Appendix 1 COMPLIANCE WITH GOVERNMENT-WIDE CORPORATE GUIDANCE AND INSTRUCTIONS
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this document;
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appropriate adaptations of sections of Corporate Governance in Central Government Departments: Code of Good Practice http://www.hm treasury.gov.uk/d/corporate governance good practice jul y2011.pdf
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Managing Public Money (MPM);
https://www.gov.uk/government/uploads/system/uploads/attachmednatta/file
/212123/Manaqing Public Money AA v2 - chapters annex web.pdf
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Government Internal Audit Standards, http://www.hm- treasury.qov.uk/psr governance gia guidance.htm:
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Management of Risk: Principles and Concepts: http://www.hm- treasury.gov.uk/d/orange book.pdf;
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Managing the Risk of Fraud, http:www.hm-treasury.qov.uk./..fraud guide for managers.pdf:
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Government Financial Reporting Manual (FReM), www.hm- treasury.gov.uk/frem index.htm;
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relevant Dear Accounting Officer letters;
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Regularity, Propriety and Value for Money, www.hm- treasury.qov.uk/psr governance valueformoney.htm;
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The Parliamentary and Health Service Ombudsman's Principles of Good Administration http://www.ombudsman.orq.uk/improving-public- service/ombudsmansprinciples/principles-of-qood-administration;
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Consolidation Officer Memorandum, and relevant DCO letters;
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relevant Freedom of Information Act guidance and instructions;
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Model Code for Staff of Executive Non-departmental Public Bodies (Cabinet Office);
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other relevant guidance and instructions issued by the Treasury in respect of Whole of Government Accounts;
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other relevant instruction and guidance issued by the central Departments;
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specific instructions and guidance issued by the NIO as sponsor department; and
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Recommendations made by the Public Accounts Committee, or by other Parliamentary authority, that have been accepted by the Government and relevant to the NIHRC.
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Cabinet Office Control Limits https://www.qov.uk/qovernment/publications/cabinet-office-controls-quidance version-3-1
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This Financial Memorandum sets out certain aspects of the financial framework within which the Parades Commission (PCNI) is required to operate.
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The financial memorandum should be read in conjunction with the Framework Document but may be supplemented by guidelines or directions issued by the NIO in respect of the exercise of any individual functions, powers and duties of the PCNI.
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The PCNI shall satisfy the conditions and requirements set out in the combined framework document, together with such other conditions as the NIO, Ministers or HM Treasury may from time to time impose.
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The PCNl's Secretary has been designated its accounting officer. The accounting officer is responsible and accountable to Parliament for ensuring that the uses to which the PCNI puts its funds are consistent with the purpose for which the PCNI was given the funds and that the uses comply with the conditions attached to them. The accounting officer is also responsible for the regularity and propriety of expenditure for those uses and for securing the best possible value for money from them. The full responsibilitiesof the PCNI are set out at section 3 of the Framework Document.
Expenditure not proposed in the annual budget
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The financial planning, reporting and budgeting requirements are set out in section 4 of the Framework Document.
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The PCNI shall not, without prior written NIO approval, enter into any undertaking to incur expenditure which falls outside the PCNI delegations or which is not provided for in the PCNI annual budget as approved by the NIO.
Timeliness in Paying Bills
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The Parades Commission shall collect receipts and pay all matured and properly authorised invoices in accordance with the NIO Prompt Payment Policy.
Novel, Contentious or Repercussive Proposals
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The PCNI shall obtain the prior written approval of the NIO before:
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incurring any expenditure for any purpose which is or might be considered novel or contentious, or which has or could have significant future cost implications, including on staff benefits;
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making any significant change in the scale of operation or funding of any initiative or particular scheme previously approved by the NIO;
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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.
Fees and Charges
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Fees or charges for any services supplied by the PCNI shall be determined in accordance with Managing Public Money, Chapter 61 "Fees. charges and levies". Receipts from Sale of Goods or Services and Capital
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If there is any doubt about the correct classification of a receipt, the PCNI shall consult the NIO, who will consult with HM Treasury as necessary.
Fines, Taxes and Other Receipts
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Receipts shall either be surrendered to the NIO or, if retained, shall either reduce the need for grant-in-aid or, if used to finance additional expenditure by the PCNI, shall require additional DEL cover from the Department.
Interest Earned
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If the receipts are used to finance additional expenditure by the PCNI, the NIO 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. Depending on the budgeting treatment of this receipt, and its impact on the PCNl's cash requirement, it may lead to commensurate reduction of grant-in-aid or be required to be surrendered to the Consolidated Fund via the NIO.
Unforecast changes in in-year income
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The PCNI may receive grants from other sources, with the NIO's approval, to fund additional work consistent with its statutory function, which would not otherwise have been funded from grant-in-aid. This negative DEL income must be used only for discrete projects approved by the NIO.
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If the negative DEL income realised or expected to be realised in-year is less than estimated, the PCNI shall, unless otherwise agreed with the NIO, ensure a corresponding reduction in its gross expenditure, so that the authorised provision is not exceeded.
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If the negative DEL income realised or expected to be realised in the year is more than estimated1 the Secretary may apply to the NIO to retain the excess income for specified additional expenditure within the current financial year without an offsetting reduction to grant-in- aid. The NIO 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 NIO.
Borrowing
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The PCNI shall not undertakeborrowing of any kind.
Reserves
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No grant or grant-in-aid shall be paid into any reserve held by the PCNI. Funds in any reserve may be a factor for consideration when grant-in-aid is determined.
Capital expenditure
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Subject to being above an agreed capitalisation threshold, all expenditure on the acquisition or creation of fixed assets shall be capitalised on an accruals basis.
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Proposals for large scale individual capital projects or acquisitions will normally be considered within the PCNI corporate planning process. Applications for approval by the NIO and, if necessary, HM Treasury shall be supported by formal notification that the proposed project or purchase has been examined and duly authorised by the PCNI. Regular reports on the progress of projects shall be submitted to the NIO.
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Within its approved overall resources limit, the PCNI shall, as indicated in the attached Appendix 3 on delegated authorities, have delegated authority in relation to capital expenditure. Beyond that delegated limit, the NIO's prior authority must be obtained before expenditure on an individual project or acquisition is incurred.
Transfer of funds within budgets - virement
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Unless financial provision is subject to specific controls (e.g., where provision is ring-fenced for specific purposes}, transfers within admin or programme or within the total capital budget do not need the NIO's approval.
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However, all other transfers are subject to the NIO's approval.
Gifts and Hospitality
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The PCNI should adopt a policy that is consistent with the NIO's procedures in relation to Gifts and Hospitality offered and received and maintain their own register.
Use of Consultants
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The PCNI will take into account the Department's policy and practice on the use and recruitment of external consultants. Please see the delegated limits set out in Annex 3.
Lending, Guarantees, Indemnities; Contingent Liabilities; Letters of Comfort
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The PCNI shall not, without the NIO'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 outlined in Managing Public Money: Chapter 5, Annex 5.4 and Annex 5.5), whether or not in a legally binding form.
Gifts Made, Write-offs, Losses and Other Special Payments
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Proposals for making gifts or other special payments (including write-offs) outside the delegated limits set out in Annex 3 of this document must have the prior approval of the NIO.
Unconventional Financing
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Unless otherwise agreed with the NIO, the PCNI shall not enter into any unconventional financing arrangement.
Leasing
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Prior NIO approval must be secured before the PCNI enters into any leasing agreement. Before entering into any lease (including an operating lease), the PCNI shall demonstrate that the lease offers better value for money than purchase.
Commercial insurance
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The PCNI shall not take out any insurance without the prior approval of the NIO, other than third-party insurance required by the Road Traffic Acts and any other insurance which is a statutory obligation or which is permitted in Managing Public Money.
Register of Assets
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The PCNI shall maintain an accurate and up-to-date register of its fixed assets.
Disposal of assets
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The PCNI 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 NIO), and in accordance with Managing Public Money.
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The PCNI may normally retain any benefit derived from the sale of assets provided that:
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the NIO and HM Treasury are content for the PCNI to retain this benefit;
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it is used to finance other capital spending;
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the NIO receives prior notification of individual sales; and
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total sales in any financial year do not exceed a specified limit to be agreed in advance with the NIO.
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If, notwithstanding the above, the PCNI disposes of assets which have been purchased, improved or developed with Exchequer funds and the benefits 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 benefit to be reinvested. Any receipts shall therefore be surrendered to the NIO, which shall then submit an Estimate seeking approval for any new arrangements for reinvestment.
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If the criteria in paragraph 29 above are not met, any receipts shall be dealt with in line with the rules on surplus in-year receipts.
Review
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This financial memorandum will normally be reviewed by the NIO and PCNI as set out in section 1 of the Framework Document.