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Financial and other accountabilities
General
Transport Scotland is funded from the Scottish Executive Transport Budget, and the Scottish Ministers determine Transport Scotland's allocation within this.
The end-year flexibility arrangements which apply to the rest of the Scottish Executive, subject to the overall position on the Scottish Executive Budget, will also apply to Transport Scotland.
Accountable Officer Roles
The Permanent Secretary of the Scottish Executive has Principal Accountable Officer responsibility
for the organisation and management of the Scottish Executive. He or she is the Scottish Ministers' principal adviser on expenditure and for ensuring a high standard of financial management in the Scottish Executive, including its Agencies.
The Head of the Scottish Executive Enterprise, Transport & Lifelong Learning Department is the Departmental Accountable Officer for the Budget from which Transport Scotland is funded.
The Principal Accountable Officer designates the Chief Executive of Transport Scotland as its Accountable Officer under section 15 of the Public Finance and Accountability (Scotland) Act 2000.
As Agency Accountable Officer, the Chief Executive has a personal responsibility for the propriety and regularity of public finances for the part of the Scottish Administration for which he or she is accountable, and for ensuring that the resources for which he or she is accountable are used economically, efficiently and effectively. As Agency Accountable Officer the Chief Executive has a duty to secure Best Value which includes the concepts of good corporate governance, performance management and continuous improvement. Guidance to Accountable Officers on what their organisations should be able to demonstrate in fulfilment of the duties which make up a Best Value regime is included in the Best Value section of the Scottish Public Finances Manual.
The Chief Executive is also responsible for putting into effect any recommendations of the Scottish Parliament accepted by the Scottish Executive.
Financial Delegations to Transport Scotland
The Head of the Scottish Executive Enterprise, Transport & Lifelong Learning Department is the Departmental Accountable Officer for the budget from which Transport Scotland is funded. The financial delegations for Transport Scotland are set out in Annex 1.
The Chief Executive is responsible for ensuring that financial procedures comply with financial guidance issued by Scottish Executive Finance Group and the Scottish Procurement Directorate. Transport Scotland must comply with the requirements of the Scottish Public Finance Manual, including appropriate consultation with Finance officials on in-year changes to Budgets set by Parliament.
Under certain circumstances, Transport Scotland must involve the Scottish Executive Finance and Central Services Department (Finance Group) in financial decisions. These circumstances are set out in Roles and Involvement of Finance in the Scottish Public Finance Manual.
Within these delegations, Transport Scotland may contract with others for materials, land and buildings or functions and services. The Chief Executive is responsible for securing best value for money in making all procurement arrangements.
Internal Audit
The Chief Executive is responsible for arranging internal audit mechanisms, in accordance with the objectives and standards laid down in the Government Internal Audit Manual and in a way which demonstrates best value for money. The Departmental Accountable Officer reserves the right to have the Scottish Executive Internal Audit Unit undertake any work required to provide independent assurance about Transport Scotland's financial management and control, if he or she considers it necessary.
Transport Scotland will have an Audit Committee, with membership and operating procedures as determined by the relevant Guidance. The Audit Committee is responsible for determining the meeting cycle of the Committee.
External Audit
Transport Scotland will be subject to external audit by the Auditor General for Scotland ( AGS), or by auditors appointed by the AGS.
Annual Report and Accounts
The Chief Executive is required to sign and present annually an Annual Report and Accounts to Scottish Ministers, to be laid before the Scottish Parliament. This document will include a report on Transport Scotland's performance against the objectives and targets set by Ministers for the relevant year.
Transport Scotland will keep proper accounts and records as defined in the Government Financial Reporting Manual and Scottish Public Finance Manual. The Public Finance and Accountability (Scotland) Act 2000 stipulates that the Annual Report and Accounts will be laid before the Scottish Parliament, and published after the accounts have been audited and certified by the Auditor General for Scotland. The Act also requires that such accounts shall be sent to the Auditor-General for Scotland not later than 6 months after the end of the financial year to which the accounts relate. Therefore Transport Scotland will be required to complete its accounts in sufficient time to be incorporated into the consolidated Scottish Executive accounts to meet the deadlines stipulated in the Act.
An accounts direction will be issued to Transport Scotland by the Scottish Ministers stating that the first published accounts will be prepared for the financial year 1 April 2006 to 31 March 2007.
Management Accounting and Purchasing Systems
Transport Scotland will operate financial and other systems which provide the Transport Scotland Accountable Officer (the Chief Executive) and the Departmental Accountable Officer (the Head of ETLLD) with sufficient information to assure them that Transport Scotland's expenditure is being handled in a proper and prudent manner, and that Transport Scotland is achieving value for money from its resources in delivering its functions. Transport Scotland will provide such financial or other information to the Head of ETLLD as he or she may require, using the Scottish Executive corporate finance system. The nature and timing of information required by the Head of ETLLD will be agreed in advance whenever possible.
Arrangements for risk management
The Chief Executive is responsible for implementing and monitoring appropriate risk management arrangements in accordance with the relevant guidance in the Scottish Public Finance Manual for the successful delivery of agency functions and projects.
Transport Scotland's risks, including public and employer liability, are carried in line with the Scottish Executive's policy on insurance. The Chief Executive will keep the Departmental Finance Team informed of the level of any contingent liabilities, including where possible an assessment of their values. Where appropriate he or she will report contingent liabilities to the Scottish Parliament, seeking prior approval where appropriate in line with Scottish Executive Finance Guidance.
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