| Public Finance and Accountability (Scotland)
Act 2000 |
| 2000 asp 1 - continued |
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The Bill for this Act of the Scottish Parliament was passed by the
Parliament on 1st December 1999 and received Royal Assent on 17th January
2000
An Act of the Scottish Parliament to make provision about public resources
and finances and, for the purposes of section 70 of the Scotland Act
1998, about accountability for their use; and for connected purposes
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PART 1
PUBLIC RESOURCES
AND FINANCES
Use of resources
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1 Use of
resources
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(1) The use of resources by- |
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(a) the Scottish Administration, and
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(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,
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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.
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(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.
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(3) In this Act a reference to the
use of resources is a reference to their expenditure, consumption or reduction
in value.
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2 Emergency arrangements
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(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.
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(2) Until there is in force a Budget
Act authorising that use of resources for the current financial year-
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(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 |
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(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- |
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(i) one-twelfth of any amount authorised in relation
to that purpose by Budget Act for the previous financial year, and
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(ii) the amount of resources used for that purpose
in the corresponding calendar month of the previous financial year;
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and section 1 has effect accordingly.
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(3) Subsection (2) is subject to
any provision made by Budget Act for the current financial year. |
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3 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).
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(2) The resources may be so used
only with the authority of the Scottish Ministers.
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(3) The Scottish Ministers may authorise
the use of resources only if they consider that- |
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(a) the use is necessarily required in the public interest,
and
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(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.
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(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.
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(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.
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The Scottish Consolidated Fund
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4 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.
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(2) The sum must fall within the
overall cash authorisation for the financial year in which it is to be
paid out.
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(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.
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(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.
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(5) Where provision is made by Budget
Act for a separate overall cash authorisation in relation to- |
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(a) the Scottish Administration, or
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(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,
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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.
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5 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.
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(2) The Auditor General shall grant
credits for payments out of the Fund from time to time at the request
of the Scottish Ministers.
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(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.
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(4) This section does not apply to
sums paid out of the Fund by virtue of section 6.
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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.
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7 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.
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(2) Sums-
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(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
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(b) which, apart from this section, are
payable into the Fund,
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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.
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Further financial provisions
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8 Capital expenditure
of, and borrowing by, certain statutory bodies
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Schedule 1, which modifies
various enactments concerning capital expenditure of, and borrowing by,
certain bodies established under enactments, has effect.
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9 Keeper of the
Registers of Scotland: financial arrangements
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(1) Sums received by the Keeper of
the Registers of Scotland in connection with the exercise of the Keeper's
functions (whether by virtue of section 25 of the Land Registers (Scotland)
Act 1868 (c.64) or otherwise) are to be retained by the Keeper and applied
to meet expenditure.
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(2) The Scottish Ministers may issue
sums to the Keeper as public dividend capital.
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(3) Any sums which, immediately before
the commencement of this subsection, were treated as public dividend capital
of the Registers of Scotland Executive Agency Trading Fund by virtue of
section 2A of the Government Trading Funds Act 1973 (c.63) are to be treated
as having been issued by the Scottish Ministers to the Keeper as public
dividend capital.
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(4) The Keeper shall pay into the
Scottish Consolidated Fund- |
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(a) such sums (if any) by way of return
on public dividend capital issued (or treated as issued) by the
Scottish Ministers as the Scottish Ministers may from time to time
determine,
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(b) such sums as may be appropriate as
representing accruing liabilities of the Scottish Ministers in respect
of principal or interest on any sum treated by virtue of section
71(6) of the 1998 Act as an advance made by the Secretary of State
to the Scottish Ministers.
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(5) The Scottish Ministers may lend
sums to the Keeper on such terms and conditions as they may determine.
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(6) The rate of interest on any loan
under subsection (5) shall not be less than the lowest rate determined
by the Treasury under section 5 of the National Loans Act 1968 (c.13)
in respect of similar loans made out of the National Loans Fund on the
day the loan is made.
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(7) The Keeper shall pay to the Scottish
Ministers such sums as may be appropriate as representing accruing liabilities
of the Scottish Ministers in respect of payments by the Scottish Ministers
by virtue of section 51 of the 1998 Act in relation to the Keeper and
to members of the staff of the Scottish Administration assigned, or who
have been assigned, to assist in the exercise of the Keeper's functions.
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(8) In the exercise of the Keeper's
functions the Keeper shall achieve such financial objectives as the Scottish
Ministers may from time to time determine.
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(9) Those objectives are to be determined
with a view to ensuring, in particular, that the sums received as mentioned
in subsection (1) are sufficient, taking one year with another, to meet
expenditure.
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(10) In this section "expenditure"
means expenditure incurred by the Keeper in the exercise of the Keeper's
functions and includes payments which the Keeper is required to make by
virtue of this section.
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(11) Sections 1 to 5 and 7 do not
apply in relation to the Keeper.
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PART 2
ACCOUNTABILITY AND
AUDIT
Audit authorities
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10 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.
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(2) Audit Scotland is to consist
of- |
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(a) the Auditor General,
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(b) the Chairman of the Accounts Commission, and
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(c) 3 other members appointed jointly by the Auditor
General and the Chairman.
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(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.
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(4) Directions may be given to Audit
Scotland- |
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(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,
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(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.
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(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.
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(6) Schedule 2 makes further provision
about Audit Scotland.
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11 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-
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(a) the provision of services under arrangements made
in pursuance of section 10(5),
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(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),
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(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,
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(d) the audit of an account in pursuance of Part VII
of the Local Government (Scotland) Act 1973 (c.65),
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(e) the undertaking or promotion of any study under
section 97A or 105A of that Act,
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(f) the giving of directions under section 1 of the
Local Government Act 1992 (c.19).
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(2) Charges under subsection (1)
may be determined by reference to particular cases or classes of case.
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(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).
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(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.
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(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.
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(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).
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(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.
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(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.
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(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.
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12 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.
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(2) The Commission is to consist
of- |
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(a) the member of the Parliament who is for the time
being convener of the Audit Committee, and
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(b) 4 other members of the Parliament appointed in
accordance with standing orders.
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(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.
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(4) The Commission is from time to
time to report to the Parliament on the exercise of its functions.
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(5) Schedule 3 makes further provision
about the Commission.
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13 Auditor General
for Scotland
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(1) The Auditor General is entitled
to-
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(a) a salary of such amount, and
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(b) such allowances,
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as the Parliamentary corporation
may determine.
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(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.
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(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.
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(4) In particular, Audit Scotland
may-
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(a) make contributions or payments towards provision
for such pensions, gratuities or allowances,
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(b) establish and administer one or more pension schemes.
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(5) A person appointed to be the
Auditor General-
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(a) may be relieved of office by Her Majesty at that
person's request,
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(b) vacates office on attaining the age of 65, or
on such later date as the Parliament may by resolution determine,
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(c) in other respects, holds office on such terms
and conditions as the Parliamentary corporation may determine.
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(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.
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(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.
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(8) Subsections (6) and (7) do not
affect the responsibility of the Auditor General for the exercise of the
Auditor General's functions.
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(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-
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(a) the appointment of a new Auditor General, or
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(b) the expiry of the period of 12 months beginning
with the date on which the vacancy arose, |
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whichever is the earlier.
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(10) A person appointed
under subsection (9)-
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(a) holds office on such terms and conditions as the
Parliamentary corporation may determine,
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(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.
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(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. |
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Accountable officers
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14 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.
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(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.
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(3) Those functions are- |
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(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,
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(b) signing any account prepared in pursuance of section
19(2),
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(c) ensuring the propriety and regularity of the finances
of the Scottish Administration,
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(d) ensuring that the resources of the Scottish Administration
are used economically, efficiently and effectively,
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(e) designating persons as accountable officers, and
determining their functions as such, in accordance with section
15,
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(f) ensuring the performance of those functions by
accountable officers for parts of the Scottish Administration, and
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(g) the duty set out in subsection (4).
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(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-
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(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
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(b) send a copy of the authority to the Auditor General
as soon as possible.
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(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).
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15 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.
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(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.
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(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.
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(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.
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(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.
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(6) The functions of accountable
officers designated under subsection (1) or (3) are-
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(a) those determined by the principal accountable
officer for the Scottish Administration, and
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(b) the duty set out in subsection (8); |
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and the accountable officers are
answerable to the Parliament for the exercise of those functions.
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(7) The functions which may be determined
under subsection (6)(a) include, in particular-
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(a) signing the accounts of the expenditure and receipts
of the part of the Scottish Administration, or body or office-holder,
in question,
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(b) ensuring the propriety and regularity of the finances
of that part, body or office-holder,
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(c) ensuring that the resources of that part, body
or office-holder are used economically, efficiently and effectively.
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(8) The duty referred to in subsection
(6)(b) is a duty, where the accountable officer in question considers
that any action which the officer is required to take is inconsistent
with the proper performance of the functions determined under subsection
(6)(a), to-
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(a) obtain written authority from, as the case may
be, the Scottish Ministers, the Lord Advocate or the body or office-holder
in question before taking the action, and
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(b) send a copy of the authority to the Auditor General
as soon as possible.
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16 Principal
accountable officer for the Parliamentary corporation |
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(1) The Clerk of the Parliament is,
by virtue of this subsection, principal accountable officer for the Parliamentary
corporation.
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(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.
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(3) Those functions are-
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(a) signing the accounts of the expenditure and receipts
of the corporation or any part of it, so far as it is not a function
of any accountable officer designated under section 17(1) to do
so,
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(b) ensuring the propriety and regularity of the finances
of the corporation,
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(c) ensuring that the resources of the corporation
are used economically, efficiently and effectively,
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(d) designating persons as accountable officers, and
determining their functions as such, in accordance with section
17,
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(e) ensuring the performance of those
functions by accountable officers for parts of the corporation,
and
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(f) the duty set out in subsection (4).
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(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 (e), to- |
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(a) obtain written authority from the corporation
before taking the action, and
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(b) send a copy of the authority to the Auditor General
as soon as possible.
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17 Parliamentary
corporation: accountable officers
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(1) The principal accountable officer
for the Parliamentary corporation may designate members of the staff of
the Parliament as accountable officers for such parts of the corporation
as the principal accountable officer may specify.
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(2) The functions of accountable
officers designated under subsection (1) are-
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(a) those determined by the principal accountable
officer, and
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(b) the duty set out in subsection (4);
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and the accountable officers
are answerable to the Parliament for the exercise of those functions.
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(3) The functions which may be determined
under subsection (2)(a) include, in particular- |
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(a) signing the accounts of the expenditure and receipts
of the part of the corporation in question,
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(b) ensuring the propriety and regularity of the
finances of that part,
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(c) ensuring that the resources of that part are used
economically, efficiently and effectively.
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(4) The duty referred to in
subsection (2)(b) is a duty, where the accountable officer in question
considers that any action which the officer is required to take is inconsistent
with the proper performance of the functions determined under subsection
(2)(a), to- |
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(a) obtain written authority from the corporation
before taking the action, and
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(b) send a copy of the authority to the Auditor General
as soon as possible.
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18 Audit Scotland: accountable officer
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(1) The Scottish Commission
for Public Audit is to designate the Auditor General or a member of the
staff of Audit Scotland as the accountable officer for Audit Scotland.
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(2) The functions of the accountable
officer are- |
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(a) those specified in subsection (3), and
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(b) the duty set out in subsection (4);
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and the accountable officer is answerable
to the Parliament for the exercise of those functions.
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(3) The functions referred
to in subsection (2)(a) are- |
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(a) signing the accounts of the expenditure and receipts
of Audit Scotland,
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(b) ensuring the propriety and regularity of the finances
of Audit Scotland, and
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(c) ensuring that the resources of Audit Scotland
are used economically, efficiently and effectively.
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(4) The duty referred
to in subsection (2)(b) is a duty, where the accountable officer considers
that any action which the officer is required to take is inconsistent
with the proper performance of the functions specified in subsection (3),
to- |
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(a) obtain written authority from Audit Scotland before
taking the action, and
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(b) send a copy of the authority as soon as possible
to the person appointed under section 25(1) to audit an account
of Audit Scotland.
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Accounts
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19 Duty to prepare
accounts
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(1) The Scottish Ministers, the Lord
Advocate and every other person to whom sums are paid out of the Fund
in a financial year must prepare accounts of their expenditure and receipts
for that year.
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(2) The Scottish Ministers must prepare
for each financial year an account of payments into and out of the Fund.
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(3) Holders of offices in the Scottish
Administration which are not ministerial offices (within the meaning of
section 126(8) of the 1998 Act) must, if required to do so by the Scottish
Ministers, prepare for each financial year accounts of their expenditure
and receipts.
|
| |
(4) Accounts prepared in pursuance
of subsections (1) to (3) must be prepared in accordance with directions
issued by the Scottish Ministers.
|
| |
(5) Subsection (1) does not apply
to any cross-border public authority in relation to which the condition
in section 70(6) of the 1998 Act is satisfied.
|
| |
(6) Subsection (3) does not apply
to any office-holder to whom subsection (1) applies.
|
| |
(7) Accounts prepared in pursuance
of subsections (1) to (3) (except accounts to which subsection (8) applies)
must be sent to the Auditor General for auditing.
|
| |
(8) Accounts prepared by Audit Scotland
in pursuance of subsection (1) must be sent to the Scottish Commission
for Public Audit for auditing.
|
| |
|
| |
20 Consolidated
public accounts
|
| |
(1) The Scottish Ministers may prepare
for any financial year consolidated accounts, in such form and manner
as they may determine in writing, for- |
| |
|
(a) the Scottish Administration,
|
| |
(b) the Scottish Administration together with such
bodies and office-holders, or bodies or office-holders of such classes,
mentioned in subsection (2) as they may designate for that financial
year for the purposes of this section.
|
|
| |
(2) Those bodies and office-holders
and classes of body or office-holder are any body or office-holder which
appears, and any class of body or office-holder all the members of which
appear, to the Scottish Ministers- |
| |
|
(a) to exercise functions of a public nature, or
|
| |
(b) to be entirely or substantially funded from public
money.
|
|
| |
(3) A body or office-holder designated,
or of a class designated, for a financial year must- |
| |
|
(a) prepare such financial information in relation
to that year, and in such form and manner, as the Scottish Ministers
may require,
|
| |
(b) arrange for the information to be audited so far
as the Scottish Ministers may require, and
|
| |
(c) send the information and any explanation which
the Scottish Ministers may require to the Scottish Ministers by
such time as they may direct.
|
|
| |
(4) Accounts prepared in pursuance
of subsection (1) and the determination under that subsection must be
sent to the Auditor General.
|
| |
(5) The Auditor General must examine
the accounts and prepare a report on whether the accounts have been prepared
in accordance with the determination.
|
| |
(6) The Auditor General must send
the report to the Scottish Ministers, who must lay before the Parliament
a copy of the accounts and the report.
|
| |
(7) Subsections (1) and (2) of section
24 apply for the purposes of the examination of accounts under subsection
(5) of this section as they apply for the purposes of the audit of an
account under sections 21 and 22.
|
| |
|
| |
Audit and value for money examinations
|
| |
|
| |
(1) This section and section 22 apply
in relation to any account which is, by virtue of any enactment or prerogative
instrument, required (in whatever words) to be- |
| |
|
(a) audited by the Auditor General, or
|
| |
(b) sent to the Auditor General for auditing.
|
|
| |
(2) The account must be sent to the
Auditor General not later than 6 months after the end of the financial
year to which the account relates.
|
| |
(3) The account is to be audited
by- |
| |
|
(a) the Auditor General, or
|
| |
(b) a qualified person appearing to the Auditor General
to be suitable for appointment to audit the account by reason of,
among other things, the person's professional qualifications and
experience.
|
|
| |
(4) It is for the Auditor General
personally to decide who is to audit the account.
|
| |
(5) For the purposes of subsection
(3)(b) a person is qualified if that person is- |
| |
|
(a) eligible for appointment as a company auditor
under section 25 of the Companies Act 1989 (c.40), or
|
| |
(b) a member of a body of accountants established
in the United Kingdom or another EEA State;
|
|
| |
and "EEA State" means any State which
is a Contracting Party to the Agreement on the European Economic Area
signed at Oporto on 2nd May 1992, as adjusted by the Protocol signed at
Brussels on 17th March 1993.
|
| |
22 Audit
of accounts: further provisions
|
| |
(1) The auditor's report on an account
in relation to which this section applies (unless it is an account prepared
in pursuance of section 19(2)) must set out the auditor's findings on
the following matters- |
| |
|
(a) whether the expenditure and receipts shown in
the account were incurred or applied in accordance with- |
|
| |
| |
|
(i) any enactment by virtue of which the expenditure
was incurred or the income received,
|
| |
|
(ii) the Budget Act or Acts for the financial year,
or any part of the financial year, to which the account relates,
and
|
|
|
(iii) sections 4 to 7, |
|
| |
|
(b) where sums have been paid out of the Fund for
the purpose of meeting such expenditure, whether the sums were applied
in accordance with section 65 of the 1998 Act,
|
| |
(c) whether the expenditure and receipts shown in
the account were incurred or applied in accordance with any applicable
guidance (whether as to propriety or otherwise) issued by the Scottish
Ministers,
|
| |
(d) whether the account complies with any applicable
direction by virtue of any enactment.
|
|
| |
(2) The auditor's report on an account
prepared in pursuance of section 19(2) must set out the auditor's findings
on the following matters- |
| |
|
(a) whether sums paid out of the Fund were paid out
in accordance with section 65 of the 1998 Act and sections 4 to
6 of this Act,
|
| |
(b) whether the account complies with any applicable
direction by virtue of any enactment
|
|
| |
(3) The auditor (unless the Auditor
General) must send the account and the auditor's report to the Auditor
General, who may prepare a report on the account.
|
| |
(4) The Auditor General must send
to the Scottish Ministers the account, the auditor's report on the account
and any report prepared by the Auditor General under subsection (3) in
sufficient time to enable the Scottish Ministers to comply with subsection
(5).
|
| |
(5) The Scottish Ministers must- |
| |
|
(a) lay before the Parliament a copy of every account
and report sent to them under subsection (4), and
|
| |
(b) publish every such account and report,
|
| |
not later than 9 months after the end of the financial year to which the account relates. |
|
| |
(6) In section 21 and this section
"financial year", in relation to an account, means the financial year
of the body or office-holder in question.
|
| |
23 Economy,
efficiency and effectiveness examinations
|
| |
(1) The Auditor General may initiate
examinations into the economy, efficiency and effectiveness with which
bodies and office-holders mentioned in subsection (2) have used their
resources in discharging their functions.
|
| |
(2) Those bodies and office-holders
are- |
| |
|
(a) any body or office-holder so far as an account
of that body or office-holder is an account in relation to which
sections 21 and 22 apply,
|
| |
(b) any other body or office-holder, or a body or
office-holder of any class, specified by the Scottish Ministers
by order,
|
| |
(c) any body or office-holder not falling within paragraph
(a) or (b) which agrees to such an examination being carried out.
|
|
| |
(3) An order made under subsection
(2)(b) may specify a body or office-holder, or a class of body or office-holder,
only if the Scottish Ministers reasonably believe that- |
| |
|
(a) in the case of a body or office-holder, in any
of the financial years of the body or office-holder-
|
| |
|
(i) more than a quarter of the income of the
body or office-holder was received from public funds, or
|
| |
(ii) the amount of the income of the body or
office-holder received from public funds exceeded £500,000, |
|
|
| |
|
(b) in the case of a class of body or office-holder,
paragraph (a) is satisfied in relation to at least half of those
in the class.
|
|
| |
(4) An examination under this section
in respect of a body or office-holder, or a body or office-holder of a
class, specified in such an order may be carried out only-
|
| |
|
(a) in relation to any period as respects
which the Auditor General reasonably believes that- |
|
| |
|
|
(i) more than a quarter of the income of the body
or office-holder was derived from public funds, or
|
| |
|
(ii) the amount of the income of the body or office-holder
received from public funds exceeded £500,000,
|
|
| |
|
(b) so far as is reasonably practicable, in relation
to the use by the body or office-holder of the income derived from
public funds and to resources used in discharging the functions
for which such income was used.
|
|
| |
(5) For the purposes of subsections
(3) and (4)- |
| |
|
(a) income is received from public funds if it is
paid by- |
|
| |
|
|
(i) any body or office-holder mentioned in subsection
(2)(a), or
|
| |
|
(ii) any body or office-holder, or body or office-holder
of a class, specified in an order made under subsection (2)(b),
in a financial year of that body or office-holder in which more
than half of the income of the body or office-holder was received
from public funds,
|
|
| |
| |
(b) in calculating income, capital receipts are to
be disregarded,
|
|
(c) money paid as consideration for the acquisition
of property or the supply of goods or services or as remuneration,
expenses, pensions, allowances or similar benefits for or in respect
of a person as the holder of an office is to be disregarded.
|
|
| |
(6) In determining whether an examination
under this section is to be carried out, the Auditor General must take
into account any proposals made by the Parliament.
|
| |
(7) Before initiating an examination
under this section in respect of a new water and sewerage authority (within
the meaning of the Local Government etc. (Scotland) Act 1994 (c.39)) the
Auditor General must consult the Water Industry Commissioner for Scotland.
|
| |
(8) It is for the Auditor General
personally to initiate an examination under this section and to decide
who is to carry out the examination.
|
| |
(9) In carrying out the examination
that person ("the examiner")- |
| |
|
(a) is not entitled to question the merits of the
policy objectives of the body or office-holder in question, but
|
| |
(b) may consider the appropriateness of any criteria
used by the body or office-holder to assess use of resources.
|
|
| |
(10) The examiner (if not the Auditor
General) must report the results to the Auditor General, who may report
the results to the Parliament.
|
| |
24 Access
to documents and information
|
| |
(1) For the purposes of the audit
of an account under sections 21 and 22 the auditor is entitled to- |
| |
|
(a) have access at all reasonable times to any document
in the possession, or under the control, of the body or office-holder
who prepared the account which the auditor may reasonably require,
|
| |
(b) require from any person holding, or accountable
for, any such document any assistance, information or explanation
which the auditor reasonably thinks necessary,
|
| |
(c) require the body or office-holder who prepared
the account to provide, at times specified by the auditor, accounts
of such of the transactions of the body or office-holder as the
auditor may specify.
|
|
| |
(2) For those purposes the auditor
is also entitled to- |
| |
|
(a) have access at all reasonable times to any document
in the possession, or under the control, of a relevant person which
the auditor may reasonably require,
|
| |
(b) require from a relevant person any assistance,
information or explanation which the auditor reasonably thinks necessary
for those purposes.
|
|
| |
(3) For the purposes of an examination
under section 23 the examiner is entitled to- |
| |
|
(a) have access at all reasonable times to any document
in the possession, or under the control, of the body or office-holder
in question which the examiner may reasonably require,
|
| |
(b) require from any person holding, or accountable
for, any such document any assistance, information or explanation
which the examiner reasonably thinks necessary,
|
| |
(c) require the body or office-holder to provide,
at times specified by the examiner, accounts of such of the transactions
of the body or office-holder as the examiner may specify.
|
|
| |
(4) For those purposes the examiner
is also entitled to- |
| |
|
(a) have access at all reasonable times to any document
in the possession, or under the control, of a relevant person which
the examiner may reasonably require,
|
| |
(b) require from a relevant person any assistance,
information or explanation which the examiner reasonably thinks
necessary for those purposes.
|
|
| |
(5) In subsections (2) and (4) "relevant
person" means a person specified, or of a class specified, by the Scottish
Ministers by order.
|
| |
(6) An order under subsection (5)
may- |
| |
| |
(a) specify different persons, or classes of person,
in relation to subsections (2) and (4),
|
|
(b) provide for those subsections, or either of them,
to apply to any specified person or class of person with such modifications
as the order may specify.
|
|
| |
(7) In this section "document" means
anything in which information is recorded in any form.
|
| |
25 Audit
and examination: Audit Scotland
|
| |
(1)The Scottish Commission for Public
Audit, when required to do so by the Auditor General, must appoint a qualified
person to audit an account of Audit Scotland sent to the Commission for
auditing under section 19(8).
|
| |
(2) In subsection (1) "qualified"
has the same meaning as in section 21(5).
|
| |
(3)The auditor must examine and certify
the account and report on the account to the Commission, including in
the report the auditor's findings on the matters set out in section 22(1)(a)
and (b).
|
| |
(4)The Commission may initiate an
examination into the economy, efficiency and effectiveness with which
Audit Scotland has used its resources in discharging its functions and
may appoint a person to carry out the examination and report the results
to the Commission.
|
| |
(5) Subsection (9) of section 23
applies in relation to an examination under subsection (4) of this section
as it applies in relation to an examination under that section.
|
| |
(6) The Commission must- |
| |
|
(a) lay before the Parliament a copy of the account
and the auditor's report under subsection (3) and of any report
made to it under subsection (4), and
|
| |
(b) publish the account and those reports.
|
|
| |
(7) Subsections (1) and (3) of section
24 apply respectively for the purposes of the audit of an account under
subsection (3), and an examination under subsection (4), of this section
as they apply for the purposes of the audit of an account under sections
21 and 22 and an examination under section 23.
|
| |
(8) Appointments under subsections
(1) and (4) of this section are to be on such terms and conditions as
the Commission may determine and any remuneration payable to the person
appointed is to be paid by Audit Scotland.
|
| |
Supplementary
|
| |
26 Modification
of enactments
|
| |
(1) Schedule 4, which makes modifications
of enactments relating to this Part, has effect.
|
| |
(2) The Scottish Ministers may by
order make such modifications in any enactment or prerogative instrument
or any other instrument or document as appear to them to be necessary
or expedient in consequence of this Part.
|
| |
PART 3
SUPPLEMENTARY
|
| |
27 Orders
and directions
|
| |
(1) Any power to make orders under
this Act is exercisable by statutory instrument.
|
| |
(2) No order containing provisions
which add to, replace or omit any part of the text of an Act is to be
made under section 26(2) unless a draft has been laid before, and approved
by resolution of, the Parliament.
|
| |
(3) A statutory instrument containing
an order under this Act (except sections 26(2) (where subsection (2) of
this section applies) and 30) is to be subject to annulment in pursuance
of a resolution of the Parliament.
|
| |
(4) Directions under sections 10(4)
and 19(4) and paragraph 6 of schedule 3 are to be given in writing and
may be varied or revoked by subsequent directions under the same provision.
|
| |
28 Transitional,
transitory and saving provision
|
| |
The Scottish Ministers may by order
make such transitional, transitory or saving provision as they consider
necessary or expedient in connection with the coming into force of any
provision of this Act.
|
| |
29 Interpretation
|
| |
(1) In this Act, unless the context
otherwise requires- |
| |
|
|
"the 1998 Act" means the Scotland Act 1998 (c.46), |
| |
|
"the Accounts Commission" means the Accounts Commission
for Scotland, |
| |
|
"accruing resources" has the meaning given in section
1(2), |
| |
|
"the Auditor General" means the Auditor General for
Scotland, |
| |
|
"enactment" includes an enactment whenever passed
or made, |
| |
|
"the examiner" has the meaning given in section 23(9), |
| |
|
"financial year" means the 12 months ending with 31st
March, |
| |
|
"the Fund" means the Scottish Consolidated Fund, |
| |
|
"overall cash authorisation" has the meaning given
in section 4, |
| |
|
"the Parliament" means the Scottish Parliament, |
| |
|
"the Parliamentary corporation" means the Scottish
Parliamentary Corporate Body, |
| |
|
"use of resources" has the meaning given in section
1(3).
|
|
| |
(2) References in this Act to auditing,
in relation to accounts, are to examining, certifying and reporting on
the accounts.
|
| |
(3) References in this Act and in
any other enactment to a Budget Act are to an Act of the Scottish Parliament
making provision, for any financial year, for all or any of the following
matters- |
| |
|
(a) authorising the use of resources by the Scottish
Administration, or by 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,
|
| |
(b) authorising payment of sums out of the Fund,
|
| |
(c) for sums which are payable into the Fund to be
applied for any purpose instead of being paid into the Fund,
|
| |
(d) specifying the maximum amount of relevant expenditure
for the purposes of section 94(5) of the Local Government (Scotland)
Act 1973 (c.65) and maximum amounts of borrowing by certain statutory
bodies.
|
|
| |
30 Commencement
and short title
|
| |
(1) The preceding provisions of this
Act (including the schedules) are to come into force on such day as the
Scottish Ministers may by order appoint.
|
| |
(2) Different days may be appointed
under this section for different purposes.
|
| |
(3) This Act may be cited as the
Public Finance and Accountability (Scotland) Act 2000.
|
| |
SCHEDULE 1
( introduced by section 8)
C APITAL E XPENDITURE OF,
AND B ORROWING BY,
C ERTAIN S TATUTORY B ODIES
|
| |
Capital expenditure of local authorities etc.
|
| |
1 In section 94 of the Local Government
(Scotland) Act 1973 (c.65) (capital expenses of local authorities etc.)
insert- |
| |
|
|
"(5) In exercising their functions
under subsection (1) above the Scottish Ministers shall seek to
ensure that the aggregate amount of relevant expenditure by virtue
of this section in any financial year does not exceed the amount
specified for that year for the purposes of this subsection in a
Budget Act.
|
| |
|
(6) In subsection (5) above,
"relevant expenditure" means such expenditure as the Scottish Ministers
may from time to time determine in writing, being expenditure resulting
from the incurring of liabilities to which subsection (1) above
applies.
|
| |
|
(7) The Scottish Ministers
shall lay before the Scottish Parliament every determination under
subsection (6) above together with a statement of their reasons
for making the determination in those terms."
|
|
| |
NHS trusts
|
| |
2 (1) In Schedule 7B to the National
Health Service (Scotland) Act 1978 (c.29) (financial provisions relating
to NHS trusts), after paragraph 2 insert-
|
| |
"Limits on borrowing |
| |
|
2A In any financial year the
net aggregate amount of sums borrowed by NHS trusts shall not exceed
the amount specified for that year for the purposes of this paragraph
in a Budget Act.
|
| |
2B In paragraph 2A above, "net
aggregate amount" means the aggregate amount of sums borrowed in
the financial year less any repayments made during that year (otherwise
than by way of interest) in respect of sums borrowed in that or
any other year."
|
|
| |
(2) Paragraphs
3 and 4 of that Schedule are repealed.
|
| |
Scottish Homes
|
| |
3 (1) The Housing (Scotland) Act
1988 (c.43) is amended as follows.
|
| |
(2) In section
7 (borrowing by and government loans to Scottish Homes)- |
| |
|
(a) after subsection (3) insert-
|
| |
"(3A) In any financial year the net aggregate amount
of sums borrowed under this section as general external borrowing
shall not exceed the amount specified for that year for the purposes
of this section in a Budget Act.
|
| |
(3B) In subsection (3A) above- |
|
| |
|
|
"general external borrowing" means-
|
| |
|
|
(a) in relation to Scottish Homes, sums borrowed under
subsection (1) above,
|
| |
|
|
(b) in relation to a wholly owned subsidiary of Scottish
Homes, sums borrowed by the subsidiary (whether or not a subsidiary
of Scottish Homes at the time of the loan) other than sums borrowed
from Scottish Homes, or another wholly owned subsidiary of Scottish
Homes,
|
| |
|
"net aggregate amount" means the aggregate
amount of sums borrowed in the financial year less any repayments
made during that year (otherwise than by way of interest) in respect
of sums borrowed in that or any other year.", |
|
| |
|
(b) in subsection (4), the words from "and the Treasury"
to the end are repealed,
|
| |
(c) in subsection (5), the words from "and all sums"
to the end are repealed,
|
| |
(d) subsection (6) is repealed,
|
| |
(e) in subsection (8), the words "In this section
and" are repealed.
|
|
| |
(3) Section 9 is
repealed.
|
| |
Scottish Enterprise and Highlands and Islands Enterprise
|
| |
4 (1) The Enterprise and New Towns
(Scotland) Act 1990 (c.35) is amended as follows.
|
| |
(2) In section
25 (finances of Scottish Enterprise)-
|
| |
|
(a) after subsection (1) insert-
|
| |
"(1A) In any financial year the net aggregate amount
of sums borrowed by Scottish Enterprise and its subsidiaries as
general external borrowing shall not exceed the amount specified
for that year for the purposes of this section in a Budget Act.
|
| |
(1B) In subsection (1A) above-
|
| |
|
|
"general external borrowing" means-
|
| |
|
(a) in relation to Scottish Enterprise, sums
borrowed by it other than sums borrowed from a body corporate
which is or was one of its subsidiaries at the time of the
loan,
|
| |
|
(b) in relation to a subsidiary of Scottish
Enterprise, sums borrowed by the subsidiary (whether or not
a subsidiary of Scottish Enterprise at the time of the loan)
other than sums borrowed from Scottish Enterprise, or another
subsidiary of Scottish Enterprise,
|
| |
|
"net aggregate amount" means the aggregate
amount of sums borrowed in the financial year less any repayments
made during that year (otherwise than by way of interest)
in respect of sums borrowed in that or any other year.", |
|
|
| |
|
(b) subsections (2) to (4) are repealed.
|
|
| |
(3) In section
26 (finances of Highlands and Islands Enterprise), after subsection (3)
insert-
|
| |
| |
"(3A) In any financial year the net amount of sums
borrowed shall not exceed the amount specified for that year for
the purposes of this section in a Budget Act.
|
|
(3B) In subsection (3A) above, "net
amount" means the amount of sums borrowed in the financial year
less any repayments made during that year (otherwise than by way
of interest) in respect of sums borrowed in that or any other year."
|
|
| |
5 The Scottish Enterprise Act 1999
(c.5) is repealed.
|
| |
New water and sewerage authorities
|
| |
6 (1) Section 84 of the Local Government
etc. (Scotland) Act 1994 (c.39) (financing of and borrowing by new water
and sewerage authorities) is amended as follows.
|
| |
(2) In subsection
(2), the words "Subject to subsection (7) below" are repealed.
|
| |
(3) After
subsection (2) insert- |
| |
|
"(2A) In any financial year the net aggregate amount
of sums borrowed by the new water and sewerage authorities shall
not exceed the amount specified for that year for the purposes of
this section in a Budget Act.
|
| |
(2B) In subsection (2A) above, "net aggregate
amount" means the aggregate amount of sums borrowed in the financial
year less- |
|
| |
|
|
(a) any repayments made during that year (otherwise
than by way of interest) in respect of sums borrowed in that or
any other year, and |
| |
|
(b) any sums borrowed, with the consent of the Scottish
Ministers, by way of overdraft or otherwise for the purpose of meeting
a temporary excess of expenditure over sums otherwise available
to meet that expenditure." |
|
| |
(4) Subsections
(5) to (8) are repealed.
|
| |
Scottish Environment Protection Agency
|
| |
7 (1) The Environment Act 1995 (c.25)
is amended as follows.
|
| |
(2) In section
48 (borrowing powers of Agencies)- |
| |
|
(a) in subsections (2) and (3), for "subsection (5)"
substitute "subsections (5) and (5A)",
|
| |
(b) subsection (5)(b) and the preceding "or" are repealed,
|
| |
(c) after subsection (5) insert- |
|
| |
|
|
"(5A) In any financial year the net amount of sums
borrowed by SEPA under this section shall not exceed the amount
specified for that year for the purposes of this section in a Budget
Act.
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(5B) In subsection (5A) above, "net amount"
means the amount of sums borrowed in the financial year less any
repayments made during that year (otherwise than by way of interest)
in respect of sums borrowed in that or any other year."
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