REVISIONS TO THE GRANT Probation

PAYMENT PROCESS
PURPOSE
Circular
To simplify the grant payment process by providing guidelines on REFERENCE NO:
• Obtaining reimbursement for secondees from NPD
27/2004
• Obtaining other reimbursements from NPD
• Making adjustments to the Boards resource allocation
ISSUE DATE:
10 May 2004
ACTION
Chief Officers should ensure that these new procedures are made aware to
IMPLEMENTATION DATE:
and implemented by all financial staff.
1 April 2004
SUMMARY
EXPIRY DATE:
Reimbursement of secondees
All reimbursement of secondees will be actioned using the attached form 31 March 2009
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. TO:
Reimbursements for expenditure incurred by Boards on NPD’s behalf Chairs of Probation Boards
All reimbursements will be made using the attached reimbursement form. Chief Officers of Probation
Copies of any relevant invoices must be sent to NPD Finance. Use of the Secretaries of Probation Boards
form is from 1 April 2004.
Adjustments to Boards Resource Allocation CC:
NPD will document any changes to Boards Resource Allocation by use of the Board Treasurers
attached budget movement form. This will be authorised by the Head of Regional Managers
Finance before adjustments will be made to Boards Resource Allocation.
AUTHORISED BY:
RELEVANT PREVIOUS PROBATION CIRCULARS Mike DuBock – Head of Finance
PC10/2004 Invoicing Threshold between Boards and NPD
ATTACHED:
CONTACT FOR ENQUIRIES 1 - Secondee Registration Form
Harcharan Rayat, Finance Unit, 1st Floor, Horseferry House
2 – Reimbursement Form
020 7217 0717 harcharan.rayat@homeoffice.gsi.gov.uk
3 – Budget Amendment Form

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 2

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 3

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

Section A : To be completed NPD Head of Finance

Description/Details Amount
1
Original Budget (as per 2004/05 Budget Pack) £0.00

2
Amendment +/- £0.00

3
Revised Budget £0.00

4
New Budget £0.00

For Budgets that cannot be grouped under

existing Budget headings in 2004/05 Budget Pack.

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

Request Reference 2004/05 - Board - 01

I have sent the relevant invoice/receipt to NPD Finance (if applicable). Please clearly mark request reference on any invoices/receipts/details sent

Board Authoriser's Name :

Position:
Board:
Telephone No:
Date :

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 : Cost Centre:

Position: Account Code:
Unit
Telephone No: For Cheifs and Chairs must use pre-set Cost Centre
Date :

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 NPD Authorisers name here that our Board will be reimbursed for the following Secondees outlined costs.

Board Authoriser's Name : Secondee details see Section D

Position:
Board:
Telephone No:
Request Reference 2004/05 - Board - Secondee name - 01
Date :
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 If updating information - enter new start date

NPD Position: (from when change commences)
NPD Unit:
NPD Telephone No:
NPD Line Manager:
Start Date (dd/mm/yy): 01-Apr-04 If before 1/4/04 - enter 1/4/04 If Secondee is leaving, complete
Finish Date (dd/mm/yy): 31-Dec-04 If after 31/3/05 - enter 31/3/05 form up to Finish Date only.

Basic Annual Salary: £13,000

Other Allowance: £1,000
London Weighting: £2,300
Lease Car Subsidy: £22,000
Essential User Allowance: £123
Telephone Allowance: £12
Total Net Salary Cost: £38,435 Do not type in yellow lines - for NPD use only

Employers NIC: £321

Employers Superannuation: £4,568
Total Employers Cost: £4,889 Do not type in yellow lines - for NPD use only

Travel and Subsistence Costs: £12

Full Year Secondee Cost £43,336 Do not type in yellow lines - for NPD use only

Pro-rated Full Year Cost £32,532 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 : Cost Centre:

Position: Account Code: Pre-set Codes
Unit
Telephone No:
Date :

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.