Public bodies could be putting their long-term financial health at risk by devolving budgetary decisions to the front line.

The Chartered Institute of Public Finance and Accountancy in Scotland has warned that responsibility for millions of pounds of expenditure is being handed to people without the appropriate financial qualifications.

Angela Scott, head of CIPFA in Scotland, said the development of community planning partnerships and community health partnerships had pushed money from the hands of people who were financially qualified into the hands of those who are not.

“Increasingly public policy is about devolving money further and further and further to the front line,” she said. “When you devolve that, it brings a huge amount of benefit, but it’s equally important  these people have the financial skills.”

Otherwise, public bodies will jeopardise not only their financial stewardship but their organizational performance and plans for long-term transformation, Scott warned.

“While organisations will employ professionally qualified accountants, they are devolving millions down to people who have a very different professional background,” she said. “These folk are not always equipped with the finance skills that they need.”

She urged organisations to make an “ongoing commitment” to invest in financial training for staff.

The warning echoes the findings of the 2006 Howat Review, which found budget managers across the then Scottish Executive lacked “the necessary financial skills and acumen”, and stressed that the financial skills of individual employees should fit their roles.

But the Convention of Scottish Local Authorities said that with regard to councils, CIPFA’s concerns were ill-founded. “This is not a new phenomenon – there have been devolved budgets in councils for many years,” said a spokesman. “Equally, there has been training support for budget holders.”

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