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FM 107 CONSOLIDATED FUND
1. This FM describes what the Consolidated Fund is and outlines the circumstances under which receipts may have to be surrendered to the Consolidated Fund. Further information concerning PPARC’s general funding procedures and accounting for receipts can be found in FM 104 and PPARC’s annual accounts in FM 105. 2. The Consolidated Fund is the Government’s current account, kept by the Treasury at the Bank of England - most Government payments and receipts pass through this account. (See the Government Accounting Glossary and GA chapter 22, paragraphs 22.1.3 to 22.1.5.) PAYMENTS FROM THE CONSOLIDATED FUND 3. Payments from the Consolidated Fund comprise:
These are payments for services which Parliament has decided by statute should be met directly from the Consolidated Fund eg the Civil List. They are thus made independently of the money voted annually by Parliament. Supply Services PAYMENTS INTO THE CONSOLIDATED FUND 4. The Treasury prescribes the mechanics of how and when revenue is paid into the Consolidated Fund.5. Payments into the Consolidated Fund comprise: Receipts from taxation. Miscellaneous revenue. CONSOLIDATED FUND EXTRA RECEIPTS (CFERs) 7. CFERs are receipts realised or recovered by departments in the process of conducting services charged on the public funds, which are not authorised to be appropriated in aid of expenditure. Examples include excess appropriations in aid. (See Glossary to FM 105.) An example more appropriate to PPARC is bank interest received.SURRENDERS TO THE CONSOLIDATED FUND OF CFERs 8. During the course of the year, cash balances accumulated from grant-in-aid are kept at the minimum level consistent with the efficient operation of PPARC. If a cash surplus should occur, it must remain in PPARC’s Paymasters account or be placed on deposit until it can be used. Any interest earned on these deposits must be returned to the Exchequer as CFERs. (PPARC’s MS&FM para 50 and GA chapter 28.5.29 refer.)9. The timetable for payments of CFERs to the Exchequer is set out in the annual timetable issued by OST to PPARC. The current timetable requires biannual CFERs payments in March and September. CFERs are surrendered centrally by Swindon Office on behalf of the Establishments, and will be accounted for by issuing an appropriate inter-establishment advice note to credit Swindon Office with the receipt. 10. The separate recording and monthly reporting of all CFERs is required, with Establishments sending the returns monthly to PPARC Finance Division, Swindon Office. 11. PPARC is required to surrender any recurrent grant-in-aid in excess of 2% of grant-in-aid income held at the end of the financial year unless a case for additional retention is agreed by the Secretary of State and the Treasury. (PPARC’s MS&FM para 51 refers.) 12. Lapsed payable orders should be included in the calculation of the 2% excess grant-in-aid calculation. (See GA 12.3.13.) 13. In addition, subject to the grant-in-aid not having been paid by OST, PPARC may carry forward recurrent grant-in-aid provision up to 3% of grant-in-aid approved by Parliament. A case for additional carry forward may be made, through Swindon Office, to the Secretary of State. Where the Secretary of State does not agree, any grant-in-aid that cannot be carried forward must be repaid to the OST for surrender to the Consolidated Fund. (PPARC’s MS&FM para 52 refers.) In practice, these arrangements are handled by PPARC Finance Division, Swindon Office, and the OST and are based on the total PPARC Science Board allocation against all forecast net expenditure at the end of each financial year. Each year OST consults PPARC on the forecast end of year position and any sums to be carried forward in excess of the 2% recurrent are reflected in the Spring Supplementary Estimates. 14. Detailed instructions
for the year end surrender procedure timetable are issued annually by OST to
PPARC. Appropriate instructions are issued to the Establishments by PPARC
Finance Division, Swindon Office.
Capital Grant in Aid
Last updated 29 June 2001 |