Scope

A further dimension of an appropriation is its scope (s 9 PFA 1989). Scope establishes the legal boundary of what an appropriation can be applied to and, by omission, what it can't.

What is Scope?

• Scope is a short statement that establishes the limits of what an appropriation can be used for.
• The purpose of a scope statement is to provide an effective constraint against non-authorised activity while not inappropriately constraining activity intended to be authorised.
• A scope statement is not a performance measure and should not express the results desired from the appropriation. However, a scope statement should always be consistent with the performance information that relates to the same appropriation in the Information Supporting the Estimates and other accountability documents.
• A scope statement is limited to the words used in the scope paragraph and does not include the appropriation title or any other explanations included in the wider budget documentation (further information on title follows in this guidance).

What Makes a Good Scope Statement?

• A good scope statement should be clear, meaning that it should bewell written, informative and jargon-free.
• It must be comprehensive, covering all uses for the expenses or capital expenditure intended to be within its boundary.
• It should also be balanced to ensure that it is not so restrictive that excludes intended purposes unnecessarily.
• It should provide a defined boundary and as such we recommend that new or significantly modified scope statements include a stem (common starting statement) of “this appropriation is limited to” or, for an output class within an MCOA, “this output class is limited to” at the start of each scope statement.
• For advice on requirements of scope statements driven by an appropriation type (especially in relation to output expense appropriations) refer to the type section of this document.

Reviewing and Maintaining Scope Statements

• When departments consider scope statements it is important that a sensible time-efficient approach is taken.
• It is recommend that departments focus on the scope statements for new appropriations ensuring that they comply with the guidance provided.
• For existing scope statements it is recommend that departments review them annually at the beginning of the budget cycle (October -December) to ensure that they are up to date (e.g. do not reference out of date legislation) and present no significant legal risks to the Crown (for example by not being comprehensive).