Certain Divisions, Departments and Offices have delegated authority to approve Write Offs (WOs) and Special Payments (SPs).
A write off occurs if DFID funds, or goods purchased with them, are lost, or where proper accounting documents for expenditure cannot be obtained. Such items cannot be charged against DFID's budget as normal expenditure. They must, however, still appear in DFID's accounts. This is done by the process of writing off. Writing off expenditure is the last resort in dealing with a loss of funds or goods. It must only be done after all possible action to recover the loss has failed.
Other than in those cases where delegation is given to Departments, Financial Management Group (FMG) must make the judgment that the chances of recovery have been exhausted and that no alternative exists to writing off the loss. The following are classed as special payments:
Other than in those cases where delegation is given to departments, it is for FMG to make the judgment that a special payment is justified.
1. Losses due to fraud, theft or other culpable action must be reported to Internal Audit Department
Internal Audit Department will take the necessary steps to recover such losses, and pursue prosecution wherever possible
2. In cases of overpayment Project Staff must assess the extent to which recovery is justified and/ or feasible
3. A submission must be prepared by Project Staff for approval of write offs
4. All submissions for write off action, where a department does not have delegated authority must be endorsed by the relevant Head of Department and sent to the Losses Officer in FMG with a request that approval be given for write off.
5. All requests or claims for special payments must be referred to the Losses Officer in FMG for advice as soon as they are received (unless they fall within a department's delegated authority)
6. No indication of any kind about the likely outcome must be given to persons or organisations making claims on DFID for a special payment
7. Once a decision has been made by the authorising officer in respect of cases handled under delegated authority (by FMG in all other cases) that a special payment appears justified, a copy of the authorisation and payment instruction must be sent by Programme Staff to the Losses Officer in FMG to effect the payment, and to record it in DFID's Annual Accounts
8. All write offs or special payments approved under delegated authority must be copied to the Losses Officer in FMG for inclusion in DFID''s annual accounts.
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