Annex: detailed Instructions to sub-accountants
Application
1. These Instructions apply to the operation of sub-accounts within the Scottish Administration. They provide guidance on accounting procedures designed for the safeguarding of public funds and for the protection of the members of staff concerned. It is important therefore that any departure from them should have the consent of the relevant core SG finance area.
Operation
Funding
2. Applications for imprests should be made by the sub-accountant in the form prescribed and should be sent to the relevant core SG finance area / designated business area at least 4 days before the imprest is required. Sub-accountants should ensure that cash balances are kept at the lowest figure compatible with the needs of the service and not normally above one month's average expenditure.
Payments
3. All cash payments should be made in the name of the Scottish Government / Crown Office and Procurator Fiscal Service / SG Executive Agency / or non-ministerial department and receipt notes should be completed by the recipient or their authorised agent. Sub-accountants or cashiers cannot act as authorised agents. Sub-accounts should not be used to circumvent standing rules relating to travel and subsistence.
Receipts
4. Remittances in settlement of invoices issued by the Scottish Administration via T&B should not normally be accepted by sub-accountants. Debtors should be instructed to forward their remittances to T&B. If such a remittance is received by a sub-accountant in the form of a cheque it should be passed with an explanatory note to T&B. If such a remittance is received by a sub-accountant in the form of cash it should immediately be passed to T&B under arrangements agreed with the relevant core SG finance area.
5. Other cash receipts may be absorbed into the sub-account to meet cash requirements. However, receipts of cash significantly in excess of requirements should immediately be passed to T&B under arrangements agreed with the relevant core SG finance area.
6. An official acknowledgement should be given for any cash receipts received and an Official Receipt Book should be used for this purpose. Any spoiled receipts should be cancelled and left in the book - in no circumstances should any copy receipt be detached from the book. Receipt books should be retained for 3 years from the date of the last entry.
Record of transactions
7. A complete record of all transactions carried out on the sub-account must be maintained. The form of the record to be used will be a matter for the discretion of the sub-accountant but it must be secure, be supported by vouchers and provide an audit trail for any subsequent changes. Transactions should be recorded as and when they occur. The entries must be totalled and balanced as at the close of business on the last working day of each month. Records should be retained for 3 years from the date of the last entry.
Local bank accounts
8. Where a local bank account is maintained, a statement should be obtained at the end of each month showing transactions on the account during the month and the balance on the final working day. The balance in the bank account should be reconciled to the balance in the record of transactions before the monthly account is prepared.
Statements of account
9. The monthly account is a summary of the payments and receipts for the period as recorded in the record of transactions etc, and should be rendered to the relevant core SG finance area / designated business area on the prescribed form in respect of each calendar month by the 10th of the following month. The period of account is from the first working day of any month to close of business on the last working day of the month. Transactions taking place during one month should be shown in the statement for that month and not carried forward into the statement for the following month.
10. The monthly statement must be supported by serially numbered vouchers, the individual vouchers and entries on the return being adequately cross-referenced to aid identification. Except in the case of unavoidable absence the sub-accountant should sign the monthly account and initial the record of transactions after ensuring that they are correct. Statements of account so certified should be in such a form as not to be readily capable of amendment subsequent to the checks carried out. Immediately after certification the monthly account should be sent personally by the sub-accountant to the relevant core SG finance area / designated business area.
11. In the unavoidable absence of the sub-accountant, the checking and dispatch of the monthly statement must be carried out by a member of staff other than the person responsible for its preparation. The relevant core SG finance area / designated business area should be informed whenever such an event has occurred.
Safeguards
Custody of cash and records
12. Official money, including cash equivalents such as stamps and meal vouchers, should always be kept in a locked cash box which should be lodged in a safe or security cupboard when not in use. It should never be left loose or unattended or kept in storage cupboards or desk drawers.
13. Official receipts should be issued only by the sub-accountant or a member of staff to whom this duty has been delegated, and no other person should have access to the receipt book or the record of transactions, both of which should be kept secure when not in use.
14. Personal cash must never be mixed with official cash.
15. Keys to the cash box or safe should be held only by the sub-accountant and/or deputy, and should be carried on the person and never left in cupboards, desk drawers etc. Unauthorised persons should never have access to keys even when the cash box or safe is empty.
Other safeguards
16. The arrangements for the safe transit of cash should be critically reviewed from time to time. All possible precautions should be taken consistent with local circumstances.
17. Checks should be undertaken when a sub-accountant or the person to whom the duties have been delegated, goes on leave or falls sick. Such checks should involve the reconciliation of cash balances with up-to-date bank statements, cheque books, records of transactions etc. Wherever possible this should be done, or at least checked, by a member of staff independent of those operating the account.
18. Where the cash balance is not held by the sub-accountant personally, checks should be made by the sub-accountant at reasonably frequent intervals to ensure that the cash in hand reconciles with the balance in the record of transactions, and that the record is being properly maintained. Where such a check has been made the record should be initialled and dated accordingly.
19. The sub-accountant must make all records and cash available on request for check by the relevant core SG finance area / designated business area, Internal Audit Division or an auditor appointed by the Auditor General for Scotland.
Misuse of public funds
20. The following practices are a misuse of public funds and should not be allowed at any time:
- the use of official money for personal or private purposes. No advances or loans however small or temporary should be given to any member of staff for such purposes; and
- cashing of cheques for members of staff.
Updated: January 2019