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JSP 462 Part 2:Guidance-1St Consolidated DRAFT Under Revised Format JSP 462 Financial Management and Charging Policy Manual Part 2: Guidance JSP 462 Pt 2 (V3.0 Dec 15) JSP 507 Pt.1 (V6. Jan 14) Foreword Part 2 of this JSP provides guidance in accordance with the policy set out in Part 1 of this JSP; the guidance is sponsored by the Defence Authority for Financial Management and Approvals. It provides policy-compliant business practices which should be considered best practice in the absence of any contradicting instruction. However, nothing in this document should discourage the application of sheer common sense. i JSP 462 Pt.2 (V3.0 Dec 15) Preface How to use this JSP 1. JSP 462 is intended as a practical source of reference on the Department’s financial management policies and processes in line with the Treasury’s publication ‘Managing Public Money’. It is designed to be used by staff responsible for managing Defence resources, either directly or indirectly. This JSP contains the policy and direction on a range of financial management topics, with particular emphasis on those that may present issues in practice from a governance perspective. It also contains guidance on the processes involved and good practice to apply in order to ensure that the Department’s financial resources are used in a way that meets Treasury’s expectations, i.e. to spend money wisely, with probity and in the public interest. This JSP will be reviewed at least annually. 2. The JSP is structured in two parts: a. Part 1 - Directive, which provides the direction that must be followed in accordance with Statute, or Policy mandated by Defence or on Defence by Central Government. b. Part 2 - Guidance, which provides the guidance and best practice that will assist the user to comply with the Directive(s) detailed in Part 1. Coherence with other Defence Authority Policy and Guidance 3. Where applicable, this document contains links to other relevant JSPs, some of which may be published by different Defence Authorities. Where particular dependencies exist, these other Defence Authorities have been consulted in the formulation of the policy and guidance detailed in this publication. Related JSPs Title JSP 462 Pt 1 Financial Management and Charging Policy Manual Further Advice and Feedback- Contacts 4. The owner of this JSP is DFinStrat-FMPA-FinPol-AHd-1. For further information on any aspect of this document, for questions not answered by contacting the Subject Matter Experts identified within the relevant Chapters, or to provide feedback on the content, including reporting defective links contact: Job Title/E-mail Project focus Phone DFinStrat-FMPA-FinPol-AHd-1 JSP Owner 9621 86949 DFinStrat-FMPA-FinPol-2c Editor 9621 83688 ii JSP 462 Pt.2 (V3.0 Dec 15) Contents Page Nos Foreword i Preface ii How to use this JSP .................................................................................. ii Coherence with other Defence Authority Policy and Guidance ............ ii Further Advice and Feedback - Contacts ................................................ ii Contents iii Guidance for the Reader ........................................................................... 1 Chapter 1 - Parliamentary Supply and the Government's Financial Framework .................................... 2 Chapter 2 - The National Audit Office and the Public Accounts Committee .............................................................................. 6 Chapter 3 - Financial Delegations and the Role of Directors of Resources, Budget Holders and Managers ....................... 10 Chapter 4 - Responsibilities of Accounting Officers ............................ 15 Chapter 5 - The Annual Budget Cycle Process and In-Year Financial Management ........................................................................ 16 Chapter 6 - Operations ........................................................................... 28 Chapter 7 - Sponsorship ......................................................................... 29 Chapter 8 - Advance, Interim and Deferred Payments ......................... 47 Chapter 9 - Authorisation and Payment of Invoices ............................. 48 Chapter 10 - Cash Feeder Processes .................................................... 49 Chapter 11 - Debt Management .............................................................. 51 iii JSP 462 Pt.2 (V3.0 Dec 15) Contents (contd.) Page Nos Chapter 12 - Gifting of Surplus Assets, and Provision of Exchanges of Gifts with Foreign Counterparts and Corporate and Promotional Items ............................. 53 Chapter 13 - Grants and Grants in Aid .................................................. 56 Chapter 14 - Regularity and Propriety in Public Expenditure .............. 62 Chapter 15 - Official Hospitality (OH)..................................................... 64 Chapter 16 - Seasonal Festivities .......................................................... 65 Chapter 17 - Third Sector Funding ........................................................ 66 Chapter 18 - Advisory Consultancy ....................................................... 67 Chapter 19 - Charging ............................................................................. 71 Annexes Annex 1 - Engagement with the NAO - Step by Step Process ............. 98 (Chapter 2) Annex 2 - NAO Study Co-Ordinator - Sample Letter of Appointment from PUS .................................................... 102 (Chapter 2) Annex 3 - PUS' Letter of Delegation .................................................... 104 (Chapter 3) Annex 4 - PUS' Letter of Designation .................................................. 113 (Chapter 3) Annex 5 - Role of In-Theatre Policy Advisors (POLADs) and Civil Secretaries ............................................................................ 115 (Chapter 6) Annex 6 - Sponsorship Process Flow Chart ....................................... 119 (Chapter 7) iv JSP 462 Pt.2 (V3.0 Dec 15) Annexes (contd.) Annex 7 - Sponsorship Checklist ........................................................ 120 (Chapter 7) Annex 8 - Sponsorship Business Case Template .............................. 121 (Chapter 7) Annex 9 - Reporting Sponsorship Agreements .................................. 123 (Chapter 7) Annex 10 - Cash Feeder Transaction Coding Errors and Corrective Action .................................................................................. 125 (Chapter 10) Annex 11 - Steps in the Decision-Making Aspects of the Recovery Process ............................................................................... 128 (Chapter 11) Annex 12 - Defences Against Repayment ........................................... 129 (Chapter 11) Annex 13 - The Limitation Act .............................................................. 132 (Chapter 11) Annex 14 - Gifting Process Diagram ................................................... 134 (Chapter 12) Annex 15 - Example Departmental Minute .......................................... 135 (Chapter 12) Annex 16 - Example Letter Seeking HM Treasury Approval .............. 137 (Chapter 12) Annex 17 - Example Ministerial Submission ....................................... 139 (Chapter 12) Annex 18 - Example Written Ministerial Submission .......................... 142 (Chapter 12) Annex 19 - Application for Gifting of Surplus MOD owned equipment ........................................................................... 143 (Chapter 12) v JSP 462 Pt.2 (V3.0 Dec 15) Annexes (contd.) Annex 20 - Disposal Authorisation Form ............................................ 148 (Chapter 12) Annex 21 - Notification of Risks ........................................................... 149 (Chapter 12) Annex 22 - Example Exceptional Gifting Authority Form .................. 150 (Chapter 12) Annex 23 - Template Form of Agreement to Pay a Grant ................... 151 (Chapter 12) Annex 24 - Template Financial Framework Document ....................... 152 (Chapter 13) Annex 25 - Model Letter of Appointment - Accounting Officer .......... 162 (Chapter 13) Annex 26 - Mixing of Public and Non-Public Funds on the Defence Estate………………….………………………………165 (Chapter 14) Annex 27 - The Bribery Act 2010 .......................................................... 167 (Chapter 14) Annex 28 - Conflict of Interest.............................................................. 170 (Chapter 14) Annex 29 - Defence Activity that may be supported by OH ............... 172 (Chapter 15) Annex 30 - Types of Hospitality ........................................................... 174 (Chapter 15) Annex 31 - What can be offered to support a Working Function....... 176 (Chapter 15) Annex 32 - Official Entertainment Indicative Rates ............................ 178 (Chapter 15) vi JSP 462 Pt.2 (V3.0 Dec 15) Annexes (contd.) Annex 33 - TLB/ALB Advisory Consultancy Focal Points Terms of Reference ........................................................................... 180 (Chapter 18) Annex 34 - Categorisation of Advisory Consultancy and Resource Account Codes .................................................................. 181 (Chapter 18) Annex 35 - Activities not Classed as Advisory Consultancy ............. 185 (Chapter 18) Annex 36 - Business Case Template ................................................... 188 (Chapter 18) Annex 37 - Financial Conditions for a Memorandum of Understanding (MOU) - Minimum Conditions for the Main Body ............................................................... 190 (Chapter 19) Annex 38 - Financial Conditions for a Memorandum of Understanding (MOU) - Additional more
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