Statement of Principles

Directly Funded Bodies (DFBs) receive their directly funding from the Welsh Consolidated Fund; these include the:

  • Senedd Commission;
  • Auditor General for Wales and the Wales Audit Office;
  • Public Services Ombudsman for Wales; and
  • Electoral Commission – (The Senedd and Elections (Wales) Act 2020 provides for the funding of the Electoral Commission’s work on devolved Welsh elections and devolved Welsh referendums from the Welsh Consolidated Fund).

These bodies have distinct budget setting and oversight arrangements to reflect their unique role and independence from the Welsh Government.

The Finance Committee is responsible for considering and reporting on the budgets/estimate of the Senedd Commission, Auditor General for Wales and the Wales Audit Office, and the Public Services Ombudsman for Wales. The Llywydd’s Committee is responsible for considering and reporting on the Electoral Commission’s estimate with regard to its functions in relation to devolved Welsh elections and referendums.

 

During the Fifth Senedd, the Finance Committee undertook a short inquiry into the funding of DFBs, with the aim of ensuring a consistent approach was taken by DFBs when preparing their annual budget proposals.

 

In May 2019, as an output of this inquiry, the Committee issued a Statement of Principles (“the Principles”) (PDF, 224KB) that the Committee expected DFBs to have regard to when making budget proposals. (At this time the Electoral Commission’s functions did not fall under the Senedd’s responsibilities).

 

Review of the Statement of Principles

Paragraph 9 of the Principles gives a commitment that the Committee will review the document the year of implementation and periodically thereafter.

 

In 2020, the year following their implementation, the Committee reviewed the Principles and concluded that they were fit for purpose and no changes were made.

 

At the start of the Sixth Senedd on 8 July 2021, the Committee agreed that the DFBs should continue to follow the current Principles (PDF, 294KB) when preparing their budget documentation. The Committee wrote to the Deputy Presiding Officer, in his role as Chair of the Llywydd’s Committee, to suggest that the Principles should apply to the Electoral Commission to ensure a consistent approach.

 

On 26 April 2023, the Committee agreed that it was an appropriate time to review the Principles and wrote (PDF 158KB) to the DFBs seeking their views.

Business type: Budget Scrutiny

Reason considered: Senedd Business;

Status: Stage 1

First published: 04/08/2021

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