Budget management and delegated authority

Each year the Portfolio AO will notify the NSWA of its budget provision, any related matters and details of the budget monitoring information required. The NSWA will comply with the format and timing of the monitoring information requested and with any requests for further information. 

The statement of budgetary provision will set out the budget within the classifications of resource Departmental Expenditure Limits (RDEL), capital DEL (CDEL) and Ring-fenced (non-cash) (RfDEL) – and, where applicable, Annually Managed Expenditure (AME). These categories are explained in Annual Budget Processing in the SPFM. The NSWA will not transfer budgetary provision between the categories without the prior approval of the SG Finance Directorate, and the Portfolio Accountable Officer should be made aware of any such transfers. Transfers within the categories are at the discretion of the Chief Executive, if these do not breach any other constraints, for instance the approved pay remit. 

Where budgetary provision includes projected income, including any income from disposal of non-current assets, the Chief Executive will ensure that the SG Finance Directorate and Portfolio AO are made aware promptly of any forecast changes in income – usually via the monthly budget monitoring statement.

The Scottish Ministers expectation is that any shortfall in income will be offset by a matching reduction in gross expenditure, and prior approval from the SG Finance Directorate and the Portfolio AO must be sought for any alternative arrangement. Similarly, if income is higher than originally projected, this may only be used for additional spending or to meet pressures with the prior approval of the SG Finance Directorate and Portfolio Accountable Officer. Failure to obtain prior approval for the use of excess income to fund additional expenditure may result in corresponding reductions in budgets for the following financial year.

The NSWA’s specific delegated financial authorities are set out in Annex A. The Chief Executive will obtain the prior written approval of the Portfolio AO and SG Finance before entering into any undertaking to incur any expenditure that falls outside these delegations, and before incurring expenditure for any purpose that is or might be considered novel, contentious or repercussive or which has or could have significant future cost implications.