Introduction to JAC Finances

OVERVIEW
Overview	JAC is directly accountable to the Science & Technology Facilities Council (STFC) which is a UK Non-Departmental Public Body (NDPB). STFC is sponsored, as an NDPB, by the Office of Science and Technology (OST) as part of the Department of Trade and Industry (DTI). NDPBs , though not government departments, are bound by the UK government accounting framework and must abide by the standards expected in public life. JAC's activities are also subject to external audit.
Propriety & Regularity	As an employee of JAC YOU have a responsibility to consider the propriety and regularity of all actions undertaken on behalf of JAC. Government Accounting (GA) definitions: Propriety- is the requirement that expenditure and receipts should be dealt with in accordance with Parliament's intentions and the principles of Parliamentary control, including the conventions agreed with Parliament i.e. only spend money for the purpose intended Regularity- is the requirement for all items of expenditure and receipts to be dealt with in accordance with the legislation authorising them, any applicable delegated authority and the rules of government Accounting i.e. follow the financial rules as laid down at JAC
Seven Principles of Public Life	Selflessness You should take decisions solely in terms of the public interest. You should not do so in order to gain financial or other material benefits for yourself, your family, or their friends. Integrity You should not place yourself under any financial or other obligation to outside individuals or organisations that might influence you in the performance of your official duties. Objectivity In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, You should make choices on merit. Accountability You are accountable for your decisions and actions to the public and must submit yourself to whatever scrutiny is appropriate to your office. Openness You should be as open as possible about all the decisions and actions that you take. You should give reasons for your decisions and restrict information only when the wider public interest clearly demands. Honesty You have a duty to declare any private interests relating to your public duties and to take steps to resolve any conflicts arising in a way that protects the public interest. Leadership You should promote and support these principles by leadership and example.
JAC FINANCES
Delegated Authority	Each year JAC's expenditure limit is set by STFC with advice from the two Telescope Boards and JAC's partners. The responsibility and accountability for this expenditure is delegated by the Chief Executive Officer (CEO) of STFC to the Director of JAC. The Director in turn delegates the control and responsibility for expenditure to individuals in JAC.
Budgets	All expenditure in JAC must be authorised by the individual who has responsibility for that type of expenditure. Types of expenditure are categorised by the activity being carried out and by the type of expense, staff costs, travel etc. Each of these types of activities and expense have codes, in JAC these are known as Activity Codes and Expense or Account Codes. The individual responsible for the Activity/Expense budget, the main budget holder, may give other individuals authority to authorise expenditure within that budget. A list of activity codes, expense types and the main Budget Holder and their nominees may be found in Financial Responsibility
Purchasing	Orders involving "off-the-shelf" items costing a total of up to $1,000 (including all "extras" such as Tax, shipping and handling charges, etc), may be placed directly by budget holders or their nominees without further authorisation. Orders between $1000 and $5000 may also be placed directly but the main budget holder will be asked to counter-sign the order if a nominee has placed the order. In these cases the main budget holder's role is to ensure the goods being ordered are appropriate for the work being carried out. If the goods or services being ordered cost between $5,000 and $30,000 the orderer must first ensure value for money by getting quotes for the goods from different suppliers. The quotes can be gained from the internet, catalogues etc. The quotes must be logged with the Finance Officer. Orders must be placed using the Finance System. For more information about using the Finance System contact the Accounts Clerk. Payment for the item will be made once the supplier has invoiced JAC. Payment will not be made in advance apart from in exceptional circumstances. Purchases for items over $30,000 are subject to formal tender requirements, where suppliers must be approached to submit a tender for the service or item in order to ensure the best price is secured and fair practises are followed. The Finance Officer (Christine Campbell) carries out this tendering process and must be contacted before proceeding with this type of purchase. More information on purchasing may be found in Introduction to Purchasing.
Fixed Assets Portable & Attractive Items	As a NDPB, JAC is required to keep a list of its valuable fixed assets. The assets are subject to an annual audit and to procedures as to their disposal. JAC defines a fixed asset as any item that cost over $4500 (including "extras" and will last more than one year, or was produced internally for continuing use in STFC). Under new government accounting rules, Resource Accounting and Budgeting (RAB), the cost of fixed assets is spread over the life of the asset as depreciation. STFC receives funding to cover depreciation costs in the same way as the "cash" funding. The Accounts Section will identify items that should be added to the Fixed Asset Register. The "owner" (budget holder) of the item will receive a fixed asset label that should be attached (where possible) to the fixed asset. It is the responsibility of the budget holder to notify Accounts if: � the item is moved from the location where it was originally when purchased (this includes moving between rooms at the sea level office) or is passed to the responsibility of another individual; � the item is disposed of (sold or thrown away); � the item is stolen, lost or otherwise no longer in JAC's possession; � the item becomes redundant and could be sold or should be thrown away. More information on your responsibilities Your Responsibilities as an Asset Owner or User Before each annual audit each owner will be sent a list of the items they are responsible for. Each must check and confirm the details of each asset as held by Accounts. Keeping track of assets can be tiresome and appear to be a bureaucratic nuisance. However, remember that public money was spent on purchasing/building the item in question and it is our responsibility to ensure that it is safeguarded. As well as fixed assets, JAC must keep a list of items that are considered "portable and attractive", items that may be more liable to being stolen or "misappropriated". These items also have labels attached to them and are subject to annual audit.