SCOTTISH GOVERNMENT AND EXECUTIVE AGENCIES
GUIDANCE ON FRAMEWORK DOCUMENTS
Introduction
1.
A Framework Document sets out the detailed accountability and governance
framework for an Executive Agency. In particular, the document describes the
responsibilities of Ministers, the Permanent Secretary/Principal Accountable Officer, the
Director General/Portfolio Accountable Officer and the Agency Chief Executive (Agency
Accountable Officer). This guidance should be read in conjunction with the Scottish
Government and Executive Agencies – Accountability and Governance Policy. Annex A
summarises further resources including all those referred to in the document. Annex B
contains advice on the appointment of Non Executives to Agencies.
2.
Framework Documents contain a number of common elements but also capture any
arrangements that are specific to an Agency. Typically, a Framework Document will cover:
o Strategic goals, role and functions
o Roles, responsibilities and relationships
o Accountable Officer arrangements
o Parliamentary Committee attendance
o Arrangements for dealing with Parliamentary correspondence
o Complaints and the Ombudsman
o Financial regime, including counter-fraud arrangements
o Procedures for accounting, audit, monitoring and reporting
o Arrangements for producing accounts
o Business and corporate plans
o Risk management
o Other management arrangements, including Human Resources
o Appointing the Chief Executive
o Relationship with stakeholders and other bodies
o Arrangements for reviewing the Framework Document
Strategic goals, role and functions
3.
Explains the purpose of the Agency and the functions that it performs, including any
statutory functions; describes the vision and strategic goals of the Agency in the context of
the Government’s National Performance Framework; and explains the Agency’s contribution
to the delivery of the purpose and national outcomes set out in the National Performance
Framework.
4.
Detailed targets and objectives are provided in Agency corporate and business plans.
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Role, responsibilities and relationships
5.
Sets out the roles and responsibilities of Scottish Ministers, the Director
General/Portfolio Accountable Officer, the Agency Chief Executive/Agency Accountable
Officer and the Advisory Management Board or Senior Management Team.
Scottish Ministers
6.
Scottish Ministers are responsible for determining the overall policy and resources
framework within which an Agency operates and, ultimately, are accountable to the
Parliament for its functions and performance. Responsibilities of Scottish Ministers include:

Holding the Chief Executive to account for Agency performance;

Setting the strategic objectives and related performance targets;

Approving corporate and business plans;

Setting the budget for the Agency;

Receiving the annual report and audited financial accounts from the Chief Executive;

Approving the Framework Document.
7.
The frequency of dialogue between the Minister and the Chief Executive depends on
the functions of the Agency.
Director General/Portfolio Accountable Officer
8.
Responsibilities of the Director General can include:

Supporting Ministers in the discharge of their duties towards the Agency, including on
setting the Agency’s strategic objectives and related performance targets and outcomes;
agreeing the corporate and business plans; and setting an appropriate budget, in
discussion with the Agency Chief Executive;

Ensuring the relationship between Chief Executive and Ministers is healthy and working
effectively;

Ensuring that the Agency objectives and performance contribute to and are part of the
Portfolio as a whole; and are aligned to the Government’s Purpose and National
Outcomes set out in the National Performance Framework;

Ensuring that there is a clear framework for strategic performance improvement and
management of the Agency’s work; providing support and constructive challenge to
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ensure that the Agency is high performing and continuously improving; and ensuring
that operational accountability is being exercised properly;

Monitoring the financial performance, operational effectiveness and risk management
arrangements of the Agency on the basis of information and advice from the Chief
Executive and from SG Finance,, seeking clarification on any matter as and when
required;

Approving matters not covered by the delegated authority arrangements set out in the
Agency Framework Document;

Ensuring the Agency is taking steps to improve its operating efficiency, including through
participation in collaborative procurement and shared service arrangements;

Promoting integration and organisational alignment between the Agency and the SG as
appropriate, e.g. by involving Agency Chief Executives within portfolio management
arrangements; holding regular meetings with the Chief Executive; ensuring the Chief
Executive is aware of SG-wide strategic developments and corporate decisions impacting
on the Agency; and ensuring that the position of the Agency is taken into account in
relevant SG policy decisions;

Representing the interests of the Agency within the wider SG, ensuring the SG has due
regard for the advice provided by the Agency and ensuring the Agency Chief Executive is
aware of SG-wide strategic developments and corporate decisions impacting on the
management or operations of the Agency and that where necessary, that appropriate
SG-wide corporate services are available to support and facilitate the work of the
Agency

Performance appraisal of the Chief Executive;

Ensuring that an appropriate Framework Document is in place and maintained. In
practice, usually a Framework Document is prepared by the Agency in consultation with
the core SG before being submitted to the DG / Portfolio Accountable Officer for
approval.
9.
Where the Chief Executive is a Deputy Director, a Director General / Portfolio
Accountable Officer may delegate some of his/her authorities and responsibilities to a
Director. This will be determined on a case-by-case basis and should be clearly defined in
the Framework Document.
10.
In some cases, the Director General for the ‘cluster’ that the Agency is part of will
differ from the Portfolio Accountable Officer for the budget from which the Agency is
funded. The Framework Document should clearly set out the respective responsibilities and
explain which authorities have been delegated from the Portfolio Accountable Officer (for
the Portfolio budget the Agency is funded from) to the ‘cluster’ Director General.
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Chief Executive
11.
The Chief Executive is responsible for delivery of the Agency’s functions.
Responsibilities of the Chief Executive can include:

Being Accountable Officer for the management of the Agency’s resources, as appointed
by the Principal Accountable Officer;

Being personally answerable for the efficient and effective operation and financial
management of the Agency and for performance against key targets;

Where relevant, developing Government policy and providing Ministers and others with
strategic policy advice;

Providing advice and evidence on delivery to inform policy and ensuring that the Agency
works across Government in support of the Government’s purpose and national
outcomes set out in the National Performance Framework;

Ensuring that the Agency is a high performing and continuously improving organisation
and that it is contributing to the ‘Serving Government Better’ business strategy.

Providing support to the Director General/Portfolio Accountable Officer, including
assurance about the financial performance, operational effectiveness and risk
management arrangements of the Agency and its business improvement activity;

Ensuring that all relevant financial considerations and Scottish Government guidance,
including issues of propriety, regularity, efficiency and value for money, are taken into
account in delivering the Agency’s business;

Preparing and publishing annual reports, accounts, corporate and business plans,
subject to Ministerial approval;

Management and development of Agency staff;

Ensuring Best Value in all aspects of the Agency’s operations, both front line delivery and
corporate support functions, including the use of collaborative procurement and shared
service arrangements where participation offers value for money for the Agency or to
the wider public purse;

Replying to correspondence from MSPs on operational issues within the Agency’s
responsibilities and otherwise supporting Ministers by preparing Ministerial briefing and
responses to Ministerial correspondence and Written or Oral Parliamentary Questions;

Keeping the content of the Agency’s Framework Document under review, discussing
changes with the Director General/Portfolio Accountable Officer.
Management Boards, Senior Management Teams and Non-Executive Directors
12.
Sets out the arrangements for the establishment and operation of the Agency’s
Management Board or Senior Management Team, including the appointment of NonExecutive Directors to the Management Board and to the Audit and Risk Committee; sets
out the contribution that the Non-Executives Directors are expected to make to the Agency.
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Accountable Officer Arrangements
13.
The Permanent Secretary is the Principal Accountable Officer for the Scottish
Administration and is responsible for designating, under section 15 of the Public Finance and
Accountability (Scotland) Act 2000, the relevant Director General as the Portfolio
Accountable Officer and the Agency Chief Executive as the Agency Accountable Officer.
These Accountable Officers have personal responsibility to Parliament for the propriety and
regularity of public finances for the part of the Scottish Administration for which such
Accountable Officers have stewardship.
14.
The roles and responsibilities of Portfolio Accountable Officers and Agency
Accountable Officers are set out in the Memorandum to Accountable Officers for parts of the
Scottish Administration.
Parliamentary Committee Attendance
15.
Sets out that the Chief Executive, as Accountable Officer for the Agency, is liable to be
called to appear before the Public Audit Committee of the Scottish Parliament to account for
the discharge of his or her responsibilities under the terms of the Framework Document, or
before other Committees in the capacity of Chief Executive. The Scottish Parliament has the
power to require witnesses to attend Parliamentary Committees.
16.
Explains that Chief Executives are responsible for implementing any relevant
recommendations from the Public Audit Committee or other Committees of the Scottish
Parliament which are accepted by the Scottish Government.
Arrangements for Dealing with Parliamentary Correspondence
17.
Explains that the Minister will encourage MSPs to communicate directly with the
Agency Chief Executive on operational matters within his or her authority. The Chief
Executive will provide Ministers with any necessary information and support the answer of
Parliamentary Questions or deal with any other Parliamentary business for which the Agency
is responsible.
Complaints and the Ombudsman
18.
Explains that the Agency may be subject to investigation by the Scottish Public
Services Ombudsman (SPSO) and must have in place a complaints handling procedure which
complies with the statement of principles published by the SPSO.
Financial regime
19.
Sets out the type of financial framework within which the Agency operates, the
process by which financial provision is made for the Agency and the financial delegations to
the Agency. These delegations should be set out in an annex to the Framework Document
and will be determined by the business and budget of the Agency.
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20.
Explains that the Chief Executive is responsible for ensuring that financial procedures
comply with financial guidance issued by the Finance Directorate and the Scottish
Procurement and Commercial Directorate. The Agency will be expected to comply with the
requirements of the Scottish Public Finance Manual and other relevant guidance and engage
with the relevant Finance Business Partners (or equivalent). The Framework Document
should set out the arrangements for handling any novel, contentious or repercussive
financial transactions.
21.
The Agency will be expected to operate financial and other systems which provide
the Chief Executive and the Director General/Portfolio Accountable Officer with sufficient
information to assure them that the Agency’s expenditure is being handled in a proper and
prudent manner, and that it is achieving efficiency improvements and value for money from
its resources in delivering its functions. The system that the Agency will use to provide
financial and other information should be set out. Agencies should have appropriate
counter-fraud arrangements, with control systems and procedures designed to prevent,
detect, report and handle instances of fraud. Procedures set up to counter fraud must be
carefully followed and monitored and set out in a fraud policy statement and fraud response
plan.
Arrangements for audit
22.
Sets out the Chief Executive’s responsibility to establish 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.
23.
The Agency will have an Audit and Risk Committee, chaired by a Non Executive, with
membership and operating procedures determined by the appropriate guidance in the SPFM
and the Audit Committee Handbook. The remit of the Audit and Risk Committee will include
supporting the Chief Executive with regard to the efficient and effective use of programme
expenditure and the associated responsibilities for risk, control, governance and assurance.
24.
The Audit and Risk Committee will be responsible for drawing any significant matters
arising in this respect to the attention of the Portfolio and/or Scottish Government Audit and
Risk Committee, for example in instances where issues may depend upon factors which are
beyond the control of the Agency or have implications for the operation of the Scottish
Government and its public bodies more generally. The Audit and Risk Committee will be
responsible for determining the meeting cycle of the Committee.
25.
The Director General/Portfolio Accountable Officer reserves the right to have
appropriate representatives (e.g. Internal Audit) undertake any work required to provide
independent assurance about the Agency’s management and control, if he or she considers
it necessary.
26.
Mention should also be made of the Agency being subject to external audit by the
Auditor General for Scotland (AGS) or by auditors appointed by the AGS.
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Arrangements for producing accounts
27.
Explains that the Chief Executive is responsible for producing and publishing accounts
for the Agency and for laying them before the Parliament together with the Agency’s annual
report. The accounts must be produced in accordance with the accounts direction from
Scottish Ministers and the timetable for the production of the Scottish Government’s
consolidated accounts each year. The Public Finance and Accountability (Scotland) Act 2000
stipulates that the Scottish Government’s consolidated accounts will be laid before the
Scottish Parliament and published after they have been audited and certified by the Auditor
General for Scotland.
28.
The Chief Executive is responsible for maintaining a sound system of internal control
that supports the achievement of the body's policies, aims and objectives and for regularly
reviewing the effectiveness of that system. A Statement on Internal Control is to be provided
by Accountable Officers alongside the Agency’s annual accounts
Business and corporate plans
29.
Explains that the Chief Executive is responsible for preparing a corporate plan1
covering the medium to long term business of the Agency and an annual business plan that
takes account of and reflects the Scottish Government Business Strategy. The corporate plan
and business plan should be prepared in consultation with the Director General/Portfolio
Accountable Officer and be approved by Scottish Ministers. The plans should be clear on
how the activities of the Agency are aligned to the Government’s purpose and the national
outcomes set out in National Performance Framework. The timetable for the production
and approval of corporate and business plans should be set out along with arrangements for
their publication. It is expected that these documents will be placed in SPICE and published
on the Agency’s website.
Risk management
30.
Explains that the Chief Executive is responsible for implementing and monitoring risk
management arrangements as part of a robust corporate governance framework. This
requires the active monitoring and reporting of risks: to monitor whether or not the risk
profile is changing, to gain assurance that risk management is effective, and to identify when
further action is necessary. There will need to be regular discussion with the Director
General/Portfolio Accountable Officer to provide assurance and ensure a comprehensive and
coordinated approach to managing risk and the successful delivery of Agency functions and
projects. The Chief Executive is supported in his/her role by an Audit and Risk Committee
and the internal advisory work of Internal Audit. Further guidance is outlined in the Scottish
Public Finance Manual.
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Typically corporate plans cover three years and they need to be aligned to the Spending Review cycles. They
should cover at least 2 and up to 4 years. In some cases the corporate and business plans are combined but
both the medium to long term and more detailed annual business objectives of the Agency will be captured.
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Other management arrangements including pay policy and Human Resources
31.
This section sets out:

That the Agency will comply with the Public Sector Pay Policy for Staff Pay Remits

The status of Agency staff and their terms and conditions of employment. It should be
made clear where terms and conditions and HR policies are shared with the Scottish
Government within the Scottish Government Main bargaining unit and, if they are not
that staff terms and conditions, including severance arrangements should be agreed
with Finance Pay Policy in consultation with HR colleagues

that the Agency will comply with the Civil Service Code (Scottish Executive version),
which sets out the core values of the Civil Service and the standards expected of civil
servants;

that usually the Agency will be responsible for the recruitment of its staff, in
consultation with the Scottish Government’s Human Resources and Organisational
Development Directorate. All recruitment will adhere to the Civil Service Management
Code, the Scottish Government Main Resourcing Policy and procedures and, for external
recruitment, the Civil Service Commissioners’ Recruitment Principles;

that the Agency will be responsible for promoting and supporting effective employee
relations and, where appropriate, consulting with Civil Service Trades Unions in line with
either a local Partnership Agreement or the overarching Partnership Agreement that
exists between the Permanent Secretary and the Council of Scottish Government
Unions;

that the Chief Executive is responsible for the development of Agency staff, drawing as
necessary on Scottish Government staff development resources and activity;

that the Chief Executive is responsible for ensuring that appropriate promotion
arrangements are in place, noting that usually Agency staff are eligible for promotion
opportunities within the Scottish Government Main and vice versa. The Agency will be
expected to agree with Scottish Government Human Resources the arrangements to
ensure that common promotion standards are in place;

that the Agency’s risks, including public and employer liability, are carried in line with
the Scottish Government's policy on insurance and that the Chief Executive will keep the
Portfolio Finance Team/Finance Business Partners or equivalent 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 the Scottish Public Finance
Manual;

that the responsibility for Health and Safety management lies with the Chief Executive,
in line with current Health and Safety legislation, guidance and/or best practice.
Assurances on Health and Safety management may be sought by the Occupational
Health & Safety Branch of the Scottish Government;

that the Chief Executive, with regard to the requirements of efficient government and
value for money, will keep the provision of support services under review as part of
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ensuring best value in all aspects of the Agency’s operations. This include the use of
shared service arrangements where participation offers value for money for the Agency
or to the wider public purse. Opportunities to share the delivery of front-facing services
should also be considered. The Agency will report annually on the steps taken during
each financial year to improve efficiency, effectiveness and economy (including details
of shared services activity), under the terms of the Public Services Reform (Scotland) Act
2010 and the associated guidance;

that the Chief Executive is responsible for ensuring that the Agency complies with all
statutory duties and relevant Scottish Government policies to which it is subject; and

that the Chief Executive is responsible for ensuring adherence to all Scottish
Government equality and diversity policies and relevant equalities legislation, including
relevant public sector duties.
Appointing the Chief Executive
32.
Sets out that the Chief Executive is a Civil Servant and is subject to the Civil Service
Code. The post of Chief Executive may be filled by a managed move within the Civil Service,
in the same way as any other senior management position within the Scottish Government,
or it may be filled by open competition overseen by the Civil Service Commissioners. The
arrangements for appointing a Chief Executive will be managed by the Senior Staff Team
within the Scottish Government’s Human Resources and Organisational Development
Directorate.
Relationship with stakeholders and other bodies
33.
Sets out the relationship between the Agency and stakeholders with an interest in its
work. This should reflect the emphasis on collaborative working across the public sector and
with the third and private sector wherever possible. If the Agency is responsible for the
sponsorship of another public body, this section should summarise the arrangement and
provide details of where detailed information is available (for example in a sponsored body’s
Framework Document).
Framework Document – arrangements for review
34.
Sets out that the Framework Document can be reviewed at any time and should be
reviewed at key trigger points such as when there has been a change in Chief Executive or
Minister. It should be formally reviewed at least once every three years and published on
the Agency’s website.
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Annex A
SCOTTISH GOVERNMENT AND EXECUTIVE AGENCIES
GUIDANCE RESOURCES
The following list, with links, is not meant to be comprehensive for each individual
organisation – as each Agency complies with specific statutory requirements for their own
policies. But the following lists the key corporate resources that Agencies will want to refer
to, including those mentioned to in this document:
 Scottish Public Finance Manual – sets out arrangements and requirements for all
things financial including budget cycles, Accountable Officer roles (incorporating
Memorandum to Accountable Officers for parts of the Scottish Administration), risk
management, best value and the overall context for accountability.
 The Public Sector Pay Policy for Staff Pay remits - sets the framework for public
sector pay. It applies to the Scottish Government and its associated departments,
agencies, non-departmental public bodies (NDPBs), public corporations and NHS
Scotland Senior Managers (Grades A-C only).
 Specifically for Audit, Agencies refer to both the Audit Committee Handbook and
the Internal Audit Manual.
 Civil Service Code (SE Version) – sets out the core values of the Civil Service and the
standards of conduct expected of Agency staff as civil servants.
 Civil Service Management Code – sets out arrangements for the management of the
Civil Service as prescribed by Ministers, with which Agencies comply - the
framework for appointing staff, health and safety, equal opportunities, discipline,
management & development, terms and conditions and redeployment.
 SG HR Policies – sets out specific local SG HR policies with which Agencies are
familiar such as the Scottish Government Main Resourcing Policy.
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Annex B
SCOTTISH GOVERNMENT AND EXECUTIVE AGENCIES
APPOINTING NON EXECUTIVES
The procedure for appointment of Non-Executive Directors to an Agency Management
Advisory Board or Non Executive members to the Audit and Risk Committee should follow
good practice:

Before a vacancy is filled, as a minimum the following information or documents should
be complied/prepared:
-
Role description and realistic time commitment;
Information about remuneration and travel expenses;
Person specification and Agency remit;
An application form or expression of interest statement; and
Where relevant, details of the application and assessment process.

The selection process should be open, proportionate and ensure appointment on merit.

Options for appointments include (but are not limited to):
-
Direct approaches to individuals (useful if field is limited due to specialism);
Seek expressions of interest;
Contact Non-Executives serving on core Scottish Government committees or on the
boards of other public bodies;
Contact existing NDPB Non-Executive Directors due to step down;
Advertise on www.Appointed-for-Scotland.org; or
Hold an open evening to generate public interest in the Agency and the work of the
Non-Executive Directors.
Further information and advice is available from the Public Appointments Team.
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