INVOICING THRESHOLD BETWEEN BOARDS AND NPD

PURPOSE
To provide clear instructions on when Boards and NPD should raise invoices to each other.

Probation Circular
REFERENCE NO: 10/2004 ISSUE DATE: 28 January 2004 IMPLEMENTATION DATE: 1 February 2004 EXPIRY DATE: February 2009 TO: Chairs of Probation Boards Chief Officers of Probation Secretaries of Probation Boards Treasurers of Probation Boards CC: Regional Managers AUTHORISED BY: Mike DuBock Head of Finance ATTACHED: N/A

ACTION
Boards will not raise invoices to other Boards or NPD for amounts under £500. NPD will also not invoice Boards for amounts under £500. This is effective from Monday 2 February 2004. Boards will not raise invoices relating to 2003-04 to other Boards or NPD after Monday 1 March. Any amounts owing after this cut off date must be accrued.

SUMMARY
From 2 February 2004 Boards will not raise invoices to each other or to NPD for less than £500. NPD will also not invoice Boards for items of less than £500.

RELEVANT PREVIOUS PROBATION CIRCULARS
None

Janet Dowding, Finance Unit, 1st Floor, Horseferry House 020 7217 0724 janet.dowding@homeoffice.gsi.gov.uk

CONTACT FOR ENQUIRIES

National Probation Directorate
Horseferry House, Dean Ryle Street, London, SW1P 2AW General Enquiries: 020 721

Enforcement, rehabilitation and public protection

Invoices under £500 1. Currently Boards are invoicing NPD and other Boards for services rendered, such as travelling costs, events and refreshment costs. Many of these are for small amounts of money, which must cost more to collect than the actual amount involved. Small amounts owing between different part of NPS has lead to complications at year end and resulted in additional time spent by staff in reconciling relatively small balances. This has lead NPD to review charging mechanisms within the NPS as a whole. As the Boards and NPD are all part of NPS it is not considered appropriate for different parts of the same organisation to be billing each other for small sums of money. NPD, as part of the Home Office, has to use the Government Procurement Card for all purchases below £500. NPD also rounds up Boards' main grant allocation to the nearest £10,000, so allowing for small charges to other Boards and the NPD to be absorbed within each Boards' allocation. After consultation at the Finance Group meeting on 15 January it has been agreed that Boards will not charge each other or NPD for any amounts less than £500. NPD will also not charge Boards for amounts less than £500. Boards are not to amalgamate many small bills to make one invoice of over £500. This will come into effect from 1 February 2004, but NPD will honour outstanding commitments. This change will not affect insurance claims which should be processed through the handlers; Drive / MVRA for motor and Willis Ltd for non-motor claims. Chiefs and Chairs expense claims are paid by NPD, the individuals concerned complete claims forms which are sent to NPD.

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Cut Off for Raising Inter-Board and NPD Invoices for 2003-04 6. At the Closing of Accounts workshops at the Finance Conference last November it was requested that there should be a cut off date for Boards to raise invoices to other Boards. This was because some Boards raised invoices very late in the process and resulted in additional work for Boards receiving the invoices. It has been decided that no inter-board invoices should be sent to other Boards after 1 March 2004. This will allow time for the invoices to be processed by the recipient Board. Any amounts owing for the current financial year must be accrued.

PC10/2004 - Invoicing Threshold between Boards and NPD

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