ANNEX
Changes in controls which Treasury wish
to notify to the Committee of Public Accounts
STAFF BENEFITS
Treasury approval is currently required for
all staff benefits other than those in clearly defined categories.
This control was introduced in response to the qualification of
the Ministry of Defence's appropriation accounts in 1991-92 because
of "a serious breach of financial controls". Treasury
are not proposing to change the nature of this control but to
transfer responsibility for its operation in respect of the Civil
Service to the Office of Public Service (OPS). OPS are content
with this change and the proposal is consistent with the role
OPS plays in this area. Elsewhere in the public sector the responsibility
will be exercised by Ministry of Defence in respect of the Armed
Forces, in the National Health Service by the Department of Health;
and in NDPBs by sponsoring departments. This change does not raise
any issue of accountability or Parliamentary control.
SINGLE TENDERING
Departments are required to consult the Treasury
if a decision to let a contract without competition appears to
raise important issues of principle which could affect purchasing
policy generally. The Treasury are reviewing their guidance on
procurement policy and expect to include a general provision for
departments to notify the Treasury of any decisions which they
consider may have wider implications for procurement policy. This
change is consistent with more closely aligning accountability
and responsibility and has no impact on Parliamentary control.
STANDARD FINANCIAL
MEMORANDA FOR
SMALLER NON-DEPARTMENTAL
PUBLIC BODIES
(NDPBS)
All financial memoranda issued by sponsoring
departments to non-departmental public bodies must be approved
by Treasury. The memoranda include the terms and conditions on
which grant-in-aid is paid, reporting and accounting arrangements
and delegated authorities and controls. Treasury are proposing
to retain the existing requirement for approval in respect of
NDPBs whose current and/or expected gross annual expenditure is
greater than £40 million, together with smaller NDPBs where
statute requires the Treasury to exercise detailed controls or
the Treasury see good reason to retain detailed controls. The
threshold of £40 million would maintain under Treasury control
some 50 bodies who together account for 90 per cent of all NDPB
gross expenditures. For the remaining NDPBs the Treasury will
leave departments to draw up individual financial memoranda on
the basis of a model drawn up by the Treasury in consultation
with Departments. Once again, this proposed change is consistent
with ensuring that sponsor departments have the responsibility
where they are already accountable for individual NDPBs.
NEW SERVICES:
THE DE
MINIMIS THRESHOLD
In response to a Committee of Public Accounts
recommendation, in 1984 the Treasury issued internal guidance
to departments which suggested, among other things, a de minimis
threshold of £0.5 million annual provision as a guide for
helping departments to judge whether specific statutory provision
beyond the Appropriation Act should be sought for any new and
continuing service. The Treasury proposal is to increase this
threshold to £2 million. This is not a control but merely
a guide and in view of the time that has passed since the threshold
was originally set, the increased threshold as appropriate.
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