CHARITABLE INVOLVEMENT
The following are the extracts from the MOD policy and guidance on Charities (JSP 462, JSP 800 & JSP 36
.
JSP 462 Financial Management Policy Manual
Chapter 19: Sound Governance: Regularity and Propriety in Public Expenditure
Introduction. This chapter illustrates what is, and what is not, proper behaviour in the management of public funds, and provides guidance on distinguishing these from non-public funds. This guidance is in line with Managing Public Money (MPM), a Treasury publication which sets out the rules for managing and controlling public expenditure and is the ultimate reference manual for finance staff. In controlling public expenditure there are two main requirements to follow in terms of Regularity and Propriety â definitions can be found under Key Points section.
Key Points
4. Personal implications of failing to observe Regularity and Propriety:
a. Failure to observe financial regularity and propriety constitutes an abuse of financial authority. History shows that the prime cause of abuse of financial authority cases is the absence of proper control or failure to observe existing controls. Those best placed to detect and deter incidents are those directly involved in an activity at risk. That is why the prime responsibility for establishing controls to deter and detect fraud and theft and for reporting suspicions rests with line management at all levels.
b. PUS is personally responsible to Parliament for ensuring that MOD has sound controls in place. Accordingly, PUS is notified of the number of âabuse of financial authorityâ cases as part of the annual Health of Financial Systems exercise.
c. All staff should be aware that such abuse can lead to disciplinary action being taken against the individual or individuals involved, even where there is no personal gain.
Donations by MOD to External Bodies
2. Public money is intended only for public sector uses, and for the purposes for which money is voted by Parliament. The financial delegations granted to departments by the Treasury on behalf of Parliament do not allow for any exceptions to this ruling. So MOD only has authority to expend money on delivering its normal business.
3. MOD can contribute funding to external bodies through grant or grant-in-aid (see JSP 462 under Transactions Chapter Cool where there is a specific and quantifiable benefit to the Department, i.e. where it contributes to the Departmentâs objectives, but it cannot subsidise any non-public organisation on purely charitable grounds. This would turn public money into non-public and amount to irregular expenditure. All charities, including those with MOD or Armed Service connections, should be treated as non-public bodies for funding purposes and charging purposes. The generalised and unquantifiable benefits of individual units supporting charities are not sufficient justification for any divergence from normal financial regulations.
4. It is common practice for Service personnel to take on duties ancillary to their main function. These may include, for example, roles in connection with non-publicly funded activities that contribute to unit welfare, such as regimental associations and sports clubs. Commanding Officers and unit budget managers must ensure that the necessary controls are put in place to manage these activities to minimise the risk to public funds and to recognise and deal with any potential conflicts of interest or loyalty that might arise. Further guidance can be found in JSP 770 Tri-Service Operational and Non-Operational Welfare Policy and DIN 2009 01-133.
5. Under no circumstances should MOD provide cash (or cash in kind) to any charity except where it is provided by grant or grant-in-aid. Members of staff (both Service and Civilian) who wish to support a charity should do so in their own time using their own resources. Public money must not be used for private benefit no matter how worthy the cause.
Charging for MOD Services
12. The only basis on which it is permissible for MOD to make assets or services available for purely private and charitable purposes is if the Department is reimbursed an appropriate charge (see JSP 36
. This applies equally to the use of Service manpower and to the provision of equipment or facilities. A failure to charge or to charge less than appropriate rate equates to a decision to spend public money. 2nd PUS has directed that the SFO in each TLB is responsible for approving the participation of Service personnel or Service assets in charity events and deciding on the charging regime to be applied. Where Tri-Service participation is requested, a lead TLB/SFO will be nominated.
Accounting Arrangements
13. It is not good financial practice to mix public and non-public funds. Accordingly, MOD banking facilities should not be used to administer non-public funds except on a repayment basis. In all circumstances, there must be a clear separation between public and non-public funds. Similarly, MOD should not assume any insurance liability in respect of non-public activities. Guidance on the principles and practice of raising charges is given in JSP 368, which takes precedence over any other publication or guidance on this subject.
JSP 800 Defence Movements and Transport Regulations
Volume 5 Road Transport
Part 2 Chapter 2
Charity Events
2.2.101 Charity Events. To avoid criticism for the improper use of public funds and for favouring one charity over another, it is MOD policy not to support charities or charitable events without recovering costs (JSP 36
. In exceptional circumstances, where the marginal costs are nil and the event can be justified as in the wider interest of the MOD, consideration may be given to the use of MOD vehicles for charity events on a case-by case basis. Prior permission must be sought from TLB / FLC and Fin Pol (see non-public & charity template). Vehicle hire is not permitted.
TEMPLATE FOR REQUESTING USE OF MOD VEHICLES FOR CHARITY EVENTS, NON-PUBLIC FUNDED EVENTS AND COMMERCIAL DISPLAYS
Introduced at (Pt 2 Ch 2 Non-Public Funded Events)
1. In exceptional circumstances units may apply to their TLB/FLC HQ for authority to use MOD road transport for charity, non-public funded events and commercial displays. Events will not be authorised if they contradict any other MOD regulations. The procedure and content of the application process is detailed below:
Unit Procedure
2. A concise business case is to be submitted to the TLB/FLC HQ Tpt Staffs to include the following:
a. Unit Contact details & Sponsor of request.
b. Details of Event being proposed (Date and location).
c. Why the event is in the wider interest of the MOD i.e. why should the MOD support the event (media involvement, local interest etc.).
d. Number and types of vehicle to be used (Green Fleet or White Fleet). The hiring of vehicles (including backfill of pool cars) is not permitted.
e. Estimated distance to be travelled (miles).
f. Financial Objective (see JSP 36
.
TLB/FLC HQ Tpt Staffs Procedure
3. TLB/FLC HQ Tpt Staffs are to action the application as follows:
a. Check that the application does not contradict current regulations on duty travel. If it does not, FLC/TLB tpt staffs decide to support/not support the application. If not supported, the application should be returned to the unit.
b. If supported: Tpt staffs pass to Fin Dept for financial approval & Cmd Sec dept to ensure it complies with MOD regularity and propriety rules. If not supported, the application should be returned to the unit.
c. If supported: Fin Dept, Cmd Sec and tpt staffs should add any recovery payment (green fleet only) costs, if required, or any caveats on the proposal.
d. Inform unit of TLB/FLC HQ decision and any further action required prior to event.
e. Pass information of the event to DMTP who will keep a central MOD record of authority given.
