Scottish Public Finance Manual

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

Annex A: Settlement agreement flowchart and reporting process

Annex A: Settlement agreement flowchart and reporting process

Step 1

Public Body prepares Settlement Business Case with approval of Accountable Officer and seeks advice/clearance as required from SG Sponsor Team / Lead Contact

Step 2

Business Case submitted to SG Sponsor Team / Lead Contact  

Step 3

SG Sponsor Team / Lead Contact send to the Severance Policy Team, Scottish Government  People Directorate (SGPD), Finance Business Partner (FBP) and the Sponsor Director scrutiny and advice

Step 4

The Severance Policy Team, SGPD, and FPP consider settlement case, provide scrutiny of the business case and employment information schedule. They may seek input from their Deputy Director as appropriate, they may recommend independent expert advice / referral to Ministers as required. They send their comments and advice to the SG Sponsor Team/Lead Contact.

Note: If more information is required, the SG Sponsor Team / SG Lead contact seek the required information from the public body

Step 5

Sponsor Team / SG Lead Contact liaise with public body on any cases that breach severance policy and with Portfolio Cabinet Secretary for comments / views. Cabinet Secretary for Finance included in all Ministerial submissions for information 

Step 6

SG Sponsor Team / SG Lead Contact collate responses and provide feedback to public body (including Ministerial comments where appropriate) 

Step 7

Accountable Officer makes final decision on whether to proceed with settlement agreement

Step 8

Public Body to notify Sponsor Team / Lead Contact, copying SG Sponsor Director and the Severance Policy Team if and when Settlement Agreement is finalised providing details of final agreement

Step 9

Severance Policy Team reports annually to the Scottish Parliament on Settlement Agreements

Page updated: February 2024

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