Public Expenditure Reform Sub-topic: Public Spending Code Contact: R. Gallagher Ext: 5520 FAST FACTS Background  The Public Spending Code is the set of rules and procedures that apply to ensure that Value for Money standards are upheld across the Irish public service.  It draws together in one authoritative location, all of the long-established elements of the VFM arrangements that have been in place in Ireland over many years.  The new Public Spending Code was initially introduced in Budget 2012 and formally notified to Departments in 2013.  The Code consolidates and replaces material from a number of sources including the Capital Appraisal Guidelines 2005, as developed in further advice notes and circulars.  To maximise user-friendliness, all relevant guidance material and requirements are presented together, through a unified web-portal: http://publicspendingcodeper.gov.ie. Objectives and Scope  The objective of the Code is to ensure that the State achieves Value for Money. Doing so requires a disciplined and systematic approach and the Code aims to ensure that the State gets the best possible value for the resources at its disposal.  The Code applies to both Capital and Current expenditure and sets out to explain what is required of public service managers at different points of the expenditure lifecycle as well as how to fulfil those requirements.  The main requirements include : o the need to carry out economic appraisals for new expenditure proposals o apply best practice in efficiently planning and managing spending programmes o carry out performance monitoring as well as post project review and evaluation to ensure programmes are effective BRIEF QUESTION AND ANSWER SECTION Why was the Public Spending Code developed?  The new Code was developed to bring procedures up to speed with best national and international practice. The Code combines, modernises and updates the previous components of the VFM framework and also includes additional modules.  The Code was developed in consultation with Departments and the Public Service Evaluation Network. What is new in the Public Spending Code The main new elements of the Code introduced in 2013 include:  A new module which applies appraisal requirements to current expenditure under a similar regime to that which previously only formally applied to capital  A new simplified quality assurance process replacing the previous spot-check regime  A reduced threshold for conducting Cost-Benefit analyses (CBAs) from €30m to €20m  A requirement that CBAs will be sent to the Department of Public Expenditure and Reform Central Expenditure Evaluation Unit (CEEU) for technical review prior to Approval in Principle by the Sanctioning Authority.  Streamlining the Value for Money and Policy Review process and introduction of the Balanced Scorecard for inclusion in published reports. Who is responsible for the Public Spending Code?  D/PE&R’s Central Expenditure Evaluation Unit (CEEU) is responsible for maintenance and promotion of the Public Spending Code.  The Public Spending Code will be updated from time to time as appropriate where improvements can be made to ensure that it continues to reflect current best practice, remains relevant and is as user-friendly as possible. Consultation and quality proofing will continue as new elements to the Code are introduced.