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Publication - Advice and guidance

Scottish Public Finance Manual

Last updated
4 February 2025 - see all updates
Directorate
Financial Management Directorate
Topic
Money and tax, Public sector

The Scottish Public Finance Manual (SPFM) is issued by the Scottish Ministers to provide guidance on the proper handling and reporting of public funds.

Supporting documents

Annex 2: retention of financial records

1. The term financial records covers not only accounting records such as vouchers, authorities, schedules and computer records, but also financial management records and policy papers supporting and justifying financial transactions.

2. Retention periods for public records are subject to the requirements of specific legislation but as a general rule retention periods for financial records should comply with those indicated in the Retention and Disposal Schedule for Accounting Records available on the website of the UK National Archives. These currently indicate that financial records should normally be retained for either 6 years or 2 years, depending on the type of record, following the end of the financial year in question. Extended retention of financial records may be necessary to enable the handling of late claims or the settling of disputes.

3. Guidance on the retention of records relating to VAT is set out in the HM Customs and Revenue Notice 700/21. This indicates that business records should be kept for at least 6 years but it is open to registered bodies to seek dispensation where the retention period was likely to cause undue expense or storage problems.

4. The position on EU related payments is covered by specific provisions in EC law. Essentially all the supporting documents regarding expenditure and checks on the operation must be retained for a period of 3 years following the last payment in respect of any operation. Payments could conceivably continue for 3 or 4 years beyond a programme end-date so the period for which documents should be retained could extend to 7 or 8 years for a 3-year programme and possibly to 10 or 11 years for a 6-year programme.

5. Other provisions of EC law require financial documents in relation to "Guarantee" spending to be kept for a period of one year following the clearance of Member State Accounts by the Commission for the year in which the relevant payments were made.

Page reviewed: January 2019

First published
23 August 2024
Last updated
4 February 2025 - show all updates

  1. Updated Annex 2 Internal control checklist for Certificates of Assurance, added FGN 2025/01 re CoA checklist and added in a word version of the checklist

  2. updated missing text in document SPFM - Non-Ministerial Offices model framework document July 2024

  3. Adding in FGN 2024/03 re the updated AO Spend Control Template and Guidance

  4. Updating the SRO Appointment letter in the documents section to include a point on construction projects in the Annex

  5. Executive agencies model framework document updated.

  6. Non-Ministerial Offices model framework document updated.

  7. Updating the SRO Appointment letter in the documents section to this years dates

  8. Updated link to 'On Board: A Guide for Members of Statutory Boards' within Governance statements chapter.

  9. Updates made to model framework document templates.

  10. Updates made to text within Procurement chapter.

  11. Replaced non-ministerial office model framework document and advisory non-departmental public bodies model framework with updated versions.

  12. Document updated with an additional date - Settlement Agreement supporting documentation - final confirmation of terms

  13. Replaced Non-Ministerial Offices model framework document

  14. Updates to the Settlement, Severance, Early Retirement and Redundancy section. The main section and Annex's A, B C have all been updated along with updated documents and a Finance Guidance Note to explain the changes

  15. Updated the Certificates of Assurance chapter, Annex 2 with the CoA checklist questions for 2023/24 and added a Finance Guidance note outling the changes.

  16. Updates made to proportionate due diligence wording, Accountable Officer tests guidance, risk exposure guidance, public bodies duties, monitoring and management, exit arrangements.

  17. Procurement chapter updated.

  18. Updated 'Major investment projects' paragraph 12 and the SRO appointment letter.

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