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Publication - Advice and guidance

Scottish Public Finance Manual

Last updated
11 November 2025 - see all updates
Directorate
Financial Management Directorate
Topic
Money and tax, Public sector

The Scottish Public Finance Manual (SPFM) is issued by the Scottish Ministers to provide guidance on the proper handling and reporting of public funds.

Supporting documents

FGN 2025/05 SPFM AO Spend Control September 2025

The purpose of this note is to highlight the updates to the AO Central Spend Control Process. This is a temporary spend control that must be followed by all parts of the Scottish Government, including public bodies and agencies, as agreed by Cabinet, recognising the challenging financial position in current and future financial years. These controls will be regularly reviewed and updated as required.

What's changed

  • a change to the financial thresholds whereby the AO Central Spend Control process must be followed
  • amendments to the template and corresponding guidance document

AO Central Spend Control Process

  • The purpose of the AO Central Spend Control process is to seek final approval to proceed with spend in the context of the current financial position. The aim is to consider the prioritisation and affordability of the spend within the wider financial position of the organisation.  
  • AO Central Spend Control templates are not a replacement for proportionate financial appraisal, for example through Pre-Expenditure Assessments (PEAs), Business Cases or Impact Assessments. The AO Central Spend Control template should be completed after these assessments have been undertaken as a means of budgetary control and to ensure a formal record of the decision taken and the approval to release expenditure.
  • In relation to spend that is affordable within agreed portfolio budget envelopes:
    • the AO central spend control process must be followed for expenditure greater than £5 million.
    • This applies to spend with an impact in 2025-26 and/or future years, and for all categories of spend.
    • The threshold applies per annum.
  • In relation to expenditure that is new or outside existing budgets and delivery plans, repurposes underspends, or is novel and/or contentious:
    • the AO Central Spend Control process must be followed, with no minimum threshold applied;
    • This applies to spend with an impact in 2025-26 and/or future years, and for all categories of spend.
  • These steps should be taken in addition to any local spend control arrangements, and do not negate the duties and personal accountability that Accountable Officers (AOs) have in relation to expenditure under their stewardship. Responsibility for due process on propriety, regularity and value for money of individual spending decisions remains with AOs; expenditure must be assessed rigorously, and AO assessments produced as appropriate. Further guidance on this can be found in the Accountability Chapter of the SPFM.
  • The AO Central Spend Control guidance and template can be sourced from your Sponsor Team and / or Finance Business Partner.
First published
3 July 2025
Last updated
11 November 2025 - show all updates

  1. Update to the Major Investment Section to remove 2 paragraphs re IIB.

  2. Further text update to Annex 2 in the Counter Fraud section

  3. Text updates to the Counter Fraud section: Fraud, Annex 1, Annex 2 and Appendix 1. Also unpublished Annex 3 and Appendix 4.

  4. Paragraph added at the start of Annex B: investment in businesses by Scottish Ministers, part of the Borrowing, lending and Investment section.

  5. Updates to the Property, acquisition, disposal and Management section in line with the SPFM Strategic Review and request to take off line FGN 2024/03 AO Spend Control

  6. Update to a link in the Major Investments section and the addition of FGN 2025/04 and FGN 2025/05.

  7. Update to Major investment section - adding in a section on Digital Portfolio.

  8. Updated links for all framework templates linked in the Accountability section.

  9. Updates include the addition of annexes A, B, C and D. Annexes in the Delegated Authority section.

  10. Update to footnote in the borrowing, lending, and investment section.

  11. Updates to wording of Annex 2 Internal control checklist for Certificates of Assurance.

  12. New FGN note added - FGN 2025/03 financial memoranda that accompany Scottish Government bills.

  13. Updates to the following sections following SPFM Strategic Review: Foreword, Accountability (and annexes), risk and subsidy Control. Also the addition of FGN 2025/02 explaining the updates

  14. Link in point 23 of Settlement, Severance, Early Retirement, Redundancy section updated.

  15. numbering in Annex 2 Internal control checklist for Certificates of Assurance updated due to a typo

  16. Updated Annex 2 Internal control checklist for Certificates of Assurance, added FGN 2025/01 re CoA checklist and added in a word version of the checklist.

  17. updated missing text in document SPFM - Non-Ministerial Offices model framework document July 2024.

  18. Adding in FGN 2024/03 re the updated AO Spend Control Template and Guidance.

  19. Updating the SRO Appointment letter in the documents section to include a point on construction projects in the Annex.

  20. Executive agencies model framework document updated.

  21. Non-Ministerial Offices model framework document updated.

  22. Updating the SRO Appointment letter in the documents section to this years dates

  23. Updated link to 'On Board: A Guide for Members of Statutory Boards' within Governance statements chapter.

  24. Updates made to model framework document templates.

  25. Updates made to text within Procurement chapter.

  26. Replaced non-ministerial office model framework document and advisory non-departmental public bodies model framework with updated versions.

  27. Document updated with an additional date - Settlement Agreement supporting documentation - final confirmation of terms

  28. Replaced Non-Ministerial Offices model framework document

  29. Updates to the Settlement, Severance, Early Retirement and Redundancy section. The main section and Annex's A, B C have all been updated along with updated documents and a Finance Guidance Note to explain the changes

  30. Updated the Certificates of Assurance chapter, Annex 2 with the CoA checklist questions for 2023/24 and added a Finance Guidance note outling the changes.

  31. Updates made to proportionate due diligence wording, Accountable Officer tests guidance, risk exposure guidance, public bodies duties, monitoring and management, exit arrangements.

  32. Procurement chapter updated.

  33. Updated 'Major investment projects' paragraph 12 and the SRO appointment letter.

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