporate Plan should include (in addition to those provisions listed in article 19 of the 2017 Order):

• the purpose and principal aims of Crown Estate Scotland;
• an analysis of the environment in which Crown Estate Scotland operates;
• key objectives and associated key performance targets for the period of the Corporate Plan, the strategy for achieving those objectives and how these will contribute toward the achievement of the Scottish Government’s primary purpose, the National Performance Framework, National Marine Plan, The Programme for Government, and Scotland's National Strategy for Economic Transformation.
• details of planned efficiencies, describing how better value for money will be achieved, including through collaboration and use of shared services; and
• other key points agreed with the Sponsor Team as described above.
• The Corporate Plan shall be submitted, no later than three months before the expiry of the existing plan via the Sponsor Team, for approval by Scottish Ministers.

4.2 Business Plan

The Corporate Plan should inform the development of a separate Business Plan for each financial year which will include key targets and milestones for the year immediately ahead, aligned to the National Performance Framework, and be linked to budgeting information so that, where possible, resources allocated to achieve specific objectives can be identified.

• A copy of the Business Plan will be provided to the Sponsor Team prior to the start of the relevant financial year for approval by Scottish Ministers.
• A progress report against the activities, milestones and key performance targets should be submitted to the Sponsor Team in parallel with Crown Estate Scotland’s Board.

4.3 Publication of Plans

The Corporate Plan and Business Plan shall be made available on Crown Estate Scotland’s website.

4.4 Reporting Performance to the Sponsor Team

Crown Estate Scotland shall operate management information and accounting systems which enable it to review in a timely and effective manner its financial and non-financial performance against the budgets and targets set out in its Corporate and Business Plans.

Crown Estate Scotland shall inform the Sponsor Team of changes in external conditions which put the delivery of objectives at risk, or which may require a material change to the budget or objectives set out in the Corporate and Business Plans.

• Crown Estate Scotland Chief Executive shall periodically meet with the Sponsor Team to discuss progress against objectives.
• The Cabinet Secretary/Scottish Minister with portfolio responsibility for Crown Estate Scotland shall meet the Board formally each year to discuss Crown Estate Scotland's performance, its current and future activities and any policy developments relevant to those activities.
• Crown Estate Scotland's performance against key targets shall be reported in Crown Estate Scotland's Annual Report and Accounts (see part 1, section 5.1 of this document). Other forms of reporting performance to the public should also be considered.
• Where monitoring of performance indicates that the budgeted level of net revenues will not be achieved, the Accountable Officer must report this to the Sponsor Team at the earliest opportunity.

4.5 Audit and Other Committees

Crown Estate Scotland must establish an audit committee in accordance with the guidance on Audit Committees section in the SPFM. Crown Estate Scotland may establish other committees and sub-committees. The membership of a committee or sub- committee may include (but may not consist entirely of) persons who are members of the staff of Crown Estate Scotland.

Crown Estate Scotland must notify, as soon as practicable, any changes to its audit committee's terms of reference to the Sponsor Team.