DFID receives money for a variety of reasons including repayment of principal on loans, sales of surplus stores and equipment and exchange rate gains. This money comes from a variety of sources and in a number of forms, e.g. cash, cheques, credit notes and receivable orders.
Some receipts, such as the return of unspent funds and personal telephone costs are able to be returned straight to the expenditure account code and component they were originally paid from. However, other receipts require appropriate provision in DFID's Estimates for Appropriations-in-Aid (A & A). These are receipts, which with the authority of Parliament, can be used to finance some of the gross expenditure voted by Parliament for international development. Financial Management Group (FMG) will ask spending departments to check that they have appropriate provisions for A & A and to detail any changes which need to be made. If adequate provision for A & A is not made through the Estimates process, the receipt has to be surrendered to the Treasury and is therefore lost to DFID.
1. Spending Departments must inform Resource Management Group (RMG), as part of the Resource Allocation Round, of expected receipts for the following year so that adequate provision can be included in the Main Estimate.
2. Should Spending Departments receive a cheque they are responsible for completing a Bank Giro Credit slip and sending it with the cheque to the Royal Bank of Scotland. Cheques received by overseas offices that cannot be taken into a local bank account should be sent to the Accounts Receivable Team in FMG, who will arrange for the cheque to be deposited in DFID's account.
3. Spending Departments with access to the ARIES system must create an invoice on the system as soon as anticpated income or receipts are identified in order to monitor and ensure income is received and credited to the correct codes.
4. Spending Departments without access to the ARIES system must enter known debts in the Claims Register.
5. Transactions must be accounted for on a gross basis. Net accounting, i.e. offsetting receipts against expenditure and vice versa is not allowed.
6. All receipts must be credited to one of five possible accounting destinations:
7. Any foreign currency receipts, or cheques drawn on foreign banks, must be sent to FMG for action unless an overseas office can deposit the funds in their local bank accounts.
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