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A3 Managing Financial Resources

Background

DFID has devolved much of the responsibility for expenditure to Directors, supported by Heads of Departments and Departmental Finance Officers (DFOs), but Finance and Performance Department (FPD) has overall corporate responsibility for financial monitoring, control and reporting within DFID.

FPD's main areas of responsibility are to:

  • secure the financial resources DFID needs from Her Majesty's Treasury (HMT) (principally via the Spending Review (SR)
  • support the SR outcomes by ensuring that DFID manages its resources effectively and within expenditure limits set through the Resource Allocation Round (RAR)
  • monitor and manage in-year spending and financial management against the SR and efficiency targets on a calendar and financial year basis, through in-year financial monitoring exercises looking at actual and forecast programme, administration and capital expenditure. There are normally three or four in-year financial monitoring exercises a year. These exercises give divisions an opportunity to make proposals for in-year reprioritisation where necessary
  • report to HMT and the Management Board on the DFID corporate financial position in-year through the Supply Estimates, Departmental Report and End Year Outturn Exercise
  • manage the Service Level Agreement (SLA) with the FCO on behalf of DFID.

Compliance Tasks

1. Directors must ensure their expenditure is in accordance with the International Development Act 2002 and that expenditure activity falls within the scope of the Departmental Ambit as set out in the DFID Parliamentary Estimate

Task assigned to: All Staff, Director

2. Directors must provide Annual Statements of Assurance to the Accounting Officer on financial control and risk management in their Divisions

Task assigned to: Director

3. Directors must ensure their expenditure is consistent with the Human Rights Act (HRA) 1998

Task assigned to: Director

4. Directors must provide an RAR template to FPD as part of their Operational Plan

Task assigned to: Director, Head of Department, Head of Overseas Office

5. Directors must provide FPD with information on their Division's financial position at set points in the financial year as directed by FPD. If additional resources are required, Directors must make a formal submission to the Director of Finance and Corporate Performance Division (FCPD)

Task assigned to: Director

6. Heads of Department/Overseas Offices must identify a Departmental Finance Officer (DFO) who will have responsibility for coordinating and liaising with FPD on expenditure and financial management

Task assigned to: Head of Department, Head of Overseas Office

7. Heads of Department/Overseas Offices must approve their financial returns requested by FPD. Approval e-mails must be saved in Quest as records and, where appropriate, linked to the approved documents.

Task assigned to: Head of Department, Head of Overseas Office

8. Heads of Department/Overseas Offices must report their calendar year expenditure as part of in year financial monitoring exercises, for all expenditure which contributes to the UN official development assistance: gross national income spending target (oda/GNI ratio) for each calendar year

Task assigned to: Head of Department, Head of Overseas Office

9. Heads of Department/Overseas Offices must provide information, via the in year financial monitoring and Year End Pack, on their expenditure outturn explaining reasons for variance between expenditure forecasts and outturn

Task assigned to: Head of Department, Head of Overseas Office

10. Heads of Overseas Offices must agree the level of support provided by the Foreign & Commonwealth Office (FCO) under the terms of the Service Level Agreement (FCO SLA) as part of the FCO's Schedule 5 Exercise

Task assigned to: Head of Overseas Office

11. Heads of Overseas Offices must agree with FCO the basis for the local charges levied under the SLA and approve the charges for their office recorded on the FCO Central SLA Invoice

Task assigned to: Head of Overseas Office

12. DFOs must provide FPD with accurate financial returns for the Resource Allocation Round and in year financial monitoring exercises; breaking allocations into programme, administration and capital for the years requested

Task assigned to: Head of Department

13. DFOs must inform FPD of transfers of resources between Departments and requests for changes to Aid Framework allocations after gaining agreement at the appropriate Divisional level.

Task assigned to: Head of Department

14. DFOs must inform FPD of changes to Divisional and reporting structures.

Task assigned to: Head of Department

Last updated: 03 Oct 2011

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