Completion of loss returns for overpayments of training
allowances, FSF, grants and subsidies
Background
1. A ‘Loss’ is defined as a ‘transaction which Parliament couldn’t have known
about when granting supply’.
2. As the department has effectively no provision for losses, these transactions are
subject to greater control than other payments. The requirement to record losses
is laid down in government accounting where it outlines the departments’
obligations to Parliament to collect and report information in respect of losses.
3. Losses are subject to audit scrutiny by both our internal auditors (Risk
Assurance Division (RAD)) and National Audit Office (NAO) and it’s therefore
essential that the information provided is accurate and complete.
4. In order to meet the above obligations, periodically, details of such losses need
to be collected and submitted in accordance with these instructions.
5. Losses arising from overpayments of Flexible Support Fund (FSF), originating
from local sites represents a significant element of total losses in terms of volume
and value. They are published in the public accounts and are open to scrutiny so
should be closely monitored locally.
6. These instructions are to renew and reinforce the need for the correct
compilation and approval of such losses for write off from sites and districts.
7. Losses should only be written off after careful appraisal of the facts. Districts
should be satisfied that there is no feasible alternative and all reasonable action
has been taken to effect recovery.
8. The original cost will have been met from the employment programmes
accounts. Once written off, those costs are transferred to the non-staffing
accounts. This increases the funds available for spending on employment
programmes and reduces funds available for goods and services.
The Quarterly Process
9. The documents you will need can be found here - \\DFS60667\Folders\WSD
FINANCE OPS\FCC Ops and FBP Returns\FSF - Losses, Write Offs and
Recoveries , within your group’s sub-folder.
10. Each quarter, by the deadline given in paragraph 12, groups must ensure the
following:
the file starting “1. Financial Losses and Write Offs……. (Master)”, from now
on referred to as the “losses template”, is completed accurately for all sites.
Every site must have at least one entry on the relevant ‘District’ tab or be
confirmed as a nil return on the ‘Site Assurance’ tab
the file starting “4. FSF Losses Write Offs and Recoveries – Manager
Declaration” from now on referred to as the ‘managers declaration’, is completed
and that the figure quoted in Section 2 Q3 equals the Total Value of
Overpayments on the losses template (do not deduct the recoveries figure). For
further information see, Finance Guide service point page.
Note: It is for groups and, or districts to decide how the data is collated in order to
comply with the above. Should you wish sites and, or clusters for example to
complete their own individual losses templates and managers’ declarations, then
the folder above contains sample templates you can use.
11. There is an agreed timetable for the submission of returns to the DWP finance
group business intelligence team which districts must follow.
Timetable for submission of returns:
Quarter
District return due to
Return due to be submitted to shared
Finance
services
Group Central
Services
1
05 July
11 July
2
04 October
08 October
3
03 January
07 January
4
04 April
08 April
12. Late returns will not be accepted and will be returned to the SPOC for
inclusion in the next quarter’s return.
Roles and responsibilities
13. District SPOC – ensure all sites are covered by reported overpayments or
losses or have submitted a nil return.
14. Sites - keep accurate records and ensure the site makes a return for inclusion
in the collated District return as prescribed locally.
15. Service Leaders (SLs) - be aware of volume and cost, efforts are being made
to address root causes and keep losses to a minimum. Consider the reliability of
their control systems, and ensure that there is a complete audit trail for the
identification and recording of losses to ensure the completeness of the returns
and that site managers have complied with the relevant recovery procedures
relating to training allowances, Flexible Support Fund (FSF), grants and subsidies.
Complete the managers declaration and email to Finance.
16. DWP WSD Finance Operations team - issue reminder, collate returns, analyse
for GSG, report for inclusion in departmental resource accounts.
Roles and responsibilities
Role
Responsibilities
District Single Point Of
Ensure all sites are covered by reported overpayments or
Contact (SPOC)
losses or have submitted a nil return.
Sites
Must keep accurate records and ensure the site makes a
return for inclusion in the collated District return as
prescribed locally.
District Managers (DMs)
Be aware of:
volume and cost
that efforts are being made to address root causes
and keep losses to a minimum
Consider the reliability of their control systems.
Ensure that there is a complete audit trail for the
identification and recording of losses. This will ensure
the completeness of the returns and that site managers
have complied with the relevant recovery procedures
relating to training allowances, Flexible Support Fund
(FSF), grants and subsidies.
Complete the manager’s declaration and email to finance.
DWP Work Services
Issue reminder
Directorate
(WSD) finance operations
team
Collate returns
Analyse for FSF Governance Steering Group (GSG)
Report for inclusion in departmental resource accounts