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The Scottish Funding Council (SFC) is a Non-Departmental Public Body of the Scottish Government and operates at ‘arms-length’ from the Government. It was established by the Further and Higher Education (Scotland) Act 2005. This Act sets out the main governance framework within which we operate and our main duties and powers and the basic constitution of SFC.

Framework Document

The relationship between SFC and the Scottish Government is governed by a Framework Document, agreed in September 2022.

Ethical Standards in Public Life

We comply with the provisions of the Ethical Standards in Public Life (Scotland) Act 2000. We require all of SFC’s Board members to complete a Register of Interests which is updated regularly and is available to the public.

View the registers of interests for current board members.

Code of Conduct

One of the provisions of the Act was the establishment of the Standards Commission for Scotland. The Commission is committed to high ethical standards in public life through the promotion and enforcement of Codes of Conduct. It works with public bodies to support them in their duty to promote high standards in the conduct of their business. You can find more information on the Commission at the Standards Commission for Scotland website.

Scottish Ministers approved the Code of Conduct for Members of the Scottish Funding Council [PDF].

On Board: A Guide for Board Members of Public Bodies in Scotland

We seek to comply with On Board: A Guide for Board Members of Public Bodies in Scotland which sets out the responsibilities of Boards of public bodies and their members, and provides good practice in corporate governance. We also seek to comply with the relevant provisions of the Financial Reporting Council UK Corporate Governance Code.

How we conduct our business

How we operate

Standing Orders

Our Standing Orders are the rules for the membership, the proceedings and conduct of SFC business and meetings.

Schedule 1 of the Further and Higher Education (Scotland) Act 2005 contains provisions about the status, membership, structure, and proceedings of SFC. Some of these provisions are relevant to SFC’s Standing Orders; in particular those relating to membership and to committees.

The legislation also states that we may regulate our own procedure – including any quorum – and so for the most part the Standing Orders have been determined by SFC.

View the current SFC Standing Orders.

Scheme of Delegation

Non-executive bodies, such as SFC, delegate operational matters to the Chief Executive Officer.

Authority is also delegated from the SFC Board to its Chair and to its committees. Our Scheme of Delegation defines where the boundaries lie between strategic and delegated operational matters.

SFC’s current Scheme of Delegation can be found below.

Purpose and scope

  1. This Scheme of Delegation formally outlines the distribution of decision-making authority within the Scottish Funding Council (SFC). It sets out matters reserved for the Board of SFC and also matters that may be taken forward on behalf of the Board under authority delegated to the Chair, Board Committees and to the Chief Executive.
  2. Delegation should reduce the amount of detailed decision-making required of the Board, enabling it to focus on strategic issues, major matters of strategic significance, and on maintaining oversight of the Board’s activities while devolving the burden of detailed day-to-day decision taking to the Chief Executive.

Introduction

  1. This Scheme of Delegation was approved by the SFC Board on 12 February 2026 pursuant to paragraph 15(1) Schedule 1 of the Further and Higher Education (Scotland) Act 20051 which states that:

    Delegation of functions

    15(1) The Council may authorise —

    1. the CEO;
    2. the chairing member; or
    3. any of its committees

    to exercise such of its functions to such extent as it may determine.

  1. This Scheme of Delegation is established which sets out what functions are reserved to the Board and what functions are delegated to its Committees, Chair and Chief Executive.
  2. This Scheme of Delegation is consistent with the requirements of the Framework Document between SFC and the Scottish Government.
  3. This Scheme of Delegation is set out in five parts:
    • Part 1: Matters reserved to the Board.
    • Part 2: Delegations to Committees.
    • Part 3: Delegations to the Chair.
    • Part 4: Delegations to the Chief Executive.
    • Part 5: Financial delegations to the Chief Executive.
  1. The mechanisms for reporting back on the use of delegated authority to the Board are outlined in each section.
  2. This Scheme of Delegation will be reviewed every two years, or immediately should there be a change in the structure and/or responsibilities of the organisation.

1 See: Further and Higher Education (Scotland) Act 2005

Part 1: Matters reserved to the Board

  1. This part sets out matters that are reserved to the SFC Board and must not be delegated (unless they decide to make changes or exceptions).
    • Appointment of the CEO (with the approval of the Scottish Ministers, as set out in Schedule 1 of the 2005 Act).
    • Establishment and abolition of a Board Committee including determining (as set out in Schedule 1 of the 2005 Act):
      • The membership (including the Chair) of its committees.
      • The terms and conditions of committee membership.
      • The committee standing orders (including quoracy).
    • Approval of (and amendments to) SFC’s Strategic plan (with the agreement of Scottish Ministers, as set out in the Framework Document) which sets the strategic direction for the organisation.
    • Approval of SFC’s risk management Framework.
    • Approval of the principles and model governing the funding allocations to individual institutions.
    • Approval of the overall budget.
    • Approval of SFC’s running costs budget.
    • Approval of the Annual Report and Accounts.
    • Approval of (and amendment to):
      • Framework Document.
      • Scheme of Delegation.
      • Board Code of Conduct.
      • Board standing orders.
      • Committee standing orders.
    • The decision to commence or defend any legal proceedings outside of business as usual (such as engaging with a judicial review).
    • Approving by correspondence items that cannot be actioned under delegated authority by the Chair or Chief Executive, and which are considered to be of such urgency that they cannot await a meeting of the Board. All such approvals will be reported to the next meeting of the Board.
    • Such other matters as the Board may determine from time to time.

Reporting mechanism

  1. Decisions taken by the Board will be recorded in the minutes of each meeting.

Part 2: Delegations to Committees

  1. This part sets out matters that have been delegated to Committees (unless the Board decides to make changes or exceptions).
  2. The People Committee has the following delegations:Within the scope of the relevant Pay Policy issued by the Scottish Government, which includes the necessary Scottish Government approvals:
    • Determine and approve the broad framework for the remuneration of the CEO (normally prior to appointment).
    • Determine and approve the annual remuneration of the CEO including performance related elements where appropriate based on Scottish Government pay policy CEOs.
    • In consultation with the CEO, determine the framework of remuneration for Directors. This includes the pay range for the Director grade and the level of pay/progression to be offered to those at Director level. The level of salary on appointment for individuals within that framework will be set in accordance with the SFC’s Salary Determination Procedure.
    • Confirm Recommend to the Scottish Government the annual fee increase to be applied to the Chair and Board members based on annual pay policy published by the Scottish Government.
    • Advise the Chair of the Board on the process for the recruitment and selection of the CEO and participate in the process as appropriate.
    • If SFC decides to nominate an individual for an honour or is asked to support a nomination, agreeing the final documentation. Given the highly confidential nature of the nominations process, this may involve the Chair of the Committee and Chair of the Board only.
  1. A committee may establish a sub-committee to support its work, at the agreement of the Chair of the Committee.

Reporting mechanism

  1. An update from each Committee Chair will be provided to the Board post each committee meeting. Each approved set of committee minutes will be circulated to the Board for noting.

Part 3: Delegations to the Chair

  1. This part sets out matters that have been delegated to the Chair (unless the Board decide to make changes or exceptions).
  2. The Chair may generally act on behalf of the Board. Communications between the Board and Ministers will normally be conducted through the Chair, who will ensure that other Board members are kept informed of all such communications. The Chair also has a particular responsibility regarding representing the views of the Board to the public.
  3. Delegated authority to the Chair relating to a particular issue will normally be approved by the Board in advance and/or at a Board meeting.
  4. From time to time it may be necessary for the Chair to take urgent action, in which case the procedure set out in the Board’s Standing Orders will apply2.

Reporting mechanism

  1. The Chair’s use of delegated authority will be reported to the next Board meeting.

2 See: Our standing orders

Part 4: Delegation to the Chief Executive

  1. This part sets out matters that are delegated to the SFC Chief Executive (unless the Board decides to make changes or exceptions).
  2. The Chief Executive is authorised to delegate decision-making responsibilities to other staff within SFC, within the limits of the Chief Executive’s own delegated authority, to exercise concurrently all powers delegated, and to generally supervise the exercise of delegated powers.
  3. The SFC Chief Executive is also SFC’s Accountable Officer, as set out in the SFC Framework Document. As Accountable Officer, the Chief Executive has certain personal responsibilities which have been delegated to them by the Scottish Government Principal Accountable Officer. The Chief Executive has to answer personally for these matters, which are set out in the Memorandum to Accountable Officers for Other Public Bodies and in the SFC Framework Document.
  4. The following are delegated to the SFC Chief Executive:
    • Implementing decisions taken by the Board.
    • Advising the Board on the discharge of its responsibilities.
    • Provision of advice to Scottish Ministers, aligned with the strategic direction and purpose agreed by the Board.
    • In collaboration with the Board and Executive Team, the development of SFC’s Strategic and Delivery Plans (approval is a Board reserved matter).
    • The approval of the allocation of teaching and research funding to universities, colleges, subject to them meeting the principles and model governing this distribution agreed by the Board.
    • Leading, directing and managing SFC including leading staff and determining the pay levels and annual pay settlements for staff (within the strategies endorsed by the Remuneration and Nominations Committee) and structure of staffing and how SFC is organised to deliver its aims and objectives.
    • Accountability for the operational effectiveness of the Executive Team.
    • Managing expenditure from the running costs budget for the SFC in line with relevant SFC policies and procedures and Scottish Government Finance guidance including the Scottish Public Finance Manual.
    • Implementation of the Risk Management Framework.
    • Alerting the Board to any matter, regardless of financial value, with significant potential reputational implications, or which could be considered novel, contentious or repercussive and/or impact on the delivery of SFC’s strategic objectives.
    • Opening SFC bank accounts and making and altering the necessary arrangements for signatories for authorisation of payments.
    • In relation to the SFC’s role as an official statistics producer:
      • Where SFC has decided to publish data, determining whether or not that data will be classified (or will cease to be classified) as official statistics.
      • Where SFC has decided to publish data that is to be classified as official statistics, determining the time periods for the publication of data that is to be classified as official statistics.
      • Reporting to the National Statistician on professional matters relating to official statistics.
  1. Apart from matters reserved to the Board (Part 1), matters delegated to Board Committees (Part 2) and matters delegated to the Chair (Part 3) the Chief Executive has the authority to exercise all other functions pertaining to the SFC’s activities and operations subject to:
    • Consistency with the aims and objectives in SFC’s strategic plan and Delivery Plan approved by the Board.
    • Compliance with the ‘Financial Delegations’ set out in Part 5.
    • Compliance with the Framework Document.
    • Compliance with the Board’s Standing Orders.
  1. Where the Chief Executive has a conflict of interest or is otherwise unable to act for any reason, the Chief Executive can authorise any one of SFC’s Directors to act as the Chief Executive on a temporary basis and, in such circumstances, any reference to “Chief Executive” in this Scheme of Delegation is to be treated as a reference to a person acting as the Chief Executive. Where this period of time exceeds more than four weeks, the Board will appoint an interim Chief Executive, and Scottish Government will appoint an interim Accountable Officer, as set out in the Scottish Public Finance Manual. As set out in SFC’s Framework Document, the CEO is also the SFC Accountable Officer.

Part 5: Financial delegations to the Chief Executive

  1. This part sets out the financial delegations by the Board to the Chief Executive (unless the Board decides to make changes or exceptions).
  2. The Board delegates to the Chief Executive responsibility for expenditure of programme funds including discretion to vary budgets, recovery of funds and forgiveness of recovery (write-off) of funds due back to SFC, the timing of payments or providing additional financial support to an institution, such as a formal advance, subject to the limits as set out in Table 1 below. These are the limits to approve individual amounts of additional funding to a single institution, or for multi-year commitments across any three-year period:
    Table 1: financial delegations
    Monetary Limit Planned/in budget Decided by
    Up to £5,000,000 Yes/in budget Chief Executive
    £5,000,001 and above Yes/in budget Board
    Up to £1,000,000 No/not in budget Chief Executive
    £1,000,001 and above No/not in budget Board
  1. In addition, the following is delegated to the Chief Executive:
    • Amending any terms and conditions of a grant or loan, including timing of drawdown and payment as part of business as usual operations.
    • Accepting and awarding ring-fenced offers of grant from Government and setting up the appropriate budgets and governance.
    • Expenditure from the running costs budget, including acquisition and disposal of property and equipment.
    • Authorising requests for consent to dispose of fixed assets that are considered low risk up to the value of £5 million.
    • The Delegations as set out in Annex A of the Framework Document.
  1. Approve institutions’ requests for consent for transactions listed in the Financial Memorandum between SFC and institutions.

Reporting mechanism

  1. The Chief Executive will report to the Board on a quarterly basis on their use of delegated authority for expenditure over £500,000 and approval of consent for transactions listed in the Financial Memorandum between SFC and institutions.

SFC Strategic Plan 2022-27

Building a connected, agile, sustainable tertiary education and research system for Scotland.

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