Scottish government public finance manual

It is responsible for producing independent forecasts for Scotland, including forecasts of tax revenues, expenditure on social security, and onshore Gross Domestic Product GDP. Find more information on the Scottish Fiscal Commission website. The Scottish Public Finance Manual SPFM is issued by Scottish Ministers to provide guidance for government and other relevant bodies on the proper handling and reporting of public funds.

The SPFM sets out the relevant statutory, parliamentary and administrative requirements, emphasises the need for economy, efficiency and effectiveness, and promotes good practice and high standards of propriety. All of the annual Budget Scotland Acts to date are on legislation. Information We use cookies to collect anonymous data to help us improve your site browsing experience. Accept all cookies Use essential cookies only Set cookie preferences. There are a number of other payments which do not count towards the exit pay cap.

These include death in service payments, payments for accidents, injuries or illness, payments in lieu of untaken holiday, payments in lieu of notice that do not exceed one quarter of the employee's annual salary and payments made to comply with a court or tribunal order.

Where an employee receives exit payments from two or more authorities that are caught by the rules within a day period, the cap applies to the total of those payments. There are specific rules to follow about applying the cap where this is the case. There are also obligations on those receiving exit payments to inform any other relevant authority they work for of this fact. They must tell the other relevant authorities when their employment ended, what type of exit payments they received and the total amount of their exit payment.

The Regulations also give this power to local authorities , provided they act in accordance with Treasury Directions or otherwise with the consent of the Treasury.

The Treasury is due to publish updated guidance and a Treasury Direction on applying the exit pay cap. These will provide organisations with further information on how to apply the cap and cover issues such as the circumstances in which the cap may or must be relaxed.

This included settlement agreements relating to whistleblowing or discrimination cases. In effect this should act to prevent SC causing distortion in any commercial market within which it is operating. Prior SG approval must always be obtained before incurring expenditure for any purpose that is or might be considered novel, contentious or repercussive, or which has or could have significant future cost implications. SC shall seek to optimise income - grant in aid does not qualify as income - from all sources, and ensure that the SG is kept informed.

Novel or contentious proposals for new sources of income or methods of fundraising must be approved by the SG. Gifts, bequests or donations received by SC score as income, and SC should be able to demonstrate that expenditure funded by gifts etc.

SG core funding or by trading and other income. Before accepting such gifts etc. SC shall consider if there are any associated costs in doing so or any conflicts of interests arising. SC shall keep a written record of any such gifts etc. Unless covered by a specific delegated authority, SC shall not make any financial investments without the prior approval of the SG. That includes equity shares in ventures which further the objectives of SC. SC shall not invest in any venture of a speculative nature without the agreement of the SG.

SC must have budget provision for finance leases and other transactions which are in substance borrowing. SC must comply with all relevant rules on taxation, including VAT. All individuals who would qualify as employees for tax purposes should be paid through the payroll system with tax deducted at source. It is the responsibility of SC to observe VAT legislation and recover input tax where it is entitled to do so.

SC must also ensure that it accounts properly for any output tax on sales or disposals. Any lending by SC must adhere to the guidance in the Borrowing, Lending and Investment section of the SPFM on undertaking due diligence and seeking to establish a security.

Guarantees, indemnities and letters of comfort of a standard type given in the normal course of business are excluded from this requirement. SC will require commercial insurance where there is a legal requirement to do so and may also take out insurance in compliance with the Insurance section of the SPFM.

SC will not insure the canal infrastructure but in the event of uninsured losses being incurred, which commercial funds cannot cover up to the agreed limit, shall seek additional resources from SG.

In the event of uninsured losses being incurred the SG shall consider, on a case by case basis, whether or not it should make any additional resources available to SC. Unless covered by a specific delegated authority, any proposal to award a contract without competition non-competitive action must be approved in advance by the SG. The sponsor unit must be kept informed of progress on such programmes and projects and Ministers must be alerted to any developments that could undermine their viability.

SC shall put in place arrangements sufficient to secure the repayment of its due share of the proceeds - or an appropriate proportion of them if SC contributed less than the whole cost of acquisition or improvement. SC shall also ensure that, if assets financed by SC cease to be used by the third party for the intended purpose, an appropriate proportion of the value of the asset shall be repaid to SC. State aid is a European Commission term which refers to forms of public assistance, given to undertakings on a discretionary basis, which has the potential to distort competition and affect trade between Member States of the European Union.

Any activity that SC undertakes itself, or funds other bodies to undertake, that can be offered on a commercial market for goods and services is subject to state aid rules. A state aid assessment is therefore required prior to disbursing any funding and would be subject to the guidance in the state aid section of the SPFM. Remuneration, allowances and expenses paid to board members must comply with the SG Pay Policy for Senior Appointments and any specific guidance on such matters issued by the Scottish Ministers.

The SG is required by legislation in the Transport Act , paragraph 8 2A of schedule 1, to lay details before the Scottish Parliament of appointments to the board of SC and changes in their remuneration, as soon as possible. SC is therefore required to provide the SG with accurate details including dates of any such changes. Skip to main content. This site uses cookies to store information on your computer. Some of these cookies are essential to make our site work and others help us to improve by giving us some insight into how the site is being used.

Home Publications. Relationship between the Scottish Government and Scottish Canals Effective strategic engagement between the SG and SC is essential in order that they work together as effectively as possible to maintain and improve public services and deliver improved outcomes. Your cookie preferences have been saved.

You can change your cookie settings at any time. Information We use cookies to collect anonymous data to help us improve your site browsing experience. Accept all cookies Use essential cookies only Set cookie preferences. Home Publications. Scottish Public Finance Manual. Prev Previous Menu Next. Contents Expand all Background and applicability Background and applicability.

Accountability Accountability Annex 1: memorandum to accountable officers for parts of the Scottish Administration Annex 2: memorandum to accountable officers for other public bodies Annex 3: executive NDPB model framework document Annex 4: withdrawal of sponsored body accountable officer status.

Annual accounts Annual accounts Annex 1: accounts contents Annex 2: retention of financial records. Annual budgeting process Annual budgeting process. Appraisal and evaluation Appraisal and evaluation Annex 1: appraisal and evaluation checklist Annex 2: pre-expenditure assessment guidance.

Audit committees Audit committees.