FINANCE GUIDANCE NOTE 2012-02
SPFM AMENDMENTS
The purpose of this note is to announce recent substantive amendments to the Scottish Public Finance Manual (SPFM). The amendments are as follows:
- A new section on Governance Statements replaces the guidance on Statements on Internal Control. This follows the recent publication of the Financial Reporting Manual 2011-12 which requires all relevant reporting entities to prepare a governance statement covering the 2011-12 financial year.
- Significant changes have been made to the sections on Major Investment Projects and Procurement. The general approach taken has been to identify the key steps in the processes and provide electronic links to more detailed guidance rather than reproduce guidance that is available elsewhere. The opportunity has been taken to redefine major investment projects as those with a budget of more than £5M, inclusive of fees and VAT. This aligns with the SG’s new Infrastructure Projects Database (recording all capital projects with a budget of £5M and an outline business case) and with the SG’s requirement that all projects over £5M should be assessed for Gateway Review. The revision also references the Infrastructure Investment Board and the SG’s recently published Programme and Project Management Principles.
- The section on Insurance has been amended to allow, explicitly, for the taking out of corporate travel insurance for staff travelling abroad on official business where the cost of emergency cover could be justified in terms of the availability of local support should an incident occur and the duty of care that employers have towards their employees.
Other sections of the SPFM that have been reviewed and updated in recent months, without substantive amendment, are as follows:
Contingent Liabilities
Expenditure Without Parliamentary Authority
Annual Budgeting Process
Gifts
Scottish Government Finance Directorate
January 2012