Report Details

Background

During summer 2022 the SPA undertook an end-to-end review of the Authority’s financial regulations. This was the first comprehensive review of these rules since the SPA was created in 2013. Significant changes were approved by the Resources Committee and Board in 2022.

Authority staff undertake an annual review of the corporate governance framework. As part of this process we also review and consider if any changes are required to the financial regulations.

Staff have also worked with Scottish Government Justice colleagues to review the delegation provided from SG to the Authority

Further detail
Authority and Police Scotland staff keep notes of minor issues to consider updating the regulations during the annual review. These minor clarifications have been reflected in this review.

Whilst the Scottish Public Finance Manual (SPFM) sets some limits on the delegated limits to public bodies, in many cases the SG agrees specific limits to individual bodies. The limits to the Authority have not changes in a number of year.

A review was undertaken by the SG Sponsorship Team in collaboration with the Authority which agreed changes to the delegations “on the basis of improvement in financial leadership, governance, management and capability within the SPA and Police Scotland”.

A summary of the updated delegated financial limits is shown below which SG approved to take effect from 1 April 2026.

Delegated Area Current Limit/New Limit
Gifts / donations £1,000/£25,000
Special payments £1,000/£100,000
Write-offs and/ or losses £25,000/£100,000
Non-Competitive Action £25,000 Must follow SG and SPFM procurement guidance
Third party grants No delegation/£100,000

The effect of implementing these changes have been incorporated into the financial regulations as well as other areas identified to update. The changes are summarised in appendix A with a full version of the financial regulations showing the changes at appendix B.

These changes will require the recommendation of this Committee and Authority approval. In line with the SG review, all changes will be effective from 1 April 2026.

Strategic alignment detail
Strategic alignment to strategic police plan and other key enabling strategies

Strategic alignment Strategic Police Plan – SO5 – Policing is sustainable, adaptable and prepared for future challenges
SPA Corporate Strategy – SO3 – Resourcing requirements are based on evidence, need and best value.

The financial regulations are key to the efficient functioning of policing as well as ensuring compliance with Government financial rules and good governance practices.   

The annual review of the financial regulations delivers on a milestone within the SPA Corporate Strategy.

Alignment to risk register and risk appetite

Risk alignment SR03/04 – SPA accountability for PS / Forensics
SR05 – SPA financial
SR06 – SPA governance

The financial regulations are key to ensuring robust as well as efficient oversight of all areas of policing by the Authority. The regulations set out the financial rules of the Authority as well as providing levels of delegation or pre-approval to areas of policing.

The annual review is a key step which acts as test to ensure that the rules are operating as expected. Whilst this does not further reduce the risk, it is a key control that ensure the probability of these risk does not increase further.

Prior governance
Prior governance Approved by Chief Executive (8 January 2026)

The proposals have been approved within SPA Resources team and the Authority’s Chief Executive prior to Resources Committee.

Stakeholder engagement
Stakeholder engagement Extensive engagement with SG, SPA corporate and Police Scotland including finance, quality assurance, estates and legal.

There has been ongoing engagement between policing and SG justice colleagues to review the financial delegation from SG to the Authority. SG has reflected on the financial maturity of the service and level of risks when agreeing to increase the level of delegation to the Authority.

For other changes within the discretion of the Authority, SPA corporate and Police Scotland staff consider any issues arising throughout the year and take the opportunity during the annual review to consider revising the regulations.

The changes proposed have been discussed with the relevant business areas and considered by both PS and SPA legal staff.

Implications detail

In each case there are no specific implications arising from this paper, however, as this document is the overarching financial rules of the Authority the implementation of these rules in their own right may have other implications.

Financial - The application of these ‘financial rules’ has wide ranging financial implications on the Authority. Applying these rules ensures compliance with the delegations from Scottish Government and the Scottish Public Finance Manual (SPFM).

Workforce - These regulations set the roles and responsibilities of key persons within the Authority and all employees’ financial responsibilities.

Legal - The basis for delegation has been subject to discussions with agreement reached on the approach between SPA and PS legal teams. The regulations also set out the authorisation and delegated authority to settle ‘special payments’ as defined by SPFM. This would include any out of court settlement agreed.