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The Scottish Public Finance Manual (SPFM) is issued by the Scottish Ministers to provide guidance on the proper handling and reporting of public funds.
Other than where they are have been given a specific remit, constituent parts of the Scottish Administration must not deliberately invest resources outside the public sector and SG sponsored bodies should not make any investments of a speculative nature. Where Scottish Ministers decide to make investments directly through the core Scottish Government or associated bodies, Accountable Officers must ensure that appropriate diligence and consideration is carried out before any commitment is made to invest, detailed guidance on this has been added as Annex A: Investment in businesses by Scottish Ministers to the Borrowing, lending and investment chapter.
This guidance sets out the key steps that must be considered when Scottish Ministers are considering an initial or follow-on investment in private businesses and forms the basis for developing proposals and a structure for decision-making.
The first part of this guidance focuses on the key tests for Accountable Officers, that are necessary for a comprehensive view on an investment proposal. This includes guidance on:
Powers of intervention
Regularity of expenditure
Propriety
Value for money
The next section of the guidance sets out the out the other critical areas of consideration when reviewing an investment proposal. These considerations include:
State aid
National accounts classification
Budgeting and accounting
Governance
Purchase/sale
Return on investment
Security of investment
Public body duties
Pensions
Taxation
Legislative and parliamentary considerations
Flow charts supporting the guidance for the Accountable Officer tests have been added as supporting documents.
The remainder of the guidance covers the decision making process, monitoring, evaluation and management of the investment and exit arrangements. Disclosure of information and commercial sensitivity is also covered in the guidance, this is further expanded upon in Annex B.
Updates to wording of Annex 2 Internal control checklist for Certificates of Assurance.
New FGN note added - FGN 2025/03 financial memoranda that accompany Scottish Government bills.
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
Link in point 23 of Settlement, Severance, Early Retirement, Redundancy section updated.
numbering in Annex 2 Internal control checklist for Certificates of Assurance updated due to a typo
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.
updated missing text in document SPFM - Non-Ministerial Offices model framework document July 2024.
Adding in FGN 2024/03 re the updated AO Spend Control Template and Guidance.
Updating the SRO Appointment letter in the documents section to include a point on construction projects in the Annex.
Executive agencies model framework document updated.
Non-Ministerial Offices model framework document updated.
Updating the SRO Appointment letter in the documents section to this years dates
Updated link to 'On Board: A Guide for Members of Statutory Boards' within Governance statements chapter.
Updates made to model framework document templates.
Updates made to text within Procurement chapter.
Replaced non-ministerial office model framework document and advisory non-departmental public bodies model framework with updated versions.
Document updated with an additional date - Settlement Agreement supporting documentation - final confirmation of terms
Replaced Non-Ministerial Offices model framework document
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
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.
Updates made to proportionate due diligence wording, Accountable Officer tests guidance, risk exposure guidance, public bodies duties, monitoring and management, exit arrangements.
Procurement chapter updated.
Updated 'Major investment projects' paragraph 12 and the SRO appointment letter.
