ROLES AND INVOLVEMENT OF
FINANCE Contents:
Scope
Key Points
Background
Main Finance Functions
Involving Finance
Submissions to Ministers
Financial Memoranda
Scope 1. This section describes the roles and
functions of Finance within the Scottish
Executive and gives guidance to the
constituent parts of the Scottish
Administration (ie Scottish Executive
Departments, Executive Agencies and
associated Departments) on involving
Finance in all issues with resource
implications or other financial
considerations.
Key Points 2. The primary role of Finance within
the Scottish Executive is to support the
Scottish Ministers. Finance also has a role
in supporting and safeguarding the
interests of Departmental and Agency
Accountable Officers. 3. Finance must be
consulted at the earliest
possible stage in the preparation of all
policy proposals etc which may have
resource or other finance related
implications and must also be kept informed
of developments. Finance must also be
consulted on all responses
to reports, reviews etc with resource
implications or which include issues of
financial propriety, regularity or
accountability. 4. On policy issues with significant
resource implications Finance must be
invited to participate in
the development of proposals, including
attendance at any associated meetings.
Finance must also be
invited to participate in
any discussions with outside parties on
issues which may have material resource or
other finance related implications.
Background 5. The finance function within the
Scottish Administration is the
responsibility of the Scottish Executive
Finance Director (SEFD). The SEFD is
appointed by the Permanent Secretary of the
Scottish Executive in his/her role as the
Principal Accountable Officer of the
Scottish Administration. The core finance
functions are undertaken by Scottish
Executive Finance Group. The primary role
of Finance within the Scottish Executive is
to support the Scottish Ministers. Finance
also has a role in supporting and
safeguarding the interests of Departmental
and Agency Accountable Officers. Finance
has a key role in helping Ministers arrive
at decisions on strategic and in year
spending priorities. Finance also provides
the corporate framework within which
spending is incurred, monitored and
reported, with a view to Ministers being
able to maximise opportunities for the use
of available resources. The role of Finance
in relation to Accountable Officers is to
provide the corporate systems handling all
payments and receipts, the provision of
financial guidance and advice on its
application and generally to monitor the
regularity and propriety of the use of
resources and the achievement of value for
money.
Main Finance Functions 6. The main core and non-core functions
of Finance within the Scottish Executive
are as follows: - negotiating and monitoring the
funding policy under which the Assigned
Budget of the Scottish Administration
is determined;
- managing the Spending Review
process through which needs are
identified and resources allocated by
Ministers to the different spending
programmes within the Assigned
Budget;
- preparing agreed expenditure
proposals for authorisation by the
Parliament by means of the annual
Budget Act (and Amendments);
- scrutinising and challenging
expenditure proposals;
- ensuring that resource implications
and other financial considerations are
properly taken into account in all
policy proposals etc;
- promoting economy, efficiency and
effectiveness through better targeting
and performance measurement, policy
analysis and review;
- issuing, and advising on the
application of, financial
guidance;
- advising on propriety and
regularity;
- advising on procurement and
purchasing;
- advising on financial relationships
with sponsored bodies;
- maintaining robust accounting and
financial management systems;
- monitoring overall expenditure
in-year and advising on the management
of authorised budgets;
- preparing annual accounts;
- providing assurance on the system
of internal control e.g. through
internal audit activities; and
- liaising with, and advising on
dealings with, the Auditor General for
Scotland, Audit Scotland and the Audit
and Finance Committees of the Scottish
Parliament.
Involving Finance 7. One of the key roles of Finance is to
ensure that financial considerations are
properly taken into account in all policy
proposals which may have resource
implications e.g. increased / reduced
expenditure or income, changes to agreed
objectives and/or targets, changes in
funding arrangements or delivery
mechanisms. In order to undertake this role
effectively Finance must be
consulted as soon as
relevant proposals emerge and must also be
kept informed of developments.
Consideration of any proposal with
significant resource implications must
include the preparation of a
Pre-Expenditure
Assessment (covering aims and objectives;
options; the evidence base; financial
impacts; and plans for monitoring and
evaluation) and an exit strategy. Finance
must also be
consulted on all responses
to reports, reviews etc with resource
implications or which include issues of
financial propriety, regularity or
accountability. 8. On policy issues with significant
resource implications Finance must be
invited to participate in
the development of proposals, including
attendance at any associated meetings.
Departments and Agencies should also ensure
that Finance is
invited to participate in
any discussions with outside parties (e.g.
working groups, review bodies, Audit
Scotland) on issues which may have material
resource or other finance related
implications.
Submissions to
Ministers 9. Specific guidance on
consulting Finance before
advising Ministers on issues with resource
implications is included in Annex B of
Guidance on the Preparation of Minutes to
Ministers and should continue to be
followed. Submissions concerning issues
with resource implications must be copied
to the Minister for Finance, the Scottish
Executive Finance Director and the relevant
Finance Team Leader, and should contain a
section on resource implications agreed
with Finance. 10. The timing of submissions,
particularly those with significant
resource implications, should allow
sufficient time for the Minister for
Finance to consider and question proposals
and recommendations in advance of
associated deadlines and public
announcements.
Financial Memoranda 11. The Financial Memorandum attached to
a Bill should be prepared by the Bill Team
in conjunction with their
Finance Team and
cleared by the Minister
for Finance. Guidance is set out in the
Bill Handbook and
Finance Guidance Note
2004/06.
Back to top Page Published/ Updated on: 28th July
2004 |