Report on the Draft Budgets 2022-25, for the Northern Ireland Assembly Commission, Northern Ireland Audit Office and Northern Ireland Public Services Ombudsman

Appendix 1: Budget setting processes – the NIAC, NIAO and NIPSO

NORTHERN IRELAND ASSEMBLY COMMISSION BUDGET SETTING PROCESS

Preparation of Draft Budget:

Context

The Assembly Commission (the "Commission") prepares a draft budget for the period of the Executive's Budget as notified by the Department of Finance (DoF). This budget is established in advance of the timetable established by DoF for Executive Departments;

Key Milestones

1. As part of the development of the Commission's draft budget, the Commission actively obtains data and projections from the DoF relating to the wider outlook for the Northern Ireland Block for the entirety of the budget period;
2. The Commission, taking account of the DoF projections, proposes its draft budget and presents it to the Audit Committee. At the same time, the Commission also provides the draft budget figures to the DoF;

Interaction with Audit Committee:

Context

Via an agreed mechanism (e.g. Standing Orders) and in keeping with the Executive budgetary timetable, the Audit Committee lays a report on the Commission's draft budget;

Key Milestones

1. In advance of laying that report, the Commission attends an Audit Committee meeting(s) to give evidence on its draft budget;
2. In advance of laying that report, the Audit Committee receives written evidence from DoF (cleared in advance by the Finance Minister) on the wider outlook for the Northern Ireland Block and the DoF view of the Commission's draft budget. In considering the Commission's draft budget, the Committee should have due regard to the evidence provided by the DoF.
3. Evidence to the Committee from the DoF shall be included in the Committee's report to the Assembly;
4. The Committee prepares and lays its report;

Finalisation of Budget:

Context

The Commission prepares its final budget, taking on board the recommendations of the Audit Committee and submits a motion to the Business Committee;

Key Milestones

1. The Assembly as a whole debates the final budget in Plenary before voting on the motion (without amendment) that it be "agreed and incorporated into the Executive's Budget and the subsequent Main Estimates."
2. The vote of the Assembly in respect of the Commission's budget is reflected, without amendment, in the budget prepared by the Executive;

In-Year Amendments to Budget:

Context

On an in-year basis, financial controls are established that are aligned to the arrangements for setting the initial budget.

Key Milestones

1. The Commission prepares and submits its contribution to Monitoring Rounds and the Spring Supplementary Estimate. The submission of the Commission's contribution to Monitoring Rounds and the Spring Supplementary Estimate will be subject to agreed thresholds between the Commission and the Committee. If these thresholds are not exceeded, the Commission will not seek the Audit Committee's view on its in-year position.

Review:

This methodology will be reviewed within one year of its first use and at the conclusion of every Executive budget setting period.

NORTHERN IRELAND AUDIT OFFICE (NIAO) BUDGET SETTING PROCESS

Multi-year budgets [1]

Stages:

1. The Department of Finance (DoF) determines, subject to Executive agreement, a timetable for the agreement of a Budget and informs the NIAO and the Audit Committee. In doing so DoF has regard to the need to allow the Audit Committee to undertake its role as set out in this protocol.
2. The NIAO prepares its draft multi-year budget in line with the determined timetable.
3. The NIAO sends its draft multi-year budget to both DoF and the Public Accounts Committee (PAC) for consideration.
4. The NIAO submits its draft multi-year budget to the Audit Committee.
5. DoF and PAC submit their comments on the NIAO draft multi-year budget to the Audit Committee.
6. The Audit Committee holds a meeting during which it considers the draft multi-year budget of the NIAO. The Comptroller and Auditor General (or one of his deputies) gives evidence to the Committee on the draft budget.
7. When considering the draft multi-year budget of the NIAO, the Committee has regard to the advice of DoF and PAC.
8. The Audit Committee agrees the draft multi-year budget with such modifications, if any, as may be agreed between it and the Comptroller and Auditor General.
9. The Committee informs DoF of the outcome.
10. In any draft Budget published for consultation either by it or on behalf of the Executive, DoF only includes, in relation to the multi-year budget of the NIAO, those figures agreed by the Audit Committee. Any draft Budget makes clear that the Executive is not responsible for either proposing or agreeing the expenditure of the NIAO.
11. Following any consultation on a draft Budget, the Audit Committee considers any comments made in relation to the multi-year budget of the NIAO. After doing so the Audit Committee agrees the final figures for the multi-year budget of the NIAO of which it inform DoF.
12. The final figures for the NIAO multi-year budget that DoF include in the Budget laid before the Assembly for agreement are the final figures agreed by the Audit Committee.

NORTHERN IRELAND PUBLIC SERVICES OMBUDSMAN (NIPSO) BUDGET SETTING PROCESS

Multi-year budgets [2]

Stages:

1. The Department of Finance (DoF) determines, subject to Executive agreement, a timetable for the agreement of a Budget and informs the NIPSO and the Audit Committee. In doing so DoF has regard to the need to allow the Audit Committee to undertake its role as set out in this protocol.
2. The NIPSO prepares its draft multi-year budget in line with the determined timetable.
3. The NIPSO submits its draft multi-year budget to the Audit Committee and to DoF.
4. DoF submit its comments on the NIPSO draft multi-year budget to the Audit Committee, copied to NIPSO.
5. The Audit Committee holds a meeting during which it considers the draft multi- year budget of the NIPSO. The Ombudsman (or her Deputy or Director of Finance) gives evidence to the Committee on the draft budget.
6. When considering the draft multi-year budget of the NIPSO, the Committee has regard to the advice of DoF.
7. The Audit Committee agrees the draft multi-year budget with such modifications, if any, as may be agreed between it and NIPSO.
8. The Committee informs DoF of the outcome.
9. In any draft Budget published for consultation either by it or on behalf of the Executive, DoF only includes, in relation to the multi-year budget of the NIPSO, those figures agreed by the Audit Committee with NIPSO. Any draft Budget makes clear that the Executive is not responsible for either proposing or agreeing the expenditure of the NIPSO.
10. Following any consultation on a draft Budget, the Audit Committee and NIPSO considers any comments made in relation to the NIPSO multi-year budget. After doing so the Audit Committee agrees with NIPSO the final figures for the NIPSO multi-year budget of which it informs DoF.
11. The final figures for the NIPSO multi-year budget that DoF include in the Budget laid before the Assembly for agreement are the final figures agreed by the Audit Committee.

Footnotes

[1] The process set out in this protocol also applies in cases where there is an annual budget rather than a multi-year budget.

[2] The process set out in this protocol also applies in cases where there is an annual budget rather than a multi-year budget.