2. ADMINISTRATIVE AND OFFICE EXPENDITURE
(AOE)
PURPOSE OF THE ALLOWANCE
The AOE is an allowance designed to provide for facilities,
equipment, supplies and services for Members and their staff.
It may only be used to meet the following costs:
- Accommodation for office or
surgery use or for occasional meetings
- Equipment and supplies for
the office or surgery
- Work commissioned and bought-in
services
- Certain travel costs not met
out of travel expenditure
ELIGIBILITY
All Members can claim for this allowance when their
claim complies with the principles set out in Part I.
EXAMPLES OF APPROPRIATE EXPENDITURE
The following provides examples of expenditure which
are appropriate under the various categories shown under "purpose"
above.
Whilst these are not exhaustive, they are designed
to indicate the types of costs that are appropriate and so guide
Members for other expenditure they wish to incur which is not
on the list.
ACCOMMODATION
- Office rent
- Hiring facilities for surgeries
or meetings
- Payments to utilities: rates,
water, gas, electricity
- Repairs and alterations if
required when first occupying a property or by your lease, provided
that these do not go beyond making good dilapidations and thus
enhance the value of the property
- Measures to ensure office security,
better health and safety or accessibility for the disabled
- Additional costs of using part
of your home as an office—provided this is set aside as
an office. If you claim PAAE for this home you must take particular
care to ensure that you do not claim twice for the same expenses
- Insurance for office premises
EQUIPMENT AND
SUPPLIES
- Purchase or lease of photocopiers,
faxes, scanners, phones and other office equipment, including
computers and printers
- Purchase of office furniture
- Purchase of stationery and
office consumables
- Purchase of hardware and software
- Insurance for office contents
other than centrally provided computers and legal costs insurance
- Telephone costs
- Postage over and above that
provided by the House
- Annual data protection registration
subscription
WORK COMMISSIONED
AND BOUGHT-IN
SERVICES
- Maintenance services for hardware,
software and equipment
- Interpreting and translation
services
- Training for Members or staff
- Recruitment services
- Work that you would reasonably
expect a member of your staff to undertake, for example, a piece
of research
CERTAIN TRAVEL
COSTS NOT
MET OUT
OF THE
TRAVEL EXPENDITURE
Certain travel incurred over and above that provided
from your travel expenditure: this may be related to staff travel
or taxis and private hire cars for permitted UK travel. Receipts
and journey details must be provided in full.
ISSUES NEEDING PARTICULAR ATTENTION
ARRANGEMENTS FOR
MEMBERS' CONSTITUENCY
OFFICES
If the accommodation is leased from a political party
or a constituency association, you must ask an independent valuer
to assess the property in order to ensure that it is being rented
at no more than the market rate. See also the following heading
on agreements for accommodation and services in combination.
You must seek advice from the Registrar of Members'
Interests if the premises are provided rent free or at a rental
below market rates.
CONTRACTS FOR
STAFF, SERVICES
ETC IN
COMBINATION WITH
ACCOMMODATION
You must have documented contractual arrangements
which distinguish between accommodation and services (eg: staffing,
telephony, use of photocopiers etc). Charges must be for actual,
not notional, services, and the service charges must accurately
reflect the levels of service provided. You must lodge a copy
of the agreement with the Department and ensure that any subsequent
changes are notified in writing immediately to the Department.
SHARING ARRANGEMENTS
When a Member shares his or her office with another
Member or with a member of a devolved legislature or of the European
Parliament, separate billing arrangements are desirable. But where
that is not feasible he or she must lodge with the Department
a copy of the agreement setting out how the costs will be divided.
If one Member agrees to meet the costs in full initially, and
to recover from the other parties to the arrangements, he or she
must lodge with the Department the agreement to do this. The sums
recovered must be remitted to the Department for credit to the
AOE.
SUBLETS
You must not sublet accommodation which you lease
and pay for out of the allowances. Exceptions may be allowed for
sublets existing in January 2002 when this restriction was introduced.
HOMES USED
AS OFFICES
You may use as an office for your parliamentary duties
any part of your home, or of any other building which you personally
lease or own. You may claim for any ADDITIONAL
costs incurred (eg: extra telephone lines, heat, light) but not
leasing or mortgage costs.
OCCASIONAL USE
OF OFFICE
PREMISES BY
OTHERS
You must charge for occasional use of your premises
by others. This must not exceed 20 days per year. The charge must
be set at a level which reflects a proportion of the leasing costs
and the cost of any services used. You must ensure that full and
proper accounts are kept of all relevant transactions. All income
received must be credited back to your AOE.
PETTY CASH
Members may be re-imbursed for petty cash, the limit
being £50 per month. Any claims for items costing £25
or more will need to be accompanied by relevant receipts. You
must keep a petty cash book recording what items petty cash is
spent on.
DOCUMENTATION REQUIRED
Proof of payment must be provided for all items of
expenditure of £25 or more.
In addition, the following documentation must be
lodged with the Department:
- A copy of your lease and any
sublease
- A copy of a recent independent
valuation (required only if you lease from a political organisation
or if you sublet part of the premises). This must be updated if
and when rental costs differ from figures shown in independent
valuations.
- A copy of any agreement for
cost sharing (required only if you share with another Member,
with a member of a devolved legislature or an MEP)
- A copy of any agreement for
services with your constituency association or other party political
organisation.
You must also inform the Department of any alterations
to the terms of these.
HOW THE AOE WORKS IN PRACTICE
There are three payment options available from the
Department:
- You can meet the bill yourself
and claim the sum back. Use a Members' Reimbursement form (C1).
(You can also use a Direct Payment to Staff form (SA3) to reimburse
a member of staff who has purchased supplies for you.)
- The Department can pay the
supplier direct. Use a Direct Payment to Third Parties form (C2)
and attach a copy of the invoice.
- You can set up a regular payment
arrangement. Use a Periodic Payments form (B1), and attach a copy
of your contract with the supplier.
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