Annex 3: Glossary of Terms
Audit Committee
A formal Board sub-committee which deals with issues raised by internal and external audits.
Benchmarking
A process whereby one organisation is able to compare its performance with that of another, or several others, to identify comparative measures of performance.
Best Value
Best Value involves making arrangements to secure continuous improvement in performance (while maintaining an appropriate balance between quality and cost); and in making those arrangements and securing that balance, to have regard to economy, efficiency, effectiveness, the equal opportunities requirements and to contribute to the achievement of sustainable development.
External Auditor
An auditor whose main function is to give an opinion on financial statements over a specified period. The Auditor General for Scotland is the external auditor for the Scottish Executive.
Grant
Payment made by Departments to outside bodies or individuals to fund expenditure on specific items or functions for specific purposes. Any unspent balance of the sums issued during the financial year will be liable for surrender to the Scottish Executive.
Grant-in-aid
Regular payments made by Departments to a public body where any unspent balance of the sums issued during the financial year will normally not be liable for surrender to the sponsor Department. Internal Audit An independent appraisal function within a department etc. which operates as a service to management by measuring and evaluating the effectiveness of the internal control system. Market Testing The process of testing the value for money of in-house services against tenders from outside firms.
NDPB
A Non-Departmental Public Body is a body which has a role in the processes of national government but is not a government department. It operates at arm's length from the Department. NDPBs fall into five categories, namely, executive bodies, advisory bodies, tribunals, nationalised industries and public corporations and National Health Service bodies.
Performance Indicator An indirect measure of the extent to which effectiveness, efficiency and economy, quality and service levels have been achieved in an activity or function. Normally used where direct measures are not available.
Performance Measure
A directly quantifiable means of assessing the extent to which effectiveness, efficiency and economy, quality and service levels have been achieved.
Policy and Financial
A Policy and Financial Management Review is
Management Review
a review, commissioned by the relevant sponsor Department, of the performance management, accountability and governance arrangements in a public body. All public bodies are required to undergo a PFMR at least every five years.
Propriety
Propriety is a further requirement that expenditure and receipts should be dealt with in accordance with the Scottish Parliament's intentions and the principles of parliamentary control. Propriety also includes the necessity for high standards of public conduct including fairness and integrity.
Regularity
Regularity is the requirement for all items of expenditure and receipts to be dealt with in accordance with the legislation authorising them, and any applicable delegated authority and the rules embodied in the Scottish Public Finance Manual. Stakeholder A stakeholder is a person (or organisation) who has an interest in the work of the organisation. Examples of stakeholders include providers of finance ( e.g. sponsor Departments), users of services, employees and the wider community.
Statement of Internal
A Statement signed by the Accountable Officer and
Control
produced alongside the annual financial statements, providing assurances that the organisation has an effective system of internal control covering all of the main aspects of its work. System A series of related activities designed to operate together to achieve a planned objective.
Target
A quantified objective with a definite timescale.
Whistleblowing
The Public Interest Disclosure Act 1998 provides protection from dismissal, or other sanction for workers who make disclosures of information relating to malpractice by their employer or fellow workers.