1.This financial memorandum, which forms part of the management statement for the Design Council, sets out in greater detail certain aspects of the financial framework within which the Design Council is required to operate.
2.The terms and conditions set out in the combined management statement and financial memorandum may be supplemented by guidelines or directions jointly issued by the Secretaries of State in respect of the exercise of any individual functions, powers and duties of the Design Council.
3.The Design Council shall satisfy the conditions and requirements set out in the combined document, together with such other conditions as the Secretaries of State may from time to time jointly impose.
The Departmental Expenditure Limit (DEL)
4. The Design Council's current and capital expenditure form part of the DTI's Resource DEL and Capital DEL respectively.
Expenditure not proposed in the budget
5. The Design Council shall not, without prior written DTI approval, enter into any undertaking to incur any expenditure which falls outside the Design Council's delegations or which is not provided for in the Design Council's Corporate Plan as approved by the Departments.
Procurement
6. The Design Council's procurement policies shall reflect guidance from the Office of Government Commerce including Procurement Policy Guidelines. The Design Council shall also ensure that it complies with any relevant EU or other international procurement rules.
7. Periodically and wherever practicable the Design Council's procurement shall be benchmarked against best practice elsewhere and contracted out where this would achieve better value for money.
Competition
8. Contracts shall be placed on a competitive basis and tenders accepted from suppliers who provide best value for money overall.
9. Proposals to let single-tender or restricted contracts shall be subject to a specified delegated authority, and the Design Council shall send to the DTI after each financial year a report for that year explaining any contracts above £50,000 in which competitive tendering was not employed.
Value for money
10. Procurement by the Design Council of works, equipment, goods and services shall be based on value for money, i.e. quality (in terms of fitness for purpose) and delivery against price. Where appropriate, a full option appraisal shall be carried out before procurement decisions are taken.
Timeliness In paying bills
11. The Design Council shall collect receipts and pay all matured and properly authorized invoices in accordance with the terms of contracts or within 30 days, as provided for in Annex 16.2 of Government Accounting. The Design Council shall comply with the British Standard for Achieving Good Payment Performance in Commercial Transactions (BS 7890), and with the Late Payment of Commercial Debts (Interest) Act 1998 as amended. [NOTE: The 1998 Act allows creditors to claim statutory interest and compensation on late payment of commercial debts.]
Contentious or repercussive proposals
12. The Design Council shall obtain the approval of the Department before:
- incurring any expenditure for any purpose which is or might be considered contentious, or which has or could have significant future cost implications, including on staff benefits
- making any significant change in the scale of operation or funding of any initiative or particular scheme previously approved by the Departments
- making any change of policy or practice which has wider financial implications (e.g. because it might prove repercussive among other public sector bodies) or which might significantly affect the future level of resources required.
Risk management
13. The Design Council shall ensure that the risks which it faces are dealt with in an appropriate manner, in accordance with relevant aspects of best practice in corporate governance, and shall develop a risk management strategy, in accordance with the Treasury guidance Management of Risk: A Strategic Overview.
14. The Design Council shall adopt and implement policies and practices to safeguard itself against fraud and theft, in line with Treasury's guide Managing the Risk of Fraud.
15. The Design Council shall take all reasonable steps to appraise the financial standing of any firm or other body with which it intends to enter into a contract or to give grant or grant-in-aid.
Wider markets
16. In accordance with the wider markets policy the Design Council shall seek to maximize receipts from non-Exchequer sources provided that this is consistent with (a) the Design Council's main functions (b) its corporate plan as agreed with the Departments.
Fees and charges
17. Fees or charges for any services supplied by the Design Council shall be determined in accordance with the Treasury's Fees and Charges Guide, and with the Freedom of Information Act.
18. Grant-in-aid will be paid to the Design Council in quarterly installments for the first nine months of the financial year and monthly thereafter, on the basis of a written application from the Design Council showing evidence of need. The application shall certify that the conditions applying to the use of grant-in-aid have been observed to date and that further grant-in aid is now required for purposes appropriate to the Design Council's functions.
19. The Design Council should have regard to the guidance in DAO (GEN) 14/01 and to the general principle enshrined in chapter 9 of Government Accounting that it should seek grant-in-aid according to need.
20. Cash balances accumulated during the course of the year from grant-in aid or other Exchequer funds shall be kept at the minimum level consistent with the efficient operation of the Design Council. Grant-in-aid not drawn down by the end of the year shall lapse. However, where draw¬down of grant-in-aid is delayed to avoid excess cash balances at year¬end, the DTI will make available in the next financial year - subject to approval by Parliament of the relevant Estimates provision - any such grant-in-aid which is required to meet any liabilities at year end, such as creditors.
End-year flexibility
21. As set out in PES (2000)25, the Departments will aim to set firm multi¬year plans and cascade end-year flexibility (EYF) on budgets where possible. In particular, the Departments will aim to:
- agree, ahead of the year in question, a rolling three-year budget, fixed for at least the first year and with indicative amounts for subsequent years
- decide at that point the Design Council's likely entitlement to EYF against the overall Departmental position (having regard to any loss of EYF as a result of Departmental Expenditure Limit (DEL) Reserve claims made by the Departments) and Ministerial priorities, on the presumption that at least 80% of any under spend by the Design Council that represents slippage (as opposed to e.g. initial overprovision or abandonment of a project or programme) will normally be available for carryover in the area where it has arisen
- adjust (if necessary) and confirm the amount of EYF when accurate information is available in the Public Expenditure Outturn White Paper, taking account of outturn and of any DEL Reserve claims which might limit the EYF entitlement of the Departments themselves.
[NOTE: Unused grant-in-aid does not determine EYF. This is because grant-in-aid is outside the sponsoring Departments' DEL budget and merely contributes to the cash-financing mechanism for the Design Council. What hits the department's DEL budget is the actual spending of the Design Council in resource terms, whether or not financed by grant-in-aid. (Further details can be found in the SR2002 guidance: Annex C, on detailed budgeting rules.) It is therefore the Design Council's under spending in resource terms which generates the DEL EYF and which the department will aim to cascade down to the Design Council.]
Receipts from sale of goods or services
22. Receipts from the sale of goods and services (including certain licenses where there is a significant degree of service to the individual applicant), rent of land, and dividends are classified as negative public expenditure in national accounts and are therefore normally offset against the DEL (i.e., they provide additional DEL spending power).
23. If there is any doubt about the correct classification of a receipt the Design Council shall consult the DTI, who will consult the Treasury as necessary.
Fines, taxes and other receipts
24. Most fines and most taxes (including levies and some licenses) are not negative public expenditure and do not provide additional DEL spending power. Such receipts shall either be surrendered to the DTI or, if retained, shall either reduce the need for grant-in-aid or, if used to finance additional expenditure by the Design Council, shall require additional DEL cover from the DTI.
Interest earned
25. Any interest earned by the Design Council on its assets shall be given the same budgeting treatment as the cost of capital charge on the assets.
26. Under SR2002 budgeting rules (which operate from 2003-04), the cost of capital charge and any interest receipts on most DEL financed assets score as resource DEL.
27. If the receipts are used to finance additional expenditure by the Design Council, the DTI will need to ensure it has the necessary DEL cover. Any interest earned on cash balances arising from grant-in-aid or other Exchequer funds shall be treated as a receipt from an Exchequer source.
Unforecast changes in in-year income
28. If the negative DEL income realized or expected to be realized in-year is less than estimated, the Design Council shall, unless otherwise agreed with the DTI, ensure a corresponding reduction in its gross expenditure so that the authorized provision is not exceeded.
[NOTE: For example, if the Design Council is allocated £100 resource DEL provision by the DTI and expects to receive £10 of negative DEL income, it may plan to spend a total of £110. If income (on an accruals basis) turns out to be only £5 the Design Council will need to reduce its expenditure to £105 to avoid breaching its budget. If the Design Council still spends £110 the parent Department will need to find £5 of savings from elsewhere within its total DEL to offset this overspend.]
29. If the negative DEL income realized or expected to be realized in the year is more than estimated, the Board may apply to the DTI to retain the excess income for specified additional expenditure within the current financial year without an offsetting reduction to grant-in-aid. The DTI shall consider such applications, taking account of competing demands for resources. If an application is refused, any grant-in-aid shall be commensurately reduced or the excess receipts shall be required to be surrendered to the Exchequer via the DTI. (These arrangements are subject to the provisions set out under the heading Disposal of assets below.)
Build-up and draw-down of deposits
30. The Design Council shall comply with the rules that any DEL expenditure financed by the draw-down of deposits counts within DEL and that the build-up of deposits may represent a saving to DEL (if the related receipts are negative DEL in the relevant budgets).
31. The Design Council shall ensure that it has the necessary DEL provision for any expenditure financed by draw-down of deposits.
Proceeds from disposal of assets
32. Disposals of land and buildings are dealt with in Section VI below.
Gifts and bequests received
33. The Design Council is free to retain any gifts, bequests or similar donations. These shall be treated as receipts.
[NOTE: Donated assets do not attract a cost of capital charge, and a release from the donated assets reserve should offset depreciation in the operating cost statement.]
4. Before proceeding in this way the Design Council shall consider if there are any associated costs in doing so or any conflicts of interests arising. The Design Council shall keep a written record of any such gifts, bequests and donations and of their estimated value and whether they are disposed of or retained.
Receipts from the EC
35. Receipts from the European Community (if retained by the Design Council) only provide additional DEL spending power for the Design Council in accordance with Treasury directions on the treatment of EC receipts. Current treatment is set out in PES Paper (2003) 03.
Borrowing
36. The Design Council shall observe the rules set out in Section 29.5 of Government Accounting when undertaking borrowing of any kind. The Design Council shall seek the approval of the DTI to ensure that it has any necessary authority and budgetary cover for any borrowing or the expenditure financed by such borrowing. Medium or long term private sector or foreign borrowing is subject to the value for money test in Government Accounting.
37. Any expenditure by the Design Council financed by borrowing counts in DEL (provided that is the normal budgeting treatment for such expenditure).
Reserves
38. No grant-in-aid shall be paid into any reserve held by the Design Council. Funds in any reserve may be a factor for consideration when grant-in-aid is determined.
39. Subject to its delegated levels of authority the Design Council shall ensure that the creation of any additional posts does not incur forward commitments which will exceed its ability to pay for them.
Pay and conditions of service
40. The staff of the Design Council, whether on permanent or temporary contract, shall be subject to levels of remuneration and terms and conditions of service (including superannuation) within the general pay structure approved by the DTI.
41. Current terms and conditions for staff of the Design Council are those set out in its Employee Handbook. The Design Council shall provide the Departments with a copy of the Handbook and subsequent amendments.
42. The travel expenses of Board Members shall be tied to the rates allowed to senior staff of the Design Council. Reasonable actual costs shall be re-imbursed.
43. The Design Council shall submit its annual pay remit to the DTI for approval.
44. The Design Council shall comply with the EU directive on contract workers ["Fixed Term Employees Regulations (Prevention of Less Favorable Treatment")].
Pensions; redundancy/compensation
45. The Design Council has no occupational provision apart from stakeholder but membership of S2P, the state second pension (prior to 6 April 2002 the state earnings related pension scheme (SERPS).
46. Any proposal by the Design Council to move from the existing pension arrangements requires the approval of the Departments. Proposals on severance payments must comply with DAO (GEN) 04/02.
47. Subject to being above an agreed capitalization threshold, all expenditure on the acquisition or creation of fixed assets shall be capitalized on an accruals basis. Expenditure to be capitalized shall include the (a) acquisition, reclamation or laying out of land; (b) acquisition, construction, preparation or replacement of buildings and other structures or their associated fixtures and fittings; (c) acquisition, installation or replacement of movable or fixed plant, machinery, vehicles and vessels and (d) website development.
48. Proposals for large-scale individual capital projects or acquisitions will normally be considered within the Design Council's corporate planning process. Applications for approval by the Departments shall be supported by formal notification that the proposed project or purchase has been examined and duly authorized by the Board. Regular reports on the progress of projects shall be submitted to the Departments.
49. Within its approved overall resources limit the Design Council shall have authority to spend up to its delegated limits as detailed in the appendix on any individual capital project or acquisition. Beyond that delegated limit, the DTI's prior authority must be obtained before expenditure on an individual project or acquisition is incurred.
Transfer of funds within budgets
50. Unless financial provision is subject to specific Departmental or Treasury controls (e.g., where provision is ring-fenced for specific purposes), transfers between budgets within the total capital budget, or between budgets within the total revenue budget, do not need Departmental approval.
[NOTE: Under SR2002 budgeting rules (which operate from 2003-04) transfers from capital to resource budgets are not allowed.]
Lending, guarantees, indemnities; contingent liabilities; letters of comfort
51. The Design Council shall not, without the Department's prior written consent, lend money, charge any asset or security, give any guarantee or indemnities or letters of comfort, or incur any other contingent liability (as defined in chapter 26 of Government Accounting), whether or not in a legally binding form.
52. Any financial guarantees and indemnities given by the Design Council under Section four of the founding Royal Charter must be adequately covered against undrawn resources.
Grant or loan schemes
53. All proposals to make a grant or loan in excess of £20,000 to a third party, whether one-off or under a scheme, shall be subject to prior approval by the DTI, together with the terms and conditions under which such grant or loan is made. If grants or loans are to be made under a continuing scheme statutory authority is likely to be required.
54. The terms and conditions of grants or loans in excess of £20,000 shall include a requirement on the receiving organization to prepare accounts and to ensure that its books and records in relation to the grant or loan are readily available for inspection by the Design Council, the DTI and the C&AG.
55. See also below under the heading Recovery of grant-financed assets. Gifts made, write-offs, losses and other special payments
56. Proposals for making gifts or other special payments (including write-offs) outside the delegated limits set out in the Appendix to this document must have the prior approval of the DTI.
57. Gifts by management to staff are subject to the requirements of DAO (GEN) 13/01 and the associated Cabinet Office guidance on non-pay rewards.
Leasing
58. Prior DTI approval must be given for all finance leases. The Design Council must have capital DEL provision for finance leases and other transactions which are in substance borrowing (paragraphs 38-39 above). Before entering into any lease (including an operating lease) the Design Council shall demonstrate that the lease offers better value for money than purchase.
Design Council Estate
59. The Design Council must have an Estates strategy. This should follow Office of Government Commerce guidance and include a section justifying value for money derived from those properties retained for occupational purposes, properties held for investment purposes and the management process for both. This should be reviewed annually. A copy of the Design Council's Estate strategy must be sent to the Design Council departmental sponsor following each annual review. Unless otherwise agreed with the DTI prior departmental approval must be secured for all property and proposals exceeding the lower of 1000sgm or 5% of the Design Council's total estate. The delegation applies to new properties; lease renewals/extensions and the exercising of break clauses. Unless otherwise agreed all property leases outside delegation must be approved by DTI. Proposals must be supported by a business case and in relevant circumstances, a Gateway Review. Before entering into any lease the Design Council shall demonstrate that the lease offers better value for money than purchase. All property disposals, rent reviews, lease renewals and acquisitions must be carried out in co-ordination with the Office of Government Commerce. The estate should be managed in accordance with all good Government practice.
Public/Private Partnerships
60. The Design Council shall seek opportunities to enter into Public/Private Partnerships where this would be more affordable and offer better vfm than conventional procurement. Where cash flow projections may result in delegated spending authority being breached the Design Council shall consult the sponsor DTI.
61. Any partnership controlled by the Design Council shall be treated as part of the Design Council in accordance with UK GAAP and consolidated with it [subject to any particular treatment required by UK GAAP]. Where the judgment over the level of control is a close one the DTI will consult the Treasury (who may need to consult with the Office of National Statistics over national accounts treatment).
Subsidiary companies and joint ventures
62. The Design Council shall not establish subsidiary companies or joint ventures without the approval of the Departments.
63. Any subsidiary company or joint venture controlled or owned by the Design Council shall be consolidated with it in accordance with UK GAAP for public expenditure accounts purposes [subject to any particular treatment required by UK GAAP]. Where the judgment over the level of control is a close one the DTI will consult the Treasury (who may need to consult with the Office of National Statistics over national accounts treatment). Unless specifically agreed with the Departments, such subsidiary companies or joint ventures shall be subject to the controls and requirements set out in this management statement and financial memorandum, and to the further provisions set out in supporting documentation; such agreement shall not reasonably be withheld.
Financial investments
64. The Design Council shall not make any investments in traded financial instruments without the prior written approval of the DTI. It shall be permitted to build up cash balances or net assets appropriate for operational purposes and risk mitigation up to the delegated limit in the appendix. Equity shares in ventures which further the objectives of the Design Council shall equally be subject to an agreed delegated limit.
Unconventional financing
65. Unless otherwise agreed with the DTI, the Design Council shall not enter into any unconventional financing arrangement.
Commercial insurance
66. The Design Council shall not take out any insurance without the prior approval of the DTI, other than third party insurance required by the Road Traffic Acts, foreign travel insurance for employees and any other insurance which is a statutory obligation or which is permitted in paragraph 30.4.2 of Government Accounting.
67. The Design Council will be expected to cover any third party losses from its own budget but in exceptional circumstances the Departments may consider providing additional budget to cover the losses but each incidence will be considered entirely on its own merits.
68. A Certificate of Exemption for Employer's Liability Insurance has been issued to the Design Council.
69. The Design Council shall maintain an accurate and up-to-date register of its fixed assets.
Disposal of assets
70. The Design Council shall dispose of assets which are surplus to its requirements. Assets shall be sold for best price, taking into account any costs of sale. High value assets shall be sold by auction or competitive tender unless otherwise agreed by the DTI, and in accordance with Government Accounting, Chapter 24.
71. The Design Council may normally retain receipts derived from the sale of assets provided that:
- the DTI and the Treasury are content for the Design Council to retain these receipts
- they are used to finance other capital spending
- the DTI receives prior notification of individual sales in excess of £1,000 and
- total sales in any financial year do not exceed a specified limit [normally 3% of the Design Council's grant-in-aid (see PES (98)5)].
72. If, notwithstanding the above, the Design Council disposes of assets which have been purchased, improved or developed with Exchequer funds and the receipts amount to more than £1 million, or where the disposal has unusual features of which Parliament should be aware, Parliamentary approval shall be secured for the receipts to be reinvested. The receipts shall therefore be surrendered to the DTI, which shall then submit an Estimate seeking approval for the receipts to be appropriated in aid by the DTI and for a corresponding increase in the Design Council's grant-in-aid. If the proposed new investment exceeds the Design Council's relevant delegated authority the DTI's approval will be needed. If the proposed new investment is novel or contentious the Treasury's approval will be also needed.
73. If the criteria in para 73 above are not met, any receipts shall be dealt with in line with the rules on surplus in-year receipts (paragraph 29 above).
Recovery of grant-financed assets
74. Where the Design Council has financed expenditure on capital assets by a third party, the Design Council shall make appropriate arrangements to ensure that any such assets above a value of £1,000 are not disposed of by the third party without the Design Council's prior consent.
75. The Design Council shall therefore ensure that such conditions are sufficient to secure the repayment of the Exchequer's due share of the proceeds of the sale, in order that funds may be surrendered to the DTI.
76. The Design Council shall ensure that if the assets created by grants made by the Design Council cease to be used by the recipient of the grant for the intended purpose, a proper proportion of the value of the asset shall be repaid to the Design Council for surrender to the DTI. The amounts recoverable under the procedures in paragraphs 71-73 above shall be calculated by reference to the best possible value of the asset and in proportion to the Exchequer's original investment(s) in the asset.
77. No later than January before the beginning of each financial year, in the light of decisions by the Departments on the Design Council's corporate plan (Section 4.1 of the Management Statement), the Departments will aim to send to the Design Council:
- a formal statement of the annual budgetary provision allocated by the Departments in the light of competing priorities across the Departments and of any forecast income approved by the Departments and
- a statement of any planned change in policies affecting the Design Council.
78. The Design Council's annual business plan will take account both of its approved funding provision and of any forecast receipts, and will include a budget of estimated payments and receipts together with a profile of expected expenditure and of draw-down of any Departmental funding and/or other income over the year. These elements will form part of the business plan for the year in question (Section 4.1 of the Management Statement.)
79. Any grant-in-aid provided by a Department for the year in question will be voted in the Department's Estimate and will be subject to Parliamentary control.
General conditions for authority to spend
80. Once the Design Council's budget has been approved by the Departments, the Design Council shall have authority to incur expenditure approved in the budget without further reference to the Departments, on the following conditions:
- the Design Council shall comply with the delegations set out in the Appendix of this document. These delegations shall not be altered without the prior agreement of the DTI;
- the Design Council shall comply with the conditions set out in paragraph 12 above regarding contentious or repercussive proposals;
- inclusion of any planned and approved expenditure in the Design Council's budget shall not remove the need to seek formal Departmental approval where any proposed expenditure is outside the delegated limits or is for new schemes not previously agreed;
- the Design Council shall provide the Departments with such information about its operations, performance individual projects or other expenditure as the Departments may reasonably require (paragraph 82 below).
Providing monitoring information to the Department
81. The Design Council shall provide the DTI with, as minimum, information on a regular basis which will enable the satisfactory monitoring by the DTI of:
- the Design Council's cash management;
- its draw-down of any grant-in-aid;
- forecast outturn by resource headings;
- other data required for the Government Expenditure Monitoring Systems.
82. The Design Council's Finance Officer is permitted to manage day-to-day financial transactions. The Accounting Officer retains ultimate responsibility for ensuring that the Design Council's banking arrangements are in accordance with the requirements of Government Accounting and the Treasury guidance document Departmental Banking: a Manual for Government Departments. In particular he/she shall ensure that the arrangements safeguard public funds and are carried out efficiently, economically and effectively.
83. He/she shall therefore ensure that:
- these arrangements are suitably structured and represent value-for money, and are reviewed at least every two years, with a comprehensive review, usually leading to competitive tendering, at least every three to five years;
- sufficient information about banking arrangements is supplied to the DTI's' Accounting Officer to enable the latter to satisfy his/her own responsibilities (Section 3.6 of the Management Statement);
- the Design Council's banking arrangements shall be kept separate and distinct from those of any other person, Design Council or organization;
- adequate records are maintained of payments and receipts and adequate facilities are available for the secure storage of cash.
84. The Design Council shall comply with the following general guidance documents:
- this document (both the management statement and the financial memorandum);
- Government Accounting, including in particular the Accounting Officer Memorandum for NDPBs (reproduced in Chapter 8 of Government Accounting);
- Non-Departmental Public Bodies - a Guide for Departments (the "NDPB Guide"), issued by the Cabinet Office;
- Government Internal Audit Standards, issued by the Treasury;
- Managing the Risk of Fraud, issued by the Treasury;
- Executive NDPBs - Annual Reports and Accounts Guidance, issued by the Treasury;
- the Fees and Charges Guide, issued by the Treasury;
- Departmental Banking: A Manual for Government Departments, issued by the Treasury;
- relevant Dear Accounting Officer letters;
- Regularity and Propriety, issued by the Treasury;
- the Consolidation Officer Memorandum, issued by the Treasury;
- relevant Dear Consolidation Officer letters;
- other relevant guidance and instructions issued by the Treasury in respect of Whole of Government Accounts;
- other relevant instructions and guidance issued by the central Departments;
- specific instructions and guidance issued by the sponsor Department;
- recommendations made by the Public Accounts Committee, or by other Parliamentary authority, which have been accepted by the Government and which are relevant to the Design Council
85. This financial memorandum will normally be reviewed at least every five years or following a review of the Design Council's functions as provided for in Section 7 of the management statement.
86. The Treasury will be consulted on any significant variation proposed to this financial memorandum and the associated management statement.
5 December 2005
Design Council Delegated Limits
| EXPENDITURE |
LIMIT OF DELEGATION |
| Finance and estates leases |
In accordance with the requirements of this
Financial Memorandum. |
| Leasehold improvements |
£400k per project |
| IT/telecoms |
£250k per project |
| Other capital expenditure |
£100k per acquisition |
| Car Purchase |
None |
| Professional Consultants |
£50k per contract |
| Insurance |
To include foreign travel insurance, life
insurance, property insurance for 34 Bow Street
and ad hoc third party project insurance |
| STAFFING |
LIMIT OF DELEGATION |
| Number of staff below which the Design Council can operate with delegated authority |
100 |
| WRITE OFF |
LIMIT OF DELEGATION |
| Cash losses |
|
| Due to theft, fraud, arson or gross carelessness Physical losses of cash Losses of equivalent of cash (e.g. stamps) |
£2000 Per item and £25,000 pa (both limits apply)
|
| Unvouched and incompletely vouched payments |
£5,000 per item and £15,000 pa (both limits apply) |
| Charges to White Paper accounts to clear inexplicable debit balances |
£8,000 per item and £25,000 pa (both limits apply) |
Irrecoverable losses due to overpayments of
pay, fees, allowances and pensions, due to
miscalculation, misinterpretation of regulations
or to full facts not being available; (excluding
non disclosure of full facts by the beneficiary
short of fraud) or unauthorized issues of cash to individuals in the form of wages or allowances
e.g. where local officers have paid wages,
allowances or payments not admissible under
the regulations to civil servants, members of the
forces and members and staff of non-
departmental bodies |
£2,000 per item and £25,000 pa (both limits
apply) |
| Stores Losses |
|
Due to theft, fraud, arson or gross carelessness
Due to incidents of fire, weather, accidents and
natural causes |
£8,000 per item and £25,000 pa (both limits
apply) |
| Constructive Losses |
|
E.g. Stores or services, such as technical
advice, ordered and delivered but which have
proved not to be needed or less useful than
anticipated |
£8,000 per item and £25,000 pa (both limits
apply) |
| Claims waived or abandoned |
£8,000 per item and £25,000 pa (both limits
apply) |
| Special payments |
|
Compensation for loss of or damage to officers'
personal property while in the UK. (Subject to
the provisions laid down in the Civil Service
Management Code) |
£500 per item |
| Gifts |
£500 per item |
| Sale of assets |
£1,000 per item |
| CASH MANAGEMENT |
LIMIT OF DELEGATION |
| Maximum cash balance that can be retained |
10% of Grant in Aid |