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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.
The purpose of this note is to announce recent amendments to the Scottish Public Finance Manual (SPFM), specifically the chapter on settlement agreements, severance, early retirement and redundancy terms.
Settlement agreements, severance, early retirement and redundancy terms
rewording “Voluntary Resignations secured by a financial consideration” as “Voluntary Severance”
making clear that the Severance Policy applies to all organisations covered by the SPFM except where it is inconsistent with any statutory requirements
clarification about maximum payback period of 24 months for Voluntary Severance
more detail about the purpose of the £95,000 cap in ensuring that that exit payments for the devolved public sector are fair and equitable while providing value for money for the people of Scotland
reinforcing the expectation that for Voluntary Severance, notice periods will be worked and outstanding leave will be taken prior to termination of employment
refreshed flowcharts for Settlement Agreement and Voluntary Severance
the draft confidentiality clause has been reworded
the email address for HR has been updated
the email address for the Severance Policy Team has been updated
Business case templates
Templates have been updated to follow a more consistent style and structure. Furthermore, the templates have been streamlined to apply to two broad organisation types: those whose employees are in civil service pension schemes, and those whose employees are not.
Flowcharts of the reporting process
The flow charts summarising the reporting process for Settlement Agreements (Annex A) and Voluntary Severance (Annex B) have been updated to more clearly set out the governance around advice and decision steps, including when business cases are referred to senior management for review.
Redundancy
The Redundancy section has been updated to reflect the link to the public sector pay policy.
Updated links in the Internal Audit section and the Major Investment section.
Adding in Finance guidance note 2026/01 re 2025/26 CoA.
Updating the CoA checklist for 2025/26
Correcting a typo in the Major investment section.
Update to Major Investment section - removal of expired links to a Risk Potential Assessment (RPA) form.
Update to the Major Investment Section to remove 2 paragraphs re IIB.
Further text update to Annex 2 in the Counter Fraud section.
Text updates to the Counter Fraud section: Fraud, Annex 1, Annex 2 and Appendix 1. Also unpublished Annex 3 and Appendix 4.
Paragraph added at the start of Annex B: investment in businesses by Scottish Ministers, part of the Borrowing, lending and Investment section.
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
Update to a link in the Major Investments section and the addition of FGN 2025/04 and FGN 2025/05.
Update to Major investment section - adding in a section on Digital Portfolio.
Updated links for all framework templates linked in the Accountability section.
Updates include the addition of annexes A, B, C and D. Annexes in the Delegated Authority section.
Update to footnote in the borrowing, lending, and investment section.
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.
