Select Committee on Public Accounts Minutes of Evidence



I. SUMMARY TABLE TO ANNEX

Changes for which PAC approval is sought
SubjectPresent controlProposal
GiftsTreasury approval required for gifts of an unusual nature or whose value exceeds £100,000 (unless lower delegation level). Such gifts must be reported to ParliamentDiscontinue requirement for Treasury approval. Increase threshold for reporting to Parliament to £1 million
Losses and special paymentsTreasury approval required before departments can write off various categories of losses and make "special payments" (payments not anticipated by Parliament such as ex gratia or extra contractual payments)Discontinue requirement for Treasury approval. Increase threshold for reporting to Parliament to £2 million
Contingent LiabilitiesTreasury approval required before departments can take on CLs of over £100,000. Such CLs have to be reported to ParliamentIncrease threshold both for Treasury approval and reporting to Parliament to £2 million. (Different arrangements will continue to apply to ECGD)
Fees and chargesDepartments are currently required to report subsidies or deficits of £1 million or more to Treasury annually for report to PACIncrease reporting threshold to £2 million
Treasury minutes (not strictly a "control")Departmental responses to PAC reports are published by the Treasury as "Treasury Minutes"Departments to publish their own responses (after consulting the Treasury on points where there is a clear Treasury interest)


Other changes (for information only)
SubjectPresent controlIntended change
Staff benefitsTreasury approval required for all staff benefits other than those in clearly defined categoriesRequirement for Treasury approval being transferred to OPS (for Government departments) and to departments (for NDPBs)
Single tenderingDepartments must consult Treasury if a decision to let a contract without competition appears to raise an important issue of principleDiscontinue requirement for consultation. But guidance will invite departments to notify the Treasury of any procurements which may have wider implications for procurement policy generally
NDPB financial memorandums (FMs)Treasury approval for all FMs requiredDiscontinue requirement for Treasury approval of FMs for NDPBs with expenditure of less than £40 million a year so long as the FMs conform to a Treasury model. (Exceptions would be made where statute required or, exceptionally, where the Treasury saw good reason to exercise detailed controls)
New and continuing services: de minimis threshold for specific legislationWhere intended provision for such services is above £0.5 million per annum departments should secure specific legislation rather than use sole authority of Appropriation ActRaise threshold to £2 million


 
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Prepared 17 August 1998