Annex C - template - portfolio Accountable Officer to Director
Director Insert Director Role
Copy to: Finance Business Partner (or equivalent)
[If the Portfolio Accountable Officer is not also the DG with management responsibility for the directorate the minute should be copied to the relevant DG manager.]
FINANCIAL RESPONSIBILITY STATEMENT – FINANCIAL YEAR XXXX-YY:
DELEGATION OF AUTHORITY FROM THE PORTFOLIO ACCOUNTABLE OFFICER
1. The Permanent Secretary, in their capacity as the Principal Accountable Officer for the Scottish Administration, has designated me as the Accountable Officer for parts of the Scottish Administration, as defined in the annual Budget Act and Documents. The annual Budget allocates resources to ministerial portfolios. A table setting out the budget provision for each of these areas for the current financial year is available on the intranet. This is updated for changes in year and is the foundation for the regular financial management reporting. Since the budget was set, revised budget envelopes have been communicated to portfolios and areas need to work to achieve the resource and capital savings and efficiency targets across resource and capital budgets in line with the actions to work towards a path to balance. The totals set out here reflect individual areas budgets prior to this work
2. The detailed responsibilities associated with this designation are set out in the Memorandum to Accountable Officers for Parts of the Scottish Administration, which is reproduced in the Scottish Public Finance Manual at Annex 1 to the section on Accountability. The Scottish Public Finance Manual is published on the Scottish Government website.
3. As an Accountable Officer I am personally answerable to the Scottish Parliament for the regularity and propriety of relevant financial transactions and for the economical, efficient, and effective use of relevant resources. I look to Directors to assist me in discharging my responsibilities and, in this minute, I set out the extent to which I delegate authority to you. This delegation complements the Certificates of Assurance process which underpins the signing, by the Principal Accountable Officer, of the Governance Statement in the Scottish Government’s consolidated accounts, ANNEX 1 provides a summary of general areas of financial responsibility and delegated authority for information.
Strategic Management
4. It is particularly important that financial responsibilities are discharged in the context of wider resource and strategic management considerations. The relevant areas for your directorate are broken down specifically within the associated table published on the intranet, alongside this document. To view your information please choose the Directorate tab and the correct DG and Directorate. These amounts are subject to in year budget revisions, once the revisions are made and approved by Parliament the table will be updated.
4.1 establishing relevant outcomes, prioritised outputs and performance indicators representing your Directorate’s contribution to delivering the Government’s purpose and national outcomes;
4.2 putting proper plans in place and ensuring that adequate systems are in place to achieve the outputs that will help deliver the desired outcomes effectively, efficiently, and economically;
4.3 ensuring that adequate systems for internal control and risk management, both financial and otherwise, are in place, monitored, and reviewed regularly including ensuring that you have appointed a risk champion for the directorate;
4.4 regular monitoring of planning, advising on the management of risk(s) to your delivery and reporting of performance to relevant management boards or equivalent and myself.
General Financial Responsibilities
5. My responsibilities are set out in the Memorandum to Accountable Officers from the Principal Accountable Officer for Parts of the Scottish Administration and my specific portfolio responsibilities are set out in my AO letter. Your financial duties derive from those responsibilities and are as follows:
5.1 to ensure that risks to achievement of business objectives, regularity, propriety or value for money, are identified, assessed, and that controls and actions (including any systems and processes appropriate to the risks) are in place to manage them at an acceptable level and in line with the Scottish Government’s risk appetite approach; protecting public funds and assets from loss or fraud and corruption;
5.2 to seek to achieve value for money in the use of public resources by ensuring that resources are used efficiently, effectively and economically as part of the broader principle of feasibility outlined in the SPFM Accountability section. The requirements of SPFM Appraisal and Evaluation section must be adhered to, particularly with regard to the need to prepare pre-expenditure assessments and business cases to demonstrate the value for money case and to evaluate the outturn of a project, programme, or policy against its objectives.
5.3 to ensure that arrangements have been made to secure Best Value from resources by pursuing continuous improvement;
5.4 to ensure that in the consideration of policy proposals, all relevant financial and procurement considerations, including any issues of regularity, propriety or value for money are taken into account and where necessary brought to the attention of Ministers;
5.5 to ensure your Directorate contributes effectively to public expenditure planning and monitoring exercises co-ordinated by DG Scottish Exchequer and the Chief Financial Officer supported by the Financial Management Directorate;
5.6 to ensure that your Finance Business Partner (or equivalent) and, as appropriate, Internal Audit and Assurance Directorate are involved at the earliest possible stage in the preparation of all policy proposals etc. which may have resource or other finance related implications and that they are kept informed of developments. Your Finance Business Partner (or equivalent) must also be consulted on all responses to reports, reviews etc. with resource implications or which include issues of financial regularity, propriety, or accountability;
5.7 to ensure that the Scottish Procurement and Property Directorate (SPPD) is involved at the earliest possible stage in the preparation on all policy proposals etc. which may have procurement or property related implications and that they are kept informed of developments. SPPD must also be consulted on all responses to reports, reviews etc. which include issues of procurement, regularity, propriety, or accountability;
5.8 to ensure that Risk Potential Assessment forms are completed in respect of all policy proposals to determine whether they should have an independent assurance report from the outset. The SG Internal Audit and Assurance Directorate is the main source of advice on programme and project assurance;
5.9 to ensure that all financial guarantees, indemnities, and letters of comfort are cleared by your Finance Business Partner (or equivalent) and that the accounting and budgeting implications are fully recognised;
5.10 to ensure that all payments are applied only to the extent and for the purposes authorised by Parliament;
5.11 to provide an assurance to me (in the form of a signed Certificates of Assurance supported by your Deputy Directors’ assurances and Internal Control Checklists), as the Portfolio Accountable Officer, on the system of internal control within your Directorate which is required to enable the Principal Accountable Officer to sign the governance statement in the Scottish Government’s consolidated accounts;
5.12 to ensure that the Pay Policy / Pensions Team is consulted on any pay remit proposals or changes to pay and conditions of service;
5.13 to consult the Subsidy Control Team on all proposals which may have Subsidy Control implications;
5.14 to ensure that the budget holders of any approved budgets which might be affected by any policy, or other, developments proposed by your Directorate are fully consulted;
5.15 to ensure that all functions exercised by your Directorate on a continuing basis are covered by specific legislation; and
5.16 to ensure that your Directorate engages fully in Finance and People meetings and the formal quarterly Director General Governance and Assurance meetings as required.
Delegated Authority
6. The budgets delegated to you to allow you to discharge your functional responsibilities are detailed in the table attached to this delegation letter.
7. In relation to such resources, you have full authority to discharge your financial duties, subject to the existence of relevant statutory authority for spending; annual Budget Act authority; and compliance with relevant provisions in the Scottish Public Finance Manual. Any proposals to depart from these rules or issues, which in your opinion are novel, contentious, or sensitive, must be approved by me. In presenting the proposal for my consideration you should ensure that you consult with your Finance Business Partner (or equivalent). Where the Finance Business Partner (or equivalent) considers that a proposal should not proceed, you may seek my personal authority. In doing so I would expect to see both the case in favour of proceeding and the grounds given by the Finance Business Partner (or equivalent) (endorsed by the Chief Financial Officer) for their recommendation against. I expect to be alerted at the earliest opportunity should any matters arise that could attract critical comment from Audit Scotland and the Public Audit Committee of the Scottish Parliament.
8. I expect you to delegate in similar terms many of the duties here to your Deputy Directors and that there might be further sub delegation to units within Divisions. Any such delegation must be fully documented and be in line with the template letter recommended in the Scottish Government Scheme of Delegation document.
9. In the absence of written authority to write off losses or make special or other ex gratia payments, all proposals for special transactions must be referred in the first instance to your Finance Business Partner (or equivalent). Any proposal to make a charitable donation from the approved budget(s) should be cleared with me following appropriate consultation and advice from your Finance Business Partner (or equivalent).
10. The budgets managed by your Directorate must be operated in accordance with the general rules set out in the Scottish Public Finance Manual and the Scottish Government Procurement Policy Manual. Purchasing authority is the subject of a separate delegation. Scottish Procurement and Property Directorate (SPPD) is responsible for the scheme of Delegated Purchasing Authority (DPA) across the core Scottish Government.
11. Your attention is drawn to the procedures around the engagement and use of consultancy outlined in the SPPD guidance, namely, the need for Director General approval for contracts in excess of £10,000 – noting that in turn the Cabinet Secretary for Finance must be consulted on such contracts exceeding £50,000 in cost.
Sources of Advide and Assistance
12. Financial Management and Reporting and Health Finance, as appropriate, are the main sources of advice on financial matters. Your Finance Business Partner (or equivalent) must be consulted on expenditure proposals which are either new or the costs of which exceed the level of planned resources agreed by Ministers. They can also advise on ad hoc financial issues. Budget holders should also comply with any specific financial management guidance from the Permanent Secretary and Chief Financial Officer, including complying with the Accountable Officer spend control process. The template and guidance can be found on the intranet. Please contact finance if you require any further clarification.
13. Scottish Government Internal Audit and Assurance Directorate should be consulted to help with tasks such as the development of controls within new systems and colleagues in Financial Management & Reporting can advise on technical accounting issues or the introduction of new accounting arrangements.
14. Scottish Procurement and Property Directorate is the main source of advice on procurement and Property matters.
15. If you suspect fraud or corruption, as part of your on-going management action, you should refer to the guidance on fraud contained in the Scottish Public Finance Manual and report the suspicion to the Fraud Response mailbox and to the Head of Counter Fraud Profession. Frauds must be reported to the Fraud Response mailbox for information even if local prescribed procedures are in place.
16. The publications listed below contain important guidance on financial and risk management.
- The Scottish Public Finance Manual
- Finance Guidance Notes
- Scottish Government Procurement Policy Manual
- Scottish Government Consultancy Procedures
- The Scottish Government's Counter Fraud Strategy, Policy, and Response Plan
- The Scottish Government's Approach to Risk Management
- Appraisal and Evaluation in Central Government - The Green Book (HM Treasury)
17. Local desk instructions for the management of resources must reflect this guidance.
[Signed]
Portfolio Accountable Officer
Annex 1
Financial Responsibilities
Policy, Proposals, Reports and Reviews
1. You will ensure that your Finance Business Partner (or equivalent) and, as necessary, Internal Audit, Procurement and Property and Construction Division are involved at the earliest possible stage in the preparation of all policy proposals etc. which may have resource, control, property or other finance related implications for Programme budgets and that they are kept informed of developments. The Finance Business Partner (or equivalent) must also be consulted on all responses to reports, reviews etc. with resource implications or which include issues of financial regularity, propriety, or accountability.
2. You will ensure that Risk Potential Assessment Forms are completed in respect of all such policy proposals to determine whether theyd should have an independent assurance report from the outset. SG Internal Audit and Assurance Directorate is the main source of advice on programme and project assurance.
Scottish Statutory Instruments/Financial Memorandums
3. The Finance Business Partner (or equivalent) should also be consulted on any Scottish Statutory Instruments (SSIs) or Financial Memorandums to ensure that the financial implications of the secondary legislation are considered and recorded.
Budget Planning, Monitoring and Reporting
4, You will ensure you contribute effectively to public expenditure planning and monitoring exercises co-ordinated by DG Scottish Exchequer and the Chief Financial Officer supported by Financial Management Directorate.
Certificates of Assurance
5. You must provide assurances to me (in the form of a signed Certificate of Assurance and Internal Control Checklist) on the system of internal control within your area. This enables me to provide the Portfolio Accountable Officers with the appropriate level of assurance supporting the signing by the Permanent Secretary of the governance statement in the Scottish Government’s consolidated accounts.
Risk Management
6. You will ensure that risks to the achievement of business objectives, regularity, propriety or value for money, are identified, assessed and that controls and actions (including any systems appropriate to the risks) are in place to manage them at an acceptable level and in line with the Scottish Government’s risk appetite approach.
7. You will appoint a Risk Champion to support you in the discharge of your risk management duties and the development of risk management arrangements in your area and in alignment with the SG Risk Guide.
Grant and Grant in Aid
8. You will ensure compliance with the principles on Grant and Grant in Aid as detailed within the Scottish Public Finance Manual and within specific SG guidance on the intranet.
Value For Money
9. You will seek to achieve value for money in relation to your allocated budgets by ensuring that resources are used efficiently, effectively and economically as part of the broader principle of feasibility outlined in the SPFM Accountability section. The requirements of SPFM Appraisal and Evaluation section must be adhered to, particularly with regard to the need to prepare pre-expenditure assessments and business cases to demonstrate the value for money case and to evaluate outturns against objectives. Options appraisals, including financial appraisal and evaluation, are essential to good financial management, detailed policy development and design. They are also a key component to ensuring objective analysis is provided to support decision making. You will ensure that an appropriate appraisal has been carried out.
Best Value
10. You will ensure that arrangements have been made to secure Best Value from resources by pursuing continuous improvement.
Financial Guarantee Contracts/Contingent Liabilities/Letters of Comfort
11. You must clear any proposals which will create a contingent liability with the Finance Business Partner (or equivalent). All guarantees/indemnities/letters of comfort must be cleared by the Finance Business Partner (or equivalent), to ensure that appropriate accounting and budgetary implications are fully considered. and that, if required, approval has been received from the Finance and Public Audit Committee before proceeding.
12. A contingent liability includes any legally binding enforceable undertaking given in the form of a guarantee which would bind the Scottish Government into providing the resources in the event of the guarantee or indemnity maturing; or a general statement of comfort which could be considered to impose a moral financial obligation on the Scottish Government.
Programme/Project Management
13. Effective management of major investment programmes and projects (as defined in the Major Investment Projects section of the SPFM) is essential to ensure that they that deliver the specified outcome or output, to the agreed quality, timescale and budget.
14. The Major Investment Projects section of the SPFM sets out the key steps and processes to be followed in managing a major investment programme or project.
15. Portfolio Accountable Officers must be kept informed of progress on major investment programmes and projects and must inform Ministers if there are any developments that could undermine the planned budget or viability of the programme or project.
Public Sector Pay
16. The Pay Policy / Pensions Team must be consulted on and agree any pay remit proposals or changes to pay and conditions of service. In addition, the Finance Business Partner (or equivalent) should be consulted on affordability.
Subsidy Control
17. You will consult the Subsidy control team on all proposals which may have subsidy control implications. Subsidy control provisions are now covered by the UK Subsidy Control Act 2022 and the UK’s international obligations including various Free Trade Agreements and those arising as a consequence of World Trade Organisation membership. There are circumstances in which Subsidies are allowed however, Subsidy control issues must be considered as early as possible in the policy development stage. Any unlawful subsidies given in contravention of the UK Subsidy Control Act 2022, FTAs, and WTO – may result in infraction proceedings and the possible recovery, with interest, of the payment from the recipient. All relevant accounts may also be liable to qualification.
Regularity and Propriety
18. Regularity – You must ensure that all expenditure and receipts are dealt with in accordance with the legislation authorising them and any relevant guidance issued by Scottish Ministers e.g. the Scottish Public Finance Manual.
19. Propriety – You must ensure that expenditure and receipts are dealt with in accordance with the Scottish Parliament’s intentions and conventions in line with parliamentary control.
20. The Finance Business Partner (or equivalent) or the Financial Management & Reporting Team, as appropriate, must be consulted in all cases where the guidance is unclear.
Debt Repayment
21. Early repayment of borrowing from Scottish Ministers will require the approval of the Chief Financial Officer supported by the Financial Management Directorate.
Gifts and Donations
22. Any proposal to make a gift, (or a prize in a competition) or to make a charitable donation from the approved budgets, must be cleared by me and, as appropriate by the Finance Business Partner (or equivalent) or the Financial Management & Reporting Team.
Disposal or Acquisition of Property
23. You must seek advice from Property and Construction Division, when a disposal of property or an acquisition of property is being considered, alongside principles and guidance outlined at Property acquisition, disposal and management - Scottish Public Finance Manual - gov.scot (www.gov.scot) – this includes prospective disposals or acquisitions by Non-Departmental Public Bodies. The Finance Business Partner (or equivalent) must be fully informed on any proposals of this nature.
New initiatives or spending proposals which will put existing plans under pressure, or which cannot be met from existing provision
24. Any proposals which cannot be met from within existing spending plans must be referred to me and the Finance Business Partner (or equivalent).
Proposals which might set a precedent have repercussions for others or are novel or contentious
25. Any proposals which might set a precedent or have repercussions for others must be referred, as appropriate, to the Finance Business Partner (or equivalent) or the Financial Management & Reporting Team. This includes any ex-gratia payments.
Management of Assets
26. You must ensure that any assets within your command e.g. land, building, equipment are properly and well managed. Robust systems must be in place to ensure that the accuracy and integrity of information held on registers, databases and inventories is safeguarded and readily available for inspection. You are responsible for maintaining records of attractive items, local investment registers and systems for the management of equipment.
Budget and Cash Management
27. You will ensure that your division works closely with the Finance Business Partner (or equivalent) and the Financial Management & Reporting Team to provide accurate and robust profiles and forecasts of outturn for budget exercises, alongside comprehensive returns within the monthly deadline. Additionally you will ensure monthly cash management forecasts are provided to Financial Operations Division, Treasury & Banking.
Payment Policy
28. You will ensure that your division complies with the Scottish Government payment policy to make payments promptly; where appropriate, in accordance with the Scottish Government target of payment within 10 working days of receipt of a valid invoice. In particular, you should ensure that purchase orders are raised accurately and receipted promptly once goods or services have been received.
Debt Management
29. You will ensure that your business areas follow the requirements outlined in the central Order to Cash Policy alongside the Income receivable and receipts requirements in the SPFM.
VAT
30. You will ensure that UK VAT legislation is complied with in all cases. In making any decisions on VAT the VAT guidance contained within the SPFM should be considered and complied with where applicable. In cases where there is any uncertainty with the correct VAT treatment to apply, advice must be sought from the VAT and CIS branch of Financial Operations Division.
Business Planning/Performance Appraisal
31. You will ensure that delegated financial responsibilities are included, where appropriate, in Business Plans. For staff below Deputy Director level delegated financial responsibilities must be incorporated in job descriptions and objectives supporting the performance appraisal process as well as any local desk instructions.
Divisional Procedures
32. Divisional desk instructions relating to financial procedures must be aligned to existing central guidance on Pathways to ensure that local processes comply with approved SG-wide policies.
Delegated Purchasing Authority
33. Delegated Purchasing Authority (DPA) is the authority to enter into a contract for goods, services and works and oversee the process leading up to and including the award of a contract and any subsequent contract changes.
34. No Scottish Government member of staff can enter into a contract without written purchasing authority from the Director of the Scottish Procurement and Property Directorate (or nominated representative) (except using the electronic Purchasing Card (ePC) or a framework agreement awarded by SPPD).
Electronic Purchasing Card
35. The electronic Purchasing Card (ePC) should be used for goods and services costing up to £5,000 per transaction excluding VAT. Using the card reduces the time required to raise and process large numbers of ad-hoc payments. Suppliers benefit by being paid a few days after despatching the goods or delivering the services.
36. Responsibility for the proper management and control of an ePC card must be incorporated into an individual’s job description and if appropriate covered by an appraisal objective.
page updated: July 2025