Public Finance and Accountability (Scotland) Act 2000

PART 1 — PUBLIC RESOURCES AND FINANCES

Use of resources

Use of resources

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• (1) The use of resources by—

• (a) the Scottish Administration, and

• (b) each body or office-holder (other than an office-holder in the Scottish Administration) whose expenditure is payable out of the Scottish Consolidated Fund (“the Fund”) under any enactment,

for any purpose in any financial year must be authorised for that year by Budget Act and must not exceed any amount so authorised in relation to that purpose.

• (2) The use of resources accruing to the Scottish Administration or any such body or office-holder in a financial year (“accruing resources”) for any purpose in that financial year must be so authorised separately from the use of other resources.

• (3) In this Act a reference to the use of resources is a reference to their expenditure, consumption or reduction in value.

Emergency arrangements

2

• (1) This section applies where, at the beginning of any financial year (“the current financial year”), the use of resources mentioned in section 1(1) has not been authorised for that year by Budget Act.

• (2) Until there is in force a Budget Act authorising that use of resources for the current financial year—

• (a) any purpose for which the use of resources was authorised for the previous financial year by Budget Act shall be taken to be a purpose for which the use of resources is authorised for the current financial year, and

• (b) the use of resources for any purpose for each calendar month of the current financial year must not exceed whichever is the greater of—

• (i) one-twelfth of any amount authorised in relation to that purpose by Budget Act for the previous financial year, and

• (ii) the amount of resources used for that purpose in the corresponding calendar month of the previous financial year;

and section 1 has effect accordingly.

• (3) Subsection (2) is subject to any provision made by Budget Act for the current financial year.

Contingencies

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• (1) This section applies where it is proposed that resources be used for any purpose in any financial year by the Scottish Administration or a body or office-holder referred to in section 1(1)(b) other than in accordance with that section (whether or not as modified by section 2).

• (2) The resources may be so used only with the authority of the Scottish Ministers.

• (3) The Scottish Ministers may authorise the use of resources only if they consider that—

• (a) the use is necessarily required in the public interest, and

• (b) it is not reasonably practicable, for reasons of urgency, for the requirements of section 1 in relation to the use to be satisfied by a Budget Act.

• (4) The aggregate amount of the resources which the Scottish Ministers may authorise to be used under this section in any financial year must not exceed 0.5% of the aggregate amount of the resources which, at the beginning of that year, were authorised to be used in that year by virtue of section 1.

• (5) Where the Scottish Ministers authorise the use of resources under this section they must, as soon as possible, lay before the Parliament a report setting out the circumstances of the authorisation and why they considered it to be necessary.

The Scottish Consolidated Fund

Payments out of the Scottish Consolidated Fund

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• (1) A sum may be paid out of the Fund under section 65(1)(c) of the Scotland Act 1998 (c.46) (“the 1998 Act”) only in accordance with the rules in this section and sections 5 and 6 of this Act.

• (2) The sum must fall within the overall cash authorisation for the financial year in which it is to be paid out.

• (3) The expenditure for or in connection with which the sum is to be paid out must be a use of resources authorised for that financial year by virtue of sections 1 to 3.

• (4) In this Act “overall cash authorisation”, in relation to a financial year, means the maximum amount authorised by Budget Act to be paid out of the Fund in that year.

• (5) Where provision is made by Budget Act for a separate overall cash authorisation in relation to—

• (a) the Scottish Administration, or

• (b) any body or office-holder (other than an office-holder in the Scottish Administration) whose expenditure is payable out of the Fund under any enactment,

references in this Act to an overall cash authorisation are to the overall cash authorisation in relation to the Scottish Administration or, as the case may be, the body or office-holder in question.

Credits for payments out of the Fund

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• (1) No sum may be paid out of the Fund except in accordance with a credit granted on the Fund by the Auditor General.

• (2) The Auditor General shall grant credits for payments out of the Fund from time to time at the request of the Scottish Ministers.

• (3) Such a credit must not be granted if, in the Auditor General’s opinion, the proposed payment out of the Fund would not comply with section 65(1) and (2) of the 1998 Act.

• (4) This section does not apply to sums paid out of the Fund by virtue of section 6.

Repayments from the Fund

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A sum paid into the Fund where there is no obligation to do so may, with the agreement of the Auditor General, be repaid to the body or office-holder who made the payment.

Application of receipts

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• (1) Subsection (2) applies where the use of accruing resources for any purpose in a financial year is authorised by virtue of sections 1 to 3.

• (2) Sums—

• (a) which are received in connection with those resources in that or any later financial year by the Scottish Administration or, as the case may be, the body or office-holder in question, and

• (b) which, apart from this section, are payable into the Fund,

may instead be applied in the financial year in which they are received for or in connection with expenditure which is a use of resources authorised for that year by virtue of sections 1 to 3.

Further financial provisions

Capital expenditure of, and borrowing by, certain statutory bodies

8

Schedule 1, which modifies various enactments concerning capital expenditure of, and borrowing by, certain bodies established under enactments, has effect.

Keeper of the Registers of Scotland: financial arrangements

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PART 2 — ACCOUNTABILITY AND AUDIT

Audit authorities

Audit Scotland

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• (1) There is to be a body corporate to be known as Audit Scotland, with the functions conferred on it by virtue of this Act and any other enactment.

• (2) Audit Scotland is to consist of—

• (a) the Auditor General,

• (b) the Chairman of the Accounts Commission, and

• (c) 3 other members appointed by the Scottish Commission for Public Audit.

• (3) Audit Scotland is to provide such assistance and support as the Auditor General and the Accounts Commission require in the exercise of their respective functions and, in particular, is to provide them, or ensure that they are provided, with the property, staff and services which they require for the exercise of those functions.

• (4) Directions may be given to Audit Scotland—

• (a) by the Auditor General, for the purpose of or in connection with the exercise of Audit Scotland’s functions in relation to the Auditor General,

• (b) by the Accounts Commission, for the purpose of or in connection with the exercise of Audit Scotland’s functions in relation to the Commission.

• (5) Audit Scotland may make arrangements with any public body or office-holder for the provision by Audit Scotland to the body or office-holder of administrative, professional or technical services in connection with the conduct of audits.

• (6) Schedule 2 makes further provision about Audit Scotland.

Audit Scotland: financial provisions

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• (1) Audit Scotland may impose reasonable charges in respect of the exercise of its functions in connection with—

• (a) the provision of services under arrangements made in pursuance of section 10(5),

• (b) the audit under sections 21 and 22 of an account, other than one prepared in pursuance of section 19(1) to (3) or 20(1),

• (c) the carrying out under section 23 of an examination, other than one in respect of an office-holder in the Scottish Administration or a body or other office-holder to whom sums are paid out of the Fund,

• (ca) carrying out a data matching exercise under section 26A,

• (d) the audit of an account in pursuance of Part VII of the Local Government (Scotland) Act 1973 (c.65),

• (e) the undertaking or promotion of any study under section 97A or 105A of that Act,

• (f) the giving of directions under section 1 of the Local Government Act 1992 (c.19).

• (2) Charges under subsection (1) may be determined by reference to particular cases or classes of case.

• (3) In determining the amounts of those charges Audit Scotland must seek to ensure that the total sum received in respect of the charges is, taking one year with another, broadly equivalent to its expenditure in connection with the matters mentioned in subsection (1)(a) to (f).

• (4) Charges under subsection (1)(b) to (f) are payable by the body or office-holder whose account is audited or, as the case may be, in respect of whom the examination is carried out, the study undertaken or promoted or the direction given.

• (5) Where a charge under subsection (1)(c), (e) or (f) relates to an examination, study or direction in respect of more than one body or office-holder, each body or office-holder is to pay such proportion of the charge as is determined by Audit Scotland.

• (5A) Charges under subsection (1)(ca) may be imposed on (either or both)—

• (a) persons who disclose data for a data matching exercise,

• (b) persons who receive the results of such an exercise.

• (6) Sums received by Audit Scotland in respect of charges under subsection (1) are to be retained by it and applied to meet the expenditure mentioned in subsection (3).

• (7) Any other sums received by Audit Scotland are to be paid into the Fund, subject to any provision made by any enactment for such sums to be applied for any purpose instead of being paid into the Fund.

• (8) Any expenditure of Audit Scotland, so far as not met out of sums received and applied in accordance with subsection (6), is payable out of the Fund.

• (9) Audit Scotland must, for each financial year, prepare proposals for its use of resources and expenditure and send the proposals to the Scottish Commission for Public Audit (constituted under section 12), which is to examine the proposals and report to the Parliament on them.

Scottish Commission for Public Audit

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• (1) There is to be a body to be known as the Scottish Commission for Public Audit, with the functions conferred on it by virtue of this Act.

• (2) The Commission is to consist of—

• (a) the member of the Parliament who is for the time being convener of the Public Audit Committee, and

• (b) 4 other members of the Parliament appointed in accordance with standing orders.

• (3) The Commission may require Audit Scotland to provide it with such documents, information and explanations about the exercise of the functions of Audit Scotland as the Commission reasonably considers necessary in connection with the discharge of its functions.

• (4) The Commission is from time to time to report to the Parliament on the exercise of its functions.

• (5) Schedule 3 makes further provision about the Commission.

Auditor General for Scotland

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• (1) The Auditor General is entitled to—

• (a) a salary of such amount, and

• (b) such allowances,

as the Parliamentary corporation may determine.

• (2) The salary and allowances and any expenses incurred by the Auditor General in the exercise of the Auditor General’s functions are to be paid by Audit Scotland.

• (3) Audit Scotland must make arrangements for the payment of pensions, gratuities or allowances to, or in respect of, any person who has ceased to hold the office of Auditor General.

• (4) In particular, Audit Scotland may—

• (a) make contributions or payments towards provision for such pensions, gratuities or allowances,

• (b) establish and administer one or more pension schemes.

• (4A) A person appointed to be the Auditor General holds office for a period of 8 years.

• (5) A person appointed to be the Auditor General—

• (a) may be relieved of office by Her Majesty at that person’s request,

• (aa) vacates office on the expiry of the period of appointment,

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (c) ... in other respects, holds office on such terms and conditions as the Parliamentary corporation may determine.

• (5A) A person having held the office of the Auditor General is not eligible for reappointment.

• (6) Any function of the Auditor General may be exercised on behalf of the Auditor General by any person (whether or not a member of the staff of Audit Scotland) authorised by the Auditor General to do so.

• (7) The Auditor General’s functions under sections 21(4) and 23(8) may be exercised by another person by virtue of subsection (6) only where the Auditor General is incapable of exercising those functions personally.

• (8) Subsections (6) and (7) do not affect the responsibility of the Auditor General for the exercise of the Auditor General’s functions.

• (9) Where the office of Auditor General is vacant, the Scottish Commission for Public Audit may appoint a person (whether or not a member of the staff of Audit Scotland) to discharge the functions of the Auditor General until—

• (a) the appointment of a new Auditor General, or

• (b) the expiry of the period of 12 months beginning with the date on which the vacancy arose,

whichever is the earlier.

• (10) A person appointed under subsection (9)—

• (a) holds office on such terms and conditions as the Parliamentary corporation may determine,

• (b) shall, while he holds office, be treated for all purposes, except those of section 69(1) to (3) of the 1998 Act and subsections (1) to (5) of this section, as the Auditor General.

• (11) Any sums payable by virtue of subsection (10)(a) to, or in respect of, a person appointed under subsection (9), or who has ceased to hold office by virtue of such an appointment, are to be paid by Audit Scotland.

Accountable officers

Principal accountable officer for the Scottish Administration

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• (1) The most senior member of the staff of the Scottish Administration is, by virtue of this subsection, principal accountable officer for the Scottish Administration.

• (2) The principal accountable officer has the functions set out in subsection (3) and is answerable to the Parliament for the exercise of those functions.

• (3) Those functions are—

• (a) signing the accounts of the expenditure and receipts of the Scottish Administration or any part of it, so far as it is not a function of any accountable officer designated under section 15(1) to do so,

• (b) signing any account prepared in pursuance of section 19(2),

• (c) ensuring the propriety and regularity of the finances of the Scottish Administration,

• (d) ensuring that the resources of the Scottish Administration are used economically, efficiently and effectively,

• (e) designating persons as accountable officers, and determining their functions as such, in accordance with section 15,

• (f) ensuring the performance of those functions by accountable officers for parts of the Scottish Administration, and

• (g) the duty set out in subsection (4).

• (4) That duty is a duty, where the principal accountable officer considers that any action which the officer is required to take is inconsistent with the proper performance of the functions mentioned in subsection (3)(a) to (f), to—

• (a) obtain written authority from, as the case may be, the Scottish Ministers, the Lord Advocate or the non-ministerial office-holder in question before taking the action, and

• (b) send a copy of the authority to the Auditor General as soon as possible.

• (5) In subsection (4)(a), “non-ministerial office-holder” means the holder of an office in the Scottish Administration which is not a ministerial office (within the meaning of section 126(8) of the 1998 Act).

Accountable officers

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• (1) The principal accountable officer for the Scottish Administration is to designate members of the staff of the Scottish Administration as accountable officers for such parts of the Administration as the principal accountable officer may specify.

• (2) There may, by virtue of subsection (1), be more than one accountable officer having functions in relation to any particular part of the Scottish Administration.

• (3) The principal accountable officer for the Scottish Administration may designate a member of the staff of any body or office-holder to whom subsection (4) applies as its accountable officer.

• (4) This subsection applies to any body or office-holder (other than an office-holder in the Scottish Administration) any account of whom is an account in relation to which sections 21 and 22 apply.

• (5) Subsection (3) does not apply in relation to the Parliamentary corporation, Audit Scotland or any other body or office-holder in relation to whom provision for the appointment of an accountable officer is made by virtue of any enactment.

• (6) The functions of accountable officers designated under subsection (1) or (3) are—

• (a) those determined by the principal accountable officer for the Scottish Administration, and

• (b) the duty set out in subsection (8); and the accountable officers are answerable to the Parliament for the exercise of those functions.

• (7) The functions which may be determined under subsection (6)(a) include, in particular—