REVISIONS TO THE GRANT PAYMENT PROCESS

PURPOSE
To simplify the grant payment process by providing guidelines on • Obtaining reimbursement for secondees from NPD • Obtaining other reimbursements from NPD • Making adjustments to the Boards resource allocation

Probation Circular
REFERENCE NO: 27/2004 ISSUE DATE: 10 May 2004 IMPLEMENTATION DATE: 1 April 2004 EXPIRY DATE: 31 March 2009 TO: Chairs of Probation Boards Chief Officers of Probation Secretaries of Probation Boards CC: Board Treasurers Regional Managers AUTHORISED BY: Mike DuBock – Head of Finance ATTACHED: 1 - Secondee Registration Form 2 – Reimbursement Form 3 – Budget Amendment Form

ACTION
Chief Officers should ensure that these new procedures are made aware to and implemented by all financial staff.

SUMMARY
Reimbursement of secondees All reimbursement of secondees will be actioned using the attached form completed by Boards, and authorised by the appropriate Unit Head in NPD. This applies to all current and new secondments to NPD from 1 April 2004. Reimbursements for expenditure incurred by Boards on NPD’s behalf All reimbursements will be made using the attached reimbursement form. Copies of any relevant invoices must be sent to NPD Finance. Use of the form is from 1 April 2004. Adjustments to Boards Resource Allocation NPD will document any changes to Boards Resource Allocation by use of the attached budget movement form. This will be authorised by the Head of Finance before adjustments will be made to Boards Resource Allocation.

RELEVANT PREVIOUS PROBATION CIRCULARS
PC10/2004 Invoicing Threshold between Boards and NPD

CONTACT FOR ENQUIRIES

Harcharan Rayat, Finance Unit, 1st Floor, Horseferry House 020 7217 0717 harcharan.rayat@homeoffice.gsi.gov.uk

National Probation Directorate
Horseferry House, Dean Ryle Street, London, SW1P 2AW General Enquiries: 020 7217 0659 Fax: 020 7217 0660

Enforcement, rehabilitation and public protection

Obtaining Reimbursement for Secondments to NPD 1. The attached form replaces all previous secondee forms issued before 1 April 2004. 2. Boards must agree all secondments with the Head of Unit concerned in NPD before reimbursement will be authorised. 3. Secondee forms can only be completed for the current financial year, any continuation of a secondment past the agreed financial year will require a new secondee form to be completed. 4. Secondee forms are only valid up to the point when the agreed reimbursement total has been reached, when this has occurred, a new secondee form must be completed. NPD will check payments made against the agreed reimbursement totals via a Secondee recharge schedule. Upon fruition, no more secondee payments will be made until the new form is received. 5. The Boards are responsible for informing NPD of any changes to existing secondee agreements. If a secondee’s pay, period or placement details change, the Board must inform NPD immediately via a new secondee form. 6. It is the relevant NPD budget holders responsibility to authorise secondee payments/amendments. The budget holders must ensure that they have sufficient budget to pay for the secondee costs, authorise and forward the secondee form to NPD Finance ASAP. Delay in doing so will mean a delay in the secondee cost being reimbursed. 7. The form will be electronic, and will be sent via e-mail. This will ensure a complete audit trail is kept by NPD Finance, showing when forms were sent, received and forwarded. Responsibility for late or lost forms can therefore be identified. 8. The request reference will be the common reference point for all Board-NPD communication regarding secondees. 9. The secondee account type will be pre-set to a fixed Adelphi programme code. This must not be changed. 10. All cells in yellow are sub-total and formula cells and are protected. Reimbursement Requests 1. In 2003/04 reimbursements and special grants were treated as separate items within the grant allocation. As of 1 April 2004 this will cease to be the case. Special grants will be treated as reimbursements, thus no budget will be given to the Board for these items. The budgets will be held by NPD and all items previously classed as special grants will be treated the same as reimbursements. The relevant budget holder on NPD will authorise Boards to incur expenditure on their behalf and will reimburse costs on the receipt of the reimbursement form along with, where appropriate, an invoice. 2. Reimbursements will only be made for items over £500 (per single item). Copies of any relevant invoices must be sent to NPD Finance. 3. Sections A is completed by the Board, giving full details of the expenditure incurred. The form is then sent to the Head of Unit authorising the expenditure. They then complete Section B and authorise the payment. The form is then passed to NPD Finance who reimburse the Boards using the grant payment mechanism. 4. It is the relevant NPD budget holders responsibility to authorise the reimbursement form. The NPD budget holders must ensure that they have sufficient budget to meet the reimbursement costs, authorise and forward the reimbursement form to NPD Finance ASAP. Delay in doing so will mean a delay in the expenditure being reimbursed. 5. The form will be electronic, hence will be sent via e-mail. This will ensure a complete audit trail is kept by NPD Finance, showing when forms were sent, received and forwarded. Responsibility for late or lost forms can therefore be identified. 6. The request reference will be the common reference point for all Board NPD communication regarding reimbursements.

PC27/2004 - Revisions to the Grant Payment Process

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Change to Resource Allocation 1. In order to create and maintain a central and agreed budget position (through the NPD Budget Database), it is imperative that a full audit trail of all budget changes exists. 2. A complete budget movement audit trail will be achieved through the use of a budget movement form. This form must be authorised by the NPD Head of Finance only. 3. The original budget and amendment to the original budget must be shown, alongside a full description of the reason for the change. If the budget change affects the any of the 42 Boards, a breakdown of the affect on the individual Boards budget must be provided by attaching a separate A4 sheet to the form. 4. The Boards Finance Manager will update the budget database and send all parties affected the updated details (particularly the Boards). The Resource Allocation must be regularly agreed to Boards records and signed off as such. 5. The Head of Finance is responsible for ensuring the budget records are correct and up to date any point in time. 6. The Boards and various sections of NPD Finance will refer to the budget database to resolve any budget issues. The budget database will be the conclusive record of the NPS’s budget position.

PC27/2004 - Revisions to the Grant Payment Process

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Please ensure - that this form is fully completed and sent to NPD Finance Helpdesk, Finance, 1st Floor, Horesferry House, Dean Ryle Street, London. SW1P 2AW Tel : 020 7217 0717

Amendments to Baseline Budgets
Section A : To be completed NPD Head of Finance

Please attach a separate A4 sheet if further breakdown of Description/ Details are required i.e. changes to individual Boards budgets.

Description/Details 1 Original Budget (as per 2004/05 Budget Pack)

Amount £0.00

2 Amendment +/£0.00

3 Revised Budget £0.00

4 New Budget For Budgets that cannot be grouped under existing Budget headings in 2004/05 Budget Pack. £0.00

NPD Head of Finance:

Signature: Date:

Section B : To be completed by NPD Board Finance Manager I have made the abovc changes to the 2004/05 Grant Schedule Budgets and have informed the relevant Boards as such.

NPD Boards Finance Manager :

Signature: Date:

IMPORTANT Incomplete/incorrect forms will not be processed. THESE FORMS WILL BE HELD BY NPD FINANCE Date Saved on NPS 1 File: Initials:

C:\Documents and Settings\Administrator\Local Settings\Temporary Internet Files\OLK6DA\[Form - Budget Baseline.xls]Electronic Form

Instructions for Changes to Baseline Budgets. For the financial year 2004/05 the budget for the Boards will be as per the Budget Pack 2004/05. This will include some budgets that were last year classed as "Special Grants" i.e. Diversity.

Process 1 - The NPD Head of Finance only - must authorise this form. There are 2 options: I - Amendment to budget - This will be an amendment to an existing budget, box 1 should show details of the current budget, box 2 should show the amendment (addition/deletion) to the current budget and box 3 will automatically show the new revised budet.

II - New budget - This will be the addition of any new budget outside of the budget pack 2004/05, which does not fall under any of the existing headings - it is important to note - this is an addition to the BASELINE, and is not a reimbursement i.e. a budget held by NPD rather the Board. If there is not enough space in the description box, the Head of Finance should attach a separate A4 sheet with the relevant details, particularly in the case of providing a breakdown for the 42 Boards.

The NPD Head of Finance should make the relevant adjustment to the budget pack 2004/05 and let all relevant people know this has been done. 2 - Once the Boards Finance Manager should make the relevant adjsutments to all the reports/returns that contain (should contain) the amended or new budgets. The Finance Manager should then inform the relevant Boards of the change/s.

Form: Reimbursements
This form does not require signatures, it should be completed and sent electronically. Probation Board authoriser to complete and send to NPD authoriser who will complete and send to NPD Finance Helpdesk.

Please attach a separate A4 sheet if there is not enough space in the description box.

Payments above £500 from NPD to Probation Boards (Exc Budgeted Grants)
Section A : To be completed by Probation Board Authoriser Signatory I have sent the relevant invoice/receipt to NPD Finance (if applicable). Board Authoriser's Name : Position: Board: Telephone No: Date : Request Reference 2004/05 - Board - 01

Please clearly mark request reference on any invoices/receipts/details sent

Re-imbursement Description:

Amount (above £500 per single item)

Section B : To be completed by NPD Budget Holder <£20k / Unit Head <£100k / NPD Director<£1m / Director General >£1m I have checked and agreed with NPD Budget Support Group that there is sufficient provision in my budget to make this payment. NPD Authoriser's Name : Position: Unit Telephone No: Date : Cost Centre: Account Code:

For Cheifs and Chairs must use pre-set Cost Centre

Section C : To be completed by NPD Boards Finance Manager I will make this payment (via grant) upon reciept of completed sections A and B, and the relevant invoice/reciept from the Board (if applicable). Name : Position: Unit Telephone No: Date :

IMPORTANT Incomplete/incorrect forms will not be processed. THESE FORMS WILL BE HELD BY NPD FINANCE Date Saved on NPS 1 File: Initials:

C:\Documents and Settings\Administrator\Local Settings\Temporary Internet Files\OLK6DA\[Form - Reimbursements v2.xls]Electronic Form

Instructions for payments of reimbursements to Boards. For the financial year 2004/05 there will be 2 types of payments made to the Boards: 1 - Budgeted Grant Payments 2 - Reimbursements This is a change from 2003-04 where Special Grants were added to the Budget Allocation. The aim of the new procedure is to reduce in year changes to Boards Budgets and to streamline the system whereby NPD reimburses Boards costs they have incurred on NPD's behalf. Budgeted Grant Payments The Budgeted Grant payments will represent the agreed Board Budgetsas per the budget pack, plus any amendments made to the agreed Board Budgets, which have been authorised by Mike DuBock (Acting Head of Finance). The Budgeted Allocation will represent the budget against which Boards are to report relevant expenditure in the Budget Returns. It must always agree with the budget allocation as notified by NPD. Reimbursements All other payments not included in the Allocation to Boards will be classified as Reimbursements, although they will paid using the Grant payment mechanism. NPD will supply Boards with a list of reimbursements paid each month as a separate worksheet in the grant allocation schedule. These payments will include most things that was classified as "Special Grants" in the previous year. As a result, Boards net budget will not change to reflect any Special Grants. This is because the budget is held by NPD, Boards are being asked to incur expenditure on NPD's behalf. Boards will record the expenditure in the appropriate place in their accounts and the income as Administrative Income. This will ensure that the reimbursements will have zero impact on your financial performance (assuming you don't overspend). You will not be expected to report any expenditure on these items to NPD Finance. You may however, have to report your relevant expenditure to the Budget Holder who is reimbursing you, as per the agreed terms between you and the Budget Holder i.e. Diversity. This will ensure there is no double counting of expenditure in the NPS budget monitor submitted to the Home Office which comprises the combined 42 Boards and NPD spend position.

Completion of Form This form is to only be used for individual reimbursements over £500. Any multiple reimbursements or any under £500 will be returned to the Authorised Signatory. Section A - Completed by Board 1 - One of the two Board Authorised Signatories completes Section A and e-mails the form to the relevant Budget Holder in NPD. Please complete: Authorised Signatories Name Position Name of Board Telephone No on which authories signatory can be contacted. Date form sent A request reference must be clearly marked on the form and on any invoice/reciept sent to NPD Finance. The reference should be made up as follows (using London Board as an example):2004/05 - London - 1. The Board and next number in the request sequence for your Board must be clearly shown. This will aid identification when queries arise. Section B - Completed by Budget Holder in NPD 2 - If the Budget Holder agrees with section A, he/she or their line manager needs to complete Section B and e-mail the form to the NPD Finance Helpdesk. Please note that the appropriate authorised person must complete the form - i.e. up to £20k Budget Holder, Up to £100k Unit Head, up to £1m Director and over £1m Director General. Note - No payment will be made unless a valid code is entered on the form. Section C - Completed by NPD Finance 3 - NPD will check the form has been correctly completed; ensuring that section A has been completed by an Authorised Signatory, section B has been completed by an Authorised Budget Holder (or higher), and the reimbursement has been correctly coded. NPD Finance will send a copy of the completed from back to the Board concerned, add the reimbursement to the worksheet accompanying the budget allocation and increase the boards cash payment for the total reimbursements agreed for the month.

Form: NPS 1 This form does not require signatures, it should be completed and sent electronically. Probation Board authoriser to complete and send to NPD authoriser who will complete and send to NPD Finance Helpdesk.

Secondee Start / Amendment Form (Delete as appropriate)
Section A : To be completed by Probation Board Authoriser Signatory I have been instructed by Board Authoriser's Name : Position: Board: Telephone No: Date : NPD Authorisers name here that our Board will be reimbursed for the following Secondees outlined costs.

Secondee details see Section D

Request Reference

2004/05 - Board - Secondee name - 01

Please clearly mark request reference on any invoices/receipts/details sent Section B : To be completed by Board Authoriser (with NPD Authoriser's advice) Secondee Name NPD Position: NPD Unit: NPD Telephone No: NPD Line Manager: Start Date (dd/mm/yy): Finish Date (dd/mm/yy): Basic Annual Salary: Other Allowance: London Weighting: Lease Car Subsidy: Essential User Allowance: Telephone Allowance: Total Net Salary Cost: Employers NIC: Employers Superannuation: Total Employers Cost: Travel and Subsistence Costs: Full Year Secondee Cost Pro-rated Full Year Cost 01-Apr-04 31-Dec-04 £13,000 £1,000 £2,300 £22,000 £123 £12 £38,435 £321 £4,568 £4,889 £12 £43,336 £32,532 Do not type in yellow lines - for NPD use only Do not type in yellow lines - for NPD use only

If updating information - enter new start date (from when change commences)

If before 1/4/04 - enter 1/4/04 If after 31/3/05 - enter 31/3/05

If Secondee is leaving, complete form up to Finish Date only.

Do not type in yellow lines - for NPD use only

Do not type in yellow lines - for NPD use only

Section C : To be completed by NPD Budget Holder <£20k / Unit Head <£100k / NPD Director<£1m / Director General >£1m I have checked and agreed with NPD Budget Support Group that there is sufficient provision in my budget to make this payment. NPD Authoriser's Name : Position: Unit Telephone No: Date : Cost Centre: Account Code:

Pre-set Codes

Section D : To be completed by Boards Finance Manager I will make this payment (via grant) upon reciept of completed sections A , B and D. Name : Position: Unit Telephone No: Date : IMPORTANT Incomplete/incorrect forms will not be processed. THESE FORMS WILL BE HELD BY NPD FINANCE Date Saved on NPS 1 File: Initials:

C:\Documents and Settings\Administrator\Local Settings\Temporary Internet Files\OLK6DA\[Form - Secondees.xls]Instructions

Instructions for Secondee payments From April 2004, only NPD registered secondees will have their costs reimbursed to the Boards. To register a secondee, the Board and NPD Budget Holder will have to complete and submit this form to NPD Finance Helpdesk. The form is valid for the current financial year only. Any agreed work continuing into the next financial year, will require a new form to be completed.. When the agreed secondee payment figure is reached, the Board will have submit a new amended return, showing the additional funding required. If any amendments to the agreements need to be made (inc Secondee leaving), NPD Finance need to be informed via a newly completed form. Completion of Form This form is to only be used for individual, annual Secondee reimbursements over £500. Any multiple reimbursements or any under £500 will be returned to the Authorised Signatory. Section A - Completed by Board 1 - One of the two Board Authorised Signatories completes Section A and e-mails the form to the relevant Budget Holder in NPD. Please complete: Authorised Signatories Name Position Name of Board Telephone No on which authories signatory can be contacted. Date form sent A request reference must be clearly marked on the form. The reference should be made up as follows (using London Board as an example): 2004/05 - London - Bob Geldoff - 1. The Board and next number in the request sequence for your Board must be clearly shown. The secondee name must also be included (Bob Geldoff being the secondee name in the above example). This will aid identification when queries arise. Section B - Completed by Board In addition, the Board should communicate with the NPD Budget Holder and complete section B of the form. All boxes except the yellow ones should be completed (these have formulae). The only exception to this is when a Secondee is leaving, then the form only needs to be completed up to the Finish date. Where there is no amount relevant to the box, zero should be entered (numerically). Ensure that the period and amount completed falls within the current financial year, a new form will need to be completed if the secondee is to continue his'her work in the next finacial year. Section C - Completed by Budget Holder in NPD 2 - If the Budget Holder agrees with section B, he/she or their line manager needs to complete Section C and e-mail the form to the NPD Finance Helpdesk. Please note that the appropriate authorised person must complete the form - i.e. up to £20k Budget Holder, Up to £100k Unit Head, up to £1m Director and over £1m Director General. Note - No payment will be made unless a valid code is entered on the form. Section D - Completed by NPD Finance 3 - NPD will check the form has been correctly completed; ensuring that section A and B have been completed by a Boards Authorised Signatory, section C has been completed by a NPD Authorised Budget Holder (or higher), and the reimbursement has been correctly coded. NPD Finance will send a copy of the completed from back to the Board concerned, add the reimbursement to the worksheet accompanying the budget allocation and increase the boards cash payment for the total reimbursements agreed for the month.

Any payement requests above the secondee agreed amount, will have to requested for on a new secondee payment form.