Public Sector Pay Policy for Staff Pay Remits 2009-10

6. APPROVALS PROCESS

What should you do before you submit your proposals?

6.1 Use the checklist in Annex B to make sure that you have included all of the information necessary for your remit to be approved. If you have any questions or want to clarify anything please speak to the Finance Pay Policy Team. The Team would be happy to have early discussions with you on an issues arising during your preparation stages and before you submit your remit.

How are your pay remit proposals going to be assessed?

6.2 You should submit your proposals to the Finance Pay Policy Team who will assess them against the policy and make a recommendation on the rating of your proposals.

Outturn

6.3 Your Chief Executive will be required to confirm (for each year of your last approved remit) that:

• you did not exceed the limits of the approved remit (for 2008-09 this can be based on forecasted outturn);
• all changes to pay structures have been implemented as approved; and
• all conditions placed on approval have been met.

6.4 The Finance Pay Policy Team will then rate your outturn as follows:

6.5 If your outturn is rated as Red, your current remit must be considered by the Remuneration Group. There may be circumstances that could not have been foreseen in your last remit that have led to the approved remit being exceeded, or not implemented as proposed or conditions not complied with. Where this is the case, you must provide an explanation.

6.6 The Remuneration Group will take into account this explanation when considering the circumstances of approval and implementation. Where you have significantly exceeded the approved remit or have materially moved away from the basis of that remit then the Remuneration Group may refer the outturn and your current remit proposals to Ministers. The Remuneration Group expect Ministers will take action where the explanation is not adequate. The potential consequences of significantly exceeding your remit in such circumstances are set out in paragraphs 7.8 and 7.9.

6.7 If your outturn is rated as Amber or Green the rating of your current remit will determine whether your current remit will be considered by Remuneration Group or can be approved by Senior Officials.

Current Remit

6.8 The Finance Pay Policy Team will then assess your current remit and rate it as follows:

6.9 Your current remit proposals will be automatically rejected by the Finance Pay Policy Team if they are rated Red on any one of the criteria (a), (b), (c), (d), (e), (f) or (g) and we will require you to revise your proposals to bring them in line with Scottish Government policy before they can be given further consideration.

6.10 The Finance Pay Policy Team will only rate proposals as Red under criteria (h) or (i) following more detailed consideration of your proposals. We will require you to revise any proposals that are rated Red to bring them in line with Scottish Government policy before they can be submitted for approval.

Who is going to approve your proposals?

6.11 Ministers have decided that some remits may be approved by the Scottish Government's Remuneration Group or Senior Officials.

6.12 Senior Officials may approve proposals where the current remit is rated Green and the outturn is rated either Amber or Green. All other proposals will be considered by the Remuneration Group who will decide whether the Strategic Board needs to be made aware of remits that are outwith the policy and whether proposals need to be brought to the attention of Ministers.

6.13 The following table sets out who will make initial decisions about your remit:

6.14 Who approves your remit at Senior Official level will depend upon whether your are a NDPB, Agency or Associated Department:

Public Body	Portfolio Approval	Finance Pay Policy Approval
NDPB	Director of your Sponsor Directorate	Deputy Director of Finance Expenditure Policy
Agency	Director General or Director 4 of your Sponsor Directorate
Associated Department	Permanent Secretary

6.15 All proposals that require Remuneration Group consideration will need to be put forward by the relevant Senior Official as shown in the following table:

Public Body	Relevant Senior Official
NDPB	Director of your Sponsor Directorate
Agency	Director General or Director 5 of your Sponsor Directorate
Associated Department	Permanent Secretary

6.16 By putting your proposals to the Remuneration Group, Senior Officials are signalling portfolio support of the proposals.

6.17 The Remuneration Group will consider the proposals, including the Chief Executive's foreword to the Business Case, the advice from the Sponsor Team (where applicable), the Portfolio Finance Team, the Finance Pay Policy Team and the views of the Senior Official putting forward the proposals for approval.

6.18 The Remuneration Group will decide whether or not proposals need to be approved by Ministers. For example, proposals could be those where the outturn is rated as Red and they consider the explanation to be inadequate; where the current remit is novel; or where the remit is of particular interest to Ministers. A decision will be made on a case-by-case basis but the Remuneration Group expect to approve most proposals under delegated approval arrangements. If Ministerial approval is required it will be the approval of the Portfolio Cabinet Secretary or Minister and the Cabinet Secretary for Finance and Sustainable Growth.

6.19 The Scottish Government's pay remit proposals will require to be approved by Ministers.

6.20 The Finance Pay Policy Team are available to help you before and after you submit your pay remit proposals for approval. They can provide advice in advance of you submitting your proposals. Once the Finance Pay Policy Team receives your proposals they will: check your financial information; assess your business case; rate your outturn and your current remit proposals as Red, Amber or Green and provide you with feedback that clearly sets out why the rating has been given; and advise officials, the Remuneration Group and Ministers on the assessment of the proposals as appropriate. The Finance Pay Policy Team will also escalate proposals to the relevant Senior Official and the Deputy Director of Finance Expenditure Policy where queries have not been resolved by the end of the fourth week following receipt of the proposals.

How long will approval take?

6.21 If you submit your pay proposals to the Finance Pay Policy Team in line with the agreed timetable ( Annex D) then the aim will be to approve your pay remit proposals within 7 weeks. This includes up to 4 weeks for clarifying the remit costings and resolving queries with the Finance Pay Policy Team and up to 3 weeks for the subsequent approval of proposals.

6.22 Remit proposals that are straightforward or approved at Senior Official level may take less time to approve. Proposals that are more complex may take more time to resolve and where the Finance Pay Policy Team think this might be the case they will make it clear from the outset.

6.23 To achieve the above timescales it is important that the proposals you submit to the Finance Pay Policy Team must include all of the necessary information; be submitted on time and you must respond to any queries raised quickly. If you submit your proposals in line with the timetable, the Finance Pay Policy Team will aim to provide the initial feedback within 5 working days.

6.24 The Remuneration Group will meet regularly to consider proposals during the periods of the year when remits are submitted (the dates of meetings are set out in Annex D). The total duration of the approvals process will be dependent on when your proposals are submitted to the Finance Pay Policy Team; the length of time taken to address queries and when the next meeting of the Remuneration Group has been scheduled. If the deadlines for the submission of papers are missed, your proposals will be put on the agenda of the next available meeting of the Remuneration Group.

6.25 The Finance Pay Policy Team will run workshops in May and September for HR & Finance professionals to focus on what needs to be included in the proformas and the business case for your remit to be approved.

How will you be notified of the outcome of the approval process?

6.26 After Senior Officials, Remuneration Group or Ministers have considered your pay proposals, they will advise the Senior Official responsible for putting forward your remit of the decision made and any requirements or conditions made in respect of that decision. It will be the responsibility of that Senior Official to write to you setting out the levels of the key metrics approved, including any comments made and any requirements or conditions of approval imposed by the Remuneration Group or Ministers. You can, if you wish, request a meeting with the relevant Senior Official to discuss the submission and subsequent decision made.

6.27 If you have any queries during this stage in the process you should contact your Sponsor Team rather than the Finance Pay Policy Team.