Agency Framework Document

Accountable Officer arrangements 

The Permanent Secretary of the Scottish Government is the Principal Accountable Officer for the SG Scottish Administration and is responsible for designating, under section 15 of the Public Finance and Accountability (Scotland) Act 2000, the Agency Chief Executive as the Agency Accountable Officer. 

As Accountable Officer, the Chief Executive has personal responsibility to Parliament for the propriety and regularity of public finances for which they have stewardship, and for ensuring that all the Agency’s resources are used economically, efficiently and effectively. As such, the Chief Executive may be called to give evidence to the Public Audit Committee of the Scottish Parliament on questions about the use of Agency resources. 

The roles and responsibilities of Portfolio Accountable Officers and Agency Accountable Officers are set out in the Memorandum to Accountable Officers for parts of the Scottish Administration.

Parliamentary Committee attendance

The Scottish Parliament has the power to request a particular individual to attend a Parliamentary Committee. Scottish Ministers decide who should represent them at Parliamentary Committee hearings. In practice, the Chief Executive will normally represent Scottish Ministers on matters relating to their delegated responsibilities.

The Chief Executive may also be required to appear before Committees of the Scottish Parliament, including the Public Audit Committee, to account for the discharge of their responsibilities under the terms of this Framework Document. They are also responsible for putting into effect any relevant recommendations of the Audit Committee or other Committees of the Scottish Parliament which are accepted by Scottish Ministers.

Arrangements for dealing with Parliamentary Correspondence

The Minister will encourage members of the Scottish Parliament to communicate directly with the Agency Chief Executive on operational matters within their authority. The Chief Executive will provide Ministers with any necessary information and support the answer of Parliamentary Questions or deal with any other Parliamentary business for which the Agency is responsible.

Complaints process and the Ombudsman

The Chief Executive is responsible for ensuring an effective complaints procedure setting out how the Agency deals with complaints is in place and published. The Agency is subject to investigation by the Scottish Public Services Ombudsman (SPSO) and anyone not satisfied with the way the Agency has responded to a complaint may raise their concerns with the SPSO.

The Chief Executive ensures any actions arising from investigations by the Ombudsman are appropriately and promptly addressed.

Financial regime

The Agency is funded by the Scottish Parliament through the Finance and Local Government budget. This budget covers all capital and current programme expenditure by the Agency, including direct administration costs. Fees charged and other income arising from the Agency's operations are treated as budget income and this is the primary source of funding for the Agency's capital and current expenditure.

The financial delegations for the Agency are set out in Annex A. These arrangements provide the Chief Executive maximum practicable flexibility to make efficient use of the resources available to the Agency, within the context of the Scottish Government’s wider strategic and policy objectives. The delegated limits are reviewed regularly and amended where this will assist the Agency to achieve its objectives.

The Chief Executive is responsible for ensuring relevant Government financial procedures are followed – in particular that set out in the Scottish Public Finance Manual - and may delegate authority in accordance with relevant guidance.

The financial regime agreed for the Agency recognises its income will vary in line with the extent of its operations and contracts with other bodies. Accordingly, within the Scottish Ministers’ decision on the distribution of public expenditure block resources, the Chief Executive has authority to deploy the Agency’s income towards its expenditure in the implementation of Agency objectives.

The Chief Executive, as The Accountant in Bankruptcy, is responsible for formulating proposals for changes to fees and for providing justification for any changes. 

Decisions on fees and charges remain with Ministers.

Arrangements for audit

The Chief Executive is responsible for arranging a system of internal audit is provided in accordance with the objectives and standards laid down in the Government Internal Audit Manual.

The Scottish Government Internal Audit therefore provides an audit service to the Agency in accordance with the Service Level Agreement signed between the Chief Executive and the Head of Scottish Government Internal Audit. This confirms Internal Audit has the right of access to the Agency and its staff.

The Agency has an Audit Committee, chaired by a non-executive Board member, with membership and operating procedures determined by the appropriate guidance in the Scottish Public Finance Manual and the Audit Committee Handbook. The remit of the Audit Committee includes supporting the Chief Executive with regard to the efficient and effective use of programme expenditure and the associated responsibilities for risk, control, governance and assurance.

The Chief Executive is responsible for drawing any significant matters arising in this respect to the attention of the Scottish Government Audit and Risk Committee, for example in instances where issues may depend upon factors which are beyond the control of the Agency or have implications for the operation of the Scottish Government and its public bodies more generally. The Audit Committee is responsible for determining the meeting cycle of the Committee.

The SRO reserves the right to have appropriate representatives (e.g. Internal Audit) undertake any work required to provide independent assurance about the Agency’s management and control, if they consider it necessary.

The Agency is subject to external audit by the Auditor General for Scotland (AGS) or by auditors appointed by AGS.

Arrangements for producing accounts

The Chief Executive is responsible for producing and publishing accounts for the Agency and for laying them before the Parliament together with the Agency’s annual report. The accounts are produced in accordance with the accounts direction from Scottish Ministers and the timetable for the production of the Scottish Government’s consolidated accounts each year.

The Public Finance and Accountability (Scotland) Act 2000 stipulates the Scottish Government’s consolidated accounts will be laid before the Scottish Parliament and published after they have been audited and certified by the Auditor General for Scotland.

The Chief Executive is responsible for maintaining a sound system of internal control that supports the achievement of the body's policies, aims and objectives and for regular reviewing of effectiveness of that system. A Governance Statement is provided by the Accountable Officer alongside the Agency's annual accounts.

Business and corporate plans

The Chief Executive is responsible for preparing and publishing a corporate plan covering the medium to long term business of the Agency, and an annual business plan that takes account of and reflects the Scottish Government Business Strategy. The Corporate Plan is approved by the SRO on behalf of Scottish Ministers. Exceptionally, if policy or circumstances change, revisions may be proposed. Any revisions will also be subject to approval by the SRO.

The corporate and business plan detail how the activities of the Agency are aligned to the SG Purpose and National Outcomes, and the performance indicators by which the Agency’s performance is measured annually.

The corporate and business plans are developed in consultation with internal and external stakeholders at the earliest stage possible and the final draft produced and published prior to the reporting year it takes effect. 

Risk Management

The Chief Executive is responsible for implementing and monitoring risk management arrangements as part of a robust corporate governance framework. This involves the active monitoring and reporting of risks including to monitor whether or not the risk profile is changing, to gain assurance risk management is effective, and to identify when further action is necessary. The Chief Executive will inform the Senior Responsible Officer of any related matters of which they should be aware.

The Chief Executive is supported by the Audit Committee and the internal advisory work of Internal Audit. Further guidance is outlined in the Scottish Public Finance Manual.