ACCOUNTABILITY Contents: Scope Key Points Background Principal Accountable Officer for the Scottish Administration Accountable Officers for Parts of the Scottish Administration Portfolio Accountable Officers Accountable Officers for Other Public Bodies Scottish Ministers
Annex 1: Memorandum to Accountable Officers for Parts of the Scottish Administration
Annex 2: Memorandum to Accountable Officers for Other Public Bodies Annex 3: Model Management Statement / Financial Memorandum Annex 4: Withdrawal of Sponsored Body Accountable Officer Status
Scope 1. This section gives guidance on accountability arrangements for the use of public resources - and for connected purposes - authorised by the Scottish Parliament. The guidance is relevant to all organisations to which the Scottish Public Finance Manual is directly applicable.
Key Points 2. The essence of the Accountable Officer's role is a personal responsibility for the propriety and regularity of the finances under their stewardship and for the economic, efficient and effective use of all related resources. Accountable Officers are personally answerable to the Parliament for the exercise of their functions.
3. Portfolio Accountable Officers are responsible for the putting in place of appropriate framework documents for each SG Executive Agency and non-ministerial Executive Agency / Department and for each body sponsored by the SG setting out the accountability arrangements and other relevant matters.
Background 4. Provision for accountability in relation to the use of public resources - and for connected purposes - authorised by the Scottish Parliament is included in the Public Finance and Accountability (Scotland) Act 2000 (the PFA Act). The PFA Act makes provision for Accountable Officers for the Scottish Administration and related bodies plus, separately, the Scottish Parliament Corporate Body and Audit Scotland. The essence of the Accountable Officer's role is a personal responsibility for the propriety and regularity of the finances under their stewardship and for the economic, efficient and effective use of all related resources. Accountable Officers are personally answerable to the Parliament for the exercise of their functions and have a statutory duty to obtain written authority from, as the case may be, the Scottish Ministers or relevant governing body etc before taking any action that they consider may be inconsistent with the proper performance of their functions. The system is designed to promote good governance.
Principal Accountable Officer for the Scottish Administration 5. The Permanent Secretary of the Scottish Government is the Principal Accountable Officer (PAO) for the Scottish Administration in accordance with section 14 of the PFA Act. His / her functions includedesignating persons as Accountable Officers for parts of the Scottish Administration (i.e. the core Scottish Government (SG), SG Executive Agencies and non-ministerial Executive Agencies / Departments) and for other bodies (excluding the Scottish Parliament Corporate Body) the accounts of which are subject by statute to audit by or under the control of the Auditor General for Scotland (AGS). The PAO is also responsible for signing the consolidated accounts for the SG and the accounts for the Scottish Consolidated Fund (SCF).
Accountable Officers for Parts of the Scottish Administration
6. The responsibilities of Accountable Officers for parts of the Scottish Administration, as designated by the PAO, are set out in the Memorandum to Accountable Officers for Parts of the Scottish Administration at Annex 1. Accountable Officers for parts of the Scottish Administration currently designated by the PAO include: - Directors-General (for specific parts of the core SG)
- Chief Executives of SG Executive Agencies
- the Crown Agent (for the Crown Office and Procurator Fiscal Service)
7. Accountable Officers are also designated for non-ministerial Executive Agencies / Departments - parts of the Scottish Administration outwith the portfolio of any Cabinet Secretary and headed by a non-ministerial office-holder. The responsibilities of these particular office-holders are in some respects analogous to Ministers and it would not therefore be appropriate for them to undertake all of the functions of an Accountable Officer - in particular the statutory duty referred to in paragraph 4. A senior member of each office-holder's staff is therefore designated by the PAO to undertake the Accountable Officer role.
Portfolio Accountable Officers 8. Directors-General (DGs) are responsible for families of Directorates - the building blocks of the core SG. DGs and Directors together provide strategic direction and leadership and are the key management team of the organisation as a whole. DGs designated as Accountable Officers are commonly referred to as Portfolio Accountable Officers. Their responsibilities include advising Ministers in the exercise of their responsibilities in relation to SG Executive Agencies and non-ministerial Executive Agencies / Departments. DGs (or senior members of their staff) also act as focal points within the core SG for ensuring that services are available to support and facilitate the work of the Agencies / Departments in meeting their objectives and targets. A framework document should be put in place for each Agency / Department setting out the accountability arrangements and other relevant matters. The framework document will normally be prepared by the Agencies / Departments in consultation with the core SG (including the relevant portfolio Finance Team and Public Bodies Policy Division) but responsibility for ensuring that an up to date document is in place lies with the relevant Portfolio Accountable Officer. Framework documents should be signed off by the responsible Cabinet Secretary or Minister. 9. The responsibilities of Portfolio Accountable Officers with regard to sponsored bodies are set out in the Memorandum at Annex 1. These include the putting in place of an appropriate framework document and, where it is appropriate to do so, recommending to the PAO the designation of the senior full-time official as Accountable Officer for the sponsored body. The framework document for executive NDPBs that come within the SG's resource budgeting boundary should take the form of the model Management Statement / Financial Memorandum (MS/FM) at Annex 3. The model may be adapted and applied in respect of other sponsored bodies but the necessary documentation should reflect the status of the different types of sponsored bodies and their relationship with the SG. In the case of cross-border / jointly funded bodies it would normally be sufficient to ensure that the accountability, funding and reporting arrangements with regard to the bodies' activities in Scotland were included in the framework document put in place by the lead UK Department. The preparation of framework documents for sponsored bodies - including MS/FM - is the responsibility of the relevant SG sponsor Directorate in consultation with their portfolio Finance Team.
Accountable Officers for Other Public Bodies 10. The PAO may, under section 15 of the PFA Act, designate persons as Accountable Officers for bodies outwith the Scottish Administration i.e. bodies (excluding the Scottish Parliament Corporate Body) the accounts of which are subject by statute to audit by or under the control of the AGS. The responsibilities of such Accountable Officers are set out in the Memorandum to Accountable Officers for Other Public Bodies at Annex 2. Other public bodies in this context consist essentially of SG sponsored bodies established by statute. In addition non-statutory designations may be made where the activities of a sponsored body which is not subject to audit by the AGS and the nature of the relationship between it and the SG makes it appropriate to do so. 11. Designation of the Chief Executive (or equivalent) of a sponsored body as an Accountable Officer should, as a general rule, be made where the accounts of the sponsored body are laid before the Parliament or where significant public funds are under its stewardship. It would not normally be appropriate to designate Accountable Officers for sponsored bodies that have their finances accounted for solely in the SG's accounts. Designation by the PAO should, following clearance by the PAO, be notified to the Chief Executive (or equivalent) by the relevant Portfolio Accountable Officer. 12. The letter designating an Accountable Officer for a sponsored body should make it clear that the status can be withdrawn if the PAO concludes that the individual is no longer a fit person to carry out the responsibilities of an Accountable Officer. Detailed guidance on the procedures for handling the withdrawal of sponsored body Accountable Officer status is at Annex 4.
Scottish Ministers 13. Neither the PAO nor Accountable Officers designated by the PAO are answerable to the Parliament in respect of policy decisions. The Scottish Ministers determine policy and account to, and are held to account by, the Scottish Parliament for the policy decisions and actions of the SG, including SG Executive Agencies. Only Ministers can propose to the Parliament to commit or spend public funds to pursue their policy objectives. 14. Whilst bodies sponsored by the SG (and non-ministerial Executive Agencies / Departments) are distanced from the Scottish Ministers, the responsible Cabinet Secretary or Minister is accountable to the Parliament for the degree of independence enjoyed; for the organisation's usefulness as an instrument of government policy; and so ultimately for the overall effectiveness and efficiency with which it carries out its functions. Ministers also remain accountable to the Parliament for public money spent by such organisations, even though they operate at arm's length with their own designated Accountable Officers. Ministers are ultimately answerable for the performance of the organisations and for their continued existence. Back to top Page Published / Updated: July 2009 |