Accountability

1. This section gives guidance on accountability for the use of public resources - and for connected purposes - authorised by the Scottish Parliament.

Key Points

2. Accountable Officers are personally answerable to the Parliament for the exercise of those functions determined by the Principal Accountable Officer.

3. The essence of the Accountable Officer's role is a personal responsibility for the propriety and regularity of the public finances for which he / she is answerable and for the economic, efficient and effective use of all available resources.

4. Departmental Accountable Officers are responsible for putting in place of an appropriate framework document for sponsored bodies consistent with the model Management Statement / Financial Memorandum.

5. A framework document should be drawn up for each Executive Agency in consultation with the Public Bodies and Executive Agencies Unit and the relevant departmental Finance Team setting out the responsibilities and accountability of the various parties involved.

Background

6. 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 guidance in this section covers the accountability arrangements for the Scottish Administration, other bodies funded directly from the Scottish Consolidated Fund (SCF) and sponsored bodies. The Scottish Administration comprises the Scottish Executive - the Scottish Ministers (including the Lord Advocate and the Solicitor General for Scotland) - plus junior Scottish Ministers and offices in the Scottish Administration which are not ministerial offices (eg the Registrar General of Births, Deaths and Marriages for Scotland, the Keeper of the Records of Scotland, the Keeper of the Registers of Scotland).

Principal Accountable Officer

7. The Permanent Secretary of the Scottish Executive is the Principal Accountable Officer (PAO) for the Scottish Administration by virtue of the PFA Act. He or she is answerable to the Parliament for the exercise of specific functions, including:

signing accounts for which he/she is directly responsible ie the core and consolidated accounts for the Scottish Executive and the accounts for the SCF;

ensuring propriety and regularity of the finances of the Scottish Administration;

ensuring that the resources of the Scottish Administration are used economically, efficiently and effectively;

designating persons as Accountable Officers for parts of the Scottish Administration (Departments, associated Departments and Executive Agencies) and for other bodies (excluding the Scottish Parliament Corporate Body) the accounts of which are subject to audit by or on behalf of the Auditor General for Scotland (AGS).

Accountable Officer

8. The functions of Accountable Officers designated by the PAO are set out in the Memorandum to Accountable Officers from the Principal Accountable Officer at Annex 1 and the Memorandum to Accountable Officers in Other Public Bodies at Annex 2. Accountable Officers are personally answerable to the Parliament for the exercise of those functions.

9. The essence of the Accountable Officer's role is a personal responsibility for the propriety and regularity of the public finances for which he / she is answerable and for the economic, efficient and effective use of all available resources. Accountable Officers also have a particular responsibility to ensure that appropriate advice is tendered to, as the case may be, the Scottish Ministers or the officeholder or body in question, on all matters of financial propriety and regularity and on the wider considerations of economy, efficiency and effectiveness. Guidance on action to be taken if a Minister / officeholder / body was contemplating a course of action that the Accountable Officer considered would infringe the requirements of propriety and regularity or be inconsistent with his / her responsibilities for economy, efficiency and effectiveness is included in the memoranda at Annex 1 and Annex 2. The memoranda also provide guidance on the action to be taken by an Accountable Officer in cases where his / her advice on a proposed course of action is overruled.

Departmental Accountable Officer

10. Departmental Accountable Officers (DAOs) are designated by the PAO as Accountable Officers for the Departments of the Scottish Executive. The relationship between the PAO and DAOs and the responsibilities of DAOs are described in detail in the Memorandum to Accountable Officers from the Principal Accountable Officer at Annex 1. DAOs, generally the Heads of Departments, are personally answerable to the Parliament for the operations of that part of the Scottish Executive for which they have been designated Accountable Officers. This is in addition to their responsibility to Scottish Ministers from whom they derive their authority.

11. The DAO of a parent Department of an Executive Agency is responsible for advising the Scottish Ministers in the exercise of their responsibilities in relation to the Agency (including advice on the framework document and corporate / business plans). He or she (or a senior official) also acts as a focal point within the parent Department for ensuring that services are available to support and facilitate the work of the Agency in meeting the Agency's objectives and targets. Full details of the roles and responsibilities of the various parties involved should be set out in the framework document.

12. The responsibilities of a DAO in relation to a sponsored body are included in 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 Scottish Executive's resource budgeting boundary should take the form of the model Management Statement / Financial Memorandum (MS/FM) at Annex 3. The model should be adapted so far as appropriate and applied in respect of other sponsored bodies. The preparation of MS/FM shall be the responsibility of the relevant sponsor Department in consultation with its departmental Finance Team. MS/FM that are inconsistent with the model (eg exclude standard provisions where there is no clear justification for doing so or include additional provisions that might be considered inconsistent with Scottish Executive policy) should be cleared with Finance: Standards and Guidance and the Public Bodies and Executive Agencies Unit.

13. Detailed guidance on the sponsorship of sponsored bodies is available on the Public Body Sponsorship Intranet Site.

Executive Agency Accountable Officer

14. Executive Agencies are established by the Scottish Ministers to undertake specific functions. They are generally constituent parts of Departments of the Scottish Executive and are bound by the same requirements of propriety and regularity and the general financial and accounting principles and guidance applicable to Departments. A framework document should be drawn up for each Agency in consultation with the Public Bodies and Executive Agencies Unit and the relevant departmental Finance Team setting out the responsibilities and accountability of the various parties involved. Agency Accountable Officers, generally Chief Executives, are designated by the PAO and have essentially the same responsibilities as those of DAOs.

Associated Department Accountable Officer

15. The associated Departments are the General Register Office for Scotland, the National Archives for Scotland and Registers of Scotland. They are headed by holders of statutory offices in the Scottish Administration ie the Registrar General of Births, Deaths and Marriages for Scotland, the Keeper of the Records of Scotland, the Keeper of the Registers of Scotland. 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. A senior member of each office-holder's staff is therefore designated by the PAO to undertake the Accountable Officer role with essentially the same responsibilities as those of DAOs.

Other Direct Funded Body Accountable Officer

16. Other bodies funded directly from the SCF consist of the Forestry Commission, the Food Standards Agency, the Scottish Parliament Corporate Body and Audit Scotland. The Forestry Commission is subject to audit by the AGS in respect of its activities in Scotland funded from the SCF and the PAO therefore designates an Accountable Officer for the Forestry Commission under the PFA Act. The Food Standards Agency, as a result of a legislative oversight, is not presently subject to audit by the AGS and the PAO designation of an Accountable Officer in respect of its activities in Scotland funded from the SCF is therefore on a non-statutory basis. The responsibilities of Accountable Officers for these bodies are those set out in the Memorandum to Accountable Officers in Other Public Bodies at Annex 2. Specific provision for the appointment and functions of Accountable Officers for the Scottish Parliament Corporate Body and Audit Scotland is made in the PFA Act.

Sponsored Body Accountable Officer

17. Sponsored bodies include non-departmental public bodies (NDPBs) and other public bodies (e.g. NHS Bodies, Public Corporations, State Owned Bodies) sponsored by the Scottish Executive. (A list of NDPBs and other public bodies sponsored by the Scottish Executive is maintained and published on the Scottish Executive Web Site under Public Appointments.) Other bodies that are not classified as "public bodies" but which are funded in whole or in part by the Scottish Executive should also be regarded as sponsored bodies where the relationship between the body and the Scottish Ministers make it appropriate to do so.

18. An NDPB is a body that has a role in the processes of the Scottish Executive but is not a Department or part of one and accordingly operates to a greater or lesser extent at arm's length from the Scottish Ministers. Conferring functions on an NDPB involves recognition that a degree of independence from Scottish Ministers in carrying out those functions is appropriate - otherwise such functions would be carried out by a Department or Executive Agency. Scottish Ministers, however, remain answerable to the Parliament for the general manner in which the NDPB discharges its functions.

19. Accountable Officers of sponsored bodies can only be designated on a statutory basis - under section 15 of the PFA Act - if the accounts of the bodies concerned are subject to audit by the AGS. In some cases, however, the need for public accountability will make it appropriate to apply similar provisions to other bodies and this should be done by means of a non-statutory designation. 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 operations charged directly to the sponsor Department's budget and accounted for solely in the Scottish Executive's accounts. Designation by the PAO should be notified to the Chief Executive (or equivalent) by the head of the sponsor Department.

20. The responsibilities of a sponsored body Accountable Officer are those set out in the Memorandum to Accountable Officers in Other Public Bodies at Annex 2. The memorandum may be adapted - subject to approval by Finance: Standards and Guidance - to reflect the particular circumstances of sponsored bodies. The sponsored body Accountable Officer must ensure compliance with the terms of the MS/FM, including relevant guidance in the Scottish Public Finance Manual.

21. 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.

Page Published/ Updated on: 29th December 2004

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