37. Public Spending Code - Department of Public Expenditure and

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.