FM 203
Date of issue: 24 November 2000

1.     The purpose of this FM is to provide general guidance on the receipt and giving of gifts, hospitality and other benefits. Disposal of obsolete and surplus equipment by gifting is covered in FM 406 and details of the level of PPARC’s delegated authority for gifts and prizes appear in Annex A to FM 101.

2.     In line with the guidance issued by Treasury in its booklet "Regularity and Propriety" and Government Accounting (Chapter 34), the Management Statement and Financial Memorandum (MS&FM) issued to PPARC by the OST states (paragraph 64):

" A record of gifts (with a value of £10 or more) and material hospitality (other than diplomatic activity or events hosted by HMG) both given and received, should be kept. Individuals are expected to decline gifts unless to do so would cause serious embarrassment and to consider carefully whether it is appropriate to accept an invitation. All gifts with a value in excess of £25 (£75 for gifts from foreign governments or international organisations) should be surrendered."

4.     There are principles that apply to ethical behaviour in purchasing (see Annex A to FM 401), which can equally be applied in other areas of PPARC business. These are:

• The conduct of individual public servants should not foster the suspicion of any conflict between their official duty and their private interest;

• The action of individual public servants in an official capacity should not give the impression to any member of the public, to any organisation with whom they deal or to their colleagues that they have been or may have been influenced by a gift or consideration to show favour or disfavour to any person or organisation;

• Dealings with suppliers must at all times be honest, fair, even-handed and transparent;

• Ethical behaviour must be promoted and supported by appropriate systems and procedures.

5.     The main question staff should ask themselves when considering whether or not to give or accept a gift, hospitality or similar benefit is "could I satisfactorily defend this before the Public Accounts Committee and the public?" If the answer is no – they should not proceed to make the gift or accept the offer!

6.     Staff offered a gift, hospitality or other benefit should ask themselves a series of questions starting with:

• Why me?

• Why am I being offered this gift/meal/accommodation/prize/honour etc?

• Does the giver expect anything from me in return?

• Could receipt of this gift/hospitality be perceived to be a bribe?

• Am I in a position to influence any decision relating to the relationship between PPARC and the giver?

7.     If a satisfactory, legitimate, answer to the first two questions cannot be provided and/or the answer to the last three is "Yes" then the offer should be politely but firmly declined. Acceptance under these circumstances would, at the very least, appear suspicious and could even be illegal (see Annex A to this FM).

8.     No money or expensive gift should be accepted by any individual for any purpose or reason. Any such offer should be declined, the matter reported immediately to line management and a written record kept of the offer.

9.     The provision of hospitality by suppliers, commercial contractors and consultants may represent an attempt to circumvent PPARC policy on the acceptance of gifts. This can take many forms – most common are:

• working lunches and other meals;

• invitations to sporting, cultural and/or social events; and

• the above together with transport and/or accommodation.

10.     Particular care and consideration should be given to offers of hospitality from ex colleagues and friends who may have returned, or wish to return, to PPARC employment on a casual or short term contractual basis. If you are in a position to influence the employment, contract or bid for work, or may have inside information of use to an ex colleague in their new position outside PPARC, you should report and declare an interest to your line management so that the relationship remains as transparent as possible and you can not be perceived to have shown favour or influence. You should decline any offer of hospitality and ensure that your relationship is documented in the record of "Related Party Transactions" held by the Director Administration.

11.     The offer of small gifts or hospitality is an accepted part of commercial life. Care must be taken not to offend or damage relationships with suppliers when declining such offers but usually a simple explanation that acceptance is against PPARC policy will suffice. However, there are times when it could cause offence or appear discourteous to refuse the offer of a token gift, hospitality or a more substantial gift eg from foreign Governments or large overseas contractors. It may also be appropriate to offer a similar gift in return and each case should be referred to the Establishment Director in the first instance or, in the Director’s absence, the Establishment Head of Personnel who should consider the case on it’s merits. All gifts should be recorded in the Gifts and Hospitality Register held by each Establishment Director.

12.     Acceptable gifts are ones of a trivial or inexpensive seasonal nature eg simple diaries, calendars and desk top trivia.

13.     Hospitality which arises in the normal course of business ie lunches provided at meetings with suppliers, promotional events and seminars organised by suppliers, may be accepted where conventions of returning hospitality in principle apply. A useful guide is that if the hospitality offered is beyond that which PPARC itself would provide in similar circumstances then it should be declined.

14.     Staff should be aware that the giving of gifts and hospitality by public officials may give rise to impropriety where these may be perceived as an inappropriate use of public funds. This is particularly so where the official benefits personally from hospitality given to others or can expect to receive similar or more expensive hospitality in return. A sensible balance should be struck eg it would be acceptable to provide (or receive) a semi social lunch, at an un-extravagant venue, part way through a contract as this could be a very useful way of keeping in touch and supporting day-to-day relationships with contractors. However, lavish entertaining and foreign trips are usually very difficult to justify.

15.     The production and giving of PPARC promotional items for advertising/public relations/increasing the public understanding of science purposes, should be confined to inexpensive items such as those referred to in paragraph 12 above. The reasoning and justification for the supply of such items should be fully documented. Proposals to make gifts of promotional items to staff must be referred for prior approval to the Director Administration.

Protocol Gifts

16.     Establishment Directors [and the Head of CAD] are empowered to make protocol gifts within the limits set out in Annex A to FM 101. In determining when it is appropriate to make such gifts, Establishment Directors should have regard to the nature and significance of the event and the cultural expectations of the intended recipients. The presentation of gifts to visiting officials or dignitaries should not be regarded as an automatic part of every visit.

17.     In the rare event there is a perceived need to supply a gift or hospitality which exceeds the level of delegated authority as stated in Annex A to FM 101, a written request must be submitted to the Director Administration. The request should include full details of the proposal eg the proposed recipient, the total cost, the nature of the gift/hospitality, and details of why it is felt appropriate to provide the proposed gift/ hospitality. The Director Administration will, where necessary, arrange for the case to be submitted to OST.

THE GIFTS AND HOSPITALITY REGISTER

General

18.     Any gift valued over £10 and any material hospitality (see para 15) both given and received must be notified to and recorded in the Gifts and Hospitality Register (example copies at Annex B) held by PPARC Directors and submitted annually to Swindon Office with each Directors Annual Assurance Statement on Internal Control (DAASIC).

19.     What is "material hospitality"? As a general rule, for transparency, all cases of hospitality, beyond an inexpensive working lunch, should be recorded.

20.     The best way to prevent misinterpretation of the giving and/or receiving of unavoidable gifts and hospitality is to be as transparent as possible about it. Anyone in a position of influence who has any form of personal interest must disclose it. If there is any doubt about the need to record the gift or receipt then it should be notified to line management and, if necessary, registered with the appropriate Director for onward reporting to Swindon Office with the DAASIC.

21.     Any gift accepted over £25 in value must be surrendered to the appropriate Director who will record it’s receipt in the Gifts and Hospitality Register, decide how to utilise, dispose of or display the gift and maintain a record of it’s fate.

22.     Any unsolicited gift received from suppliers eg Christmas gifts, should be reported immediately to your line manager, if valued over £10 it must be recorded in the Gifts and Hospitality register and, if necessary, surrendered to the Establishment Director.

23.     Any member of staff in doubt about whether or not it would be appropriate to either give or receive a gift, or whether to provide or accept an offer of hospitality, should seek advice from their Establishment Finance Officer or the Propriety and Regularity Section of PPARC Finance Division, Swindon Office.

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

Jill Drinkwater
Propriety and Regularity Section
PPARC Finance Division

2.5 Acceptance of gifts, rewards, etc.

2.5.1     The utmost care and discretion is needed in dealing with the offer of gifts or hospitality from contractors or their representatives or from other organisations, firms or individuals having official dealings with the Council. Whether these can properly be accepted depends on their nature and on the circumstances. Similar care is necessary before accepting awards, decorations or gifts from foreign governments. When acting in an official capacity, employees must take care that their actions do not give the impression to any member of the public, to any organisation with which they deal or to their colleagues that they have been or may have been influenced by a gift or consideration to show favour or disfavour to any person or organisation.

2.5.2     Precise rules cannot be laid down but employees having contact with contractors etc. should be on their guard against accepting anything which could later be construed as reflecting adversely upon their integrity or impartiality. Any employee who has doubts about the propriety of accepting any gift, reward or benefit should seek advice from the Chief Contract Officer [ie the Head of Procurement]. More detailed guidance is set out at Appendix B.

Appendix B to CEM 8A

1.1    It is essential that all employees, particularly those who have regular contact with contractors or their representatives or with other organisations, firms or individuals having official dealings with the Council, should understand the attitude to be adopted in relation to the acceptance of gifts, rewards, hospitality and other considerations. This Appendix sets out appropriate guidance.

2.    THE LAW IN RELATION TO CORRUPT GIFTS

2.1    It is an offence under the Prevention of Corruption Acts, 1889 to 1916 for Council employees in their official capacity to accept any gift or consideration as an inducement or reward for:

(a)    doing or refraining from doing, anything; or

(b)    showing favour or disfavour to any person.

2.2    Under the Prevention of Corruption Acts, any money, gift, or consideration received by a Council employee from a person or organisation holding or seeking to obtain a Council contract will be deemed by the courts to have been received corruptly unless proved to the contrary.

3.1    Employees who are in any doubt about the propriety of accepting a gift or an item of hospitality should seek advice from their Chief Personnel Officer.

3.2    The following are examples of offers which may be accepted:

i)    occasional, trivial and inexpensive items, e.g. diaries, calendars;

ii)    conventional hospitality i.e. working lunches and working dinners, annual dinners of bodies with which the Council has regular contact;

iii)    occasional tickets to sporting and cultural events. Acceptance should be limited to isolated occasions and should be shown to be in the interests of the Council. Offers of tickets to sporting, cultural and social events must be declined where acceptance provides no obvious benefit to the Council.

4.1    Special considerations apply to gifts, hospitality and decorations from overseas Governments or Government organisations. Where it is considered that the refusal of a gift may appear to be discourteous, or that a gift should be offered in return, the Chief Personnel Officer should be informed. In cases of doubt, advice should be obtained from the Foreign and Commonwealth Office.

4.2    If the gift is accepted its receipt should, in all cases of significant value, be reported to the Council’s Finance Officer. It is then open to the Council to follow one of the following courses:

i)    the gift may be disposed of by sale;

ii)    it may be retained by the Council. Where appropriate, arrangements will be made for the recipient to use or display the gift on some future occasion as a mark of politeness;

iii)    in appropriate cases the recipient may be allowed to retain it.