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JSP 462 Financial Management Policy Manual JSP 462 Financial Management Policy Manual INTRODUCTION This revision covers JSP 462 Issue 9. Compiled by subject matter experts, JSP 462 brings together a mass of information contained in Departmental instructions, and provides MOD practitioners and others with clear guidance on our financial policy and processes. JSP 462 is in line with the Treasury Publication “Managing Public Money”. JSP 462 is owned by the Head Financial Management Policy and Accounting and is edited by Assistant Head Financial Management Policy and Accounting Governance (DFM- FMPA-Ahd-Governance). JSP 462 is updated on a rolling basis to reflect changes in policy and feedback received – correspondence should be addressed to DFM-JSP462- [email protected]. Changes will be announced through Money Matters On-Line Publication in Oct 13 and Apr 14 and noted in the Amendment Log of JSP 462 publication. JSP users should resist from printing off hard copies and if localised instructions are required these should link/refer to the current JSP to avoid duplication and possible obsolescence. Finally, we would like to thank JSP 462’s sponsors for their valued contributions. Those who have difficulty accessing JSP 462 from the defence intranet (see: Defence Intranet/Policy and Guidance/Finance/Corporate Finance Hub/JSP 462 Financial Management Policy Manual) should phone 9621 (MB) 83688. Please note JSP 462 is also available on the Internet – see link: www.gov.uk/government/publications/JSP 462 Financial Management Policy Manual. All Intranet links within this document are subject to MOD Personnel access only. JSP 462 Financial Management Policy Manual AMENDMENT LOG Log Date of Chapter Summary of Change Applicable Amendment Date Under Key Points/Difference between a Grant and Grant In Aid/first bullet point – revised detail covering empowerment through Legislation and Appropriation Act and delivering MOD financial 1 support in line with defence objectives through Grants or Grant In Aid (GIA). Second bullet point – additional sentence at end covering regular or recurring payments to external bodies must be treated as GIA. Under General Principals/Grant Control Arrangements/Paragraph Chapter 17 (Grants 3/first bullet point – revision May 13 May 13 and Grants In Aid) of detail regards MOD 2 delegation; third bullet point amended regards Grant payment control; additional three bullet points – now six bullet points under Paragraph 3 overall. Under General Principals/Guidance on Budget Management Tasks/Financial Scrutiny/Paragraph 11 – Additional two bullet points 3 at start regards main questions to be addressed during financial scrutiny covering within the Ambit of the Estimate; Legal Authority through Statute/Royal Prerogative. Page-1 JSP 462 Financial Management Policy Manual AMENDMENT LOG Log Date of Chapter Summary of Change Applicable Amendment Date Under General Principals/TLB’s responsibilities for GIA/Paragraph 6/new first bullet point covering 4 ensuring Statutory authority for the GIA; amendment to fourth bullet point covering provision of expenditure on GIA to be including within ABC and Supply Estimates. Under General Principals/Authority for Grants In Aid/Paragraph 7 – 5 request to Treasury should outline - new bullet “The Statutory authority for the Chapter 17 (Grants GIA”. May 13 May 13 and Grants In Aid) Under General Principals/Statutory authority for Grants and Grants In Aid/Paragraph 10 6 – additional sentence at end of paragraph on Statutory authority requirement for Grants and GIAs. Under General Principals/Financial Framework (FF) Document/Paragraph 14 – additional sentence at end 7 of paragraph regards payment of GIA without a valid framework in place represents irregular expenditure. Page-2 JSP 462 Financial Management Policy Manual AMENDMENT LOG Log Date of Chapter Summary of Change Applicable Amendment Date Under General Principals/Conditions attached to payment of Grants In Aid/Paragraph Chapter 17 (Grants 8 May 13 17/amendment to sixth May 13 and Grants In Aid) bullet point on the point of Grantees do not build up unacceptably large balances and TLB control measures. Under Background/Miscellaneous Personal Payments (MPPs) Chapter 12 (Cash 9 May 13 – new detail covering May 13 Feeder Processes) paragraphs 16 -18 covering Governance arrangements regarding MPPs. Governance arrangements Issue 9 New Chapter - relating to Advisory 10 Jun 13 Chapter 21 (Advisory Jun 13 Consultancy aligned to Consultancy) Cabinet Office Guidance Page-3 JSP 462 – Record of Chapters that have been removed under previous issues and a guide on where to look for subject detail now Chapter Subject Matter to be found in Number under Defence Intranet/Internet links former Issue 5 Chapter Title plus additional related links where released Mar available 09 Defence Intranet/Policy and An Introduction to Public Guidance/Finance/Corporate 1 Expenditure Finance Hub/Managing Public Money-Chapter 1-Responsibilities House of Commons UK Parliament/House of Commons 4 Departmental Select Committee Defence Committee Mentions Chief Accountants in relation to DFMS-IYM Requirements- 8 Chief Accountants DFM-DRAc all of which are covered within existing intranet sites-JSP 472 for DRAc. Defence 9 Defence Internal Audit Intranet/Policy/Finance/Audit Defence 10 The Defence Estate Intranet/Organisations/Defence Infrastructure Organisation (DIO) Defence Intranet/Policy/How 11 Agencies Defence Works/TLB/Overview of Agencies Defence 13 The MoD Accounting System Intranet/Organisation/HOCS/Defence Business Services (DBS)/Finance Defence Departmental Resource 14 Intranet/Policy/Finance/Annual Accounts Report and Accounts Defence Performance Reporting and Intranet/Libraries/Corporate/Ministry 16 Performance Management of Defence/How Defence Works- Defence Framework Defence Investment Appraisal and Intranet/Policy/Finance/Appraisal 17 Evaluation and Evaluation/Investment Appraisal (IA) Issue 9 Apr 13 1 JSP 462 – Record of Chapters that have been removed under previous issues and a guide on where to look for subject detail now Chapter Subject Matter to be found in Number under Defence Intranet/Internet links former Issue 5 Chapter Title plus additional related links released Mar where available 09 Health of Financial Systems removed as a chapter – re-titled Annual Financial Management Survey (AFMS) with effect November 2010 and will form Health of Financial Systems (this part of DG Finance’s Annual Chapter No became Chapter 8 Process Owner’s Report. See 19 under Issue 6 in 2010 and was link to Defence Intranet Site on subsequently removed from Issue 7 Process Owners: Defence 2011) Intranet/Policy/How Defence Works/Managing Defence/Process Owners and Defence Intranet/Finance/Finance Policy. Defence Intranet | Policy & 21 International Activities Processes | International organisations Defence Intranet | Library | DE&S 22 International Collaborative Projects Fin - MoU Handbook Defence Intranet/Reference/Corporate 23 Commemorative Events Finance Hub/JSP 368-MOD Guide to Repayment Chapter 2 Annex 2.3 Defence The Private Finance Initiative Under 24 Intranet/Organisation/DES/MOD Public Private Partnerships Commercial/Private Finance Unit Defence Intranet | Library | 26 Joint Business Agreements JBA11 Guidance | TLB Example Defence Intranet/Policy/Finance/Corporate Finance Hub/JSP 332-Low Value Purchasing; Defence 27 Contracts & Low Value Purchasing Intranet/Commercial-Acquisition Operating Framework (AOF)/Commercial Awareness Guide Defence Intranet/Policy/Finance/Corporate 29 The Government Procurement Card Finance Hub/JSP 895-MOD Simplified Purchase & Payment Process Manual Issue 9 Apr 13 2 JSP 462 – Record of Chapters that have been removed under previous issues and a guide on where to look for subject detail now Chapter Number under Subject Matter to be found in Defence former Chapter Title Intranet/Internet links plus additional related Issue 5 links where available released Mar 09 Defence Intranet/Reference/Corporate Finance Cost Recovery and 33 Hub/JSP 368-MOD Guide to Repayment; Defence Income Generation Intranet | Library | Selling Into Wider Markets Losses, Special Defence Intranet/Policy/Finance/Corporate Finance 36 Payments and Write- Hub/JSP 472-Financial Accounting Reporting Offs Manual-Chapter 12 Defence Intranet/Policy/Finance/Corporate Finance Corporate Hub/JSP 525-Corporate Governance; Defence 39 Governance Intranet/Policy/Finance/Corporate Finance Hub/JSP 892-Risk Management Defence Intranet/Policy/Finance/Corporate Finance Actual and 41 Hub/JSP 472-Financial Accounting Reporting Contingent Liabilities Manual-Chapter 13 Indemnities, Defence 42 Insurance and Intranet/Organisations/HOCS/DGTCS/DBR/Common Claims Law Claims and Policy Defence Intranet/Policy/Finance/Corporate Finance Hub/JSP 915-Tri Domestic Assistance Policy & 44 Official Entertainment Official Hospitality Policy for the Armed Forces and Civilians Irregularity Including Defence Intranet/Policy/How Defence 45 Fraud, Theft and Works/Managing Defence/Fraud Corruption Suggested relocation under Single Service Commanding Regulations – (see link to Army Personnel- 47 Officer’s Public Fund Allowances Policy as example: Defence Intranet | and Gainshare Library | Commanding Officer's Public Fund) Defence Intranet/Organisations/HOCS/MOD Art 48 Works of Art Collection Team Issue 9 Apr 13 3 JSP 462 Financial Management Policy Manual CONTENTS PUBLIC FINANCE Chapter 1 – Parliamentary Supply and the Government’s Financial Management Framework Chapter 2 – The National Audit Office and the Public Accounts Committee Chapter 3 – Treasury Delegations
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