CAIRNGORMS NATIONAL PARK AUTHORITY 
Paper 3 7/11/03 
CAIRNGORMS NATIONAL PARK AUTHORITY 
FINANCE COMMITTEE
Title: FINANCIAL FRAMEWORK GOVERNING THE 
NATIONAL PARK 
Prepared by: ANDY RINNING, HEAD OF CORPORATE SERVICES 
Purpose 
To inform the Committee of the formal arrangements required between the National Park 
Authority and the Scottish Executive in relation to finance related matters. Annex 1 contains 
the current draft of the Scottish Executive Management Statement and Financial 
Memorandum. 
Recommendations 
• That committee members note the content of the document attached. 
Executive Summary 
As an Executive NDPB the financial arrangements of the Park Authority are governed by the 
provisions contained in a Management Statement and Financial Memorandum to be agreed 
between the Park Authority and the Scottish Executive. This document is prepared by the 
Scottish Executive in line with guidance contained in the Scottish Public Finance Manual. 
Once agreed between the Park Authority and the Scottish Executive it forms the framework 
within which CNPA’s internal procedures operate. These procedures will incorporate 
guidance and instruction to staff on such functions as authorising payments, ordering of 
goods and services and monitoring of budgets. 

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FINANCIAL FRAMEWORK GOVERNING THE NATIONAL PARK 
Non Departmental Public Bodies 
1. A NDPB is the term for a whole range of public bodies which operate at arms length 
from, but are accountable to Scottish Ministers, from whom they receive funding. 
Such bodies (which include SNH and SEPA, for example) are therefore quasi 
autonomous, which means they have some degree of independence in how they act, 
but only within the framework of the legislation under which they were established 
(the National Parks (Scotland) Act 2000, in the case of National Parks Authorities, 
and the accompanying Designation Order), and any guidance or directions issued by 
Scottish Ministers. The key guidance for each NDBP is the Management Statement/ 
Financial Memorandum. 
Management Statement/Financial Memorandum (MS/FM) 
2. This document takes a fairly standard format across all NDPBs, but may differ in 
detail for each. The Park Authority’s FM/MS was issued in draft when the Park 
Authority came into existence, and the latest draft of the document is attached at 
Annex 1. In due course the Park Authority should formally respond to the Scottish 
Executive with any comments it wishes to make on the document. Once agreement is 
reached, the Executive will formally issue the MS/FM in final form. It is unlikely that 
fundamental changes to the framework will be acceptable, as it is formulated to 
ensure satisfactory controls on accountability for public funds, for which Ministers are 
ultimately accountable to Parliament. However, some detailed aspects such as levels 
of delegated authority, may be open to some debate. Even while in draft form the 
National Park Authority is expect to comply with the statements and guidance in the 
MS/FM. 
3. It should also be noted that the MS/FM leaves a number of issues open for agreement 
between the Park Authority and Ministers - for example, the Park Authority’s 
objectives, the timetable for issuing the corporate plan, etc. The MS/FM therefore 
offers a framework for the Park Authority’s financial operation, but within that there 
is flexibility, and a close working relationship between the Park Authority and the 
Executive’s sponsoring Division (Countryside and Natural Heritage) will be essential, 
especially in the early years. The main points covered by the MS/FM are considered 
below. 
Responsibility and Accountability 
4. The main points covered in Part 1 and Part 2 sections 1, 2 and 3 are: 
• The rules and guidelines relevant to the exercise of the Authority’s functions, 
duties and powers; 
• The conditions under which any public funds are paid to the Authority; 
• How the Authority is to be held to account for its performance; 
• The respective roles and responsibilities of the Scottish Ministers, the sponsor 
department and the Authority; 
• The document is to be reviewed by the Department at least every 2-3 years. 

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Financial Controls 
5. These are largely covered in the draft document at Annex 1, and can be summarised 
as: 
• EC Funding: requiring the National Park Authority to notify the Department of 
any proposal to seek funding from EC programmes; 
• Cash balances to be kept as low as possible; 
• Excess income, i.e. not budgeted, to be identified, reported to the Department and 
surrendered if the Department decides so; 
• Borrowing to be approved by the Department in advance; 
• Lending: whether by grant or loan the Authority has the power to determine 
terms and conditions; 
• Procurement: all contracts (goods or services, including consultancy) should be in 
accordance with the Scottish Public Finance Manual and therefore generally by 
competition; 
• Single tender over £10,000 must be approved by the Department; 
• The Department shall also approve, prior to any award without competition, of 
work estimated to cost over £20,000 to in-house staff; 
• Any asset costing more than £20,000 shall be approved by the Department as 
shall any lease where the costs across the lifetime of the lease exceed £20,000, 
when discounted to present values. 
• An Asset Register must be maintained and disposal of assets should be at market 
value. Any disposal of more than £5,000 or any proposal to exclude competition 
must be approved by the Department; 
• All projects should be appraised in accordance with the SPFM guidance for 
capital investment, procurement and evaluation; 
• The Authority should not normally enter into finance leases without 
Departmental approval; 
• Where the costs for a project previously approved by the Department appear 
about to exceed 10% of the approved cost the project must be resubmitted for 
scrutiny; 
• Consultancy projects costing more than £50,000 must be submitted to the 
Department, even where these form part of project already within the Authority’s 
delegated authority; 
• Any investment must be approved by the Department; 
• Any proposal for Commercial Activity undertaken by the Authority should be 
addressed in the National Park Plan; 
• Banking arrangements must be specifically approved by the Department and 
reviewed every 2 years; 
• Gifts, Losses and special payments: this relates to the provision of gifts, the 
write-off of losses and special payments. The Department approves: 
o All gifts costing more than £75, 
o All special payments of more than £1,000, 
o Write-off of losses from theft or vandalism to vehicles, or the destruction or 
damage of vehicles by road traffic accident or fire exceeding £5,000. 
• Novel, unusual or contentious: the Department and Authority will agree 
guidelines on these issues and periodically review these. 
• Under the Financial Memorandum the Scottish Executive also delegates authority 
in relation to staffing matters (Part 2 Section 6). 
The effects of the requirements for accountability to the Scottish Executive 
6. In practice the various ‘rules’ are intended to allow delivery of agreed tasks and 
priorities within the resources provided to the National Park Authority. It is important 
for the whole organisation to understand that the rules are not there to stop work being 

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taken forward, but to provide a framework that ensures regularity and propriety in 
how that work is delivered. 
7. The basis of these requirements is to establish accountability and responsibility 
throughout an organisation and this is usually achieved through a system of delegated 
authority to all staff. These systems will be put in place, and it will be the work of the 
Auditor, overseen by the Audit Committee, to constantly review whether these 
systems are adequate. 
Budgeting 
8. This is covered in Part 2 section 4 at paragraphs 4.1 to 4.5. The budget for the 
National Park Authority sits within the Scottish Executive allocation for devolved 
responsibilities from the Westminster Parliament. The Scottish Executive, through the 
Scottish Public Finance Manual and a Management Statement and Financial 
Memorandum for each body it supports, has lead responsibility for ensuring the 
proper management and application of funds. (In practice the Scottish Executive 
remains accountable to the UK Government and the overall management and 
oversight of the Treasury and the Public Accounts Committee for public funds). 
9. The cycle of budgeting is usually for 3 years. The arrangements for NDPBs require 
these bodies, through their Sponsor Department, to formulate a budget in accordance 
with the budget figure provided from the Department. The Department will normally 
have indicated priorities and key targets and will expect to see the budget supported 
by a plan containing outputs, targets and performance indicators indicating how the 
planned expenditure, including staff and running costs, delivers the relevant outputs 
and targets. Where the indicated budget allocation is regarded as insufficient the 
Department will expect a suitable business case and clear explanation of what will be 
provided from any additional resources. It will also expect that if a proposal is of 
sufficient importance all existing plans, budgets and priorities will have been 
reviewed. 
Corporate and Operational Planning 
10. The Corporate Plan is a 3-year prediction of activity and expenditure. Naturally the 
first year will be the most detailed, with years 2 and 3 less so. The Corporate Plan is 
updated annually with the original year 2 becoming more detailed and a new 3rd year 
being added. It is usual for the Agency/NDPB to receive a formal notification of the 
budget for each of the 3 years. This process is repeated each year and previously 
notified budget figures can be revised in the light of changed priorities, etc. The 
Scottish Executive itself will often seek to hold or reduce budgets. There are 
occasions where Scottish Ministers will require a complete review of the organisation. 
This is known as a ‘Quinquennial Review’ and is usually conducted by an officer or 
officers of the Scottish Executive with an in house team providing support and acting 
as the first point of contact. 
11. The Operational Plan (Business Plan) is the first year of the Corporate Plan and 
contains more specific detail. It is usual to allocate staff resources to programmes of 
work thus justifying the complement of staff against the agreed programmes, 
priorities and outputs. 
12. In setting priorities the Department will wish to see statements that provide assurance 
that: 
• Statutory priorities are being met; 
• Any specific direction from Scottish Ministers is reflected in the plan and the 

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allocation of resources; 
• Park Authority wide priorities are clearly stated, and lastly; 
• Local priorities, e.g. improved recreation, habitat or landscape, community 
involvement, are detailed. 
13. Plans usually incorporate references to efficient, effective and economic use of the 
resources available. This is normally given a high priority. For the National Park 
Authority, this is a statutory requirement, set out at section 19 of the National Parks 
(Scotland) Act. It therefore in effect provides a fifth aim along with the four aims 
described by statute. This would normally be a section of its own, but supported by all 
Management Units, in the Plan. 
Corporate Planning 
14. The 3 year plan is important in permitting the National Park Authority to set out its 
thinking for the delivery of its aims. It is also important in setting out the 
responsibilities falling to managers and staff, normally leading to the formalisation of 
job descriptions and annual job plans for each individual employed. These usually 
also contain key targets and performance indicators. 
15. For the purposes of Board, Management and individual members of staff the various 
activities are normally clustered under ‘programmes of work’. Whilst some 
programmes may relate to a single Management Unit, others require input from all 
units and staff. For example, accountability is a requirement placed on all members 
of staff and teams. A programme such as ‘Education’ or ‘Grants’, say, will normally 
require time input from more than one Unit, including Corporate Services for the 
establishment of cost centres, payment of bills, etc. Plans normally indicate the ‘lead’ 
Management Unit and any dependencies on other units, or external bodies, those 
impacts on delivery of the activity/project/policy or strategy. 
16. The process for developing the Corporate Plan for CNPA will be subject to a separate 
report. Suffice it to say here that the process can in a large organisation become 
extremely resource intensive in itself, a situation that the CNPA will wish to avoid. 
Internal and External Audit 
17. This is covered at Part 2 paragraphs 4.6 and 5.2-5.3 of the MS/FM and falls under the 
remit of the Audit Committee. 
Annual Cycle 
18. As a new NDPB, the Park Authority is not yet into an established budgeting and 
corporate planning cycle. However, the cycle, once reached, can be summarised as 
follows: 
• Annual report and Accounts submitted to Ministers 
• Mid year (or as required) — indication of predicted overspend or underspend 
• December [TBC] — submission of draft Corporate Plan and Operational Plan 
Andy Rinning 
28th November 2003 
andyrinning@cairngorms.co.uk 

CAIRNGORMS NATIONAL PARK AUTHORITY 
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DRAFT MANAGEMENT STATEMENT/FINANCIAL MEMORANDUM 
FOR THE CAIRNGORMS NATIONAL PARK AUTHORITY 
PART 1: INTRODUCTION 
1. This management statement and associated financial memorandum (MS/FM) has been 
drawn up by the Scottish Executive Environment and Rural Affairs Department (the 
Department) in consultation with the Cairngorms National Park Authority (the 
Authority), 14-16 The Square, Grantown-on-Spey, Moray, PH26 3HG 
2. Subject to the legislation noted, the management statement sets out the broad 
framework within which the Authority will operate, in particular: 
• the Authority’s overall aims, objectives and targets in support of the Scottish 
Ministers’ wider strategic aims; 
• the rules and guidelines relevant to the exercise of the Authority’s functions, 
duties and powers; 
• the conditions under which any public funds are paid to the Authority; 
• how the Authority is to be held to account for its performance. 
3. The associated financial memorandum sets out in greater detail certain aspects of the 
financial framework within which the Authority is required to operate. 
4. However, the management statement and associated financial memorandum do not 
convey any legal powers or responsibilities. 
5. The MS/FM shall be reviewed and updated periodically by the Department, normally 
at least every 2-3 years. 
6. The Authority, or the Department, may propose amendments to the MS/FM at any 
time. Any such proposals by the Authority shall be considered in the light of the 
Scottish Ministers’ policy aims, operational factors and the track record of the 
Authority itself. The guiding principle shall be that the extent of flexibility and 
freedom given to the Authority shall reflect both the quality of its internal controls and 
its operational needs. The Department shall determine what changes, if any, are to be 
incorporated in the MS/FM. Legislative provisions shall take precedence over any 
part of the MS/FM. 
7. The Authority shall satisfy the conditions and requirements set out in the MS/FM, 
together with all relevant requirements in the Scottish Public Finance Manual (SPFM) 
and such other conditions as the Scottish Ministers / sponsor Department may from 
time to time impose. Any question regarding the interpretation of the MS/FM shall be 
resolved by the Department after consultation with the Authority. 
8. Copies of the MS/FM shall be placed in the Scottish Parliament Reference Centre and 
provided to the Public Services Delivery Group in an electronic format for inclusion in 
the Scottish Executive internet and intranet websites. Copies shall also be made 
available to members of the public on the Authority’s website or on request. 

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MODEL MANAGEMENT STATEMENT/FINANCIAL MEMORANDUM FOR 
THE CAIRNGORMS NATIONAL PARK AUTHORITY 
PART 2: MANAGEMENT STATEMENT 
1. FUNCTIONS, DUTIES AND POWERS 
1.1 Founding legislation; status 
1.2 The functions, duties and powers of the Cairngorms National Park Authority 
1.3 Classification 
2. AIMS, OBJECTIVES AND TARGETS 
2.1 Overall aims
2.2 Objectives and key targets 
3. RESPONSIBILITIES AND ACCOUNTABILITY 
3.1 The Scottish Ministers 
3.2 The Departmental Accountable Officer 
3.3 The sponsoring team in the Department 
3.4 The Convener of the Cairngorms National Park Authority 
3.5 The Cairngorms National Park Authority’s Board 
3.6 The Chief Executive 
4. PLANNING, BUDGETING AND CONTROL 
4.1 The corporate plan 
4.2 The business plan 
4.3 Publication of plans 
4.4 Reporting performance to the Department 
4.5 Budgeting procedures 
4.6 Internal Audit 
5. EXTERNAL ACCOUNTABILITY 
5.1 The annual report and accounts 
5.2 External audit 
5.3 VFM / 3E examinations 
6. STAFF MANAGEMENT 
7. REVIEWING THE ROLE OF THE AUTHORITY 

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1. FUNCTIONS, DUTIES AND POWERS 
1.1 Founding legislation; status
The Authority was established under the Cairngorms National Park Designation, Transitional 
and Consequential Provisions (Scotland) Order 2003. Its statutory responsibilities and 
functions are set out in the National Parks (Scotland) Act 2000 (the 2000 Act), which also sets 
the procedure for establishing a National Park and the framework under which all National 
Parks in Scotland must operate. The Designation Order 2003 (made under the 2000 Act) 
specifies the individual powers and functions being given to the Authority, the composition of 
the Authority and the boundary of the National Park. The Authority does not carry out its 
functions on behalf of the Crown. 
1.2 The functions, duties and powers of the Authority 
1.2.1 The 2000 Act gives the Authority the following: 
functions: As set out at section 1, section 9 and schedule 3 of the Act. 
duties: to prepare and submit to the Scottish Ministers a National Park Plan, as described in 
sections 11 to 14 of the 2000 Act 
powers: as set out in schedule 2 of the Act and sections 7 and 8 of the Authority’s 
Designation Order. 
1.3 Classification
1.3.1 For policy/administrative purposes the Authority is classified as an executive nondepartmental 
public body. 
1.3.2 For national accounts purposes the Authority is classified to the Central Government 
sector. 
1.3.3 References to this Authority include, where appropriate, all its subsidiaries and joint 
ventures that are classified to the public sector for national accounts purposes. If such a 
subsidiary or joint venture is created, there shall be a document setting out the arrangements 
between it and the Authority. 
2. AIMS, OBJECTIVES AND TARGETS
2.1 Overall aims 
2.1.1. Within the founding legislation Scottish Ministers have defined the overall aims for the 
Authority as follows: 
(a) to conserve and enhance the natural and cultural heritage of the area 
(b) to promote sustainable use of the natural resources of the area 
(c) to promote understanding and enjoyment (including enjoyment in the form of 
recreation) of the special qualities of the area by the public, and 

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(d) to promote sustainable economic and social development of the area’s communities 
2.2 Objectives and key targets
2.2.1 The Department determines the Authority’s performance framework in the light of the 
Scottish Ministers’ wider strategic aims. The Authority’s objectives and key targets shall be 
agreed within its corporate planning process (Section 4 below). 
3. RESPONSIBILITIES AND ACCOUNTABILITY 
3.1 The Scottish Ministers
3.1.1 The Scottish Ministers are ultimately accountable to the Scottish Parliament for the 
activities and performance of the Authority. Their responsibilities include: 
• approving the Authority’s strategic objectives and the policy and performance 
framework within which it will operate (as set out in this management statement 
and associated financial memorandum (MS/FM)); 
• keeping the Parliament informed about the Authority’s performance; 
• approving the resource budget and the associated grant in aid requirement to be 
paid to the Authority, and securing the necessary Parliamentary approval; 
• carrying out responsibilities specified in the founding legislation, including 
appointments to the Board, approving the terms and conditions of Board 
members, approving the appointment of the Chief Executive, approval of terms 
and conditions of staff, and laying of the annual report and accounts before the 
Parliament. 
3.2 The Departmental Accountable Officer 
3.2.1 The Head of the sponsor Department is designated as its Accountable Officer by the 
Principal Accountable Officer for the Scottish Administration. He is responsible for the 
overall organisation, management and staffing of the sponsor Department and for ensuring 
that there is a high standard of financial management in the Department as a whole. 
3.2.2 In particular the Departmental Accountable Officer shall ensure that: 
• the Authority’s strategic aims and objectives support the Scottish Ministers’ wider 
strategic aims; 
• the financial and other management controls applied by the Department to the 
Authority are appropriate and sufficient to safeguard public funds and for 
ensuring that the Authority’s compliance with those controls is effectively 
monitored ("public funds" include not only any funds provided to the Authority 
by the Scottish Ministers but also any other funds falling within the stewardship 
of the Authority, including gifts, bequests and donations); 
• the internal controls applied by the Authority conform to the requirements of 
regularity, propriety and good financial management; 
• any funding provided to the Authority is within the scope and the amount 
authorised by Budget Act. 

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3.2.3 The responsibilities of a Departmental Accountable Officer are set out in more detail in 
the Memorandum to Accountable Officers from the Principal Accountable Officer – see 
Annex 1 of the section on Accountability in the Scottish Public Finance Manual (SPFM). 
3.3 The sponsoring team in the Department
3.3.1 Within the Department, the National Parks Team is the sponsoring team for the 
Authority. The Team, in consultation as necessary with the Departmental Accountable 
Officer, is the primary source of advice to the Scottish Ministers on the discharge of their 
responsibilities in respect of the Authority, and the primary point of contact for the Authority 
in dealing with the Department. The sponsoring team shall carry out its duties under a senior 
officer who shall have primary responsibility for overseeing the activities of the Authority. 
3.3.2 The sponsoring team shall advise the Scottish Ministers on: 
• an appropriate framework of objectives and targets for the Authority in the light 
of the Scottish Ministers’ wider strategic aims; 
• an appropriate budget for the Authority in the light of the Scottish Ministers’ 
overall public expenditure priorities; 
• how well the Authority is achieving its strategic objectives and whether it is 
delivering value for money. 
3.3.3 In support of the Departmental Accountable Officer the sponsoring team shall: 
on performance and risk management – 
• monitor the Authority’s activities on a continuing basis through an adequate and 
timely flow of information from it on performance, budgeting, control and risk 
management, including early sight of the Authority’s Statement on Internal 
Control; 
• address in a timely manner any significant problems arising in the Authority, 
whether financial or otherwise, making such interventions in the affairs of the 
Authority as the Department judges necessary; 
• ensure that the activities of the Authority and the risks associated with them are 
properly and appropriately taken into account in the Scottish Executive’s risk 
assessment and management systems; 
• ensure that appointments to the Board are made timeously and in accordance with 
the Commissioner for Public Appointments Code of Conduct. 
on communication with the Authority – 
• inform the Authority of relevant Scottish Executive policy in a timely manner; 
advise on the interpretation of that policy; and issue specific guidance to the 
Authority as necessary; 
• bring concerns about the activities of the Authority to the attention of the full 
Board, and require explanations and assurances from the Board that appropriate 
action has been taken. 

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3.4 The Convener of the Authority
3.4.1 The Convener is a member of the Board and is appointed to the Authority in terms of 
paragraph 11(1) of Schedule 1 to the 2000 Act. The Convener’s first period of appointment is 
for 18 months until September 2004. The Convener will be elected for a three-year term from 
the time of the next election. 
3.4.2 The Convener is responsible to the Scottish Ministers. The Convener shall aim to 
ensure that the Authority’s policies and actions support the wider strategic policies of the 
Scottish Ministers; and that the Authority’s affairs are conducted with probity. The Convener 
shares with other Board members the corporate responsibilities set out in paragraph 3.5.2, and 
in particular for ensuring that the Authority fulfils the aims and objectives set by the Scottish 
Ministers. 
3.4.3 The Convener has a particular leadership responsibility on the following matters: 
• formulating the Board’s strategy; 
• ensuring that the Board, in reaching decisions, takes proper account of guidance 
provided by the Scottish Ministers / Department; 
• promoting the efficient and effective use of staff and other resources; 
• encouraging high standards of propriety; 
• representing the views of the Board to the general public. 
3.4.4 The Convener shall also: 
• ensure that all members of the Board are fully briefed on the terms of their 
appointment and on their duties, rights and responsibilities, and receive 
appropriate induction training, including on the financial management and 
reporting requirements of public sector bodies and on any differences which may 
exist between private and public sector practice; 
• advise the Scottish Ministers of the needs of the Authority when Board vacancies 
arise, with a view to ensuring a proper balance of professional and financial 
expertise; 
• assess the performance of individual Board members on an annual basis. 
3.4.5 The Convener shall also ensure that within the provisions of the Ethical Standards in 
Public Life etc (Scotland) Act 2000, Board Members are fully aware of the body’s Code of 
Conduct approved by the Scottish Ministers. 
3.4.6 Communications between the Board and the Scottish Ministers shall normally be 
through the Convener. The Convener shall ensure that the other Board members are kept 
informed of such communications. 
3.5 The Authority’s Board 
3.5.1 The 25 Board Members are appointed as follows: 
• all appointments to the Board are made in line with the Code of Practice issued by 
the Commissioner for Public Appointments (OCPA). 

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• 10 members appointed by Scottish Ministers following assessment of the 
candidates in accordance with OCPA rules. 
• 10 members appointed by Scottish Ministers following nomination by the local 
authorities in the area. 
• 5 members elected by a postal ballot of the local electorate. 
• the appointments vary in length. The minimum period for the 1st round of 
appointments is to 24 September 2004 (applies to the ten council nominees only). 
The maximum period of appointment is to 24 March 2007. 
3.5.2 The Board has corporate responsibility for ensuring that the Authority fulfils the aims 
and objectives set by the Scottish Ministers and for promoting the efficient and effective use 
of staff and other resources by the Authority in accordance with the principles of Best Value – 
see relevant section of the SPFM. To this end, and in pursuit of its wider corporate 
responsibilities, the Board shall: 
• establish the overall strategic direction of the Authority within the policy, 
planning and resources framework determined by the Scottish Ministers; 
• ensure that the Scottish Ministers are kept informed of any changes which are 
likely to impact on the strategic direction of the Authority or on the attainability 
of its targets, and determine the steps needed to deal with such changes; 
• ensure that any statutory or administrative requirements for the use of public 
funds (i.e. all funds falling within the stewardship of the Authority) are complied 
with; that the Board operates within the limits of its statutory authority and any 
delegated authority agreed with the sponsor Department, and in accordance with 
any other conditions relating to the use of public funds; and that, in reaching 
decisions, the Board takes into account relevant guidance issued by the Scottish 
Ministers / sponsor Department; 
• ensure that the Board receives and reviews regular financial information 
concerning the management of the Authority; is informed in a timely manner 
about any concerns about the activities of the Authority; and provides positive 
assurance to the Department that appropriate action has been taken on such 
concerns; 
• demonstrate high standards of corporate governance at all times, including by 
setting up and using an independent audit committee - in accordance with the 
guidance on Audit Committees in the SPFM - to help the Board to address the key 
financial and other risks facing the Authority; 
• provide commitment and leadership in the development and promotion of Best 
Value principles throughout the organisation; 
• appoint with the Scottish Ministers’ approval a Chief Executive and, in 
consultation with the Department, set performance objectives and remuneration 
terms linked to these objectives for the Chief Executive which give due weight 
both to the proper management and use of public monies and to the delivery of 
outcomes in line with Scottish Ministers’ priorities. 
3.5.3 Individual Board members shall act in accordance with their wider responsibility as 
Members of the Board – namely to: 
• comply at all times with the Authority’s Code of Conduct approved by the 
Scottish Ministers under the Ethical Standards In Public Life etc (Scotland) Act 

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2000 and with the rules relating to the use of public funds, conflicts of interest and 
confidentiality; 
• not misuse information gained in the course of their public service for personal 
gain or for political profit, nor seek to use the opportunity of public service to 
promote their private interests or those of connected persons or organisations; 
• act in good faith and in the best interests of the Authority. 
3.6 The Accountable Officer 
3.6.1 The Chief Executive of the Authority is designated as its Accountable Officer by the 
Principal Accountable Officer of the Scottish Administration in accordance with sections 14 
and 15 of the Public Finance and Accountability (Scotland) Act 2000. 
3.6.2 The Accountable Officer is personally responsible for safeguarding the public funds (i.e. 
all funds falling within the stewardship of the Authority) for which he/she has charge; for 
ensuring propriety and regularity in the handling of those public funds; and for the day-to-day 
operations and management of the Authority. He/she should act in accordance with the terms 
of the MS/FM and within the terms of relevant guidance in the SPFM and other instructions 
and guidance issued by the Scottish Ministers – in particular the Memorandum to 
Accountable Officers of Other Public Bodies (Annex 2 of the section on Accountability in the 
SPFM). 
3.6.3 The Accountable Officer has a duty to secure Best Value, which includes the concepts 
of good corporate governance, performance management and continuous improvement. 
Guidance to Accountable Officers on what their organisations should be able to demonstrate 
in fulfilment of the duties which make up a Best Value regime is included in the Best Value 
section of the SPFM. 
3.6.4 As Accountable Officer the Chief Executive shall exercise the following specific 
responsibilities: 
on planning, performance management and monitoring – 
• establish the Authority’s corporate and business plans in the light of the Scottish 
Ministers’ wider strategic aims; 
• establish a robust performance management framework which supports the 
achievement of the Authority’s aims and objectives as set out in the corporate and 
business plans; and which enables full performance reporting to the Board, the 
Department and the wider public; 
• inform the Department of the Authority’s progress in helping to achieve the 
Scottish Ministers’ policy objectives and in demonstrating how resources are 
being used to achieve those objectives; 
• ensure that timely forecasts and monitoring information on performance and 
finance are provided to the Department; that the Department is notified promptly 
if overspends / underspends are likely or if performance targets are at serious risk 
and that corrective action is taken; and that any significant problems, whether 
financial or otherwise, and whether detected by internal audit or by other means, 
are notified to the Department in a timely fashion; 

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on advising the Board – 
• advise the Board on the discharge of its responsibilities as set out in this document 
and in the founding legislation and in any other relevant instructions and guidance 
issued by the Scottish Ministers / sponsor Department; 
• advise the Board on the Authority’s performance compared with its aims and 
objectives; 
• ensure that financial considerations are taken fully into account by the Board at all 
stages in reaching and executing its decisions, and that standard financial 
appraisal techniques as set out in the Green Book are followed as far as this is 
appropriate and practical; 
• take action as set out in section 5 of the Memorandum to Accountable Officers of 
Other Public Bodies if the Board is contemplating a course of action involving a 
transaction which the Chief Executive considers would infringe the requirements 
of propriety or regularity or does not represent prudent or economical 
administration or efficiency or effectiveness; 
on managing risk and resources – 
• ensure that a system of risk management is embedded in the organisation to 
inform decisions on financial and operational planning and to assist in achieving 
objectives and targets; 
• ensure that an effective system of programme and project management and 
contract management is maintained; 
• ensure that the funds made available to the Authority, including any approved 
income or other receipts, are used for the purpose intended by the Parliament, and 
that such monies, together with the Authority’s assets, equipment and staff, are 
used economically, efficiently and effectively; 
• ensure that adequate internal management and financial controls are maintained 
by the Authority, including effective measures against fraud and theft; 
• maintain a comprehensive system of internal delegated authorities which are 
notified to all staff, together with a system for regularly reviewing compliance 
with these delegations; 
• ensure that effective human resource management policies are maintained and 
that strategic human resource planning is related to the Authority’s objectives; 
on accounting for the Cairngorms National Park Authority’s activities – 
• sign the accounts and be responsible for ensuring that proper records are kept 
relating to the accounts and that the accounts are properly prepared and presented 
in accordance with any directions issued by the Scottish Ministers; 
• sign a Statement of Accountable Officer’s responsibilities, for inclusion in the 
annual report and accounts; 
• sign a Statement on Internal Control regarding the Authority’s system of internal 
control, for inclusion in the annual report and accounts; 
• sign a Certificate of Assurance on the maintenance and review of the Authority’s 
internal control systems, for submission to the Department; 
• ensure that an effective complaints procedure is in place and made widely known; 
• give evidence when summoned before Committees of the Scottish Parliament on 
the use and stewardship of public funds by the Authority. 

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3.6.5 The Chief Executive may delegate the day-to-day administration of his/her Accountable 
Officer responsibilities to other employees in the Authority. However, he/she shall not assign 
absolutely to any other person any of the responsibilities set out in this document. 
3.6.6 The Chief Executive is responsible for informing the Departmental Accountable Officer 
about any complaints about the Authority accepted by the Scottish Public Services 
Ombudsman for investigation, and about the Authority’s proposed response to any subsequent 
recommendations from the Ombudsman. 
4. PLANNING, BUDGETING AND CONTROL 
4.1 The corporate plan
4.1.1 Consistent with the timetable for public spending reviews the Authority shall submit to 
the Department a draft of the Authority’s corporate plan covering the spending review period. 
The Authority shall have agreed with the Department the issues to be addressed in the plan 
and the timetable for its preparation. The plan, or elements thereof, shall be updated between 
public spending reviews as and when considered necessary. 
4.1.2 The plan shall reflect the Authority’s statutory duties and, within those duties, the 
priorities set from time to time by the Scottish Ministers. 
4.1.3 The corporate plan shall set out: 
• the Authority’s key objectives and associated key performance targets for the 
forward years, and its strategy for achieving those objectives; 
• a review of the Authority’s performance in the preceding financial year, together 
with comparable outturns for the previous 2 years, and an estimate of 
performance in the current year; 
• alternative scenarios to take account of factors which may significantly affect the 
execution of the plan but which cannot be accurately forecast; 
• other matters as agreed between the Department and the Authority. 
4.1.4 The main elements of the plan - including the key performance targets - shall be agreed 
between the Department and the Authority in the light of the Department’s decisions on 
policy and resources taken in the context of the Scottish Ministers’ wider public expenditure 
plans and decisions. 
4.2 The business plan 
4.2.1 The business plan for the year immediately ahead shall be consistent with the agreed 
corporate plan. The business plan shall be updated annually by the Authority to include key 
targets and milestones for the forthcoming year and shall be linked to budgeting information 
so that resources allocated to achieve specific objectives can readily be identified by the 
Department. (See also paragraph 1.3 of the financial memorandum.) A copy of the business 
plan shall be submitted to the Department for information (and comment where considered 
appropriate) prior to the beginning of the financial year in question. 

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4.3 Publication of plans
4.3.1 Subject to any commercial considerations the corporate and business plans shall be 
published and made available on the Internet. A summary version should be made available 
to staff. 
4.4 Reporting performance to the Department 
4.4.1 The Authority shall operate management information and accounting systems which 
enable it to review in a timely and effective manner its financial and non-financial 
performance against the budgets and targets set out in its corporate and business plans. 
4.4.2 The Authority shall take the initiative in informing the Department of changes in 
external conditions which make the achievement of objectives more or less difficult, or which 
may require a change to the budget or objectives set out in the corporate or business plans. 
4.4.3 The Authority’s performance in helping to deliver Ministers’ policies, including the 
achievement of agreed key objectives, shall be reported to the Department on a three-monthly 
basis. Performance will be formally reviewed twice yearly by officials of the Department. 
The appropriate Scottish Minister shall meet the Board formally each year to discuss the 
Authority’s performance, its current and future activities and any policy developments 
relevant to those activities. 
4.4.4 The Authority’s performance against key targets shall be reported in its annual report 
and accounts (see Section 5.1 below). Other forms of reporting performance to the public 
should also be considered. 
4.5 Budgeting procedures
4.5.1 The Authority’s budgeting procedures are set out in the associated financial 
memorandum. 
4.6 Internal audit
4.6.1 The Authority shall establish and maintain arrangements for internal audit in accordance 
with the Treasury's Government Internal Audit Standards (GIAS). The Authority shall 
consult the Department to ensure that the latter is satisfied with the competence and 
qualifications of the Head of Internal Audit and the requirements for approving appointment. 
4.6.2 The Authority shall arrange for periodic quality reviews of its internal audit in 
accordance with the GIAS. The Department shall consider whether it can rely on these 
reviews to provide assurance on the quality of internal audit. However, the Department 
reserves a right of access to carry out / commission independent reviews of internal audit in 
the Authority. 
4.6.3 The Department’s internal audit service shall also have a right of access to all 
documents prepared by the Authority’s internal auditor, including where the service is 
contracted out. The audit strategy, periodic audit plans and annual audit report, including the 
Authority’s Head of Internal Audit’s opinion on risk management, control and governance 

CAIRNGORMS NATIONAL PARK AUTHORITY 
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shall be forwarded without delay to the sponsoring team who shall consult the Scottish 
Executive’s Head of Internal Audit as appropriate. 
4.6.4 In addition, the Authority shall forward to the Department an annual report on fraud and 
theft suffered by the Authority; notify any unusual or major incidents as soon as possible; and 
notify any changes to its internal audit’s terms of reference, its audit committee’s terms of 
reference or its Fraud Policy and Fraud Response Plan. 
5. EXTERNAL ACCOUNTABILITY 
5.1 The annual report and accounts
5.1.1 After the end of each financial year the Authority shall publish an annual report of its 
activities together with its audited annual accounts. The report shall also cover the activities 
of any corporate bodies under its control. 
5.1.2 The report and accounts shall comply, so far as appropriate, with the Treasury document 
Executive Non-Departmental Public Bodies: Annual Reports and Accounts Guidance. The 
accounts shall be prepared in accordance with the specific accounts direction and other 
relevant guidance issued by the Scottish Ministers. 
5.1.3 The report and accounts shall outline the Authority’s main activities and performance 
during the previous financial year and set out in summary form the Authority’s forward plans. 
Information on performance against key financial targets shall be included in the notes to the 
accounts, and shall therefore be within the scope of the audit. 
5.1.4 The report and accounts shall be submitted in draft to the Department for comment and 
the final version shall be laid before the Parliament by the Scottish Ministers before 31 
December. The Authority shall be responsible for the publication of the report and accounts. 
5.2 External audit
5.2.1 The Authority’s accounts are audited by auditors appointed by the Board. The 
Authority shall submit the audited accounts to the Scottish Ministers, who shall lay them, 
together with the annual report, before the Parliament. 
5.2.2 The Authority shall instruct its auditors to send copies of all management letters (and 
correspondence relating to those letters) and responses to the Department. 
5.3 VFM / 3E examinations
5.3.1 The Authority agrees that the AGS may carry out examinations into the economy, 
efficiency and effectiveness with which the Authority has used its resources in discharging its 
functions. For the purpose of these examinations the AGS has statutory access to documents 
and information held by relevant persons specified by an Order made under the Public 
Finance and Accountability (Scotland) Act 2000. 

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6. STAFF MANAGEMENT 
6.1. Within the arrangements approved by the Scottish Ministers or set out in the body’s 
legislation, the Authority shall have responsibility for the recruitment, retention and 
motivation of its staff. To this end the Authority shall ensure that: 
• the recruitment of its staff is based on fair and open competition and equal 
opportunities; 
• the level and structure of its staffing, including gradings and numbers of staff, is 
appropriate to its functions and the requirements of efficiency, effectiveness and 
economy; 
• the performance of its staff at all levels is managed effectively and efficiently; 
they are satisfactorily appraised; and the Authority’s performance appraisal and 
promotion systems are reviewed from time to time; 
• its staff are encouraged to acquire the appropriate professional, management and 
other expertise necessary to achieve the Authority’s objectives; 
• proper consultation with staff takes place on key issues affecting them; 
• adequate grievance and disciplinary procedures are in place; 
• whistleblowing procedures consistent with the Public Interest Disclosure Act are 
in place; 
• a code of conduct for staff is in place based on the document Model Code for Staff 
of Executive Non-Departmental Public Bodies. 
7. REVIEWING THE ROLE OF THE AUTHORITY 
7.1 The role of the Authority shall be reviewed periodically in accordance with the business 
needs of the Scottish Executive and of the Authority, normally at least every 5 years. 

CAIRNGORMS NATIONAL PARK AUTHORITY 
Paper 3 Annex 1 7/11/03 
MANAGEMENT STATEMENT/FINANCIAL MEMORANDUM FOR 
THE CAIRNGORMS NATIONAL PARK AUTHORITY 
PART 3: FINANCIAL MEMORANDUM 
1. BUDGETING PROCEDURES 
The Departmental Expenditure Limit (DEL) 
Setting the annual budget 
Transfers of budgetary provision 
End-year flexibility 
Authority to spend 
2. THE AUTHORITY’S INCOME
Grant in aid 
Borrowing 
Maximising income from other sources 
Receipts from the EC 
Fees and Charges 
Receipts from the sale of goods and services 
Interest earned 
Proceeds from the disposal of assets 
Gifts, bequests and donations 
Unforecast changes in in-year income 
3. THE AUTHORITY’S EXPENDITURE: GENERAL PRINCIPLES 
Delegated authority 
Appraisal and Evaluation 
Procurement 
Competition 
Value for money 
Timeliness in paying bills 
Novel, contentious or repercussive proposals 
Risk management 
4. EXPENDITURE ON BOARD MEMBERS 
5. EXPENDITURE ON STAFF 
Staff costs 
Pay and conditions of service 
Pensions, redundancy/compensation 
6. NON-STAFF EXPENDITURE 
Capital expenditure 
Lending, guarantees, indemnities, contingent liabilities, letters of comfort 
Grant or loan schemes 

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Gifts made, write-offs, losses and special payments 
Leasing 
Public/Private Partnerships 
Subsidiary companies and joint ventures 
Financial investments 
Unconventional financing 
Commercial insurance 
7. MANAGEMENT AND DISPOSAL OF FIXED ASSETS 
Register of assets 
Disposal of assets 
Recovery of grant-financed assets 
8. BANKING
ANNEX: SPECIFIC LIMITS ON DELEGATED AUTHORITY 

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1. BUDGETING PROCEDURES 
The Departmental Expenditure Limit (DEL) 
1.1 The Authority’s current and capital expenditure form part of the sponsor Department’s 
Resource DEL and Capital DEL respectively. 
Setting the annual budget 
1.2 Each year, in the light of decisions by the Scottish Ministers on the Authority’s corporate 
plan (paragraph 4.1 of the management statement), the Department will send to the Authority: 
• a formal statement of the annual budgetary provision (disaggregated by main 
budget headings) allocated by the Scottish Ministers in the light of competing 
priorities across the Scottish Executive and of the associated grant in aid and any 
approved forecast income; 
• a statement of any planned change in policies affecting the Authority. 
1.3 The Authority’s annual business plan will take account both of its approved budgetary 
provision and of any forecast income, and will include a budget of estimated payments and 
receipts together with a profile of expected expenditure/consumption of resources and of 
draw-down of grant in aid and other income over the year. These elements will form part of 
the business plan for the year in question (paragraph 4.2.1 of the management statement). 
1.4 Grant in aid provided by the Scottish Ministers for the year in question will be included in 
the annual Budget Act and will be subject to approval by the Parliament. 
Transfers of budgetary provision 
1.5 All transfers of budgetary provision between current and capital budgets require the prior 
approval of the Department. Other transfers between main budget headings may be 
undertaken without the prior approval of the Department. 
End-year flexibility 
1.6 Under the Scottish Executive’s end-year flexibility (EYF) arrangements the Authority 
may, subject to the approval of the Department, carry forward from one financial year to the 
next, in part or in full, unused DEL budgetary provision. It is the Authority’s underspending 
in terms of the use of DEL budgetary provision rather than of grant in aid that will determine 
the level of EYF available to be carried forward. The Authority must at the earliest 
opportunity submit to the Department any proposals for carrying forward budgetary 
provision. Any such proposals shall be considered by the Department in the light of 
competing priorities. 
Authority to spend 
1.7 Once the Authority’s budget has been approved by the Department and, subject to any 
restrictions imposed by the Scottish Ministers/the management statement and associated 
financial memorandum (MS/FM), the Authority shall have authority to incur expenditure/ 
consume resources without further reference to the Department, on the following conditions: 

CAIRNGORMS NATIONAL PARK AUTHORITY 
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• the Authority shall comply with the specific delegations set out in the attached 
Annex. These delegations shall not be altered without the prior agreement of the 
Department; 
• the Authority shall comply with the conditions set out in this financial 
memorandum regarding novel, contentious or repercussive proposals and with 
any relevant guidance in the Scottish Public Finance Manual (SPFM); 
• inclusion of any planned and approved expenditure in the Authority’s budget shall 
not remove the need to seek formal departmental approval where any proposed 
expenditure is outside the delegated limits or is for new schemes not previously 
agreed; 
• the Authority shall provide the Department with such information about its 
operations, performance, individual projects or other expenditure as the 
Department may reasonably require. 
2. THE AUTHORITY’S INCOME
Grant in aid 
2.1 Grant in aid will be paid to the Authority in monthly instalments, on the basis of a written 
application from the Authority showing evidence of need. The application shall provide the 
Department with, as a minimum, information, which will enable the satisfactory monitoring 
by the Department of: 
• the Authority’s cash management; 
• actual and forecast outturn of expenditure of grant in aid; 
• actual and forecast outturn of expenditure/consumption of DEL budgetary 
provision by main budget headings. 
2.2 Grant in aid should not be paid out in advance of need. Cash balances accumulated during 
the course of the year from grant in aid shall therefore be kept at the minimum level consistent 
with the efficient operation of the Authority. No grant in aid shall be paid into any reserve 
held by the Authority. 
Borrowing 
2.3 Borrowing cannot be used to increase the Authority’s spending power. All borrowing by 
the Authority - excluding agreed overdrafts - shall be from the Scottish Ministers in 
accordance with guidance in the Borrowing, Lending & Investment section of the SPFM. 
Maximising income from other sources 
2.4 The Authority shall seek to maximise income from other sources provided that this is 
consistent with its main functions and its corporate plan as agreed by the Scottish Ministers. 
Proposals for new sources of income or methods of fundraising should be cleared with the 
Department. 

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Receipts from the EC 
2.5 The Authority should ensure that the sponsor Department is informed of all potential EU 
funding so that there can be a full assessment of the implications of such funding for the 
Scottish Executive. Structural Funds claimed by the Authority via the Scottish Executive 
score against the Scottish Executive’s Departmental Expenditure Limit (DEL) and any 
proposals must therefore be considered by the Scottish Ministers together with all other 
pressures on resources. See the guidance in the EU Funding section of the SPFM. 
Fees and charges 
2.6 Fees or charges for any services supplied by the Authority shall be determined in 
accordance with the Fees & Charges section of the SPFM. 
Receipts from sale of goods or services 
2.7 Receipts from the sale of goods and services, rent of land, and dividends may be used to 
provide additional spending power subject to them being included in the approved budget. 
Interest earned 
2.8 Interest earned by the Authority on cash balances may be used to provide additional 
spending power subject to it being included in the approved budget. 
Proceeds from disposal of assets 
2.9 Disposals of land and buildings are dealt with in Section 7 below. 
Gifts, bequests and donations 
2.10 The Authority is free to retain any gifts, bequests or similar donations. These shall be 
treated as receipts that, where appropriate, can be used to increase spending power. NOTE: 
Donated assets do not attract a cost of capital charge, and a release from the donated assets 
reserve should offset depreciation in the operating cost statement. 
2.11 Before proceeding in this way the Authority shall consider if there are any associated 
costs in doing so or any conflicts of interests arising. The Authority shall keep a written 
record of any such gifts, bequests and donations and of their estimated value and whether they 
are disposed of or retained. 
Unforecast changes in in-year income used to provide additional spending power 
2.12 If income realised or expected to be realised in-year is less than estimated, the Authority 
shall, unless otherwise agreed with the Department, ensure a corresponding reduction in its 
gross expenditure so that the authorised budget is not exceeded. 
2.13 If income realised or expected to be realised in-year is more than estimated, the 
Authority may apply to the Department to retain the excess income for specified additional 
expenditure within the current financial year without an offsetting reduction to grant in aid. 

CAIRNGORMS NATIONAL PARK AUTHORITY 
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The Department shall consider such applications, taking account of competing demands for 
resources. If an application is refused grant in aid shall be correspondingly reduced. 
3. THE AUTHORITY’S EXPENDITURE: GENERAL PRINCIPLES 
Delegated authority 
3.1 The Authority shall not, without prior approval of the Department, enter into any 
undertaking to incur any expenditure, which falls outside the specific limits on the Authority’s 
delegated authority as set out in the attached Annex. 
Appraisal and Evaluation 
3.2 All expenditure proposals shall, so far as appropriate, be subject to the guidance in the 
Appraisal and Evaluation section of the SPFM. 
Procurement 
3.3 The Authority’s procurement policies shall reflect relevant guidance in the Procurement 
section of the SPFM. Procurement should be treated as a key component of achieving the 
Authority’s objectives, as well as a means of finding the most cost-effective method for 
securing the quality of assets and/or services. The Authority shall also ensure that it complies 
with any relevant EU or other international procurement rules. 
Competition 
3.4 Contracts shall be placed on a competitive basis and tenders accepted from suppliers who 
provide best value for money overall. Proposals to let single-tender or restricted contracts 
above the relevant delegated limit in the attached Annex must be submitted to the Department 
for approval. 
Value for money 
3.5 Procurement by the Authority of works, equipment, goods and services shall be based on 
value for money, i.e. quality (in terms of fitness for purpose) and delivery against price. 
Where appropriate, a full option appraisal shall be carried out before procurement decisions 
are taken. 
Timeliness in paying bills 
3.6 The Authority shall pay all matured and properly authorised invoices in accordance with 
the terms of contracts or within 30 days, as provided for the Payments section of the SPFM. 
Novel, contentious or repercussive proposals 
3.7 The Authority shall obtain the approval of the Department before: 
• incurring any expenditure for any purpose which is or might be considered novel 
or contentious, or which has or could have significant future cost implications, 
including on staff benefits; 

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• making any significant change in the scale of operation or funding of any 
initiative or particular scheme previously approved by the Department; 
• making any change of policy or practice which has wider financial implications 
(e.g. because it might prove repercussive among other public sector bodies) or 
which might significantly affect the future level of resources required. 
Risk management 
3.8 The Authority shall ensure that the risks, which it faces, are dealt with in an appropriate 
manner, in accordance with relevant aspects of best practice in corporate governance, and 
shall develop a risk management strategy, in accordance with the Risk Management section of 
the SPFM. 
3.9 The Authority shall adopt and implement policies and practices to safeguard itself against 
fraud and theft, in line with the Fraud section of the SPFM. 
3.10 The Authority shall take all reasonable steps to appraise the financial standing of any 
firm or other body with which it intends to enter into a contract or to give grant or grant in 
aid. 
4. EXPENDITURE ON BOARD MEMBERS 
4.1 Remuneration, allowances and expenses paid to Board Members must comply with 
specific guidance on such matters issued by the Scottish Ministers. 
5. EXPENDITURE ON STAFF 
Staff costs 
5.1 The Authority is responsible for determining the number of staff required and the most 
appropriate organisational structure to deliver its remit economically, efficiently and 
effectively within the resources available to it. However, any significant changes in staff 
numbers or organisational structure must be approved in advance by the Department. 
Pay and conditions of service 
5.2 The Authority shall submit to the Department for approval (normally annually unless a 
multi-year deal has been agreed) a pay remit within the terms and conditions set out in the 
Scottish Executive’s Public Sector Pay Guidance and negotiate a pay settlement within the 
terms of the subsequently agreed remit. Proposals on non-salary rewards must comply with 
the guidance in the Non-Salary Rewards section of the SPFM. The Authority shall comply 
with the EU directive on contract workers "Fixed Term Employees Regulations (Prevention 
of Less Favourable Treatment"). The terms and conditions of the Chief Executive are subject 
to a separate approval exercise. 
Pensions; redundancy/compensation 
5.3 Superannuation arrangements for staff are subject to the approval of the Department. The 
Authority’s staff shall normally be eligible for a pension and the Authority shall provide for 
pension arrangements for its staff. 

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5.4 Any proposal by the Authority to move from an existing pension arrangement, or to pay 
any redundancy or compensation for loss of office, requires the approval of the Department. 
Proposals on severance payments must comply with the guidance in the Severance etc section 
of the SPFM. 
6. NON-STAFF EXPENDITURE 
Capital expenditure 
6.1 Subject to being above the Scottish Executive’s capitalisation threshold, all expenditure 
on the acquisition or creation of fixed assets shall be capitalised on an accruals basis. 
Expenditure to be capitalised shall include the (a) acquisition, reclamation or laying out of 
land; (b) acquisition, construction, preparation or replacement of buildings and other 
structures or their associated fixtures and fittings; and (c) acquisition, installation or 
replacement of movable or fixed plant, machinery, vehicles and vessels. 
6.2 Proposals for large-scale individual capital projects or acquisitions will normally be 
considered within the Authority’s corporate planning process and within the context of its 
long-term estate strategy. Any such project shall be subject to the guidance in the Major 
Investment section of the SPFM and, where appropriate, the Client Pack published by the 
Scottish Executive’s Building Division. Individual capital projects or acquisitions are subject 
to specific delegated limits as indicated in the attached Annex. 
Lending, guarantees, indemnities; contingent liabilities; letters of comfort 
6.3 The Authority shall not, without the Department's prior consent, lend money, charge any 
asset or security, give any guarantee - excluding a guarantee of a standard type given in the 
normal course of business - or indemnity or letter of comfort, or incur any other contingent 
liability (as defined in the Contingent Liabilities section of the SPFM), whether or not in a 
legally binding form. 
Grant or loan schemes 
6.4 Proposals to make a grant or loan to a third party of £5,000 or more, whether one-off or 
under a scheme, shall be subject to prior approval by the Department, together with the terms 
and conditions under which such grant or loan is made. Guidance on a framework for the 
control of third party grants is included in the Grant & Grant in Aid section of the SPFM. See 
also below under the heading Recovery of grant-financed assets. 
Gifts made, write-offs, losses and special payments 
6.5 Proposals for making gifts or other special payments (including write-offs) outside the 
delegated limits set out in the attached Annex must have the prior approval of the Department. 
Any such proposals should address the considerations listed in the Losses & Special 
Payments section of the SPFM. Gifts by management to staff are subject to the guidance in 
the Non-Salary Rewards section of the SPFM. 

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Leasing 
6.6 Prior departmental approval must be secured for all property and finance leases. The 
Authority must have capital DEL provision for finance leases and other transactions, which 
are in substance borrowing. Before entering into any lease (including an operating lease) the 
Authority must demonstrate that the lease offers better value for money than purchase. 
Public/Private Partnerships 
6.7 The Authority shall seek opportunities to enter into Public/Private Partnerships where this 
would be more affordable and offer better value for money than conventional procurement. 
Where cash flow projections may result in delegated authority being breached the Authority 
shall consult the sponsor Department. Any partnership controlled by the Authority shall be 
treated as part of the Authority in accordance with UK GAAP and consolidated with it, 
subject to any particular treatment required by UK GAAP. See also the guidance in the 
Public / Private Partnerships section of the SPFM. 
Subsidiary companies and joint ventures 
6.8 The Authority shall not establish subsidiary companies or joint ventures without the 
express approval of the Department. In judging such proposals the Department will have 
regard to the Scottish Ministers’ wider strategic aims and objectives. 
6.9 Any subsidiary company or joint venture controlled or owned by the Authority shall be 
consolidated with it in accordance with UK GAAP for public expenditure accounts purposes, 
subject to any particular treatment required by UK GAAP. Unless specifically agreed with 
the Department such subsidiary companies or joint ventures shall be subject to the controls 
and requirements set out in the MS/FM. 
Financial investments 
6.10 The Authority shall not make any investments without the prior approval of the 
Department, nor shall it aim to build up cash balances or net assets in excess of what is 
required for operational purposes. Equity shares in ventures, which further the objectives of 
the Authority shall equally be subject to departmental approval unless covered by a specific 
delegation. The Authority shall not invest in any venture of a speculative nature. 
Unconventional financing 
6.11 Unless otherwise agreed with the Department, the Authority shall not enter into any 
unconventional financing arrangement. 
Commercial insurance 
6.12 The Authority may only take out commercial insurance, without the prior approval of the 
Department, in accordance with the guidance in the Insurance section of the SPFM e.g. third 
party insurance required by the Road Traffic Acts. In the event of losses arising under the 
Scottish Executive’s policy of self-insurance the Department shall consider, on a case by case 
basis, whether or not it should make any additional resources available to the Authority and/or 
agree adjustments to the targets in the corporate plan. 

CAIRNGORMS NATIONAL PARK AUTHORITY 
Paper 3 Annex 1 7/11/03 
6.13 [A Certificate of Exemption for Employer's Liability Insurance has been issued to the 
NDPB.] 
7. MANAGEMENT AND DISPOSAL OF FIXED ASSETS 
Register of assets 
7.1 The Authority shall maintain an accurate and up-to-date register of its fixed assets. 
Disposal of assets 
7.2 The Authority shall dispose of assets which are surplus to its requirements and in 
accordance with its long-term estate strategy. Assets shall be sold for the best price, taking 
into account any costs of sale and in accordance with the guidance in the Disposal of Tangible 
Fixed Assets section of the SPFM. Proceeds from the disposal of assets may be retained by 
the Authority subject to them being included in the approved budget. 
Recovery of grant-financed assets 
7.3 Where the Authority has financed expenditure on capital assets by a third party, it shall 
make appropriate arrangements to ensure that any such assets above an agreed value are not 
disposed of by the third party without the Authority’s prior consent. The Authority shall 
therefore ensure that such conditions are sufficient to secure the repayment of its due share of 
the proceeds - or an appropriate proportion of them if the grant was for less than the whole 
cost of acquisition or improvement. 
7.4 The Authority shall also ensure that if the assets created by grants made by it cease to be 
used by the recipient of the grant for the intended purpose an appropriate proportion of the 
value of the asset shall be repaid to the Authority. 
8. BANKING
8.1 The Authority’s Accountable Officer is responsible for ensuring that its banking 
arrangements are consistent with the guidance in the Banking section of the SPFM. In 
particular he/she shall ensure that the arrangements safeguard public funds and are carried out 
efficiently, economically and effectively. These arrangements shall be suitably structured and 
represent value-for-money, and be reviewed at least every two years, with a comprehensive 
review, usually leading to competitive tendering, at least every three to five years. 

CAIRNGORMS NATIONAL PARK AUTHORITY FINANCE COMMITTEE 
Paper 3 Annex 1 Date 7/11/03 
FINANCIAL MEMORANDUM: ANNEX 
SPECIFIC LIMITS ON DELEGATED AUTHORITY 
Single-tender contracts Delegated approval for contracts estimated at 
£10,000 or less for external contractors and for 
any project estimated to cost £20,000 or less prior 
to awarding - without competition - any project to 
the in-house workforce. 
Investment projects The Authority has no delegated approval. 
Acquisition of assets Delegated approval for capital expenditure of 
£20,000 or less. The Authority cannot acquire 
new offices/accommodation, however, without 
the Department’s prior approval. 
Grant / loan scheme Delegated approval for each scheme worth up to 
£5,000. 
Claims waived or abandoned £1,000 
Lending See paragraph 6.3 of Part 3. Delegated approval 
for loans up to £5,000 (terms of any loan must be 
approved by the Department on a case by case 
basis). 
Special Payments Delegated approval for payments of £1,000 or 
less. 
Write-off of losses See paragraph 6.5 of Part 3. Delegated approval 
for: 
• gifts of less than £75 in value; 
• for theft/damage/destruction of a vehicle 
where cost is £5,000 or less; and 
• other causes of less than £1,000 
Leases See paragraph 6.6 of Part 3. 
Investments See paragraph 6.10 of Part 3. 
Disposal of assets See paragraph 7.2 of Part 3. Delegated approval 
for assets with a book value of up to £5,000. 
Projects (such as acquiring assets by 
purchasing or leasing) 
Delegated approval up to £50,000. The 
Department will consider whether to delegate 
approval for projects costing between £50,000 
and £100,000 but a detailed appraisal of projects 
costing £100,000 or more is required. 
Consultancy The Authority is required to submit for approval 
any discrete consultancy project estimated to cost 
£10,000 or more. Consultancies estimated to cost 
£50,000 or more which form part of a project 
falling within the Authority’s delegated authority 
should also be submitted for departmental 
approval. 
MAINPC