FM 115
Date of issue: 7 November 2000

CANCELLATION OF PREVIOUS FM

1.     This FM supersedes FM 43 dated 14 May 1991 which is hereby cancelled.

2.     The purpose of this FM is to set out the powers delegated to PPARC by the OST and sub-delegated by the Chief Executive to each of the Establishment Directors and Director Administration, Swindon Office and also to explain the principles and procedures to be followed in exercising those powers.

4.    PPARC is in receipt of specific and limited delegated authority from OST to write off losses and/or make special payments and in exercising such authority is required to comply with the procedures set out in Government Accounting.

5.    Losses should only be written off or special payments authorised after a most careful appraisal of the facts and subject to the amounts involved falling within PPARC’s delegated authority.

DELEGATIONS

6.     The details of PPARC’s delegations are shown in Annex A to this FM. The classes of losses and special payments follow the definitions given in Chapter 36 of Government Accounting.

8.    PPARC’s Legal Liaison Officer, Personnel Group, Swindon Office, must be consulted at an early stage in the event of any proposal to make special payments under the categories set out at E 5, 6 and 7 in Annex A.

10.    Establishments are reminded that in the exercise of the authorities under these delegations reference should be made to the appropriate sections of Government Accounting – in particular Chapter 35 "Overpayments" and Chapter 36 "Losses and Special Payments"; and the Management Statement and Financial Memorandum (MS&FM) from OST, paragraphs 61 and 62.

11.    All cases exceeding the Establishment Director’s delegated authority must be referred to the Director Administration through the Head of Finance, PPARC, for authorisation.

12.    All cases exceeding PPARC’s delegated authority must be referred, with full supporting documentation, to the Director Administration through the Head of Finance, PPARC, for onward referral to OST.

LOSSES AND SPECIAL PAYMENTS RECORDS

13.     PPARC is required to keep a record of all losses and special payments, whether within delegated powers or not, and all losses sustained and special payments made have to be suitably recorded in the statement of accounts each year. Establishments should therefore maintain records of all losses and special payments authorised within the delegated authority of Establishment Directors. Each case must be fully documented (ie file reference, nature, gross amount, and cause of each loss, the action taken, total recoveries and date of write off where appropriate – see GA Ch 36) and all cases reported annually to the Head of Finance, PPARC.

LOSSES ON REPAYMENT SERVICES

14.     The rules governing charges for repayment services are set out in FM303 – Costing and Charging: Repayment Work. Every effort should be made to avoid losses under category A (6) ‘failure to make adequate charges for the use of PPARC property or services’ (see Annex A). As with other categories of loss or special payment, the reasons for the loss on repayment services must be fully documented and available for audit scrutiny. Such documentation must include an analysis of where target costs were not met eg original underestimate of staff effort required, unforeseen problems encountered, repayment contract terms inadequate to enable additional costs to be recovered.

15.     Any enquiries concerning the content or interpretation of this FM should be addressed to Jill Drinkwater, Propriety and Regularity Officer, PPARC Finance Division, Swindon Office, tel: 01793 442124, e-mail: jill.drinkwater@pparc.ac.uk

Jill Drinkwater
Propriety and Regularity Officer
PPARC Finance Division