Global Design Principles Handbook Interactive v1.3

Finance Global
Design Principles
We put finance at the heart of decision making.
Driving the agenda, not just keeping score.
OVERVIEW
INTRODUCTION
MENU
Version 1.3
NEXT
COVER
Overview INTRODUCTION
MENU
This document has been prepared by the Finance, Shared Services and Technology
team within the Government Finance Function.
Please note this document is up-to-date as of 30/06/2019.
Contact:
gdp.finance@justice.gov.uk
2 PREVIOUS NEXT
COVER
Introduction OVERVIEW
MENU
Who are we? Why implement Finance Global Design Principles?

The FSST team was established in 2016, following the recommendations made The need to standardise principles, processes and data is increasingly recognised
by the Public Accounts Committee’s (PAC) October 2016 ‘Shared Services across government, and all core government departments have made plans to
Centres’ report’. This built on the lessons learnt from early attempts to introduce adopt the finance Global Design Principles. The plans focus on adopting best
shared services across government. FSST was tasked with developing common practice processes, increasing the use of self service, making processes more
finance processes and procedures, which can be adopted by all departments and effective for end users and supporting future moves to cloud ERP technology.
arm’s-length bodies to ensure consistency across government, and facilitate a Adoption of the best practice principles and processes contained in this
greater sharing of expertise and systems. The developed processes document supports the Finance Function vision, Government Shared Service
have been mandated for all core government departments by the Strategy and the wider Government Transformation Strategy.
Finance Leadership Group.
When should I use it?
What are the Finance Global Design Principles?
This document can be used by everyone, as our principles are best practice
The Finance Global Design Principles are a set of common processes and processes developed in a cross-government project. Three specific examples
procedures that: where you should consider reviewing the principles are when:
• Are based on best practice from the public and private sectors • Moving to a new ERP system: you must ensure that the system is
• Have been developed collaboratively with colleagues across core configured to meet the principles as they represent best practice
government departments and special interest groups. • Reviewing your finance processes and making process improvements: you
• Are system ‘agnostic’ - i.e. do not depend on a specific system should be adopting the standard processes
• Have been approved by the Operating Model Committee • You are looking to identify why finance performance is not meeting
• Are mandatory for all core government departments required standards: the principles should be used to identify where the
process needs amending to improve overall performance
Finance Global Design Principles have been developed for 12 areas of the finance
taxonomy. Principles for each area can be found in this document.
3 PREVIOUS NEXT
COVER
Global Processes Menu OVERVIEW

INTRODUCTION
Finance Operations Decision Support Reporting and Control
Cash Investment
Purchase to Pay Order to Cash Management Record to Report
Appraisal
Grants Project
Administration Payroll Expenses Tax
Accounting
Non-Current
Inventory Assets
4 PREVIOUS NEXT
MENU
Purchase to Pay PRINCIPLES

METRICS
PROCESS MAPS
Sourcing & Master Data Management

Accounts Payment Supplier
Category Setup & Purchase Receipt Information
Payable Processing Management
Management Maintenance & Queries
Set Up and Create

Assess Physically Receive Receive Disburse Generate MI Create/Refine
Opportunity Maintain Vendor Purchase
Goods Invoice Payment Reports Supplier Groups
Data Requisition (PR)
Set Up and Inspect Goods

Assess Internal Maintain Review and
(Quantity & Sort, Scan and Emergency Address Initiate
Supply Chain Procurement Approve PR Quality) Archive Invoice Payment Internal Queries Relationship
Catalogue Data
The Purchase to Pay (P2P) process
underpins many sub-processes from Set Up and Create Record Goods
sourcing and negotiating terms, Assess Supply Maintain Purchase Order Receipt Note Enter Invoice Address Manage
Market Procurement (PO) (GRN) in System
Details Supplier Queries Performance
ordering, receipting and payment, Categories
through to contract and relationship
management. A well-executed P2P
Define Sourcing Send PO to Post and Match Assess
process can increase control and Strategy Supplier Invoice Data Relationship
visibility, save costs and generate
automation efficiency.
Execute Sourcing No 'PO, No Pay' Contract
Strategy Policy Management
Embed Disputes and

Sourcing Strategy Credit Notes
PerformAccruals
and Prepayments
5 PREVIOUS NEXT
MENU
Purchase to Pay - Principles P2P

METRICS
PROCESS MAPS
Master Data Setup and Maintenance

1 Master data is controlled by a central team and all changes are subject to business approval.
Governance forums are established to manage the implications of a shared supplier master file when platforms are used by multiple
2
customers.
Suppliers are able to maintain their own details, including bank account details, subject to appropriate security requirements and notification
3
to the master data owner.
4 Suppliers are automatically notified following a change to key details, including address and bank account details.
The supplier master file holds the relevant DUNS number, indicates whether a supplier is classified as an SME and it can store additional data
5
Set Up and Maintain Vendor Data fields and classifications to support departmental reporting requirements.
6 Suppliers conform to a consistent naming convention that is applied across government.
7 The quality of the supplier master file is regularly reviewed and cleansed to remove inactive, duplicate and out-of-date records.
8 Regular audits are performed to review the full list of system changes to bank account details.
9 Supplier master file changes are consistently applied automatically across all systems that hold the supplier details.
10 e-commerce solutions are able to support a Dynamic Purchasing System [DPS] model.
11 One-time vendors payments are supported by the core systems.
12 Procurement catalogues are available to support both goods and services.
Set Up and Maintain 13 Catalogues are accessed online and maintained by the suppliers directly, subject to Commercial approval.
Procurement Catalogue Data 14 Access to sensitive catalogues (e.g. IT, etc.) is restricted to relevant users.
15 The majority of low value / indirect procurement is performed through online catalogues or corporate credit cards where appropriate.
Set Up and Maintain 16 Procurement categories use UNSPSC codes as a cross-government data standard.
Procurement Categories 17 Procurement categories determine the chart of accounts values and VAT treatment, which cannot be overridden.
6 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Purchase
18 Requisitions are raised online using self-service by the individuals that require the goods / services.
Create Purchase Requisition (PR) 19 Optional approvers can be added to the approval chain where necessary, but system generated approval chains cannot be overridden.
20 Requisitions can be raised and approved on mobile devices (e.g. phones, tablets, etc.).
21 Both catalogue and non-catalogue requisitions are approved online by appropriate approvers.
22 Specific categories of purchases (e.g. IT, etc.) may require additional approvals (e.g. category manager / buyer, etc.).
Review and Approve PR 23 Catalogue requisitions that have been approved are automatically turned into Purchase Orders without manual intervention.
Non-Catalogue requisitions that have been approved are automatically routed to the appropriate category manager / buyer to create a
24
Purchase Order.
25 All Purchase Orders have an appropriate audit trail in the system (e.g. approved requisition, etc.).
Purchase Orders are established for a specific value and time period and any proposed extensions / changes are subject to review and
26
Create Purchase Order (PO) approval.
27 Purchase Orders for services are structured to enable a service to be partially receipted.
28 Open Purchase Orders are regularly reviewed and actioned appropriately (e.g. closed, etc.).
Send PO to Supplier 29 Purchase Orders are transmitted electronically directly to the supplier.
Receipts
A 'Three-Way Match' policy is enforced, with some authorised exceptions, which will be documented and systemised (e.g. by reference
30
to catalogue item, etc.).
Three-Way Match Policy
Regular checks are performed to ensure invoices that have been two-way matched are approved exceptions to the 'Three-Way Match'
31
policy and are system configured.
Goods received that are not fit for purpose and returned are recorded on the system to provide management information on supplier
Inspect Goods (Quantity & Quality) 32
performance.
33 GRNs are entered using self-service by the individuals directly requiring the goods / services, i.e. requesters.
Record Goods Receipt Note (GRN) 34 GRNs can be entered on mobile devices (e.g. phones, tablets, etc.)
in System 35 Requesters receive a series of automated reminders to enter GRNs on the Purchase Order.
36 A list of requesters that fail to respond to automated GRN reminders are escalated to management and suitable sanctions are imposed.
7 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Accounts Payable
37 Invoices and credit notes are received in either structured or unstructured electronic formats.
Receive Invoice
38 Paper invoices are not accepted and are returned to the supplier.
39 Invoice and payment processing is performed within a Shared Service centre.
Sort, Scan and Archive Invoice
40 Paper invoices are intelligently scanned and hardcopies destroyed.
41 Suppliers are able to enter their own invoices directly into the system.
42 Reconciliation checks are performed following the upload of consolidated invoices into the system.
Enter Invoice Details System functionality for recurring invoices and scheduled payments are used to automate the payment and accounting for these
43
transactions.
44 VAT calculations are performed automatically and cannot be overridden by users.
45 Invoices that pass three-way matching rules are automatically processed for payment.
Post and Match Invoice Data
46 Matching tolerances are effectively monitored and managed to control the matching rate.
47 A formal process is established for resolving invoice exceptions (e.g. unmatched, etc.).
Resolve Invoice Exceptions 48 An automated workflow tool is used to support AP document and query management.
49 An online supplier portal is available to enable suppliers to understand and query their account position.
50 A 'No PO, No Pay' policy is enforced and a list of authorised exceptions are maintained (e.g. utilities, fines, etc.).
51 Invoices that relate to exceptions to the 'No PO, No Pay' policy require online approval by the appropriate approver in each department.
Regular checks are performed to ensure that invoices that are not associated with Purchase Orders are genuine exceptions to the 'No PO,
52
No Pay' policy.
'No PO, No Pay Policy' 53 A formal process is in place to address invoices that have been received from suppliers when POs have not been raised.
Contracted suppliers that repeatedly breach the 'No PO, No Pay' policy are identified and referred back to the contract manager for
54
appropriate action.
55 Requesters that repeatedly breach the 'No PO No Pay' policy are identified and appropriate action taken.
56 Departments work together to monitor, compare and share compliance with the 'No PO, No Pay' policy across government.
8 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
57 Formal processes are established for identifying and communicating invoices that are in dispute and when disputes have been resolved.
Invoices in dispute are flagged within the system to prevent payments being generated. Dispute history should be retained in the system as
58
an audit trail.
Disputes and Credit Notes
59 Credit notes are raised on the system and matched to relevant Purchase Orders.
Credit notes are automatically deducted from the next supplier payment. If no future payment is received, the debt is collected through
60
Accounts Receivable.
61 Accruals are generated automatically by the system and are subject to review as part of the period-end process.
Perform Accruals and Pre-payments 62 Pre-payments are identified within the system and the appropriate accounting is automatically generated.
63 The integrity of aged accruals automatically generated by the system is regularly reviewed.
Payment Processing
64 80% of undisputed invoices are to be paid within 5 days, in line with Central Government Prompt Payment policy.
The remainder of undisputed invoices (not paid within 5 days) are to be paid within 30 days, in line with Central Government Prompt
65
Payment policy.
Disburse Payment
Proposed payment runs are reviewed against the cash position to understand the impact on HMT forecasts, including daily, monthly and
66
net position.
67 Departments are to follow Managing Public Money 'Managing Cash' guidance with regard to payment methods.
Emergency Payments 68 Off-system payments should be available and supported by the system (e.g. emergency payments, etc.) and be by exception and controlled.
69 Returned and rejected payments are processed on a timely basis and resolved in consultation with the appropriate teams.
Payment Exceptions Reports are produced on a timely basis to confirm the volume and value of duplicate payments, with MI shared and appropriate action
70
taken across government.
Foreign Exchange
71 Requisitions and Purchase Orders can be raised for transactions denominated in foreign currencies.
Foreign Exchange Invoices are accepted in foreign currencies. Exchange rates and both realised and unrealised exchange rate gains/ losses are automatically
72
identified within the system.
9 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Management Information
System workflows and real-time dashboards should be used to ensure transactions are progressing (e.g. requisitions awaiting approval, open
73
Purchase Orders, GRNs with no invoice, etc.).
74 P2P systems have consistent reporting generated directly from the system.
75 Reporting capability exists to monitor commitments created by Purchase Orders alongside accrued and actual costs incurred to date.
Standard, consistent reports are available directly from the system to support external reporting (e.g. transparency requirements,
76
Prompt Payment, etc.).
Generate MI Reports
Reporting requirements shared by multiple customers on the same platform are delivered using the same report definition and are
77 automatically generated on behalf of all customers (e.g. transparency reporting, Prompt Payment and returns to Cabinet Office, HM
Treasury, Office for National Statistics, etc.).
78 The appropriate historical data is retained electronically to support operational and analytical activity.
79 Self-service tools are used to provide spend analytics and advanced reporting, including insight on spend by supplier / category.
Compliance & Controls

A control framework exists, listing all key controls and associated risks within the transactional P2P process, and is reviewed regularly. At
80
a minimum, this should address control objectives relating to fraud, error and financial misstatement.
Strict access controls are enforced and automated around the ability to create and maintain suppliers, Purchase Orders, invoices and
81
payments.
Overarching Governance Controls 82 The system enforces the required accuracy and integrity checks when data is entered.
Contracts with suppliers outline government expectations relating to supplier compliance with policies relating to purchasing and accounts
83
payable. For example, this includes 'No PO, No Pay' policy, invoice and credit note protocols, application of payment terms, e-invoicing, etc.
84 Data analytics software is used to identify potentially duplicate invoices.
A formal policy establishes cross-government segregation of duties principles, guidance on mitigating controls and system controls in-built
Access Controls 85
to prevent individuals performing multiple stages in the transactions.
10 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Process Management & Governance

86 Standard processes, and common process variations are defined and operated consistently across government.
87 Local variations to the standard process are subject to a separate business case approved by the Global Process Owner.
Core Design Standardised process documentation is regularly reviewed to ensure that it remains up-to-date and reflects the full range of acceptable
88
variations within the processes.
89 New process designs conform to the Global Design Principles and are subject to review and approval by the P2P Global Process Owner.
90 A formal continuous improvement initiative is in place and reports through the Process Owner.
Performance Monitoring Standard monthly performance reporting is established to monitor P2P efficiency and effectiveness, including progress towards specific
91
benchmarks and targets.
92 Governance structures are in place to maintain and enforce the Global Design Principles across the P2P community.
A central P2P Global Process Owner (GPO) is responsible for establishing best practice and implementing process improvement and
93
harmonisation of policies, processes and systems across government.
The P2P Process Owner is nominated for each department and is responsible for overseeing department convergence to
94
best practice and compliance with Global Process Owner expectations.
Process Governance A P2P Process Owner network is established across government to share experiences, common issues and support movement to
95
best practice.
96 A Process Owner Integration Forum is established to drive alignment across process networks and address cross process issues.
Departments, Process Owners, HM Treasury, Cabinet Office and other bodies are expected to engage the Process Managers community
97
before introducing new policies or requirements that impact finance processes.
98 Shared terminology is required, including definition of key terms, to ensure that language is used consistently across departments.
Supporting Activities
Cross-government transactional P2P policies have been established, including prompt payments, SME inclusion, e-trading and transparency
99
reporting.
P2P Policy 100 Cross-government data standards for procurement category have been established and communicated.
101 HM Government is not adopting self-approval of requisitions.
11 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
102 Standard software products are in place to support the transactional P2P process.
103 P2P systems are shared across the department, including large ALBs, other than agreed exceptions.
104 Cloud software is used in line with the Government's 'cloud first' strategy.
Supporting Technology 105 Data security standards have been addressed and there are no outstanding compliance issues.
There are simple and easy to maintain interfaces between the transactional purchasing solution and other procurement tools (e-market
106
place, online catalogues, etc.).
107 Self-service requisitions, GRNs and reporting can be performed using desktop and mobile devices (e.g. phones, tablets, etc.).
108 Vanilla functionality is used so that delivery is through standard configuration, rather than customisations.
Transactional teams are organised by processes to provide strong connections into the P2P Process Ownership structures, dependent on
109
Shared Service arrangements.
110 Transactional Shared Services are trusted to deliver without the need for a 'shadow team' to support and check the outputs.
Organisation Design 111 P2P processes and teams are shared across the department, including large ALBs, other than agreed exceptions.
112 P2P activities are shared with other departments across government.
113 Movement towards Centres of Excellence for Process Ownership to represent and support multiple departments.
12 PREVIOUS NEXT
MENU
Purchase to Pay - Metrics P2P

PRINCIPLES
PROCESS MAPS
No of suppliers not used for 18 months

Master Data Setup
and Maintenance Percentage of total spend against each catalogue by volume / value
Average cycle time, and longest cycle time from approved vendor setup request to new vendor record creation
No of requisitions awaiting approval with more than one week delay

Purchase Percentage of total requisitions awaiting approval with more than one week delay
Percentage of Purchase Orders transmitted electronically
Receipts No of Purchase Orders with no activity for more than one month after the 'need by' date
No of GRNs without invoices over one month old
Value of GRNs without invoices over one month old
Percentage of invoices received as structured (as a percentage of total Invoices received)
Accounts Payable
No of credit notes received each month (as a percentage of invoice numbers)
Value of credit notes received each month (as a percentage of invoice values)
Percentage of invoices that are not subject to three-way matching
Percentage of payments made by BACS by volume / value
No and value of duplicate payments

Percentage of BACS rejections and return-to-sender payments (as a percentage of payment volumes)
Payment Processing
Percentage of return to sender payments (as a percentage of payment volumes)
Percentage of payments to suppliers within 5 days (as a percentage of invoice volumes)
Percentage of payments to suppliers within 30 days (as a percentage of invoice volumes)
No and percentage of supplier invoices (PO matched) on hold

Management Information
No and percentage of supplier invoices (PO matched) on hold for more than two weeks
& Queries
No of emergency payments made
13 PREVIOUS NEXT
MENU
Procure to Pay Sub-Process Map

1.1 Master Data Setup and Maintenance
Purchase to Pay - Process Maps P2P
PRINCIPLES
METRICS

Employee (Requestor)
Start Start Start
Request Request Request

Vendor Master Procurement Procurement
Data Creation or Catalogue Data Category Data
Change Creation or Change Creation or Change Process Map Symbol Key
Approver
Approve Master
MDM
Data Change
Task Automated
Task
Start End
Perform
Confirm
Transactional Replicate to
Consistency and
and Master Data Other Systems Start of End of
Conventions process process
MDM Team
Maintenance
Run Open
Review Quality Transaction Connector
Reports Input/Output
from/to
another OR
process
Request Request AND

Request Vendor
Procurement Procurement 1.3
1.3 Purchase
Master Data
Catalogue Data Category Data Purchase
Change
Supplier
Creation or Change Creation or Change Point at which

a process
splits into
two routes
Decision
Start Start Start

Retained
Business SSC CoE External
Finance
14 PREVIOUS NEXT
MENU
Purchase
Procure to Pay Sub-Process Map to Pay - Process Maps P2P
PRINCIPLES
1.3 Purchase (A): Catalogue and Pre Sourced Framework Agreements METRICS
1.3 Purchase (A): Catalogue and Pre Sourced Framework Agreements

1.1 Create Purchase

Master Data Requisition (PR)
1.1 Master
Setup for Catalogue
Data Setup
Goods or
Services
Process Map Symbol Key

Budget Holder
Approve PR? No End Task Automated

Task
Start End
Yes Start of End of

process process
AP Team (Buying)
Create 1.4
Send PO 1.4
Purchase Order Receipts
to Supplier Receipts
(PO) Connector
Input/Output
from/to
another OR
process
AND
Point at which
Supplier
Supplier a process
splits into
Receives PO two routes
Decision
Retained
Finance
15 PREVIOUS NEXT
MENU

Purchase to Pay - Process Maps
1.3 Purchase (B): Non-Catalogue and Specialist One Off
P2P
PRINCIPLES
METRICS
1.3 Purchase (B): Non-Catalogue and Specialist One Off

1.1 Existing
1.1 MasterData
Master Data Commercial
Setup
Setup Contract Agreed
for Procurement
Create Purchase
Requisition (PR) for
Non-Catalogue
Goods or Services
Budget Holder
Task Automated
Task
Approve PR? No End
Start End
Start of End of
Category Manager
process process
Commercial
Yes Approve PR? No End
Connector
Input/Output
from/to
another OR
AP Team
(Buying)
process
Create Purchase Send PO 1.4
1.4 AND
Order (PO) to Supplier Receipts
Receipts
Point at which
a process
splits into
Supplier
two routes
Supplier Decision
Receives PO
Retained
Finance
16 PREVIOUS NEXT
MENU
Procure to Pay Sub-Process Map Purchase to Pay - Process Maps P2P

PRINCIPLES
1.4 Receipts METRICS
1.4 Receipts
1.3 Physically Goods and Record Goods

1.3
Purchase Receive Goods or Services Yes Receipt Note in
Purchase
Services Acceptable? System

AP Team (Buying)
Issue Self Billing Goods Receipt 1.5

1.5 Accounts Task Automated
Debit Note / Note Matched Accounts
Payable Task
Refund Memo to PO Payable
No Start End
Start of End of
process process
Connector
Input/Output
from/to
another OR
process
Confirms Return
Supplier Sends Return Goods or
Supplier
and Credit Note / AND

Shipping Note Services
Refund Memo
Point at which
a process
splits into
two routes
Decision
End
Retained
Finance
17 PREVIOUS NEXT
MENU
1.5 Accounts Payable Purchase to Pay - Process Maps P2P
PRINCIPLES
METRICS
1.5 Accounts Payable
1.6
1.6 Payment Open Invoices
Payment
Processing Left Open after End
AP Team (Invoicing)
Processing Set Time Deleted

Review Automatic
Sort, Scan and Post and Flagged Create Disputes Accruals and
Receive Invoice Archive PO 3-Way Match OR Invoices Put on and / or Credit Make Adjustments
Related Invoice Invoice Data Hold Notes at Source
Task Automated
Task
No
AP Approver
Start End
(Invoicing)
Approve
Disputes and End
Start of End of
Credit Notes? process process
Yes
Prepare and Enter Invoice Connector
Input/Output
Send Non- Send eInvoice Data Through PO from/to
eInvoice Flip / Self Billing another OR
process
Supplier Notified
Receive Dispute
of Rejected
Supplier
AND
and Credit Note
Invoice
1.4
1.4 1.4
1.4 1.4
1.4 Point at which
Receipts Receipts Receipts a process
Receipts Receipts Receipts splits into
two routes
Decision
Retained
Finance
18 PREVIOUS NEXT
MENU

P2P
PRINCIPLES
1.6 Payments Processing METRICS
1.6 Payments Processing

AP Approver
(Invoicing)
1.5
1.5
Accounts
Accounts
Payable
Payable
Disburse
(Payments)
Approved Invoice Process Map Symbol Key

AP Team
Ready for Payment and

Payment Run Remittance
Advice
Task Automated
AP Approver
Task
(Payments)
Approve
No Payment
Start End
Run?
Start of End of
Yes process process
Controller
Financial
Informed of
Payment Run
Connector
Input/Output
from/to
another OR
process
AND
Receive Payment
and Remittance
Supplier
Advice Point at which

a process
splits into
two routes
Decision
End Retained
Finance
19 PREVIOUS NEXT
MENU

1.8 Manage Requests and Enquiries
P2P
PRINCIPLES
METRICS

(Requestor)
Employee
Submit Request
Start
or Query
Log Request or Manage Request

Resolved? Close the Issue End
Query or Query
Task Automated
Task
No
Start End
Help Desk
OR Start of End of
process process
Connector
Input/Output
Escalation if from/to
Needed another OR
process
AND
Point at which
a process
Submit Request
Supplier
Start splits into

or Query Decision
two routes
Retained
Finance
20 PREVIOUS NEXT
MENU
Procure to Pay Sub-Process Map Purchase to Pay - Process Maps P2P

PRINCIPLES
1.9 Management Information and Analytics METRICS
1.9 Management Information and Analytics

Management
Accountant
Request Standard
Request New Request Analytics
End Report Using
Report Using Self-Service
Self-Service
No
Superuser
Reporting
Is There a Create New Maintain Report Process Map Symbol Key

Need for a New Report and Add Catalogue
Report? to Catalogue
Yes
Analytics
Task Automated
Perform Data
Team
Task
Analytics
Start End
Reporting Team
Start of End of
process process
Financial
Perform Monthly Prepare Financial

Reporting Statements
Connector
Input/Output
Drive Insight
Controller
Financial
from/to
Review Monthly Review Financial from the Findings another OR
Reporting Statements from the Data process
Analytics AND
Point at which
Director
Finance
Sign-Off Financial a process

splits into
Statements two routes
Decision
Processes Activities Retained

Finance
21 PREVIOUS NEXT
MENU
Order to Cash PRINCIPLES

METRICS
PROCESS MAPS
Master Data Sales of

Invoice Dept MI &
Setup & Goods and Receipting
Generation Management Analytics
Maintain Services
Customer Due Review Aged Standard

Qualify Create Invoices Receive & Apply
Diligence Debt Reports &
Opportunities Electronically Payments Dashboards
Maintain Credit Perform

Limits Collection
Create Invoices Receive Activities
Issue Quotes Data Analytics
Manually Remittance Advice
Order to Cash (O2C) principles
Maintain Price &
focus on the standardisation and Discount Master Resolve
harmonisation of processes within the Disputes
Agree Price & Foreign Receive & Apply Self-Service
accounts receivable function. These Discounts Exchange Cash / Cheques Reporting
Maintain Product
principles also ensure best practice in Master
debt management. Enter
Adjustments
Manage
Maintain Negotiate Terms Unapplied
Customers & Contracts Receipts
Create Credit
Notes
Maintain Invoice
Reference Data
Receive Perform
Orders Reconciliations
Issue
Maintain Refunds
Collection
Strategies
Order Handling
& Fulfilment Perform
Exchange Rates Write-off
Initiate Legal
Approval Limits Proceedings
22 PREVIOUS NEXT
MENU
Order to Cash - Principles O2C

METRICS
PROCESS MAPS
Account Receivable (AR) Master Data Setup & Maintenance

Customer data is controlled by a central team who will ensure that there is a single customer record, rather than multiple records, and all
1
changes to the record are subject to business approval.
Governance processes are established to manage the implications of a shared customer master file when platforms are used by multiple
2
customers.
The customer master file holds the relevant DUNS number where applicable and can store additional data fields and classifications to
3
support reporting requirements.
4 The data required for each customer will be determined based on a cross-government customer classification.
Maintain Customers 5 Customer records conform to a consistent naming convention that is applied across government.
6 The Quality of the customer master file is regularly reviewed and cleansed to remove inactive, duplicate and out-of-date records.
An audit trail is enabled for changes to sensitive financial customer details, including bank details, to show a full history of what is changed,
7
when and by whom.
8 An appropriate group of users have access to create and / or maintain customer data.
9 Customer master file changes are replicated automatically across all systems that hold the customer details.
10 Controls are in place to approve and monitor one-time customer refund payments.
Appropriate collection strategies are defined to determine the frequency and rigour with which outstanding debt is collected. These should
11
be kept under review to ensure the minimum number of collection strategies possible.
12 Collection strategies are assigned to customers based on the characteristics of the customer, type of income and legislative constraints.
Maintain Collection Strategies
13 The assignment of collection strategies is reviewed at least annually by departments to ensure the collection strategy remains appropriate.
The most cost-effective method of collection should be used, where it best fits the income collection strategy, in order to maximise
14
income collection.
15 Exchange rates are held in the system and updated on a regular basis.
Exchange Rates
16 Exchange rates are used, as provided by HMT.
17 User limits will be assigned to restrict the value of credit notes, adjustments and write-offs that can be processed by individuals.
Approval Limits 18 Approval limits are subject to business approval and held on the system.
A periodic review of allocated AR Adjustment, Credit Memo and Receipt Write-off limits is performed by management to confirm
19
these limits remain appropriate.
23 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Master Data (accounts receivable product and service catalogue) is created in order to provide default accounting and tax details. These
20
attributes cannot be overridden on a transaction-by-transaction basis.
Maintain Invoice 21 Master data is controlled by a central team and all changes are subject to business approval.
Accounts Receivable
22 The quality of invoice master data is regularly reviewed and cleansed to remove inactive, duplicate and out of date records.
Catalogue
23 Invoice reference data is easily searchable when creating invoices.
Invoice Generation
24 AR invoices are associated with approved orders that are held within the system, where appropriate.
25 AR invoices are generated automatically based on billing instructions provided by source systems.
26 Electronic distribution is the default method of issuing invoices to customers.
Create Invoices Electronically
27 Invoices interfaced from feeder systems will contain a reference to the original invoice in the feeder system.
28 Recurring invoice functionality is used for recurring charges (i.e. secondments, standing recharges, etc).
29 Electronic invoices are retained as audit evidence in line with HMRC requirements.
30 Manually-created invoices are only raised for exceptional items where electronic invoicing cannot be undertaken.
31 Manual invoices are subject to online review and approval prior to issue, to confirm the accuracy of the data.
Manual invoices are captured in data upload templates to simplify data entry. Controls are in place to ensure that the data upload is
32
complete and accurate.
33 Subsequent copies of invoices issued to a customer are marked as 'True & Certified Copy'.
Create Invoices Manually
34 The listing of manual invoices is periodically reviewed to consider whether electronic invoices could have been raised instead.
35 Revenue recognition rules will be applied automatically by the system in order to reduce manual revenue adjustments.
36 VAT calculations are performed automatically, based on the invoice details, and cannot be overridden by users.
37 Invoices values and tax cannot be amended once they have been issued to the customer.
The sum due should be charged in GBP to minimise the exchange costs for Government. However, the system should be capable of raising
38
Foreign Exchange AR invoices for transactions denominated in foreign currencies, where required.
39 Realised exchange rates gains and losses are automatically calculated and posted by the system.
24 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Receipting
40 The AR system is able to process cash receipts in multiple currencies.
41 Receipts are automatically applied to open AR invoices, based on the customer reference and value of the cash receipt.
42 In the event of an overpayment the amount will be left 'unapplied' on account.
Receive & Apply Payments.
Receive Remittance Advice Short payments and overpayments are automatically identified by the system and flagged for attention. Explanation of variances can be
43
recorded within the system.
44 Tolerance limits are established to allow small underpayments caused by rounding differences to be automatically written off.
45 When a customer account has insufficient funds and payment bounces, the cash receipt is updated accordingly and the account is flagged.
46 Post is opened by two members of staff and all cash receipts are documented.
Cash and cheque payments received are banked on the day the balance exceeds the department's de minimis limit. Departments
47
must publish limits internally.
Receive & Apply Cash / Cheques 48 Payment is accepted by credit and debit card over the internet or over the phone.
49 Payment received in a currency that does not match the invoice currency is flagged as an exception.
Receipts that cannot be banked on the day of receipt must be stored in a locked safe, until they are banked (according to the de minimis
50
limit).
51 Receipts that cannot be applied to a specific invoice, but can be identified to a customer, are placed on account.
Unapplied receipts and unidentified cash are monitored regularly, at least monthly, and action is taken to ensure customer balances
Manage Unapplied Receipts 52
remain accurate.
There is a policy in place to refund unapplied receipts after a set period of time, or if refund is not appropriate, account for the receipt in line
53
with HMT guidelines.
25 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Debt Management
A customer account review is completed on an ongoing basis to monitor customer’s outstanding debt position and persistent debt customers
54
are flagged on the system to prevent future sales.
Reports are available to provide a snapshot of account details, dunning history, dispute history, balance, collection activities and transaction
55
details.
56 A process is in place to review outstanding customer balances across multiple departments.
Review Aged Debt Outstanding balances are regularly reviewed for ageing and indication of impairment to inform both general and specific provisions for bad
57
and doubtful debts.
58 Debt is calculated as outstanding from the day the AR Invoice is due for payment.
59 The tax point is calculated based on the date the supply took place, the payment received or invoice date, in line with HRMC guidance.
60 An online customer portal is available to enable customers to understand and query their account position.
61 Collection activities are determined by the collections strategies that are assigned to each customer.
62 Dunning letters are automatically issued as milestones are reached within the collection strategy assigned to the customer.
A periodic review of any customers with an inactive or non-standard collection strategy will be performed to ensure that this is authorised
63
and appropriate.
High-volume or complex collection activities are supported by a specialist tool to prioritise activities. For example, collections staff
64
are prompted to complete specific tasks and record the outcomes, based on the portfolio of outstanding debt.
Collection activities and calls are recorded on the system and an audit trail of correspondence is maintained. This can be used to resolve
Perform Collection Activities 65
customer queries and disputes.
66 Collections staff regularly chase outstanding balances and capture details of disputes, promises to pay and next steps within the system.
67 Collection targets and forecasts are automatically calculated based on the collection strategies associated with the outstanding balances.
68 Collection targets are published and used to assess the performance of the collections team.
69 The collection manager periodically reviews reports to measure and evaluate collector performance.
70 Customer statements are periodically distributed electronically to enable large customers to view their account position.
26 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Invoices queried by customers are placed in a dispute status to suspend collection activities and remove the invoice from outstanding debt
71
reports.
72 Disputes are recorded into the system on a timely basis. Disputes that are initiated and subsequently resolved are recorded on the system.
There is a standard list of dispute classifications available in the system so that root causes for issues can be identified. The list will be agreed
Resolve Disputes 73
by those sharing the system.
Formal processes are established for identifying and communicating the AR invoices that are in dispute and when the disputes have been
74
resolved.
System functionality has the ability to record settlement arrangements. Specific terms that have been agreed with the customer take
75
precedence over the general collection strategy.
76 Credit 'memos' are raised for internal adjustments that are not directly issued to the customer in order to adjust the AR balance.
Enter Adjustments 77 Any adjustments made to customer balances are subject to an online approval process (e.g. Prompt Payment discount).
78 Optional approvers can be added to the approval chain but system generated approval chains cannot be overridden.
There is a standard list of credit note classifications available in the system so that root causes for issues can be identified and addressed.
79
This list will be shared by all users of a shared system.
80 Credit notes are issued to the customer where an AR invoice has previously been issued.
81 All credit notes are subject to online approval prior to posting to a customer account.
The credit note references, and is linked to, the original invoice number. No credit can be issued without a relationship to an original invoice,
Create Credit Notes 82
other than by agreed exceptions.
84 All transactions can be approved on mobile devices and tablets.
Documentation approving the reason for raising credit notes, adjusting AR transactions and processing write-offs will be electronically
85
retained as audit evidence.
86 Refunds are processed back to the customer via the most cost effective method.
87 Refunds are subject to online approval.
Issue Refunds
89 Refunds cannot exceed the value of the transaction that is being refunded.
27 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
90 Small under payments that fall within an approved cross-government policy are automatically written off by the system.
Perform Write-Off 91 Write-offs are subject to appropriate approval before being committed to the customer account.
92 Management complete a periodic review of AR adjustments, credit notes and write-offs.
93 The system identifies situations where legal action should be considered, in line with the relevant collection strategy.
Initiate Legal Proceedings 94 Legal action is undertaken in consultation with specialist legal teams.
The customer account can be classified or marked as 'Pending Legal Action' once legal proceedings are instigated. This prevents further
95
orders from being placed, refunds being processed, credit being extended, etc.
Management Information and Analytics

Standard reports are run regularly to ensure transactions are progressing. For example, AR invoices that have been raised but no cash
96
received and overdue debt collection activities.
97 There is a single source of the truth for transactional O2C reporting.
98 Reporting is updated in real-time so that the latest information is always available to the credit teams.
99 Predictive analytics are deployed to generate insights related to customers and collection targets, such as payments made on time, etc.
Standard Reports & Dashboards &
101 Self-service reporting can be performed using desktop, mobile and tablets.
Data Analytics
Dashboards are available for customer account details, dunning history, dispute history, balances, collection activities and transaction
102
overview / details.
103 Dashboards are updated in real-time to show progress against collections targets.
Reporting requirements are shared by multiple customers on the same platform and that are delivered using the same report
104
definitions, are controlled centrally on behalf of all customers. This includes ‘Fraud, Error and Debt’ returns to the Cabinet Office.
The reporting catalogue is reviewed regularly to ensure that reports remain valid. Redundant or duplicate items are removed following
105
this review.
106 A limited number of trained Reporting Super Users have the ability to create their own reports for specific business purposes.
Self-Service Reporting A change control process is in place for standard reports and dashboards created by the Reporting Super Users. New reports are
107
published to appropriate users and recorded in the reporting catalogue.
28 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS

A control framework exists which has been subject to review by Internal Audit, listing all key controls within the transactional O2C process.
108
At a minimum, this should address control objectives relating to fraud, error and financial misstatement.
Overarching Governance Controls 109 Strict access controls are enforced around the ability to create and maintain master data.
110 The system enforces the required accuracy and integrity checks when data is entered.
111 A formal policy establishes cross-government segregation of duties principles and guidance on mitigating controls.
Compliance / control reports are regularly reviewed, to ensure adherence to the process and validate that security controls are working
112
and are being observed.
Access Controls Segregation of duties prevent individuals performing multiple stages in the transaction. For example, credit notes and other revenue
113
adjustments (accruals, deferrals, write-offs, refunds), cannot be entered and approved by the same user and this is enforced by the system.
Access rights are linked to a post. When staff move into a post, they should automatically be assigned the responsibilities linked to the post.
114
When they leave a post, those responsibilities should automatically be removed.
115 Interface control reports are reviewed each time an import is run. Exceptions are logged, investigated and resolved on a timely basis.
Periodic sample checks and reconciliations are be performed to confirm that the data contained within the source and destination systems
Interface Controls 116
remain synchronised.
117 Data within the system is periodically reviewed to ensure that the records are accurate and complete.
There are approved Business Continuity (BC) plans in place to enable critical activities in the O2C process to continue in the event of a
118
serious incident.
Business Continuity 119 Business Continuity plans are regularly reviewed and tested (at least annually) to ensure remedial action remains effective and actionable.
120 Business Continuity plans are published and relevant staff are aware of their responsibilities.
29 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS

121 Standard processes and common process variations are defined and operated consistently across the department.
122 Local variations to the standard process are subject to review and approval from the Global Process Owner prior to instigation.
Core Design Process documentation is regularly reviewed to ensure that it remains up to date and reflects the full range of acceptable variations
123
within the processes.
124 New process designs conform to the Global Design Principles and are subject to review and approval by the O2C Global Process Owner.
Performance Monitoring Performance reporting is established to monitor O2C efficiency and effectiveness, including progress towards specific benchmarks and
126
targets.
Departmental managers are responsible for ensuring their staff are aware of latest process guidance and are informed of appropriate
127
Knowledge Management training courses.
128 Individuals are responsible for undertaking training, as advised by their manager, in a timely manner.
129 Governance structures are in place to maintain and enforce the Global Design Principles across the O2C community.
The O2C Global Process Owner (GPO) is responsible for establishing best practice and implementing process
130
improvement and harmonisation of policies, processes and systems across government.
131 The O2C Process Owner is responsible for overseeing department convergence to best practice.
A O2C Process Owner network is established across government to share experiences, common issues and support movement
132
to best practice.
A Global Process Owner Integration Forum is established to drive alignment across process networks and address cross-process issues
133
Process Governance (i.e. P2P and R2R).
HM Treasury, Cabinet Office, Government Banking and other bodies are expected to engage the Process Owner, Process
134
Manager community before introducing new policies or requirements that impact the finance processes.
O2C Process Owners should be aware of changes to accounting standards and be actively engaged with HM Treasury, Cabinet Office and
135
Government Banking for guidance on best practice.
Shared terminology is required, including definition of key terms, to ensure language is used consistently across departments. This includes
136
cross-functional activity, including definitions used in HR.
Processes are subject to regular internal audit and compliance reviews to ensure controls are operating effectively and in line with best
137
practice guidance.
30 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Cross-government transactional O2C policies have been established, including the settlement of intra-government debt, the use of
138
O2C Policy netting /offsetting and treatment of small overpayments.
139 Cross-government data standards for customer classification have been established and communicated.
140 Standard 'off the shelf' software products are in place to support the transactional O2C process.
141 Transactional O2C systems are shared across the department, including large ALBs, other than agreed exceptions.
143 Data security standards have been addressed and there are no outstanding compliance issues.
There are simple and easy to maintain interfaces between the transactional accounting solution and other management tools (Customer
144
Supporting Technology Relationship Management (CRM) or sales systems, etc.).
145 An automated workflow tool is used to support document and query management.
146 Audit functionality is enabled so that changes to records can be monitored.
147 Routine manual processes are automated through robotic process automation.
148 Approvals are captured online in order to streamline the processes and retain an audit history.
The organisation design supports effective involvement of key teams in the O2C process, including Business Partners, Centres of
150
Excellence and transactional teams.
151 Transactional teams are organised by processes to provide strong connections into the O2C Process Ownership structures.
Organisation Design 152 Transactional shared services are trusted to deliver without the need for a 'shadow team' to support and check the outputs.
153 O2C processes and teams are shared across the department, including large ALBs, other than agreed exceptions.
154 O2C activities are shared with other departments across government.
31 PREVIOUS NEXT
MENU
Order to Cash - Metrics O2C

PRINCIPLES
PROCESS MAPS
Percentage of customer records with incomplete or missing data

Master Data Setup No of customers not used for 18 months
& Maintenance No of customers set up to pay by Direct Debit
No of customers assigned non-standard collection strategies
Average time between order shipped and invoice raised (days)
No of credit memos created in last 30 days
Percentage of AR invoices raised as structured electronic invoices
Invoice Generation
Percentage of AR Invoices raised as unstructured electronic invoices
Total revenue by category over time
No of AR invoices waiting for approval for more than 1 week
Value of unapplied receipts
Percentage of cash receipts automatically applied
Percentage of payments via automated customer remittances
Receipting
Percentage of payments banked on day of receipt
Value of unidentified receipts
No of DD rejections and return-to-sender payments in last 30 days
32 PREVIOUS NEXT
MENU
Order to Cash - Metrics O2C

PRINCIPLES
PROCESS MAPS
Value of aged debt over 30 days overdue

Profile of outstanding debt by customer type
Percentage of aged debt over 30 days overdue against total debt
No of credit notes as a percentage of the total No of invoices raised
Value of credit notes as a percentage of the total invoices raised
Debt Management Percentage of accounts in dunning process
Average dispute resolution cycle (days)
Percentage of invoices disputed by customers
Total value of disputed invoices
No of disputes open for more than 30 days
Daily Sales Outstanding (DSO) – i.e. unbilled sales
MI & Analytics No of changes to reporting catalogue each month
No of self-approved AR invoices, credit notes and write-offs
Compliance and Controls
No of users with segregation of duties conflicts
33 PREVIOUS NEXT
MENU
Order to Cash - Process Maps

Order to Cash Sub-Process Map
O2C
PRINCIPLES
METRICS
Start
OR
Request Customer Request Collection Request Request Request Invoice

Master Data Strategies Data Exchange Rate Approval Limit Reference Data Process Map Symbol Key
Creation / Change Creation / Change Creation/Change Creation/Change Creation/Change
Approver
Approve Master
MDM
Data Change
Task Automated
Task
Perform Start End

Confirm
Consistency and
and Master Data Other Systems
Conventions
MDM Team
Start of End of
Maintenance process process
Run Open
Review Quality Transaction
Reports
Connector
Input/Output
from/to
another OR
process
Request Request Request Invoice 2.2 Sales of
Request Customer Request Collection Sales of Goods AND
Exchange Rate Approval Limit Reference Data Goods and
Master Data Strategies Data and Services
Creation / Creation / Creation /
Customer
Creation / Change Creation / Change Services

Change Change Change Point at which
a process
splits into
two routes
Decision
OR
Start Retained
Finance
34 PREVIOUS NEXT
MENU
Order to Cash Sub-Process Map Order to Cash - Process Maps O2C

PRINCIPLES
2.3 Invoice Generation METRICS
2.3 Invoice Generation

(Invoices)
AR Team
Sales ofof
Goods Billing Invoice
2.2 Sales Goods
and Instructions Generated
andServices
Services
Generated Against Order

AR Approver
(Invoices)
Approve
No
Invoice?
Task Automated
Task
Start End
(Collections)
Yes
AR Team
Realised
Revenue
Exchange Rates Start of End of
Recognition Rules process process
Gains and Losses
Applied
Applied
Connector
Manual Input of Invoice Input/Output
from/to
Billing Instructions if Distributed to another OR
Required Customer process
Customer
AND
Point at which
2.4Receipts / a process
2.4 Payment splits into
Payment
2.5 Debt two routes
Receipts Decision
Management B&C
Retained
Finance
35 PREVIOUS NEXT
MENU

2.4 Payment Receipts
Order to Cash - Process Maps O2C
PRINCIPLES
METRICS
2.4 Payment Receipts

2.5
2.5 Debt
Debt
AR Team (Receipting)
End Management
Management
No A&C
A&C
No OR Yes
Identified Unidentified and Perform

Payment
Cash Receipts Applied Unapplied Unapplied Reconciliations
Flagged by
to Open AR Invoices Receipts Placed Receipts for Large Process Map Symbol Key
System?
on Account Monitored Customers
Yes
AR Approver
(Receipting)
Short Yes No
No Receipts Unidentified Apply Refund or
or Over
Placed On & Unapplied Yes Write-Off Policy
Payments? Automated
Account? Receipts? where Applicable Task
Task
Yes Start End

AR Approver
(Collections)
Payments Match No
Invoice Currency? Start of End of
process process
(Collections)
Payment
AR Team
Payment / Payment
Received and
Remittance Advice Received Over
Banked on Day of Connector
Received Phone or Online Input/Output
Receipt
from/to
another OR
process
Electronic Credit / Debit
Cash Payment AND
Payment Card Payment
Disbursed
Disbursed Disbursed
Customer
Point at which
a process
splits into
two routes
Decision
2.3 Invoice
2.3 Invoice 2.3
2.3 Invoice
Invoice 2.3 Invoice
2.3 Invoice
Generation Generation Generation
Generation Generation Generation
Retained
Finance
36 PREVIOUS NEXT
MENU
2.5 Debt Management (A) Order to Cash - Process Maps O2C
PRINCIPLES
METRICS
2.5 Debt Management (A)
2.4
2.4 Payment
Payment
Receipts
Receipts
AR Team (Debt)
Is Debt Monitor Debt

No
Overdue? Repayment Dates
Task Automated
Task
Yes
Start End
(Collections)
Dunning Letters
AR Team
Generated at Perform Start of End of

Collection Strategy Collection process process
Milestones Activities
Perform Periodic
Connector
AR Approver
(Collections)
Review of Input/Output
Collections from/to
Strategies End another OR
process
AND
Point at which
a process
Customer
Periodically splits into

two routes
Distribute Decision
Statements
Retained
Finance
37 PREVIOUS NEXT
MENU
2.5 Debt Management (B) - Query Order to Cash - Process Maps O2C
PRINCIPLES
METRICS
2.5 Debt Management (B) - Query

AR Team (Debt)
AR Invoices in
Dispute End End
Identified

(Collections)
Customer
AR Invoices in Settlement Legal
AR Team
Customer Placed Account Marked

Dispute Arrangement Proceedings
in Dispute Status ‘Pending Legal
Communicated Recorded Determined
Action’
Task Automated
Task
Start End
AR Approver
(Collections)
Approve Legal Yes Legal Teams Department

Proceedings? Consulted Informed Start of End of
process process
Yes
No
No
Connector
Dispute Input/Output
Customer AR Invoices in Resolution from/to
Queries Invoice Dispute Received OR another OR
Agreed? process
Customer
Informed of Legal AND
Customer
Settled
Proceedings
Point at which
3.3 Invoice
Invoice a process
2.3 splits into
Generatio
Generation two routes
Decision
n End
Retained
Finance
38 PREVIOUS NEXT
MENU
Order
Order to Cash Sub-Process Map to Cash - Process Maps O2C
PRINCIPLES
2.5 Debt Management (C) - Credits

METRICS
2.5 Debt Management (C) - Credits

End
AR Team (Debt)
Credit Memo
Raised for
Internal
Adjustment Customer
AR Balance
Updated
Yes
AR Approver
Yes
Approve
(Debt)
Adjustment and
Apply Policy? Automated
Task
Task
No
AR Approver
(Collections)
Start End
Approve
Write-Offs? Start of End of
process process
(Collections)
Small Large
AR Team
Underpayments Underpayment
Written Off in Line Written Off in
with Policy Line with Policy No Connector
Input/Output
from/to
another OR
process
AND
Query Invoice or
Statement
Customer
Point at which
a process
splits into
2.4
2.4 Payment two routes
Payment Decision
2.3 Receipts
2.3 Invoice
Invoice
Generation Receipts
Generation
Retained
Finance
39 PREVIOUS NEXT
MENU
Order to Cash Sub-Process Map Order to Cash - Process Maps O2C

PRINCIPLES
2.5 Debt Management (D) - Refund METRICS
2.5 Debt Management (D) - Refund

End
AR Team (Debt)
Credit Memo
Raised for
Internal
Adjustment
Customer 2.3 Invoice
2.3 Invoice Credit Note Refund Customer AR
AR Balance Generation
Generation Issued Processed Balance Updated
Updated
Yes Process Map Symbol Key
Yes
AR Approver (Debt)
Approve
Adjustment and Raise Credit
Apply Policy? Note?
No
Task Automated
Task
Correct Customer
No Yes AR Balance
Start End
Start of End of
(Collection
Approver
process process
Approve
End
AR
s)
Write-Off?
No
(Collections)
Large
Small
AR Team
Underpayment Connector
Underpayments Input/Output
Written Off in from/to
Written Off
Line with Policy another OR
process
AND
Query Invoice or Refund
Statement Received
Customer
Point at which
a process
splits into
two routes
Decision
2.3
2.3 Invoice
Invoice 2.4
2.4 Payment
Generation
Generation Payment
Receipts
Receipts Retained
Finance
40 PREVIOUS NEXT
MENU
Order
PRINCIPLES

METRICS

(Requestor)
Submit
Employee
Start Request or
Query
Log Request or Manage Request Yes

Query or Query
Task Automated
Task
No
Start End
Help Desk
OR Start of End of
process process
Escalation if Connector
Input/Output
Needed from/to
another OR
process
AND
Point at which
a process
Customer
Submit splits into

Start Request or two routes
Decision
Query
Retained
Finance
41 PREVIOUS NEXT
MENU
Order
PRINCIPLES

METRICS

Management
Request Standard Request

Accountant
Request New
End Report Using Analytics Using
Report
Self-Service Self-Service
No
Superuser
Reporting

Analytics
Yes Automated
Perform Data Task
Team
Task
Analytics
Start End
Start of End of
Reporting
process process
Financial

Team
Connector
Drive Insight Input/Output
Controller
Financial
Review Monthly Review Financial from/to

from the Findings another OR
Analytics
AND
Point at which
Director
Finance

Statements splits into
two routes
Decision

Finance
42 PREVIOUS NEXT
MENU
Cash Management PRINCIPLES

METRICS
PROCESS MAPS
Bank Account
Cash Banking Bank Cash Cash MI &
Setup &
Planning Transactions Reconciliations Handling Forecasts Analytics
Maintenance
Cashflow Standard
Bank Account Roles & Money Bank Management
Responsibilities Cash & Cheques Reports &
Creation Transmission Reconciliations Scheme (CFM) Dashboards
Negotiation with Supply Funding

Maintain Counterparties Transaction Bank Statement
Cash Management principles ensure Authorised Controls Import Cash Transactions Data Analytics
Signatories
that necessary controls are in place
Contingencies
to effectively manage public money Transaction Fund Analysis
by covering all aspects of Cash Timings
Self-Service
Management, from creation of bank Banking Systems Sweep Reporting
accounts, right through to data analysis Daily Forecasts
and production of reports. Communication
with HMT
Bank Account
Setup On Financial Monthly Forecasts
Systems
Commercial
Accounts
Long Term
Forecasts
Banking Controls
HMT Charges
Charges &
Rebates
Hedging
League Tables
Exotic Commercial
Transactions Account Balances
43 PREVIOUS NEXT
MENU
Cash Management - Principles CM

METRICS
PROCESS MAPS
Master Data Setup & Maintainenance

Departments hold the minimum number of bank accounts required to run the organisation effectively. These should be arranged through
1
the Government Banking contract (see Principle 7 for Commercial accounts).
2 The system should hold key bank account details including the purpose of each bank account for the departments and their ALBs.
Annual verification of departmental records of banks accounts with records held by HMT cash team to be undertaken, including
3
dormant accounts.
Requests for new bank accounts need to be agreed/authorised by their controlling department, ahead of being submitted to Government
4
Bank Account Creation Banking for HMT approval. This ensures they meet a business need before being submitted to HMT / GBS.
5 Departments alert HMT and Government Banking of any planned changes to their GBS accounts, including the creation of new legal entities.
Justification for commercial accounts must be approved by the HMT Cash Flow Management team and HMT Spending as well as the parent
6
department if an ALB.
After HMT approval, the commercial banking arrangements outside of Government Banking’s offering must be approved by the
7
Crown Commercial representative for Banking to ensure the arrangement offers value for money
8 Departments arrange SUNs, BACS details, credit card machines, etc., to meet banking requirements.
Department contacts held by Cash Flow Management Scheme (CFM) are updated as necessary, but at least
9
Maintain Authorised Signatories annually, and Government Banking are advised to ensure authorised draw-down and top-up authorities are
10 appropriate.
Bank mandates are reviewed based on risk, but at least annually, to ensure payment signatories remain authorised and appropriate.
Access to online banking systems is tightly restricted with central control within the department. System administrators must not be able to
11
make or authorise payments and no payment inputter or authoriser can be involved in a payment more than once.
Departments are responsible for applying authorisation limits to their accounts to provide additional controls for high-value transactions.
12 These limits must be controlled by their system administrators and must always apply to payments outside of Government. Authorisation
Banking Systems
limits are not mandatory for transfers between account sets within the same bank supplier.
13 All configuration changes to the banking systems are independently reviewed within the department.
14 Payment files are securely transferred between finance systems and banking systems.
15 Departmental bank account details are set up within finance systems by a central team.
Departmental Bank Account
16 Only a limited number of authorised personnel have access to create and amend bank accounts in finance systems.
Setup on Finance Systems
17 Changes and amendments to bank details are automatically replicated across all systems that hold the bank details.
44 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Cash Planning
Accounting officers are responsible for actively managing risks associated with cash management, including any credit exposures of funds
18
held in commercial accounts.
Roles & Responsibilities 19 Responsibilities should be linked to HR records to ensure roles are updated automatically when the HR record changes.
Debt Management Office (DMO) assess Government's cash position on a daily basis and finance the net government overnight debt, if
20
any, or invest any overnight balance.
21 Target payment dates (for large values that could impact cash flow) are negotiated with counterparties and adhered to.
Negotiation with Counterparties
22 Large inflows are negotiated on specific days, and specify receipt in the morning to ensure receipts are swept into the Exchequer that day.
Transaction Timings 23 Large CHAPS payments (e.g. above £5m per transaction) are transacted before midday in line with GBS requirements.
24 Forecast cash flows are provided to HMT within agreed timescales.
Communication with HMT 25 HMT are informed of major cash flows, even if a definitive transaction date has not been agreed.
26 HMT are advised if payment or receipt dates are moved, even if this is outside normal deadlines.
Commercial Accounts 27 Commercial accounts are kept at minimum levels and are not funded in advance.
As a matter of good financial management, public sector organisations should never go overdrawn. Overdrafts normally bear penalty
HMT Charges 28
interest if an account becomes overdrawn.
29 Foreign exchange hedges are executed in line with the guidance within Managing Public Money, in discussion with HMT.
Hedging If an organisation uses financial instruments to hedge, the accounting officer will need to be satisfied that the cost and management effort
30
of operating the hedging policy offers value for money.
Novel and
31 The decision to use financial instruments is automatically classed as novel and contentious and should be cleared with HMT prior to use.
Contentious
Transactions
Banking Transactions
32 Payment methods that are the most cost effective should be used.
Money Transmission
33 Cash, uncrossed cheques, order books or other methods should only be used by exception and reviewed regularly.
45 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
34 Payment runs are reviewed and compared to the cash forecasts and action taken as appropriate.
Transactions are not processed using the Supply Estimate (Vote) Bank Account. Vote accounts must be used to hold and move balances to
35
Transaction Controls other bank accounts that perform transactions.
36 Departments must ensure that they do not breach their net cash requirement.
37 Procedures are in place to reclaim misdirected payments, including liaising with commercial, legal and other relevant teams.
Account balances on all Government Banking accounts are held securely and centrally at the Bank of England. Net receipts are swept to the
38
Bank of England whilst net payments are drawn accordingly.
Sweep
Funds held in commercial accounts are outside of the Exchequer pyramid, so cannot be swept and therefore do not help towards minimising
39
the government’s borrowing requirement.
Bank Reconciliations
40 The bank statements reconciliation process is automated.
41 Only a limited number of users have access to run the bank reconciliations.
42 Any unreconciled items are reviewed after running the automated reconciliation process and manually reconciled.
Bank Reconciliations 43 Items which could not be reconciled are investigated and resolved in a timely manner.
44 Transactions are entered to match expected unreconciled items (e.g. interest received and bank charges).
Unexpected receipts and payments identified on the bank statement are investigated and approved in consultation with the relevant teams,
45
including O2C and P2P.
46 Unreconciled items should be managed using a system based workflow, with an audit trail showing the resolution and reported regularly.
47 Access to download bank statements is appropriately restricted.
48 Downloaded bank statement files are held in a secure location, which is restricted to users with specific business justification.
Bank Statement Import Control totals (opening and closing balance, receipts and payments) from the statement are entered automatically during the upload
49
process to ensure statement lines are all imported correctly.
Bank statement uploads are reviewed to ensure they are successfully imported to the system. Exceptions are logged, investigated
50
and resolved on a timely basis.
46 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Cash Handling
51 Post is opened by two members of staff, and all cash receipts are documented.
Cash and cheques received are banked on the day the balance exceeds the department's de minimis limit. Departments must publish
52
Cash & Cheques limits internally.
53 Cash is transferred between locations securely. Specialist security firms are used in accordance with GBS guidelines.
54 In the event that cash or cheques cannot be banked on the day they are received then they are stored in a locked safe, until the de minimis
limit is reached.
Any cash holdings adhere to local / departmental policies covering this process including the total float held, the specified currency,
55
the location of the cash and associated security precautions.
56 Named individuals are responsible for managing the cash. This includes maintaining the float level and replenishing cash levels as needed.
57 Documentation is retained for all cash receipts and expenditure.
58 Documentation is scanned and stored electronically where possible.
Cash Transactions
59 Reconciliations are performed periodically (at least monthly) to ensure that income, expenditure and cash balances are recorded correctly.
60 Reconciliations are independently reviewed to ensure accuracy and validation of cash balances.
61 Any identified shortfalls are recorded and appropriate management action taken.
62 Reporting of cash transactions and balances are sent to the HMT Cash Management team on a regular basis.
Cash Forecasts
Cash Flow Management Scheme (CFM) is led by HMT in order to obtain reliable forecasts of department cash flows to inform the Debt
63 Management Office. Departments comply with either the small or large department schemes depending on their size, volatility and
historic forecasting accuracy.
Cash Flow Management 64 Departments confirm the list of accounts monitored under Cash Flow Management to HMT on an annual basis.
Scheme (CFM)
65 Departments with negative Net Cash Requirements cannot draw down Supply cash from the Consolidated Fund.
If a department uses a shared services provider, the department still retains full responsibility to provide accurate forecasts of their gross
66
payments and receipts.
47 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Supply funding is drawn either by completing the Cash Flow Management workbook, where funds are placed in department accounts on
67
the first working day of the month or by Top-Up Supply, where additional funds are placed in accounts during the month.
Supply Funding 68 Any Top-Up Supply requests are sent to HMT by 12pm the day before the funds are required to guarantee the top-up can be processed.
69 Supply funding is only paid into the Supply Estimate (Vote) account.
70 Amendments to supply additional funding are received by HMT two working days before the last working day of the month.
71 Departments should approach the HMT Spending team as soon as the need for a Contingencies Fund advance is identified.
Contingencies Fund Advances 72 If the Contingencies Fund advance is agreed, it will be paid directly into the Supply Estimate (Vote) account.
73 Contingencies Fund advances should be repaid in-year unless there are special circumstances agreed with HMT.
74 Cash Flow Management requires departments to provide daily forecasts of gross cash flow and to meet daily targets.
Daily Forecasts
75 CHAPS and BACS amendments are received by HMT in line with the latest published guidance.
76 Cash Flow Management requires departments to provide monthly forecasts of gross cash flow and to meet monthly targets.
Monthly Forecasts
77 Forecasts are received by HMT in line with the latest published guidance.
78 Departments are asked to provide HMT with long term forecasts of their gross external cash flow for the year.
Long Term Forecasts Departments are encouraged to keep HMT updated on long term cash forecasts on a timely basis to inform forecasts to the Debt
79
Management Office.
Forecasts are prepared collaboratively by working with relevant stakeholders across the department (including outside of finance or with
80
ALBs).
81 ALBs prepare and review their returns before sending to the department.
Forecasting Principles
82 Forecasts are prepared and submitted in HMT prescribed templates
83 Standard reports are in place to simplify or automate the population of HMT templates.
84 All forecasts are independently reviewed and appropriately authorised prior to release to HMT.
85 All charges incurred under the schedule are rebated to departments, pro rata to their gross cash flow.
Charges & Rebates
86 The cost of errors in forecasting are apportioned to departments through supplementary estimates and are regularly reviewed.
League Tables 87 Monthly targets are in place for the overall forecast and BACS monthly forecast, and are regularly reviewed.
Commercial account balances are reported to HMT on a quarterly basis. The balances are split into Exchequer and Non-Exchequer funds to
Commercial Account Balances 88
clarify whether the funds belong to government or third parties.
48 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Management Information and Analytics

Standard Reports & Dashboards 89 Standard reports are run regularly to ensure transactions are progressing. For example, unreconciled bank statement items are cleared.
90 There is a single source of the truth for transactional Cash Management reporting.
Data Analytics 93 Dashboards are available for cash management performance.
Reporting requirements that are shared by multiple customers on the same platform are delivered using the same report definitions and
94
controlled centrally on behalf of all customers.
There is a periodic review of the reporting catalogue to ensure that the purpose and use of each report is clear. Where this is unclear,
95
production of the report is ceased.
Self-Service Reporting A change control process is in place for reports created by the Reporting Super Users. New reports are published to appropriate users and
97
recorded in the reporting catalogue.

A control framework exists which has been subject to review by Internal Audit, listing all key controls within the Cash Management
98
process. At a minimum, this should address control objectives relating to fraud, error and financial misstatement.
An audit trail is enabled for changes to bank details in both banking and finance systems, to show a full history of what is changed, when
101
and by whom.
A periodic review (at least annually) of bank details set up on banking and finance systems is performed in order to ensure they
Banking Controls 102
remain authorised and appropriate.
A review of users is performed (at least annually) to confirm users with the ability to access banking systems and maintain bank details
103
remain authorised and appropriate.
49 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Compliance / control reports are regularly reviewed to ensure adherence to the process and validate that security controls are working
105
Access Controls Segregation of duties prevent individuals performing multiple stages in the transaction (i.e. those who perform payments do not perform
106 bank reconciliations). System administrators must not be able to make or authorise payments and no payment inputter or authoriser can
be involved in a payment more than once.
Access rights should be linked to a post. When staff move into a post they should automatically be assigned the responsibilities linked to the
107
post. When they leave a post those responsibilities are automatically removed.
Interface Controls Periodic sample checks and reconciliations are performed to confirm that the data contained within the source and destination systems
109
remain synchronised.
There are approved Business Continuity (BC) plans in place to enable critical activities in the Cash Management process to continue in the
110
event of a serious incident.

113 Standard processes, and common process variations are defined and operated consistently across the department.
114 Local variations to the standard process are subject to review and approval by the Global Process Owner (GPO) prior to instigation.
Core Design Process documentation is regularly reviewed to ensure that it remains up to date and reflects the full range of acceptable variations
115
New process designs conform to the Global Design Principles and are subject to review and approval by the Cash Management Global
116
Process Owner.
Performance Monitoring Performance reporting is established to monitor Cash Management efficiency and effectiveness, including progress towards
118
specific benchmarks and targets.
Departmental managers are responsible for ensuring their staff are aware of latest process guidance, including advice or instructions
119
Knowledge Management provided by Government Banking and are informed of appropriate training courses.
50 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
121 Governance structures are in place to maintain and enforce the Global Design Principles across the Cash Management community.
The Cash Management Global Process Owner (GPO) is responsible for establishing best practice and implementing process
122
123 The Cash Management Process Owner is responsible for overseeing department convergence to best practice.
A Cash Management Process Owner network is established across government to share experiences, common issues and
124
Process Governance support movement to best practice.
A Global Process Owner Integration Forum is established to drive alignment across process networks and address cross process issues
125
(i.e. R2R & O2C).
HMT, Cabinet Office and other bodies are expected to engage the Process Owners community and Government Banking before
126
introducing new policies or requirements that impact the finance processes.
Shared terminology is required, including definition of key terms, to ensure language is used consistently across departments. This
127
includes cross-functional activity, including definitions used in related systems.
Cross-government transactional Cash Management policies have been established in line with Managing Public Money, including the
128
Cash Management Policy banking policy, use of financial instruments and foreign exchange.
129 Cross-government data standards for cash management have been established and communicated.
130 Standard 'off the shelf' software products are in place to support the Cash Management process.
131 Cash Management systems are shared across the department, including large ALBs, other than agreed exceptions.
There are simple and easy to maintain interfaces between the transactional accounting solution and other management tools (banking
Supporting Technology 134
systems, etc.).
51 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Transactional teams are organised in the most appropriate way to provide strong connections into Cash Management Process Ownership
139
structures.
140 Transactional shared services are trusted to deliver without the need for a 'shadow team' to support and check the output.
Organisation Design 141 Cash Management processes and teams are shared across the department, including large ALBs, other than agreed exceptions.
142 Cash Management activities are shared with other departments across government.
52 PREVIOUS NEXT
MENU
Cash Management - Metrics CM

PRINCIPLES
PROCESS MAPS
Bank Account Setup No of banking detail changes in last 12 months

& Maintenance No of authorised signatory changes
Position in cash forecasting league table
Cash Planning
Year End Outurn as a percentage of forecast
Value of funds in commercial accounts
Overdraft charges for last 3 months
Banking Transactions
Value of Hedges and Exotic Transactions
Percentage of payments made by BACS
Value of unreconciled items as a percentage of total cash flow
Bank Transactions
No of unreconciled items over 60 days old
Cash Handling Value of cash held locally
Percentage accuracy of cash forecasting
Cash Forecasts
Monthly Outturn as a percentage of forecast
Time taken to produce dashboards (days)
MI & Analytics
No of staff days spent on external reporting
No of users with access to banking data
Compliance and Controls
53 PREVIOUS NEXT
MENU
Cash Management Sub-Process Map Cash Management - Process Maps CM

PRINCIPLES
3.1 Master Data Setup and Maintenance METRICS

Start
OR

Request Bank Request Authorised Request Bank
Account Data Signatories Data Account Creation or
Creation or Change Creation or Change Change
Task Automated
Task
Approver
Approve Master Data

MDM
Change Start End
Start of End of
process process
Perform
Maintain Banking Maintain Banking Confirm Consistency Transactional and Replicate to Other
Systems Controls and Conventions Master Data Systems
Maintenance
Connector
Input/Output
from/to
another
MDM Team
OR
process
Run Open
Review Quality
Transaction Reports AND
Point at which
a process
splits into
two routes
Decision
3.2 Cash
3.2 Cash Planning
Planning
Retained
Finance
54 PREVIOUS NEXT
3.2 Cash Planning (A) - Forecasts
MENU
Cash ManagementCash Management - Process Maps CM

Sub-Process Map PRINCIPLES
3.2 Cash Planning (B) – Foreign Exchange METRICS
3.2 Cash Planning (A) - Forecasts

Management
Negotiate Target Payment

Negotiate Target Maintain Commercial
Dates with Counterparties Create Forecast Cash
Cash
Lead
Inflow Dates with Accounts at

(CHAPS Payments Advised Flows
Counterparties Minimum Level
Before Midday)
Management
Assess Government Process Map Symbol Key

Office
Debt
Cash Position on
Daily Basis
Apply Penalty Task Automated

3.1 Master Data
8.1 Master Receive Department Interest if Supply 3.3Banking
3.3 Banking Task
HMT
Setup Transactions
Transactions
Data Setup Forecast Cash Flows Estimate Account
Start End
Goes Overdrawn
Start of End of
process process
3.2 Cash Planning (B) – Foreign Exchange

Management
3.1
3.1 Master Data
Master Data Execute Foreign Employ Novel Financial
Setup
Lead
Cash
Setup Exchange Hedges Instruments Connector

Input/Output
from/to
another OR
process
Yes AND
Approve
Approve Foreign
Novel Financial No End
Exchange Hedges?
Instruments? Point at which
a process
HMT
splits into
Yes two routes
No Decision
3.3 Banking
End Transactions Retained
Finance
55 PREVIOUS NEXT
MENU
Cash Management Sub-Process Map
3.3 Banking Transactions Cash Management - Process Maps CM
PRINCIPLES
METRICS
3.3 Banking Transactions

AP Team (Payments)
3.2
3.2 Cash
Cash
Planning
Planning
OR Disburse
Payment
AP Approver
(Payments)
Request GBS
Request Payables
Internal or Request Credit
Orders and
Electronic Card Payment
Cheques
Transfer No Task Automated
Task
Yes
Management
Approve Start End

Cash
Payment Run Against

Lead
Cash Forecast? Start of End of

process process
Supplier
Receive Payment
Connector
Input/Output
from/to
another OR
process
Account Balances on GBS
Accounts Swept Daily to AND
Bank of England
Central BoE Accounts
Point at which
a process
splits into
two routes
3.4Bank
3.4 Bank Decision
Reconciliations
Reconciliations
Retained
Finance
56 PREVIOUS NEXT
MENU
Cash Management Sub-Process Map Cash Management - Process Maps CM

PRINCIPLES
3.4 Bank Reconciliations METRICS
3.4 Bank Reconciliations
9.3 Bank
3.3
Transactions
Transactions
Management Accountant
Review Investigate Items

Download Bank Upload Bank Perform Bank Perform Manual
Unreconciled that Cannot be
Statements Statements Reconciliations Reconciliation
Items Reconciled
Task Automated
Task
Start End
Review Bank
Statement
Import Start of End of
process process
Connector
Input/Output
Cash Management Lead
from/to
another OR
Approve process
No
Reconciliations?
AND
Point at which
Yes a process
splits into
two routes
Decision
End
Retained
Finance
57 PREVIOUS NEXT
MENU
3.5 Cash Handling Cash Management - Process Maps CM
PRINCIPLES
METRICS
3.5 Cash Handling

Scan and Retain
AR Team
(Cashier)
Open Cash Sent Bank Cash on Cash Receipts

Start
in Post Day of Receipt and Expenditure
Documentation
AR Approver
(Collections)

Review Cash
Handling Process
Management
Automated
Accountant
Task
Cash Received in Task
Hand and Cash
Banked Start End
Start of End of
process process
Generate Cash
Transactions and
Balances Reports
Connector
Input/Output
from/to
another OR
Receive Cash process
Transactions and AND
Balances Reports
Point at which
a process
3.6 Cash splits into
8.6 Cash two routes
Forecasts Decision
Forecasts
Retained
Finance
58 PREVIOUS NEXT
MENU
Cash ManagementCash Management - Process Maps CM
Sub-Process Map PRINCIPLES
3.6 Cash Forecasts (A)

METRICS
3.6 Cash Forecasts (A)

3.5 Cash
3.5 Cash
Handling
Handling
OR Process Map Symbol Key
Generate and Confirm List of

Identify Need for Provide Daily
Disburse Accounts Complete CFM Complete Supply
a Contingencies Forecasts of
Forecast Cash Monitored Under Workbook Top-Up Request Automated
Fund Gross Cash Flow Task
Flows CFM Task
Start End
Debt Management
Receive Start of End of

process process
Forecasts and
Office
Receive Forecast CHAPS and BACS

Cash Flows Amendments
Connector
Input/Output
from/to
No No No another OR
Approve Disburse Funding to Approve process
Approve Cash Forecasts and
Accounts Monitored Departments Supply
Flow Forecast? Amendments? AND
Under CFM? Estimate Account
HMT
Point at which
a process
Yes Yes Yes splits into
two routes
Decision
End End End End

Retained
Finance
59 PREVIOUS NEXT
MENU
3.6 Cash Forecasts (B) Cash Management - Process Maps CM
PRINCIPLES
METRICS
3.6 Cash Forecasts (B)

3.1
3.1Master
Master
3.5 Cash
3.5 Cash Data Setup
Data
Handling
Handling Setup
End End
OR Process Map Symbol Key
Provide Long Term At Year End, Net

Provide Monthly Monitor Position Generate Reports
Forecasts of Gross Charges Applied
Forecasts of on CFM League on Commercial
External Cash Flow to Department
Gross Cash Flow Table Account Balances Automated
for Year Control Totals Task
Task
Start End
Management
Start of End of
No No process process
Approve Approve
Office
Debt
Monthly Cash Flow Long Term AND

Forecast? Forecast?
Yes
Connector
Input/Output
No No All CFM Charges Receive from/to
Approve Approve 8.1 Master
3.1 Master
rebated Pro-Rata Generate CFM Commercial another
HMT
OR
Monthly Cash Flow Long Term DataData
Setup process
Forecast? to Department League Tables Account Balances
Forecast? Setup
Gross Cash Flow Report Quarterly AND
Point at which
a process
3.5
3.5 Cash splits into
Director
Finance
Cash Receive League two routes

Handling Decision
End End Handling Tables on an End
Monthly Basis
Retained
Finance
60 PREVIOUS NEXT
MENU

Cash Management - Process Maps CM
PRINCIPLES
METRICS

Management
Accountant
Request Standard
End Report Using
Self-Service
No
Superuser
Reporting

Yes
Analytics
Task Automated
Perform Data
Team
Task
Analytics
Start End
Reporting Team
Start of End of
process process
Financial

Connector
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
61 PREVIOUS NEXT
MENU
Grants Administration PRINCIPLES

METRICS
PROCESS MAPS
Master Data Design Performance Final Grant Management

Design Grant Application
Setup Application Grant Award monitoring Reconciliation Information
Scheme Assessment
and Maintain process and payment & Review & Queries
Establish Identify Key Measure Annual and End Standard

Maintain Grant Competition for Issue Grant Outcome
Recipients Accountability Criteria for Grant Agreement of Term Outcome Reports &
for the Scheme Assessment Delivery Review Dashboards
Identify Grant Identify Key Receive

Make Final
Type Grant outcomes Due Diligence Detail Key Payment Request
Payment or Recover Data Analytics
Grants Administration principles Outcomes Overpaid Funds
were designed in collaboration with
the Grants Centre of Excellence. The Optimisation of Undertake Fraud
Payment
Processed and
principles are focused on grant giving to Funding Risk Assessment Recorded
Authorisation of Agree Payment Close Grant Self-Service
third parties and do not cover grant in Grant Award Mechanism Scheme Reporting
aid due to their nature. Create Business Pay Formula
Case Collect Grants
Statistical Data
Calculate Grant Create Purchase Close Purchase
Allocation Requisition (PR) Orders
Draft Grant Supplier
Agreement Expenditure
Review
Review Grant Review and Review Grant

Allocation Approve PR Programme Accounting
Define Grant
Accounting Risk
Management
Relates to
Create Purchase Grant Evaluation Formula
Authorisation of Order (PO) Review Grant Activities Grants
Grant Scheme Accounting
Define Send PO to Finance - In Finance - Out

Calculations for Dispute
Formula Grants Grant Recipient Resolution Scope of Scope
62 PREVIOUS NEXT
MENU
Grants Administration - Principles GRANTS

METRICS
PROCESS MAPS
Design Grant Scheme

All government grants have a named senior responsible owner with clearly defined responsibilities throughout the lifetime of the grant.
1 (Standard 1). Link to the grant standards referred to in this document is below:
https://www.gov.uk/government/publications/grants-standards
Establish Accountability for The name of the Senior Responsible Owner (SRO) for each Grant Scheme, is entered on to the central cross Government Grants
2
Scheme Information System (GGIS) (Standard 1).
3 Individuals responsible for Administration Grants must have received basic training in Grants Management (Standard 10).
4 Individuals are registered on the grants hub to provide access to training guidance and best practice.
Identify Grant Type 5 Identification should be made whether the grants are General Grants, Formula Grants, or Grant in Aid.
Departments must determine how grant funding can be allocated in order to maximise taxpayer value for money. This will include an
6 assessment of whether it would be more efficient to issue the grant from a central government department or via a local authority for
example.
Optimisation of Funding
7 Departments must confirm funding allocated to a particular Grant Scheme with reference to government policy and legislation.
8 When developing Grant Agreements, due regard should be given to ensuring regularity and propriety in the use of public funds (Standard 6).
The investment developing business case must be proportionate to the level of expenditure and risk and consequently should include
9
stakeholders as identified by the HMT Green Book (Standard 4).
10 Where a grant is a small element of a wider investment, the investment appraisal principles need to be applied.
For General Grants, HMT Green Book guidance must be followed (Standard 4). Where a department deems this inappropriate or there
11 are conflicts that would significantly impact award based on commercial and / or legal advice, departments should contact the Cabinet
Office Grants team and / or HMT.
Create Business Case
12 Departments should have documented internal delegated limits for business case approval.
13 The business case should be created using a template held on GCOE (Standard 4).
14 Approval of grant expenditure will be in line with Managing Public Money.
Due to the bespoke nature of the formulaic allocations, the calculations, rules and model will be owned by the business area and in a
15
specialist tool not in the ERP, which should automatically feed into the ERP.
63 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
16 Establish a clear description of the scheme's aims, criteria and objectives with agreed outputs, KPIs and milestones.
Identify Key Criteria for
17 Define longer-term policy outcomes for the proposed Grants Scheme.
Assessment & Grant Outcomes
18 Outcomes are agreed with regular review periods as appropriate.
All government grants must be awarded through robust grant agreements, frameworks or Memorandums of Understanding (MoU),
19 proportionate to the value of the grant and reflect the minimum standards for government grants, in line with the guidance in Managing
Public Money (Standard 6).
Draft Grant Agreement Departments and their ALBs use grant agreement templates, which are cleared through internal legal advisers and finance, as a minimum
20
(Standard 6).
21 All government Grant Agreements/Frameworks/MoU will include terms of eligible expenditure (Standard 6).
Identify and establish financial records required for the grant in order to enable effective financial management. Assess the potential
Define Grant Accounting 22
impact of the grant on financial statements and the asset register.
23 Grant details recorded on GGIS at business case stage (Standard 2).
24 Record evidence of funding / business case approval at strategic design and final stage on GGIS (Standard 2).
25 Record evidence of expert input - finance, commercial, policy, audit, etc. - on GGIS (Standard 2).
Authorisation of Grant Scheme 26 Risk rating recorded on GGIS for each grant scheme (Standard 2).
27 Justification for grant model provided, with detailed justification if direct award in business case.
New government grants, including those that are high risk, novel and contentious, as well as those undergoing a step change in scope
28 or funding, should be considered for submission to the New Grants Advice Panel (NGAP) for scrutiny and advice from subject experts
(Standard 3).
29 Calculations are defined in line with the grant policy.
Define Calculations for Formula 30 Rigorous testing is conducted to ensure that the rules of the model for allocation accurately reflect the intended policy.
Grants 31 Formal sign-off is provided once the rules have been tested.
32 Changes to the rules of the allocation model follow a formal change control process and are in line with any amendments to policy.
64 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
33 Develop competition criterion / rules to ensure statistical data can be captured to support grant allocation.
Design process that facilitates grant recipients to enter details using self-service and to collect statistical data that cannot be gathered
34
through self-service and is collected manually, can be analysed automatically.
Collect Statistical Data 35 Controls are built in to check and verify significant changes in statistical data. For example, changes outside of tolerances.
36 Systems are designed to follow up with Grant Recipients directly any exceptions and anomalies.
37 Updates to statistical data are made within the calculation engine.
Application Assessment
Government Grants should be competed for by default; exceptions may be approved where competition would not be appropriate
38
(Standard 5).
39 Detailed supporting evidence for any direct award decision must be provided in the approved business case (Standard 4).
Competition for Grant Upon receipt of an unsolicited proposal from an organisation, even where it is in line with departmental priorities, alternative delivery
40
mechanisms should be investigated and a competition should be considered (Standard 5).
It is good practice, as part of the Grant Award process, to require Grant Recipients to declare that acceptance of the funding offered will
41
not result in double funding (Standard 6).
42 All government grants will be subject to timely and proportionate due diligence and fraud risk assessment (Standard 7).
43 Following due diligence, the department can then confirm if a grant can be awarded.
Due Diligence & Authorisation of A department asked by another part of government to pay a grant to an external organisation, such as a charity, from its own resources,
44
should ensure that its own Accounting Officer gives due consideration to the proposal before funding is committed (Standard 4).
Grant Award
Departments will ensure that they have a robust Grants Approval Process to spend over £100k, and that details of all current Grant
45
Schemes and awards are available on the Government Grants Information System (GGIS) (Standard 2).
46 Ensure that the Master Data Management process has been adhered to and that the Grant Recipient is set up correctly in the system.
65 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Calculations are run and outputs are generated which detail the Grant Recipient and the value to be provided. Separate calculation
47
engines may be required for complex grants.
Outputs include a payment schedule listing the payments due to each Grant Recipient and can be formatted to enable upload into the
48
Calculate Grant Allocation finance system.
49 Proportionate checks are performed to confirm that the correct number of Grant Recipients will be paid.
50 Proportionate checks are performed to confirm that the total value of payments does not exceed the expected budget.
51 Sample checks are performed to review the accuracy of grant payment calculations to recipients.
Review Grant Allocation 52 Sample checks are performed to compare current period against previous periods, with major variances analysed and explained.
53 Outliers are reviewed to identify particularly high and particularly low payments.
66 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS

54 Master data is controlled centrally and all changes are subject to business approval.
Governance forums are established to manage the implications of a shared supplier master file when platforms are used by multiple
55
customers.
Where the Grant Recipient is also a supplier of goods and services (for procurement purposes), a single supplier record should be held
56
for both grants and procurement.
57 Grant payments must be distinguishable from commercial payments on the system.
Grant Recipients are able to maintain their own system information, including bank account details and all changes are approved in the
58
system by the Grant Owner.
59 Grant Recipients are automatically notified following a change to key details, including address and bank account details.
All changes should receive appropriate authorisation through an automatic workflow system, forming part of an approval process that
60
is controlled by the department.
Manage Grant Recipients / The Grant Recipient master file holds a unique identifier (e.g. DUNS number), which also indicates if it is a Grant Recipient which is
Grant Scheme 61 classified as an SME. Additional data fields and classifications, including type of recipient, e.g. school local authority, should be stored to
support departmental reporting requirements.
62 Grant Recipient records conform to a consistent naming convention that is applied across government.
63 The quality of the Grant Recipient master file is regularly reviewed and cleansed to remove inactive, duplicate and out-of-date records.
64 Regular audits (at least annually) are performed to review the full list of system changes to bank account details.
65 Grant Recipient master file changes are replicated automatically across all systems that hold recipient details.
66 One-time payments to Grant Recipients are supported by core systems.
67 Key attributes of Grant Recipients are captured for reporting purposes (e.g. Location, Sector).
68 The most cost effective payment methods should be used at all times.
69 Set up and review cost centre/project/account coding to ensure that the Grant Scheme can be effectively managed and reported on.
67 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Grant Award
A Grant Agreement is established in order to clarify the basis on which the grant has been awarded and the terms and conditions associated
70
with the Grant Award based on the model grant funding agreement (Standard 6).
71 The Grant Agreement includes a clear description of the scheme aims and objectives with agreed outputs / KPIs / Milestones (Standard 8).
The Grant Agreement includes details of how money should be spent, eligible expenditure terms and financial / activity based
72
reporting (Standard 6).
73 The Grant Agreement includes details of data protection policy, audit and assurance state aid compliance (Standard 6).
74 The Grant Agreement includes legislative powers (Standard 6).
Issue Grant Agreement
The Grant Agreement includes details of the payment model, providing terms for suspension, claw-back, grant termination and evaluation
75
of lessons learned (Standard 6).
Departments are required to make sure that details of eligible expenditure are included in all their Grant Agreements, including items
76
of expenditure that are expressly ineligible (Standard 6).
All government grants will have outputs agreed and longer-term outcomes defined, wherever possible enabling active performance
77
management, including regular reviews and adjustments where deemed necessary (Standard 8).
The most appropriate payment mechanism must be used to ensure a clean audit trail. For example, some Grants are paid through local
78
authorities in conjunction with MHCLG. Grants are transacted by departments directly and controlled by a Grants Award system.
Grant Award details are entered onto the finance system (replicating the Requisition process in P2P) using self-service
79
by the Grants Scheme Administrator.
80 Optional approvers can be added to the approval chain where necessary, but system generated approval chains cannot be overridden.
Create Grant Award Requirements 81 Grant award requirements can be raised on mobile devices (e.g. phones, tablets, etc.).
82 Grant Award requirements are approved online by appropriate approvers.

83 Specific categories of grants may require additional approvals.
84 Grant requirements that have been approved are automatically routed to the appropriate Grant Manager to create a Grant Scheme/Award.
Review and Approve
Grant Requisition / 85 Grant requirement requests can be approved on mobile devices (e.g. phones, tablets, etc.).
Requirements 86 All Grant Awards have an appropriate audit trail in the system (e.g. approved, requisition, etc.).
68 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Grant Awards are established for a specific value and time period, and any proposed extensions or changes are subject to review and
87
approval.
88 Grant Awards are structured to enable payments to be made in accordance with the payment plan.
Create Grant Scheme / Awards
Grant Awards are aligned to grant reference numbers and cost centres, using appropriate grant account codes, in order to facilitate reporting
89
and financial management.
90 Notification of Grant Awards are directly transmitted electronically to the Grant Recipient.
Grant agreement is issued electronically to the Grant Recipient quoting the Grant Award number, the terms of the Grant Award and
91
the payment schedule.
92 A 'No Grant Agreement, No Pay' policy is enforced and a list of authorised exceptions are maintained.
Grant payment requests that relate to the 'No Grant Agreement, No Pay' exceptions policy require online approval by the appropriate
93
individual in each department.
Regular checks are performed to ensure that grant payment requests that are not associated with Grant Awards are genuine exceptions to
Send Grant Awards to Grant 94
the 'No Grant Agreement, No Pay' policy.
Recipient (Not Applicable to
A formal process is in place to address grant payment requests that have been received from Grant Recipients when Grant Awards
Formulaic Grants) 95
have not been raised.
Grant Recipients that repeatedly breach the 'No Grant Agreement, No Pay' policy are identified and referred back to the Grant
96
Administrator for appropriate action.
Grant Administrators / Requesters / Approvers that repeatedly breach the 'No Grant Agremment, No Pay' policy are
97
identified and appropriate action taken.
98 Departments work together to monitor, compare and share compliance with the 'No Grant Agreement, No Pay' policy across government.
Performance monitoring and payment

Measure verifiable outputs expected against Grant Agreements and identifiable services received to date in accordance with the timeline
Measure Outcome Delivery 99 of the grant and record these as grant services delivered on the Grant Award held on the ERP system, (equivalent of receipting on
the purchase order system).
69 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
100 Electronic payment requests in a structured or unstructured format are encouraged and responded to in a timely manner.
101 Manual payment requests are sent directly to a central location for processing.
Self-raised payment requests are generated on the system where conditions for self-raised payment requests are met and a formal
Receive Payment Request 102
agreement exists with the Grant Recipient.
103 Manual payment requests are scanned and hardcopies are only held where essential.
104 Grant Recipients are able to enter their own payment requests directly into the system using self-service.
105 System functionality for recurring payment requests and scheduled payments are used to automate these transactions.
106 The default position in relation to VAT for grants is exempt, any exceptions must be clarified with the Tax Centre of Excellence.
107 Authorised grant payment requests that pass three-way matching rules are automatically processed for payment.
108 Matching tolerances are monitored effectively and managed to control the matching rate.
109 A formal process is established for resolving unmatched grant payment requests and those placed on hold.
Payment Processed and Recorded 110 An automated workflow tool is used to support grant document and query management.
111 An online portal is available to enable Grant Recipients to understand and query their account position.
112 Statements are periodically distributed to enable Grant Recipients to view their account position.
Grant funding payment models are based upon when funds are actually needed to avoid paying significant portions of funding up-front,
113
except where that can be justified (Standard 6).
Proposed payment runs are reviewed against the cash position to understand the impact on HMT forecasts, including daily, monthly and
114
net positions.
70 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
115 Returned and rejected payments are processed on a timely basis and resolved in consultation with the appropriate teams.
Reports are produced on a timely basis to confirm the volume and value of duplicate payments, with management information shared and
116
appropriate action taken across government.
117 Grant requirements and awards can be raised for grants denominated in foreign currencies.
118 Payment requests are accepted in foreign currencies and exchange rates automatically identified within the system.
Payment Processed and
Recorded Continued 119 Unrealised and realised exchange rate gains and losses are automatically calculated by the system.
120 The payments file is uploaded into the finance system.
121 Interface controls are in place to ensure the upload is complete and accurate.
122 Specific payments do not require additional approvals as the files are uploaded as approved for payment.
123 Payment information is entered into the general ledger and a reconciliation of the payments file completed.
Grant Recipients must be required to provide evidence of their grant expenditure, for example, through the regular submission of
‘Statements of Grant Usage’ (SoGU) or an equivalent, which must be validated to ensure accuracy. Failure to submit financial returns,
Supplier Expenditure Review 124
whatever form they take, or if irregularities are identified through validation, will usually result in payment suspension, investigation and in
serious cases, a full audit to establish the cause (Standard 6).
125 All government grants will be subject to timely and proportionate due diligence and fraud risk assessment (Standard 7).
Grants should abide by the Financial Viability and Risk Assessment (FVRA) guidance which is a set of basic yet fundamental checks that will
126
provide assurance and identify the level of financial risk in respect of the Grant Recipient (Standard 7).
127 Risk ratings, high, medium or low, can be recorded on the GGIS through a field launched to support these standards (Standard 7).
128 Accruals are generated automatically by the system and are subject to review as part of the period end process.
129 The integrity of aged accruals is regularly reviewed.
Programme Risk Management
Formal processes are established for identifying and communicating grant payment requests that are in dispute and when the disputes have
130
been resolved.
Grant payment requests in dispute are flagged within the system to prevent payments being generated. Dispute history should be retained
131
in the system as part of an audit trail.
132 Grant overpayment / credit notes are raised on the system and matched to the relevant Grant Award.
Grant overpayment / credit notes are automatically deducted from the next recipient payment. If no future payment is received, the debt
133
is collected through Accounts Receivable.
71 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Final Grant Reconciliation & Review

134 A review of the grant focusing on financial reconciliations and delivery timeframe will be undertaken at least annually (Standard 9).
135 An active decision is taken and recorded regularly (at least annually) to continue, discontinue or amend funding of the grant (Standard 9).
Annual and End of Term 136 Details of the annual review and outcomes are recorded on GGIS (Standard 9).
Outcome Review
Conduct an objective evaluation of the Grant Scheme and the outcomes. Departments report the outcomes of the evaluation on their
137 website. To improve transparency, departments should explain what each Grant Scheme achieved and how the distribution of funds
has supported government objectives.
Make Final Payment or
138 Financial checks should be performed to ensure final payments are made against the Grant Scheme and any overpaid funds recovered.
Recover Overpaid Fund
139 Formal closure of the Grant Scheme, including confirmation to the relevant parties.
Close Grant Scheme 140 The Grant Award is closed in the system on a timely basis.
141 The accounting treatment is reviewed to confirm the Grant Scheme has been accounted for in line with grant policy and standards.
72 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Management Information & Queries

142 Standard reports are run regularly to ensure transactions are progressing. For example, payment requests awaiting approval, etc.
143 There is a single source of the truth for grants reporting.

144 Reporting capability exists to monitor commitments created by Grant Agreements alongside accrued and actual costs incurred to date.
145 Standard, consistent reports are available directly from the system to support external reporting (e.g. transparency requirements, etc.).
Reporting requirements shared by multiple customers on the same platform are delivered using the same report definitions and
146
automatically generated on behalf of all customers (e.g. outflow by Grant Recipients, and returns to Cabinet Office, etc.).
147 Reporting will provide a single consolidated view of grants paid to a particular organisation.
Standard Reports & Dashboards
148 Appropriate historical data is retained electronically to support operational and analytical activity.
149 Self-service tools are used to provide analytics and advanced reporting, including insight on grant expenditure.
150 System workflows and real-time dashboards should be used to ensure that transactions are progressing.
151 Grants data sets are combined with appropriate data sets (e.g. Finance, HR, in order to generate new insights).
152 Data visualisation tools are used to support the analysis and interpretation of data.
There is a periodic review of the reporting catalogue to ensure that the purpose and use of each report is clear. Where this is unclear,
153
production of the report is ceased.
73 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
A change control process is in place for reports created by the Reporting Super Users. New reports are published for use by appropriate
155
users and recorded in the reporting catalogue.
156 FOI queries are dealt with in accordance with central guidance.
A control framework exists, that has been approved by Internal Audit, listing all key controls within the grants process. At a minimum, this
157
should address control objectives relating to fraud, error and financial misstatement.
Data Analytics 158 Strict access controls are enforced around the ability to create and maintain master data.
Grant Agreements outline Government’s expectations relating to compliance with policies relating to purchasing and Accounts Payable. For
160
example, this includes 'No Grant Agreement, No Pay' policy, invoice and credit note protocols, application of payment terms, e-invoicing, etc.
161 Data analytical software and tools are used to identify potential errors, issues or fraud (e.g. duplicate payments).
162 A formal policy is established to ensure cross-government segregation of duties, principles and guidance on mitigating controls.
74 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS

Compliance / control reports are regularly reviewed to ensure adherence to the process and validate that security controls are working and
163
being observed.
164 Interface control reports are reviewed each time an import is run, with exceptions logged, investigated and resolved on a timely basis.
Periodic sample checks and reconciliations are be performed to confirm that the data contained within the source and destination systems
165
remains synchronised.
166 Data within the system is periodically reviewed to ensure the records are accurate and complete.
Performance measures are developed in the planning phase of the programme and used for monitoring during the life cycle of the grant and
167
to evaluate the programme as a whole.
Overarching Governance & Grant programmes are reviewed at least every three to five years, schemes and awards annually or when government priorities and polices
change.
170 Local variations to the standard process are subject to separate business justification approval by the Global Process Owner.
Process documentation is regularly reviewed to ensure it remains up to date and reflects the full range of acceptable variations within the
171
processes.
172 New process designs conform to the Global Design Principles and are subject to review and approval by the Grants Global Process Owner.
Performance reporting is established to monitor efficiency and effectiveness of the grants processes, including progress towards specific
173
benchmarks and targets. A formal continuous improvement initiative is in place and reports through the Process Owner.
There are approved Business Continuity (BC) plans in place to enable critical activities in the grant process to continue in the event of a
174
serious incident.
Business Continuity 175 BC plans are regularly reviewed and tested (at least annually) to ensure remedial action remains effective and actionable.
176 BC plans are published and relevant staff are aware of their responsibilities.
Segregation of duties prevent individuals performing multiple stages in the transaction (i.e. correcting journals cannot be entered
177
and approved by the same user in the system).
Access Controls
A formal continuous improvement initiative is in place and reports through the Process Owner. Performance reporting is established to
178
monitor efficiency and effectiveness of the grant processes, including progress towards specific benchmarks and targets.
75 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
179 Governance structures are in place to maintain and enforce the Global Design Principles across the grants community.
A central Grants Global Process Owner (GPO) is responsible for establishing best practice and implementing process improvement and
180
The Grants Process Owner is nominated for each department and is responsible for overseeing department convergence to
181
best practice and compliance with Global Process Owner expectations.
Monitoring Controls 182
A Grants Process Owner network is established across government to share experiences, common issues and support movement
to best practice.
183 A Process Owner Integration Forum is established to drive alignment across process networks and address cross-process issues.
Departments, Process Owners, HM Treasury, Cabinet Office and other bodies are expected to engage the Process Owners
184
community before introducing new policies or requirements that impact finance processes.
185 Shared terminology is required, including definition of key terms, to ensure language is used consistently across departments.
Process Management
All those involved in the development and administration of grants must undertake core training in grant management best practice
186
(Standard 10).
187 Cross-government grant policies have been established, including Government Grant Standards, guidance on fraud, error and debt.
Core Design 188 Cross-government data standards for grants have been established and communicated.
189 HM Government is not adopting self-approval of requisitions.
190 Standard software products are in place to support the Grants Management process.
76 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
191 Grants Management systems are shared across the department, including ALBs as appropriate.
192 Cloud software is used in line with the Government’s 'cloud first' strategy.
Supporting Technology 194 Self-service transactions and reporting can be performed using desktop and mobile devices (e.g. phones, tablets, etc.).
Transactional Grant Management processes and teams are shared across the department, including ALBs as appropriate, subject to VFM
196
considerations.
197 Transactional Grant Management activities are shared with other departments across government.
198 Movement towards Process Ownership by Centres of Excellence, representing and supporting multiple departments.
To improve transparency, departments should internally explain what the grant programmes have achieved and how the distribution of
199
funds have supported government objectives.
The Organisation Design supports effective involvement of key teams in the grant process, including Business Partners, Centres of
200
Organisation Design Excellence and Transactional Teams.
201 Transactional teams are organised by processes so they can link into the Grant Process Ownership structures.
202 Transactional shared services are trusted to deliver without the need for a 'shadow team' to support and check the outputs.
203 Grant activities are shared with other entities across government.
204 A central team disseminates any policy changes via appropriate channels.
Stakeholder Relations and
205 Regular communication channels are maintained with Cabinet Office and HMT.
Communications
77 PREVIOUS NEXT
MENU
Grants Administration - Metrics GRANTS

PRINCIPLES
PROCESS MAPS
No of active grant schemes

Design Grant Scheme No of Green Book compliant Business Cases in last 6 months
% Grant Schemes assessed by the Accounting Office in last 60 days
Design Application Process No and value of statistical anomalies unresolved after 30 days
No of outstanding Fraud Risk Assessments
Application Assessment % Grant Applications accepted
No of Grant Applications received
Master Data Setup
No of active Grant Recipients
& Maintenance
% Grant Agreement recorded on GGIS
Grant Agreement
% Grant Schemes that are transacted on a Grant Agreement basis
% grant payments made by BACS by value
Performance Monitoring No and value of duplicate payments
and Payment Value of grants paid in last 60 days
Value of formula grants paid in last 60 days
Final Grant Reconciliation &
No of completed grant evaluation reports
Review
MI & Analytics No of standard reports related to grants
Compliance and Controls No of users with segregation of duties conflicts
78 PREVIOUS NEXT
MENU
Grants Management Sub-Process Map
Grants Administration - Process Maps
GRANTS
PRINCIPLES
METRICS

Administration
Request Grant
Recipient Master
Grants
Start
Data Creation or
Change
Approver

MDM
Approve Master
Data Change
Perform
Confirm Automated
Transactional Replicate to Task
Consistency and Task
Conventions
Maintenance
Start End
MDM Team
Start of End of
Run Open process process
Reports
Connector
Input/Output
4.2 Design
Design Grant from/to
Grant
Scheme another OR
Scheme process
AND
Request Grant
Recipient Master
Grant Recipient
Point at which
Data Creation or a process
Change splits into
two routes
Decision
Start Retained
Finance
79 PREVIOUS NEXT
MENU
4.5Grant Award Grants Administration - Process Maps GRANTS
PRINCIPLES
METRICS
4.5 Grant Award

Grants Administration
4.4 Approve
Approve Grant
Grant
Application
Application Create Grant
Issue Grant
Assessment
Assessment Requirements
Agreement
(GR)
No
Agree Most
Appropriate Approve
SRO
Task Automated
Payment GR Task
Mechanism
Start End
Yes Start of End of

process process
Commercial Category
Grant Award
Manager
Process Grant Aligned to Grant

Scheme / Award Reference Number
Connector
and Cost Centre Input/Output
from/to
another OR
process
AND
4.6 Grant
Grant Recipient
4.6 Grant
Performance
Receive Notification Performance Point at which
Monitoring A a process
of Grant Award and Monitoring splits into
Appropriate Payment two routes
Decision
Mechanism
Retained
Finance
80 PREVIOUS NEXT
MENU
4.6 Grant Performance Monitoring and Payment (A)
GRANTS
PRINCIPLES
METRICS
4.6 Grant Performance Monitoring and Payment (A)

Administration
4.6
4.6Grant
Grant
Enter Verifiable
Grants
Investigate Performance
Performance
Output Details on
Unmatched Receive SoGU Monitoring
Monitoring(B)
B
ERP System
Payment Request
Yes
No
Approve Process Map Symbol Key

Approve
SRO
Unmatched Payment Yes

Requests SoGU
No
AP Team (Payments)
Payment Request
OR Automated
Invoices Pass 3-Way Task
Task
Match
Start End
Review Payment Disburse Start of End of

Run Against Cash Payment process process
Position
Yes
(Payment
Approver
No
Approve
AP
Connector
s)
Payment Run Input/Output

from/to
another OR
process
Provide
AND
Verifiable
Grant Recipient
Outputs Against
Complete and
Grant Agreement
Send Statement Point at which
Receive Payment a process
of Grants Usage
splits into
(SoGU) two routes
Decision
4.5 Grant
4.5 Grant Award
Award
Retained
Finance
81 PREVIOUS NEXT
MENU

Grants Management Sub-Process Maps
GRANTS
PRINCIPLES
4.6 Grant Performance Monitoring and Payment (B) METRICS
4.6 Grant Performance Monitoring and Payment (B)

4.6 Grant
4.6 Grant
Performance
Performance
Monitoring (B)
Monitoring B
Monitor Payment
Payment
Request Create Disputes
Requests in
Compliance and and Credit Notes
Dispute Flagged
AP Team (Payments)
Matching Process Map Symbol Key

Review
Generate Automatic
Accruals and Accruals and
Prepayments Identify Required No
Adjustments
Approve Automated
Task
Dispute and Task
Credit Notes
Start End
Enter Journals to
Reflect
Adjustments Yes Start of End of
process process
No
AP Approver
Connector
(Payments)
Approve 4.7 Final Grant Input/Output

4.7 Final Grant from/to
Journal Yes AND Reconciliation
Reconciliation another OR
Adjustments process
AND
Point at which
Grant Recipient
a process
4.7 Final Grant splits into
Receive Credit 4.7 Final Grant two routes
Reconciliation Decision
Notes Reconciliation
Retained
Finance
82 PREVIOUS NEXT
Grants Management Sub-Process Map MENU
4.7 Final Grant Reconciliation and Review Grants Administration - Process Maps GRANTS
PRINCIPLES
METRICS
4.7 Final Grant Reconciliation and Review

4.6 Grant
4.6 Grant Performance
Grants Administration
Performance
Monitoring and
Monitoring and
Payment (A) End
Payment (A)
Annual Review Publish

Decision and Close Grant Evaluation on
Outcomes Award Department
Recorded in GGIS Website
Continue
Conduct
Monitor Grant Continue or Perform Financial
Evaluation of
SRO
Delivery Discontinue Checks for Final

Grant Scheme
Timeframe Grant Discontinue Payment
and Outcomes Task Automated
Task
Management
Accountant
Perform Grant Confirm Accounting Start End

Financial Policies/Standards AND
Reconciliations Followed
Start of End of
process process
(Payments) (Payments)
4.6 4.6
Grant
AP Team
Performance
Performance Payment Added Disburse Final
Monitoring (B)
Monitoring 2 to Payment Run Payment
Connector
Input/Output
AP Approver
from/to
another
Approve Yes
OR
No process
Payment Run
AND
Grant Recipient
Receive Final Point at which

a process
Payment
splits into
two routes
Decision
End Retained
Finance
83 PREVIOUS NEXT
MENU
GRANTS
PRINCIPLES
METRICS

Management
Accountant
Request Standard
End Report Using
Self-Service
No
Superuser
Reporting

Yes
Analytics
Task Automated
Perform Data
Team
Task
Analytics
Start End
Reporting Team
Start of End of
process process
Financial

Connector
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
84 PREVIOUS NEXT
MENU
Payroll PRINCIPLES
METRICS
PROCESS MAPS
Master Data
Run Payroll MI and
Setup and Maintain Employee Payroll Data Period End
Process Analytics
Maintenance
Standard
Maintain Cost Period End
Employee Hire Employee Changes Employee Exit Auto Enrolment Reports &
Centres Accounting Dashboards
Maintain GL Post Payroll to

Employee Loans Absence Time Recording Run Payroll Data Analytics
Accounts General Ledger
Payroll principles were designed
alongside the HR Profession to ensure
consistency and harmony between Maintain Distribute Post Payroll Self-Service
Benefits Deductions Entitlements Employee
corporate functions. The principles Organisation Data Reports Reporting
Payments
cover a range of topics from joiners and
leavers, transfers and loans, to period
end accounting and reporting. Distribute Payslips Perform Statutory
Reporting
Distribute Third Conduct Year End

Party Payments Activities
Process
Repayment
Process Write-Off
85 PREVIOUS NEXT
MENU
Payroll - Principles PAYROLL

METRICS
PROCESS MAPS

The structures within the HR system reflect the real organisation structures and align with the finance structure, updated on a timely
1
basis proportionate to extent of change, to reflect changes.
Governance forums are established to manage the implications of master data (global values tables) when platforms are used by multiple
2
customers.
3 Master data (global values tables) conforms to a consistent naming convention that is applied across government.
Maintain Cost Centres, GL
Accounts, Org Structures 4 Master data (global values tables) is regularly reviewed, at least annually, and cleansed to remove errors, inactive and duplicate entries.
Master data (global values tables) changes are replicated automatically across all systems that hold master data (e.g. HR, Payroll and
5
Finance).
6 Periodic checks and reconciliations are performed to confirm the alignment of master data across systems.
7 Master data (global values tables) are controlled centrally by the department and all changes are subject to business approval.
Maintain Employee Payroll Data

8 New hires are input by HR and transferred to Payroll on a real time or daily basis with no manual intervention.
On an employee’s start date, the new hire data is made live on the HR system and controls are in place to update, amend or delete the staff
9
record immediately once any change is identified.
10 A new hire data checklist documents all required information for processing a new starter in payroll.
11 The data required depends on the employee type, which is determined by a cross-government data standard.
New Hire Salary and allowance rates that are linked to roles are automatically applied and removed when an employee changes roles, where
12
eligibility can be linked.
Salary and allowance rates that are linked to locations are automatically applied and removed when an employee changes location,
13
where eligibility can be linked.
Salary and allowance rates that are linked to individuals, or cannot be automatically linked to master data or global values tables (e.g.
14
qualification based), are reviewed regularly and at least annually to ensure they are still applicable.
15 New hires update their HR information, including bank details and personal information, using self-service so that re-keying is not required.
86 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
16 Employees are responsible for making changes to their personal and bank details via self-service.
17 Changes to working hours that impact on pay should be initiated via employee self-service.
Employee Changes
18 System approvals for all changes impacting pay are routed through line managers and any other approval automatically as appropriate.
19 Temporary salaries and allowances are appropriately maintained with end dates and reviewed at least annually by managers.
20 Employee exit data of an individual case is initiated in self-service and approved at an appropriate level (e.g. resignation, transfers, etc).
21 Bulk exits are initiated and managed by HR with consultation from Payroll and Finance teams.
All relevant proposed exit dates (e.g. last day of service, last date of employment) are input into the HR system as soon as known and
22
amended if this is altered at the time of departure.
23 Payroll adjustments for leavers are automatically calculated including payments for untaken annual leave
The employee is notified of overpayments that have or will be made resulting from exit, which should only be in exceptional cases where
the overpayment cannot be resolved before exit. The employee should be requested to pay outstanding amounts immediately and
24
informed that outstanding amounts will be taken from final pay amounts (to the value of final payments). If the outstanding amount is
more than the final payments then a repayment plan is set up before staff leave.
Coordinated approach using automated system notifications and workflows between HR, Finance and the line manager, relating to
25
all employee debt, overpayments and repayment schedules.
26 Direct debit is the recommended method for reimbursement of overpayments for monies that cannot be retrieved before staff leave.
Employee Exit
27 A cross-government policy informs reasonable repayment amounts in line with debt management policies.
28 Death in Service notification and settlement process is led by an appropriate manager.
Redundancy, dismissal and settlement payments are authorised by an agreed authority to ensure they meet with financial and HR
29
regulations.
Redundancy programmes are overseen by HR, and any payroll implications are managed as a project, with changes authorised and processed
30
as a batch.
A P45 is automatically created for all leavers. Issue of the P45 can only be suppressed with HR approval e.g. in machinery of
31
government changes.
Payroll must enable payments after date of exit to allow for corrections but must only be instigated by an authorised member of staff and
32
approved.
Department must have a clear policy on retrospective pay awards for staff exiting and on loan or secondment and this must be
33
communicated to staff.
87 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Staff loans between departments or ALBs are accurately recorded on the exporting and importing department’s HR and
34
Finance systems using the standard HR person type values with a co-ordinated approach.
Staff secondments outside of government departments must be accurately recorded on the exporting department's HR and Finance
35
systems using the standard HR person type values.
36 For staff loans over 6 months the loan cannot be finalised until the payroll transfer has been actioned.
Employee Loans / Secondments
Payments by the exporting department should be permitted for at least 6 months on the exporting payroll system to enable late payments,
37
for example bonus payments, to be processed within the correct department.
A cross-government agreed materiality threshold is applied to prevent effort being spent processing low value adjustments. No internal re-
38 charges will be made for individuals on loan/secondment for less than 3 months; between 3-6 months one invoice is raised for the whole of
the loan/secondment; anything longer than that, then staff should be moved to the payroll of the new organisation.
39 All absences should be recorded on HR systems with automatic feed to Finance systems to ensure correct accounting treatments.
40 Sickness absence and other absences impacting payroll are automatically calculated based on data from HR or a Time Management System.
41 Unpaid leave is automatically transferred from the HR system to payroll to make correct pay adjustment.
42 Annual leave data and entitlements are recorded in the HR System, with leave balances dynamically maintained by the system.
Absence / Leave Annual leave is requested by employees via HR self-service. Managers should have access to initiate annual leave requests for employees in
43
their absence and the system should maintain this audit trail.
44 The number of annual leave year ends permissible should be kept to the minimum number reasonable possible.
45 Maternity, paternity and adoption leave should identify statutory and non- statutory elements.
46 Keeping in touch days to be recorded on HR systems and automatically update payroll.
47 Timesheets, where used, are submitted in line with payroll cycles.
Time Recording Where time data is used to inform salary payments, including overtime and non-standard work hours, this should be integrated and
48
managed through employee self-service with manager approval on the system.
Additional employee benefits, including Salary Sacrifice Schemes, Cycle to Work, Childcare Vouchers and Private Health Insurance
49
are initiated via self-service with appropriate system approvals running through to payroll.
Benefits
All employee benefits with a financial impact automatically update payroll via the relevant system. This includes personal taxation impacts
50
to be recorded on P11Ds as required by HMRC.
88 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Financial loans made to employees, including season ticket loans, are recorded on the HR and Finance systems to ensure accurate
51
accounting with automatic posting.
Financial Loans to Staff
Information on financial loans to staff is reviewed before a staff exit and final salary reduced to cover the outstanding balance (subject to
52
negative net pay thresholds) with a repayment plan for any residual amount agreed before exit.
Deductions 53 Court orders and other statutory deductions are processed in payroll in accordance with statutory regulations.
Entitlements 54 Employees use self-service to initiate a Give As You Earn (GAYE) deduction and these are then automatically processed through payroll.
55 Pensions Auto Enrolment assessment is embedded in the payroll process cycle.
Auto Enrolment
56 All employees are correctly assessed under pensions Auto Enrolment guidelines.
Run Payroll Process

The number of distinct payrolls is rationalised to ensure the minimum number of payrolls, subject to tax legal entity reporting or software
57
performance restrictions.
Payroll exception reports are standardised across all payroll departments and are run before final payroll to allow resolution immediately
58
and avoid overpayments / underpayments.
59 Payrolls are approved by authorised signatories before being committed.
60 Emergency CHAPS and BACS payments are only paid in exceptional circumstances.
Distribute Employee Payments There is a clear and documented process for drawing down funds for funding payroll, if using a third party payroll bureau to make
61
BACS payroll payments to employees.
Payslips, P60s and other pay related documents are made available to all staff online and only issued to staff manually in exceptional
62
circumstances.
63 Clear publication of payroll cut-off dates are available to all staff and reviewed at least annually.
64 Supplementary payrolls are only used for valid business reasons.
65 The process of calculating backdated payments or deductions (retro processing) are automated where possible.
89 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
66 Departments should hold a list of manual payslip distribution requirements with justification and review regularly.
67 Payslips are visible in self-service two to three days before a payment date.
Distribute Payslips Historical payslips, P60s and other pay related documents for staff are accessible online using self-service in a non-editable format such
68
as PDF format.
69 Systems are in place to support special accessibility requirements for payslips, P60s, etc. (e.g. braille, large font).
70 Payment schedules are agreed with a third party and published for stakeholders.
Distribute Third Party Payments 71 All payment transactions are automated between payroll and third party payee.
72 Reconciliation reports are distributed with third party payments.
73 Checks must be undertaken before payroll is run to identify issues and allow corrections.
All leaver allowances and loan balances are reviewed immediately once it is identified that a staff member is leaving, by an agreed
Overpayments 74
authority, and before the final pay run, and appropriate adjustments made to avoid overpayment. The system prompts managers to do
this.
Where employees have outstanding financial loans and transfer to another department or are on secondment, these
75
financial commitments must move to the new department when the employee transfers across.
76 Departments must conduct regular reviews of payroll debtors and establish root cause of overpayments and take prompt action to correct.
Process Repayments & Write-Offs
77 Approve write-offs in accordance with a cross-government policy.
Period End
78 Adjustments to payroll are always carried out in the payroll system to ensure that the underlying systems remain aligned to the GL.
79 No adjustments are applied to prior accounting periods - once a period is closed, it remains closed.
80 Access to open and close payroll accounting periods is tightly restricted.
Period End Accounting 81 Only one accounting payroll period is open at a time.
82 There is a common period end timetable across the department that is aligned to external reporting requirements.
83 Automated tools and workflows are used to control the period end close process.
90 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
84 General Ledger files are generated from the payroll system and sent to the GL file location without requiring manual intervention.
85 Errors on the GL file are resolved between Finance and Payroll teams.
86 Controls are in place to ensure financial cost centre data is validated at input source.
Suspense Accounts will only be used in exceptional circumstances and reconciled before the next payroll. All accounting codes will have
Post Payroll to General Ledger 87
been pre-validated in the HR system.
88 Each payroll has a separate General Ledger output, reconciled and signed-off by the agreed payroll control operative.
89 The payroll accounts have a named owner responsible for account analysis and reconciliation.
When payroll data is transferred to the GL, it is at summary level only. The detailed payroll information should not be contained in
90
GL but available through payroll access only.
91 An exception report is reviewed prior to the journal posting to ensure that no errors have occurred during the import.
92 A standard suite of post payroll reports are agreed by the Global Process Owners.
93 Report outputs are available online through self-service functionality in PDF and Excel format.
94 Pensions report outputs are aligned with MyCSP/LGPS and other provider import requirement.
Data validation failures that are generated as a result of the interface between payroll and the pension scheme administrator are
Post Payroll Reports 95
investigated and remediated immediately.
External report requests, including PQs, FOIs, statistical reporting, programme reporting and non-standard data requests, are
96
identified, allocated and managed by a central team.
Key reports are available through self-service with a consistent, standardised format that complies with good practice standards (i.e.
97
dashboard style) and align to financial/HR requirements (i.e. control totals and relevant organisational data).
98 Bespoke reports are co-ordinated and only created where necessary by a limited number of Super Users.
99 Statutory reporting outputs align to requirements and are automated wherever possible.
Perform Statutory Reporting
100 Full Payment Submission (FPS) and Employer Payment Summary (EPS) are produced in accordance with HMRC published deadlines.
91 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
101 Employee P60s and P11Ds are produced in an online format and are available through self-service by 19th May.
102 The system should use HR data to automatically calculate annual leave accruals for financial statements.
103 A standard checklist for payroll Tax Year End activities is adopted across payroll departments.
Conduct Year End Activities 104 All year end statutory reports are established as standard reports and can be run automatically.
105 Manual adjustments to year end payroll data, prior to production of the GL are clearly documented and auditable.
106 Access to close annual periods is tightly restricted.
When the final period is closed, an automated process clears the payroll to retained earnings and brings forward selected balances to a new
107
period.
MI and Analytics
108 Drill down functionality is available to allow users to view transactional details.
109 The requirements of report users are understood and built into standard reporting formats.
Standard Reports & Dashboards Key reports are produced with a consistent, standardised format that complies with good practice standards (i.e. dashboard style) and aligns
110
to financial requirements (i.e. control totals and relevant targets).
111 Standard reports are run regularly for control or compliance purposes (i.e. employee requests for changes awaiting manager approval).
The appropriate historical data is retained electronically. Quality of retention of data in a format to support operational and analytical
112
activity.
113 Payroll data sets are combined with HR, Finance, Policy and Operational data in order to generate new insights.
Data Analytics 114 Data visualisation tools are used to support the analysis and interpretation of data.
115 Self-service tools are used to provide access to standard dashboards and reports.
There is a periodic review of the reporting catalogue to ensure the purpose and use of each report is clear. Where this is unclear, production
116
of the report is ceased.
Self-Service Reporting A change control process is in place for reports created and removed by the Reporting Super Users. New /removed reports are published
118
to appropriate users and recorded in the reporting catalogue.
92 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS

A control framework exists, that has been approved by Internal Audit, listing all key controls within the Payroll process. At a minimum,
119
this should address control objectives relating to fraud, error and financial misstatement.
Compliance / control reports are regularly reviewed to ensure adherence to the process and validate security controls are working and are
123
being observed.
Access Controls Segregation of duties prevent individuals performing multiple stages in the transaction (e.g. staff cannot be responsible for creating a
124
HR record and creating the payroll entry).
Access to HR and Payroll data and workflows is controlled via secure role allocation and automatically updated when employees move
125
positions to reflect their amended status. Leavers' access is automatically removed upon passing of their leave date.
Periodic sample checks and reconciliations are performed to confirm that the data contained within the source and destination systems
128 Data within the system is periodically reviewed to ensure the records are accurate and complete.
There are approved Business Continuity (BC) plans in place to enable critical activities in the payroll process to continue in the event of a
129
serious incident.
Business Continuity 130 BC plans are regularly reviewed and tested (at least annually) to ensure remedial action remains effective and actionable.

133 Local variations to the standard process are subject to review and approval from the GPO prior to instigation.
Core Design Process documentation is regularly reviewed to ensure it remains up to date and reflects the full range of acceptable variations within the
134
processes.
135 New process designs conform to the Global Design Principles and are subject to review and approval by the Payroll GPO.
93 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
136 A formal continuous improvement initiative is in place and reports through the GPO.
Performance Monitoring Performance reporting is established to monitor Payroll efficiency and effectiveness, including progress towards specific benchmarks and
137
targets.
Departmental managers are responsible for ensuring their staff are aware of latest process guidance and are informed of
138
Knowledge Management appropriate training courses.
140 Governance structures are in place to maintain and enforce the Global Design Principles across the payroll community.
The Payroll Global Process Owner (GPO) is responsible for establishing best practice and implementing process improvement and
141
142 The Departmental Payroll Process Owner is responsible for overseeing department convergence to best practice.
A Payroll Process Owner network is established across government to share experiences, common issues and support movement to
143
Process Governance best practice.
HMT, Cabinet Office and other bodies are expected to engage the Process Owners community before introducing new policies or
144
requirements that impact the finance processes.
145
Processes are subject to regular internal audit and compliance reviews to ensure controls are operating effectively and in line with
146
best practice guidance.
147 Cross-government payroll policies have been established, including materiality limits, common close timetables, write-off policies, etc.
Payroll Policy Cross-government data standards for employee types have been established and communicated. These clearly identify each type, the
148
FTE status for reporting purposes and data requirements.
94 PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
149 Standard 'off the shelf' software products are in place to support the payroll process.
150 Payroll systems are shared across the department, including large ALBs.
151 Cloud software is used in line with the Governments' 'cloud first' strategy.
There are simple and easy to maintain interfaces with controls in place to manage input errors between the transactional accounting
153
solution and other management tools (such as HR system, reporting systems, etc.).
Supporting Technology 154 Values displayed within the system are tailored to the user in order to provide an intuitive user experience.
The organisation design supports effective involvement of key teams in the Payroll process, including Business Partners, Centres of
160
161 Transactional teams are organised by processes to provide strong connections into the Payroll Process Ownership structures.
162 Transactional shared services trusted to deliver without the need for a 'shadow team' to support and check the outputs.
163 Payroll processes and teams are shared across the department, including large ALBs.
Organisation Design
164 Payroll activities are shared with other departments across government.
165 Transactional Payroll Management activities are shared with other departments across government.
166 When organisational change takes place there is a clear audit trail of movement of payroll data.
95 PREVIOUS NEXT
MENU
Payroll - Metrics PAYROLL

PRINCIPLES
PROCESS MAPS
Master Data Setup &

No of employees on payroll
Maintenance
No of starters and leavers
Maintain Employee Payroll Data No of salaried employees
No of queries from HMRC
No of live payrolls
No of variable hours employees
No of employees paid in period
Run Payroll Process No of payments sent per pay period
No of payslips distributed
No of adjustments
No of advances requested
No of transactions sent to GL
Period End
No of standard reports used
MI & Analytics No of tax codes received
Compliance and Controls No of users with segregation of duties conflicts
96 PREVIOUS NEXT
Payroll Sub-Process Map MENU
5.1 Master Data Setup and Maintenance Payroll - Process Maps PAYROLL
PRINCIPLES
METRICS

Start
Employee (Payslip Reviewer)
OR

Request Cost Request GL
Request Organisation
Centre Data Accounts Data
Structures Data
Creation or Creation or
Creation or Change
Change Change
Task Automated
Task
Approver
Approve Master
MDM
Start End
Data Change
Start of End of
process process
Perform
Confirm
Consistency and
Conventions
Maintenance
Connector
Input/Output
from/to
another
MDM Team
OR
Run Open process
Review Quality Transaction AND
Reports
Point at which
a process
splits into
5.2 Maintain two routes
5.2 Maintain Decision
Employee
Employee
Payroll Data
Payroll Data
Retained
Finance
97 PREVIOUS NEXT
5.2 Maintain Employee Payroll Data (A) Payroll - Process Maps PAYROLL
PRINCIPLES
METRICS
5.2 Maintain Employee Payroll Data (A)

5.15.1 Master
Master
Employee (Payslip
OR
Data Setup
Data Setup
Reviewer)
Input and Update Voluntary Employee Exit

Bank Details Initiated

Team Approver Holder Manager
Changes to Working Approve

Initiate Death in Service
Budget Line
Hours and Conditions Voluntary Employee No

Notification
Impacting Pay Exit
Yes
Approve No
Changes to Working
Hours Automated
Task
Yes Task
Approve No Approve
MDM
Pay Changes Voluntary Exit No Start End

Data Data
Yes Yes Start of End of

Input Additional Initiate Involuntary process process
HR
New Hire Data Employee Exit
No
Manager Team Manager
Approve No Authorise Death in Authorise Redundancy or

HR
Approve New Hire Involuntary Exit Service Notification Settlement Payments

Data Data
Connector
Yes Input/Output
Yes
Payroll Payroll
Receive New Hire Receive Employee from/to

Receive Employee another
Data Changes Data Exit Data OR
process
AND
Review Redundancy
and Settlement Pay
Point at which
a process
Redundancy and
splits into
Settlement Payments
Provider
Pension
two routes
Disbursed Decision
5.3
5.3Run Payroll
Run Payroll 5.35.3Run
Run Payroll
Payroll
Processes
Processes Processes 5.3
5.3Run Payroll
Run Payroll
Processes
Processes
Processes Retained
Finance
98 PREVIOUS NEXT
MENU
Payroll Sub-Process Map Payroll - Process Maps PAYROLL

PRINCIPLES
5.2 Maintain Employee Payroll Data (B) METRICS
5.2 Maintain Employee Payroll Data (B)

5.1
5.1Master
Master
Data
Data Setup
Setup
OR
Enter Timesheet Receives Court Initiate Process Map Symbol Key

Initiate Additional
Employee Absent on Weekly or Order or Statutory Entitlement (e.g.
Benefits
Fortnightly Basis Deduction GAYE)
No No Automated
No Task
Manager
No Approve Task
Records Employee Approve Approve Approve
Line
Request Staff Loan Additional

Absense Timesheet Deduction Entitlement
Benefits Start End
Yes Yes Yes Yes

No Start of End of
No Approve No
Budget
Holder
Approve Approve process process

End Additional
Staff Loan Entitlement
Benefits
Yes Yes Yes
Employee on Loan Impact of Impact of Benefits Impact of Impact of
Payroll
Timesheet Data
Team
Transferred to Connector
Absence on Received on Payroll Deductions on Entitlement on Input/Output
New Payroll Payroll Calculated Calculated Payroll Calculated Payroll Calculated from/to
another OR
process
Approve No Review Impact of AND

Review Additional Review Employee Review
Employee Payroll Absence on
Payroll Manager
Benefits Deductions Entitlement

Transfer Payroll Calculated
Point at which
a process
splits into
two routes
Decision
5.3 Run 5.3 Run Payroll
5.3 Run Payroll 5.3 Run Payroll 5.3 Run Payroll 5.3 Run Payroll 5.3 Run Payroll
Payroll
Processes
Processes Processes Processes Processes Processes Processes Retained
Finance
99 PREVIOUS NEXT
MENU
Payroll Sub-Process Map
5.3 Run Payroll Processes (A) Payroll - Process Maps PAYROLL
PRINCIPLES
METRICS
5.3 Run Payroll Processes (A)
5.2
5.2 Maintain
Maintain 5.4 Payroll

Employee
Employee 5.4 Payroll
Period End
Period End
Payroll Data
Payroll Data
Access Payslip Receive BACS Receive Emergency

OR Online Payment Payment
Task Automated
Task
Start End
HR Team
Assess Employee
under Auto Enrolment Start of End of
Guidelines process process
Payroll Team
Run Emergency Connector

Employee Auto Input/Output
Run Payroll AND Payroll from/to
Enrolled
another OR
process
AND
Yes
Payroll Manager
Yes Point at which

Approve
Approve Review Payroll a process
Emergency splits into
Payroll Exception Report
Payment Decision
two routes
No No Retained
Finance
100 PREVIOUS NEXT

5.3 Run Payroll Processes (B)

Payroll - Process Maps PAYROLL
PRINCIPLES
METRICS
5.3 Run Payroll Processes (B)

Employee (Payslip
Reviewer)
5.1
5.1Master
MasterData 5.4 Payroll
5.4 Payroll
Data Setup
Setup Period End
Period End
No
Budget Holder

Approve
Repayment and
Write-Off
Task Automated
Task
Supplier
Receive BACS
Yes Start End
Payment
Start of End of
process process
HR Team
5.1Master
5.1 MasterData
Data Setup
Setup
Connector
Input/Output
from/to
Payroll Team
another OR
Agree Payment Process process
Schedule with Yes Repayment and AND
Third Party Write-Off
Point at which
a process
No splits into
Manager
5.4 two routes

Approve Payment 5.4 Payroll
Payroll
Payroll Decision
Schedule Period End
Period End
Retained
Finance
101 PREVIOUS NEXT

MENU

PRINCIPLES
5.4 Payroll Period End METRICS
5.4 Payroll Period End

Management
Accountant
5.3 Run
5.3 Run Payroll
Payroll
Processes Manual
Review Exception
Processes Adjustments to
Report Prior to
Payroll Data
Journal Posting
Documented
Review Posted
HR Manager
Payroll Reports
Task Automated
Task
Start End
Start of End of
process process
Payroll Team
Perform Period General Ledger General Ledger 10.4

Post Payroll 10.4 R2R
R2R
End Payroll Files Files Sent to AND Period End
Reports Period End
Adjustments Generated General Ledger
Connector
Input/Output
from/to
another OR
process
AND
Yes
Payroll Manager
No
Approve Reconcile and Point at which
a process
Period End Payroll Sign Off General splits into
Adjustments Ledger Output two routes
Decision
Retained
Finance
102 PREVIOUS NEXT

MENU

PRINCIPLES
5.5 Payroll Year End METRICS
5.5 Payroll Year End

Employee (Payslip
Reviewer)
P60s and P11D

5.3 Run Payroll
5.3 Run Payroll Available
Processes End
Processes Through Self
Service

Management
Accountant
Manual
Review Exception
Adjustments to
Report Prior to
Payroll Data
Journal Posting
Documented
Task Automated
Task
Start End
HR Manager
Review Posted
Start of End of
Year End Payroll process process
Reports
Payroll Team
Connector
Input/Output
Perform Year End General Ledger 10.5
10.5 R2R
R2R from/to
General Ledger Post Year End External
Payroll Files Sent to AND External another OR
Files Generated Payroll Reports Reporting process
Adjustments General Ledger Reporting
AND
Payroll Manager
Point at which
Yes a process
No splits into
Approve Reconcile and two routes
Decision
Year End Payroll Sign Off General
Adjustments Ledger Output
Retained
Finance
103 PREVIOUS NEXT

MENU

PRINCIPLES
METRICS

(Requestor)
Employee
Submit Request
Start
or Query

Query or Query
Task Automated
Task
No Start End
Help Desk
OR Start of End of
process process
Escalation if Connector
Input/Output
Needed from/to
another OR
process
AND
Point at which
a process
Supplier
splits into
Submit Request two routes
Start Decision
or Query
Retained
Finance
104 PREVIOUS NEXT

MENU

PRINCIPLES
METRICS

Management
Accountant
Request Standard
End Report Using
Self-Service
No
Superuser
Reporting

Yes
Analytics
Task Automated
Perform Data
Team
Task
Analytics
Start End
Reporting Team
Start of End of
process process
Financial

Connector
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
105 PREVIOUS NEXT

MENU
Expenses PRINCIPLES
METRICS
PROCESS MAPS
Master Data Management

Booking Expense Payment
Setup & Advances Credit Cards Approval Audit Information
Systems Claims Processing
Maintenance & Queries
Request
Set Up and
Maintain
Request Advance Approval Create Online Make Purchases Review Online Acknowledge Disburse Generate MI
Employee Data
in GBP in Advance of Expense Claims on Credit Cards Expense Claims Receipts Payment Reports
Booking
Set Up and Request Create Online

Make Bookings Load Credit Card Apply Audit
Maintain Advance Expense Claim on Review Offline Emergency
Expenses principles define the Expenses in Foreign Using Approved
Behalf of Another Transactions into Expense Claims Selection Criteria Payments
Systems Expenses System for Online Claims
process for the expense owner and Categories Currency User
approver for limits, allocations,
approval delegation and other Set Up and Monitor Create Paper Identify Review Advance Audit Online
Maintain Compliance with Payment
standards. Based Expense Purchases on Request (GBP / Expense / GPC Exceptions
Exchange Rates Booking Process Claims Expense Claims Foreign Currency) Claims
Distribute GP Submit Credit Setup Rules to

Submit Expense Audit Paper
Cards and Claims for Card Expense Delegate Based Expense
Maintain Limits Approval Claim for Approvals whilst Claims
Approval Out of the Office
Submit Receipts Approval Related

for Auditing Resolve Audit
(Paper / Notifications and Related Queries
Electronic) Escalations
Investigate
Inappropriate
Claims
106 PREVIOUS NEXT

MENU
Expenses - Principles EXPENSES

METRICS
PROCESS MAPS

Initial employee records are created automatically and pre-populated with details from the HR system and accounting information.
2 Employee records are created for all individuals who are eligible to raise expense claims. These individuals are automatically provisioned
with a user account and log-on to the expenses system.
3 Employee records conform to a consistent naming convention that is applied across government.
4 Employees are able to maintain their own personal details, including bank account details.
Set Up and 5 Employees are automatically notified following a change to key details, including bank account details.
Maintain Employee
6 Quality of the employee master file is regularly reviewed and cleansed.
Data
7 Regular management checks are performed to review the full list of system changes to bank account details.
Expense recipients master file changes are replicated automatically across all systems that support the expenses processes, including
8
booking systems for accommodation and travel.
9 When staff leave the department, their access to the expenses and booking systems is suspended and any credit cards cancelled.
10 The default payment method for employee expenses is BACS.
11 Expense categories are aligned as a cross-government data standard.
Set Up and Maintain
12 Regular audits are performed to review changes to expense categories.
Expense Categories
13 Expense categories determine the chart of accounts values and VAT treatment, which cannot be overridden.
14 Exchange rates are reviewed and loaded into the system as required.
Set Up and Maintain 15 Default exchange rates can be overridden by user-entered rates to reflect the actual rate applied.
Exchange Rates A tolerance is configured within the system for user-entered exchange rates. Any exchange rates outside the tolerance will result in a policy
16
violation that will be reviewed as part of the approval and audit process.
Distribute Credit Cards and 17 The credit card policy determines those employees who are eligible for a credit card and the spend limits for employees.
Maintain Limits 18 The card issuer enforces the overall spending limit and transaction limit controls.
107 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Advances
Advances should only be made in exceptional circumstances (e.g. foreign travel , pre-agreed alternative) and should be subject to line
19
manager approval.
Advances can be raised for transactions denominated in foreign currencies. The amounts incurred will be shown in the expense system in
20
both foreign currency and sterling.
Advances (GBP and Foreign 21 Amounts advanced are limited to the amount of anticipated cash expenditure and must be authorised by the line manager.
Currency) 22 System functionality is used to automate the accounting for advances.
Advances are automatically offset against future expense claims received from the employee. If an expense claim is not received within a
23
specified time period, the advance is reclaimed through the payroll.
24 The outstanding advance balance will be monitored on a regular basis.
25 Any unused balance of the advance must be repaid within one month of the date it was provided.
Booking Systems
Request Approval in Advance
26 Budget holder approval must be sought in advance of using online booking systems.
of Booking
Where booking systems are available they will be used to take advantage of discounts and negotiated deals for accommodation, trains,
27
flights, etc., except for valid exceptions.
28 Booking requests can be raised and approved on mobile devices (e.g. phones and tablets), including personal devices.
Make Bookings Using
Reservations made in booking tools are approved online by the relevant approvers. If online approval is not available, approval to travel
Approved Systems 29
must be gained from the expenses approver before the booking is made.
30 Booking tools are able to provide transactional data.
31 Bill back (invoice to the booking agent) should be used wherever possible.
Monitor Compliance with
32 Compliance will be monitored on a regular basis and appropriate sanctions imposed for non-compliance.
Booking Process
108 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Expense Claims
33 Expense claims are raised online using self-service by the individuals that have incurred the expense.
Expense claimants are responsible for ensuring they are fully conversant with the latest version of the expenses policy and that all claims are
34
for valid business reasons.
Expense claims will be charged to the employee's cost centre, however, expenses can be raised directly against a pre-agreed alternative cost
35
centre where they must be approved by the cost centre manager.
36 Employees are unable to submit expense claims for a future date.
37 Expense claims should be made within 3 months of incurring the expense.
Create Online Expense Claims Expense claims (and advances), can be raised for transactions denominated in foreign currencies. The amounts incurred will be shown in the
38
expense system in both foreign currency and sterling.
Policy violations are automatically identified by the system. Claimants must acknowledge the violation and provide suitable justification
39
that is reviewed during the approval and audit steps.
All expense claims must be supported by actual receipts, with no fixed rate expenses (except mileage claims). All exceptions should be
40
approved by the line manager.
41 All expense types (e.g. lunch, evening meal) should have a maximum rate and these rates should be common across government.
42 Expense rates should be compliant with HMRC, HMT and Cabinet Office advice.
Create Online Claims on Behalf 43
Personal assistants will have access to enter expenses on behalf of other people. However, the individuals must review and submit the
of Another User expense claim before processing.
44 The offline expense claim processes are to be used in exceptional circumstances only.
The usage of the offline expense claim process is monitored and details are passed to the continuous improvement team or
45
Create Paper-Based departmental process owner.
Expense Claims 46 Individuals send offline expense claims to a designated approver.
The approver checks that the expenses are legitimate, represent a reasonable business cost and comply with the latest version of the
47
expenses policy, prior to signing and submitting for payment.
Submit Receipts for Auditing 48 Electronic copies of receipts are either scanned or photographed and attached to the online expense claim and retained by the claimant.
(Paper / Electronic) 49 Copies of receipts provided electronically should be held by the individual in case they are required for audit purposes or by HMRC.
109 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Approval
All expenses are approved by the claimant's immediate line manager (in exceptional circumstances, such as senior staff, this can be a pre-
50
agreed alternative). Additional approvals may be required in exceptional circumstances.
51 Expense claims are routed to the relevant approvers via workflow. Approval notifications are sent via email.
52 Notifications and reminders are sent to approvers so they are aware that there are items awaiting their approval.
Review and Approve
53 When an approver does not approve or reject within a specified time period, the approval notification is automatically escalated.
Online Expense Claims
The approver checks that the expenses are legitimate, represent a reasonable business cost and comply with the latest version of the
54
expenses policy.
55 The approver is responsible for ensuring they are fully conversant with the latest version of the expenses policy.
56 Expenses can be approved on mobile devices (e.g. phones and tablets), including personal devices.
When approvers are out of the office, they are required to set up their notification controls to forward notifications to another whom
57
Set Up Rules to Delegate they have delegated to approve the expenses on their behalf. The delegate should be at the same level or more senior.
Approvals Whilst Out of Office 58 Where absence is recorded on the system, approvals should be automatically redirected.
59 A report is produced to monitor users who permanently set their out of office rules to reassign notifications to another user.
Audit
There will be a risk-based sample management check of expenses based on an agreed, predefined percentage of expense claims that
60 are randomly selected to be audited. Audits are performed by a central expenses audit team to ensure that department policy and tax
regulations are adhered to.
Apply Audit Selection Criteria Additional triggers for management checks include: expense claims over a specified amount; expense claims with policy violations;
61
for Online Claims all expense claims of individuals on the audit list; all expense claims with receipts older than a certain time.
For the agreed selection of claims, management will check that all the VAT receipts have been submitted, the value of the receipts equals the
62
value of the expense claim and whether there are any violations of department policy. These violations will be acted upon accordingly.
63 Employees are able to view their history of expenses online and track the progress of unpaid expense claims.
110 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
A formal process is established for resolving exceptions identified during the expenses audit, including protocols to communicate to
64
the claimant and approvers.
65 Expense claims that are subject to audit are flagged within the system to prevent payments being generated until the audit is complete.
Audit Queries and Inappropriate
Claims Inappropriate claims are investigated by the expenses checking team in conjunction with Internal Audit and a suitable senior
66
representative from Finance to confirm whether sanctions and formal disciplinary action should be taken.
If action is taken, procedures are in place to communicate sanctions and disciplinary action and reclaim any paid component of the expense
67
in accordance with HR rules.
Payment Processing
68 Payment is performed by the Accounts Payable team within the shared service centre.
69 Expense claims that are approved and pass auditing are automatically processed for payment.
70 Approved and audited expense claims are paid to employees within 5 days or as soon as possible.
Proposed payment runs are reviewed against the cash position to understand the impact on HMT forecasts, including daily, monthly and net
71
Disburse Payment position.
72 Payment of expenses can be prevented using holds applied to a specific expenses claim or claimant.
Overpayments are automatically recovered from the next expense claim from the claimant. If a further expense claim is not received within
73
the specified time period, an overpayment request is made directly or it is followed up with the payroll team.
74 BACS is the default payment method. Other methods are used on an exceptional basis only.
75 Returned and rejected payments are processed on a timely basis and resolved in consultation with the master data team.
Payment Exceptions
76 Reports are run to confirm the volume and value of duplicate expense payments and erroneous payments.
111 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Management Information and Queries

Standard reports are run regularly to ensure transactions are progressing. For example, expense claims awaiting submission, expense claims
77
awaiting approval, expense claims awaiting auditing, etc.
78 There is a single source of the truth for transactional expenses reporting.
Standard reports are available directly from the system to support external reporting, including transparency requirements. This includes
79 reports to support tax requirements associated with employee expenses.
Generate MI Reports
Reporting requirements that are shared by multiple customers on the same platform are delivered using the same report definition and
80 run centrally on behalf of all customers (eg. transparency reporting and returns to Cabinet Office, HM Treasury, Office for National
Statistics, etc).
Self-service tools are used to provide expense-related spend analytics and advanced reporting, including insight on spend by
82
expense category.

A control framework exists listing all key controls within the expenses process. At a minimum, this should address control objectives relating
83
to fraud, error and financial misstatement.
84 Strict access controls are enforced around the ability to create and maintain employees, expense claims and audit rules.
Overarching Governance Controls 85 The system enforces the required accuracy and integrity checks when data is entered.
86 Employment contracts outline government expectations relating to compliance with the expenses policies.
87 Data analytics software is used to identify potentially duplicate expense claims.
Access Controls 89 Segregation of duties prevent individuals performing multiple stages in the transaction.
90 Users are not able to self-approve expense claims that they have initiated or audit expense claims that they have raised.
Process Management
92 Local variations to the standard process are subject to a separate business case and approval by the Global Process Owner.
Core Design Process documentation is regularly reviewed to ensure it remains up-to-date and reflects the full range of acceptable variations within the
93
processes.
94 New process designs conform to the Global Design Principles and are subject to review and approval by the Expenses Global Process Owner.
112 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Performance Monitoring Monthly performance reporting is established to monitor the efficiency and effectiveness of the expenses process, including progress
96
towards specific benchmarks and targets.
97 Governance structures are in place to maintain and enforce the Global Design Principles across the finance community.
The Expenses Global Process Owner (GPO) is responsible for establishing best practice and implementing process
98
99 The Expenses Process Owner is responsible for overseeing department convergence to best practice.
An Expenses Process Owner network is established across government to share experiences, common issues and support
Process Governance 100
movement to best practice.
101 A GPO Integration forum is established to drive alignment across process networks and address cross-process issues.
102
requirements that impact finance processes.
Cross-government transactional expenses policies have been established, including specific guidance for each expense category, prompt
104
payment guidance and reporting obligations.
105 Cross-government data standards for expenses categories have been established and communicated.
The latest policy is published online and communications sent to users. A link to the policy is available from the online expenses system and
106
referenced within offline templates and forms.
107 The expenses policy will be regularly reviewed to ensure it is appropriate, relevant and incorporates any changes in statutory requirements.
Expenses and Credit Card Policy
108 Individuals will be monitored for compliance with the expenses policy, with breaches identified and sanctioned appropriately.
109 No self-approval of expenses is permitted and will be disabled within the system.
Non-Executive Board members will have expenses approved by the Chair of the Board. The Chair of the Board will have expenses approved
110
by the Audit Committee Chair, by exception (or pre-agreed alternative).
111 Reporting on policy violations will be conducted by Finance on a regular basis.
112 Individuals who routinely breach policy rules will be recorded and subject to further audit checks on future expense claims.
113 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
113 Standard 'off the shelf' software products are in place to support the expenses process.
114 Expense systems are shared across the department, including large ALBs.
Supporting Technology
There are simple and easy-to-maintain interfaces between the expense solution and other tools (credit cards, booking systems for travel and
117
accommodation, etc.).
118 Self-service expense claims can be raised using desktop, mobile and tablets, including personal devices.
120 Transactional teams are organised by processes to provide strong connections into the Process Ownership structures.
Organisation Design 122 Expenses processes and teams are shared across the department, including large ALBs.
123 Expenses activities are shared with other departments across government.
114 PREVIOUS NEXT

MENU
Expenses - Metrics EXPENSES

PRINCIPLES
PROCESS MAPS
Master Data Setup & No of employees in master file

Maintenance No of employees that have never submitted an expense claim
Percentage of expense claims processes online
Expenses & Advances No of manual expense claims submitted
No of expenses advances requested
No of credit cards issued
Credit Cards
Total spend by credit card split by expense category over time
No of expenses claims waiting for approval for more than 1 week
Approvals
No of policy violations identified each month
No of expense claims open for more than 1 month with no receipts provided
Auditing No of expenses awaiting auditing
Percentage of expense claims audited within 3 working days of expense claim approval
Percentage of expense claims paid by BACS
No and value of duplicate expenses payments
Payment Processing
No of requests for emergency expenses payments
Percentage of payments to employees within 5 working days of expense claim approval
Total spend by expense category over time
Management Information &
Average cycle time from expense claim submission to payment
Queries
No and value of outstanding expense advances
No of self-approved expense claims
115 PREVIOUS NEXT

Expenses Sub-Process Map
MENU
6.1 Master Data Setup and Maintenance Expenses - Process Maps EXPENSES
PRINCIPLES
METRICS

Start
Employee (Expenses User)
OR
Request Request Expense Request

Request Credit Request Credit
Employee Master Categories Data Exchange Rate
Card Limit Card Limit
Data Creation or Creation or Creation or
Creation Change
Change Change Change
Task Automated
Task
Approver
Approve Master Start End

MDM
Data Change
Start of End of
process process
Perform
Confirm
Consistency and
Conventions
Maintenance Connector
Input/Output
from/to
another OR
MDM Team
process
Run Open
AND
Reports
Point at which
a process
splits into
two routes
Decision
6.2
6.2 Advances
Advances
Retained
Finance
116 PREVIOUS NEXT

Expenses Sub-Process Map MENU
6.2 Advances (Exceptional Circumstance) Expenses - Process Maps EXPENSES

PRINCIPLES
METRICS
6.2 Advances (Exceptional Circumstance)

(Expenses User)
Advance
Employee
6.1 Master Data 6.4 Expenses

6.1 Master Requested in Advance 6.4 Expense Unused Advance
Setup
Data Setup Exceptional Received Claim
Claim Balance Repaid
Circumstance
Line Manager
No Process Map Symbol Key

Approve
Advance
Request
Yes Task Automated

Budget Holder
Task
Start End
Start of End of
process process
(Payments)
AP Team
Advance
Advance Offset Unused Advance
Released for
Against Claim Balance Received
Payment Connector
Input/Output
from/to
another OR
process
Review Use of
Compliance Reviewer
AND
Advance System
and Repayment
Point at which
Compliance a process
splits into
two routes
Decision
End Retained
Finance
117 PREVIOUS NEXT

6.3 Booking Systems Expenses - Process Maps EXPENSES

PRINCIPLES
METRICS
6.3 Booking Systems

(Expenses
Employee
6.1 6.1
Master Data
Master Booking Request
User)
Setup
Data Setup Submitted
No
Line Manager
Approve Process Map Symbol Key

Booking
Request
No
Yes
Budget Holder
Task Automated
Approve Task
Booking End
Request Start End
Start of End of
process process
Yes
Compliance
Reviewer
Compliance
Monitoring
Connector
Input/Output
from/to
Booking Agent
1.5 another OR
1.5 process
Makes Booking Receives Invoice Accounts
Accounts
Payable
Payable
AND
Point at which
a process
splits into
Reservation
Supplier
two routes
Creates Bill Back Decision
Received and
Invoice
Confirmed
Retained
Finance
118 PREVIOUS NEXT

MENU

6.4 Expense Claims
Expenses - Process Maps EXPENSES
PRINCIPLES
METRICS
6.4 Expense Claims
6.1 Master
6.1 Master Data Setup
Data Setup
OR
Raise Expense Claim on

Raises Online Expense
Behalf of Other User and Automated
Claim and Attach Receipts Task
Attach Receipts Task
No
Start End
Line Manager
Approve Start of End of

process process
Expense
Claim
Yes
(Payments)
AP Team
6.7 Connector
6.7 Payment Process Input/Output
Payment from/to
Process another OR
process
AND
Compliance Reviewer
Perform Expense Audit of

Receipts and Policy Point at which
Compliance a process
splits into
two routes
Decision
End Business
Retained
SSC CoE External
Finance
119 PREVIOUS NEXT

6.5 Credit Cards (Exceptional Circumstance) Expenses - Process Maps EXPENSES

PRINCIPLES
METRICS
6.5 Credit Cards (Exceptional Circumstance)

Employee (Expenses
Credit Card
6.1 Master Data Identify Submit Credit
User)
6.1 Master Makes Purchase Transactions

Setup Purchases On Card Expense
Data Setup on Credit Card Loaded into
Expense Claims Claim
Expense System

Line Manager
Approve Automated
Task
No Expense Task
Claim
Start End
Yes Start of End of

process process
AP Team (Payments)
6.7 Payment
6.7 Payment
Process
Process
Connector
Input/Output
from/to
another OR
process
AND
Compliance Reviewer
Perform Credit
Card Expense End Point at which
a process
Policy Renew splits into
two routes
Decision
Retained
Finance
120 PREVIOUS NEXT

MENU
6.6 Compliance Expenses - Process Maps EXPENSES
PRINCIPLES
METRICS
6.6 Compliance
End
6.4 Provide Sanctions

6.4Expense
Expenses Provide Copies of Process Map Symbol Key
Additional Communicated if
Claim VAT Receipts
Claims Information Action Taken
Task Automated
Expense Claim Task
Selected for
(Payments)
Expense Claim
AP Team
Compliance and Flag Removed if Start End

Flagged to Prevent No Action Taken
Payment Start of End of
process process
Finance Director
No
Non-compliant
Connector
Claims Input/Output
Investigated and from/to
another
Resolved OR
process
No
AND
Point at which
Compliance
All VAT Do Receipt Non-compliant a process

Reviewer
Acknowledge Check Expense

Apply Risk Based Receipts Values Match Claims splits into
Receipt of Policies Applied two routes
Selection Criteria Submitted? Yes Claim Yes Investigated and Decision
Expense Claim Correctly
Values? Resolved
Retained
Finance
121 PREVIOUS NEXT

MENU
6.7 Payment Processing Expenses - Process Maps EXPENSES

PRINCIPLES
METRICS
6.7 Payment Processing

Employee (Expenses
6.4 Payment Receive

6.4 Expenses
User)
Overpayment Repay
Expense Received By Overpayment
Claim Occurs Overpayment
Claims BACS Request
Returns/Rejected
MDM Team
Payments
OR Investigated and
Resolved
Task Automated
Task
Start End
AP Team (Payments)
Start of End of
process process
Approved and Returns/Rejected Overpayment
Payment Overpayment Overpayment
Compliant Claims Payments Request when No
Disbursed by Recovered from Repayment
Processed for Investigated and Further Claim
BACS Next Claim Received
Payment Resolved Made
Yes Connector
Input/Output
from/to
another OR
process
AP Approver (Payments)
Approve AND
Payment Run OR
Against Cash
Position Point at which
a process
splits into
two routes
End Decision
No Retained
Finance
122 PREVIOUS NEXT

MENU
Expenses - Process Maps EXPENSES

PRINCIPLES
METRICS

Submit Request
Start
or Query
Task Automated
Task

Resolved? Close the Issue End Start End
Query or Query
Start of End of
process process
No
Help Desk
Connector
OR Input/Output
from/to
another OR
process
AND
Point at which
a process
Escalation if splits into
Needed Decision
two routes
Retained
Finance
123 PREVIOUS NEXT

6.9 Management Information and Analytics Expenses - Process Maps EXPENSES

PRINCIPLES
METRICS

Management
Accountant
Request Standard
End Report Using
Self-Service
No
Superuser
Reporting
Is There a Create New Maintain Report

Need for a New Report and Add Process Map Symbol Key
Catalogue
Yes
Analytics
Automated
Perform Data Task
Team
Task
Analytics
Start End
Reporting Team
Start of End of
process process
Financial

Connector
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
124 PREVIOUS NEXT

MENU
Inventory PRINCIPLES
METRICS
PROCESS MAPS
Master Data Forward

Manage Processing Manage Inventory Inventory MI and
Setup & Planning
Inventory Transactions Logistics Disposal Accounting Analytics
Maintain Inventory
Item Plan/Manage
Categorisation Block Inventory Inventory Stock Receive Manage Inventory Review Inventory Standard Reports
Distribution of
and Attribute Planning Review Take Inventory End of Life Accounting & Dashboards
Inventory
Definition
Internal Stock
Item Master Strategic View of Inbound Quality Outbound Quality Manage Inventory Perform Inventory
Transfers & Data Analytics
Inventory principles help implement Management Inventory Movements Assurance Assurance Disposal and Waste Adustments
the necessary International Financial
Reporting Standards (IFRS) applicable
to Inventory to ensure a swift process Serial and Warehouse External Stock Process Inventory Ship Order & Inventory Self-Service
Lot Transfers &
to be able to manage and account for Numbering Location Planning Movements Orders Manage Delivery Reconcilliation Reporting
inventory in the most efficient manner.
These will need to be implemented in
discussion with warehouse operators Manage Inventory Fulfil, Pick and
Warehouse Tax Pack Inventory Manage Returns Close a Period
Levels & Re-Order
as well. Planning Points Orders and Exchanges
Manage Inventory
for Repairs and
Service
125 PREVIOUS NEXT

MENU
Inventory - Principles INVENTORY

METRICS
PROCESS MAPS
Master Data Setup & Maintenance

1 Item master data is controlled by a central team and all changes are subject to business approval.
2 Item master records conform to a consistent naming convention that is applied across government.
3 Quality of the item master file is regularly reviewed and cleansed to remove inactive, duplicate and out of date records.
Item Master Management 4 Item master file changes are replicated automatically across all systems that hold the item details.
Regular review of the item master to identify items that are no longer available / in-stock or shortly unavailable to sale (items to be
5
phased out).
Governance forums are established to manage the implications of a shared inventory supplier master file when platforms are used by
6
multiple customers.
7 Access to sensitive item categories is restricted to relevant users.
Item categories are aligned with UNSPSC codes as a cross-government data standard. These are linked to cross-government
8
procurement categories.
9 Management reviews and approves all recorded adjustments to inventory prices or quantities.
Item Categorisation and Attribute Item templates are used to ensure government departments populate the required mandatory information against an item in the item
Management 10
master.
11 Regular audits are performed to review changes to item categories and attributes.
12 Inventory item categories determine the chart of accounts values which cannot be overridden.
13 Regular review of the item master to identify items that are no longer required.
14 Inventory items are tracked by serial number and barcode / QR code where appropriate.
Serial and Lot Numbering
15 Inventory items are tracked by location / lot number.
126 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Forward Planning Inventory

16 The physical layout of warehouse locations is accurately reflected in inventory systems.
17 The inventory process is supported by warehouse locator-level counting and identification by row / rack / bin.
Inventory is stored in appropriately secured and environmentally conditioned warehouse locations where access is restricted to
18
authorized personnel, where applicable.
Warehouse Location Planning 19 Rejected inventory are adequately segregated from other inventory and regularly monitored to ensure timely return to suppliers.
Appropriate levels of security are in place to monitor all incoming and outgoing shipments and ensure all goods leaving the premises are
20
accompanied by duly completed documentation (e.g. delivery note or goods returned note).
Goods are delivered only to designated, appropriately secured locations within a warehouse or storage building, and are accepted only
21
by authorised personnel, where applicable.
22 Interaction for inventory movement across state borders is defined with compliance to customs and excise jurisdictions.
Warehouse Tax Planning
23 Finance is consulted for expertise on tax regulations on moving inventory.
Managing Inventory
24 A cross-government standard determines the frequency of when all inventory must be counted.
25 Inventory counts are reconciled to inventory records within the general ledger.
The formal stock take (typically final count of the year) is co-ordinated and agreed with the auditors in advance so they can attend, observe
26
and inspect.
27 The actual inventory count must be reconciled to the book records and the final results reported to Finance
Inventory Stock Take
All transactional activity, from order to receipt to location in inventory, should have an audit trail with supporting documentation for
28
the transaction activities.
29 System functionality monitors and maintains inventory levels in accordance with government standards and policies.
30 Adjustments require manager approval before they can be committed into the system.
31 The saleability of finished goods are assessed regularly, including a review during physical inventory counts.
127 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
32 Internal requisitions and internal orders are used to move inventory between different inventory locations.
33 All internal orders are associated with an approved requisition that is held within the system.
34 Internal orders are established for a specific value and time period. Proposed extensions and changes are subject to review and approval.
35 Internal orders for services are structured to enable a service to be partially receipted.
36 The integrity of the open internal orders is regularly reviewed and cleansed.
Internal Stock Transfers &
Movements 37 Specific item categories require additional approvals before the stock is transferred.
38 Stock transfer requests are raised online using self-service by the individuals that require the goods / services.
40 Stock transfer requests can be raised and approved on mobile devices and tablets.
Internal transfers are counted and compared to receipt or transfer documentation and are used to record movements of inventory in
41
the financial records, by personnel in the area assuming responsibility for the inventory.
External Stock Transfers & 42 An 'in-transit' status should be used when internal stock is transferred out of one location into another location.
Movements 43 Procedures are in place to ensure compliance with cross-state border reporting requirements.
44 An agreed level of inventory is maintained to satisfy the demand from the end customer.
Manage Inventory Levels & Re- Inventory that is identified as surplus, but not obsolete, is subject to a stock reduction programme. Any inventory that may not be
45
order Points consumed should have its value adjusted by Finance.
Item re-order points are established for items and monitored by the system. Orders are automatically placed when inventories hit the re-
46
order points.
Manage Inventory for Repairs and 47 A defined level of contingent stock is maintained under very short lead times.
Service 48 A separate sub-inventory is maintained for items which are regularly replenished (such as spare parts).
128 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Processing Transactions
49 Agreed tolerance levels based on quantity are defined and documented.
50 GRNs are entered using self-service by individuals that actually receive the goods.
51 Goods received are matched with purchase order details / or invoices.
52 GRNs can be entered on mobile devices and tablets where appropriate.
Receive Inventory 53 A delivery note should be available to verify the delivery details.
Long outstanding goods receipt notes, purchase orders and / or invoices are investigated in a timely manner and correctly accounted for, as
54
appropriate.
55 Receipt of inventory takes place against a specific Purchase Order. The quantity ordered against the quantity received is verified via matching.
Requisitioners receive a series of automated reminders based on the 'need-by date' on the Purchase Order to allow chasing of outstanding
56
items.
57 All inventory adjustments are compared to authorised source documents to ensure that they were input accurately.
58 Each item booked into stock is checked for validity of item number, quantity and quality.
Goods received that are not fit for purpose and returned are recorded on the system to provide management information on supplier
In-Bound Quality Assurance 59
performance.
60 Returns of an item to a supplier should refer to the original Purchase Order.
Orders are sequentially numbered. The sequence of orders processed is accounted for, including following up on order status (e.g. shipped,
61
invoiced).
Process Inventory Orders 62 Orders are generated on the system with unique order reference numbers.
63 System functionality for inventory transactions is used to automate the accounting for these transactions.
Fulfil, Pick and Pack Inventory 64 Barcode scanners are used to input actual inventory picking and storage locations and quantities where appropriate.
Orders 65 Pick and Pack Lists and Labels are generated from the system automatically.
129 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Manage Logistics
There is visibility of inventory and on-hand quantities across all departmental locations to ensure the supply is located tactically to
Plan / Manage Distribution 66
the areas of greatest demand.
of Inventory
67 Multiple location inventory is maintained and monitored to ensure stock levels are efficient.
Before goods are shipped, the physical quality of the goods prepared for shipment is checked by an individual independent of the order
68
picking process.
Outbound Quality Assurance
Before goods are shipped, the details of the approved order are compared to actual goods prepared for shipment by an individual
69
independent of the order picking process.
Shipments of goods to customers are logged. The log is used to ensure that all shipments are recorded and invoices raised, where
70
appropriate.
Ship Order & Manage Delivery
Appropriate levels of security are in place to monitor all incoming and outgoing shipments and ensure all goods leaving the premises are
71
accompanied by completed documentation.
72 Returned inventory is assessed and a quality review process is conducted (to either return to stock, dispose, repair or exchange).
Manage Returns and Exchanges
73 Any exchange of goods is traceable to the original order.
Inventory Disposal
74 Inventory that has passed its existing shelf-life is identified and disposed of on a timely basis.
Inventory that is no longer actively consumed by customers or required for repairs / spares is identified, classified as obsolete and disposed
Manage Inventory End Of Life 75
of on a timely basis.
76 Inventory ageing reports are prepared and regularly reviewed.
77 Defined procedures are in place for the safe disposal of stock.
Manage Inventory Disposal and
78 Waste products are disposed of against defined policies, including the handling of non-hazardous and hazardous waste.
Waste
79 Inventory disposals and write-offs are recorded on the system before the end of the following monthly reporting period.
130 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Inventory Accounting
80 Inventory should be measured using IAS 2 – Inventories, in line with HM Treasury FReM.
When new items are entered into inventory, Finance review categorisation of inventory to ensure they are correctly disclosed, valued and
81
accounted for as inventory or alternative categories of assets, in line with HM Treasury FReM.
When new items are entered into inventory the on-hand quantity increases and the valuation is adjusted in line with the inventory method
82
Review Inventory Accounting adopted.
83 The quantity of inventory recorded in the system reflects the physical reality.
Processes are in place to generate accurate accounting entries for inventory movements, receipts, disposals, impairments and
84
order fulfilments.
85 Adjustments to inventory prices or quantities relate to valid price changes and physical inventory differences.
Inventory Reconciliation 86 Opening stock balance, movement and closing stock balance is reconciled to the financial value of inventory in the general ledger.
87 All inventory transactions are recorded and transferred to the general ledger as part of period close.
88 For reconciliation purposes, month end reports are run, checked and filed for documentation.
Close Period 89 There is a checklist in place for the period end covering all necessary steps with clear ownership for each task.
When reconciliations are complete, the period is closed in line with the period close calendar and captured as part of the period end
90
checklist.
131 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
MI and Analytics
91 Standard reports are run regularly to ensure transactions are progressing.
92 There is a single source of the truth for inventory reporting.
Standard Reports & Dashboards Reporting requirements are shared by multiple customers on the same platform and are delivered using the same report definitions and
95
maintained centrally on behalf of all customers.
96 A reporting catalogue is maintained to outline the key reports that support the end-to-end process.
A formal change control process is in place for new reports. The reporting catalogue is reviewed before new reports are developed to ensure
97
duplicates are not created.
98 Standard reports are available to support standard notes to the accounts that relate to inventory.
99 Self-service tools are used to provide analytics and advanced reporting.
Data Analytics
100 Analytics is used to provide insights and identify trends relating to stock levels, demand and supply data.
102

A control framework exists, that has been approved by Internal Audit, listing all key controls within the Inventory process. At a minimum,
103
106 A formal policy establishes cross-government segregation of duties principles and guidance on mitigating control.
Access Controls 107
Segregation of duties prevent individuals performing multiple stages in the transaction (i.e. disposal transactions are not entered
108
and approved by the same user and this is enforced by the system).
132 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
112 There are approved Business Continuity (BC) plans in place to enable critical activities to continue in the event of a serious incident.
Business Continuity 113 BC plans are regularly reviewed and tested, at least annually, to ensure remedial action remains effective and actionable.

Local variations to the standard process are subject to review and approval from the Inventory Global Process Owner (GPO) prior to
116
instigation.
Core Design
Process documentation is regularly reviewed to ensure that it remains up-to-date and reflects the full range of acceptable variations
117
118 New process designs conform to the Global Design Principles and are subject to review and approval by the Inventory GPO.
119 A formal continuous improvement initiative is in place and reports through the Inventory GPO.
Performance Monitoring Performance reporting is established to monitor Inventory efficiency and effectiveness, including progress towards specific benchmarks
120
and targets.
Departmental managers are responsible for ensuring their staff are aware of latest process guidance and are informed of appropriate training
121
Knowledge Management courses.
133 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
123 Governance structures are in place to maintain and enforce the global design principles across the Inventory community.
The Inventory GPO is responsible for establishing best practice and implementing process improvement and harmonisation of
124
policies, processes and systems across government.
125 The Inventory Process Owner is responsible for overseeing department convergence to best practice.
An Inventory Process Owner network is established across government to share experiences, common issues and support
126
Process Governance 127 A GPO Integration forum is established to drive alignment across process networks and address cross process issues (i.e. O2C and INV).
HMT, Cabinet Office and other bodies will engage the Process Owners community before introducing new policies or requirements that
128
impact finance processes and vice versa.
129
130
practice guidance.
134 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
131 Cross-government transactional inventory policies have been established, including product categorisation, pricing and product costing.
Inventory Policy
132 Cross-government data standards for inventory classifications have been established and communicated.
133 Standard 'off the shelf' software products are in place to support the transactional inventory process.
Purchase requisitioning, purchasing, inventory management, and accounts payable functions are performed by an integrated application
134
system. The general ledger is automatically updated for receipt and disbursement transactions.
135 Transactional inventory systems are shared across the department, including large ALBs.
There are simple and easy to maintain interfaces between the transactional accounting solution and other management tools (procurement,
138
Supporting Technology ordering, etc.).
139 Values displayed within the system are tailored to the user in order to provide an intuitive user experience.
The organisation design supports effective involvement of key teams in the inventory process, including business partners, Centres
145
of Excellence and transactional teams.
146 Transactional teams are organised by processes to provide strong connections into the Inventory Process Ownership structures.
148 Transactional inventory processes and teams are shared across the department, including large ALBs.
149 Transactional inventory activities are shared with other departments across government.
135 PREVIOUS NEXT

MENU
Inventory - Metrics INVENTORY

PRINCIPLES
PROCESS MAPS
No of items in inventory
Master Data Setup &
No of items not used within last 6 months
Maintenance
% of items with incomplete attributes
% of storage space available per warehouse
Forward Planning Inventory
Total storage space available
Managing Inventory Forecast of item demand based on sales orders
No of items received per location in last 30 days
Processing Transactions No of items shipped in last 30 days
Average time between order received and order shipped
Count of items returned for exchange
Manage Logistics
Value of items returned
No of items at end of life flagged as obsolete
Inventory Disposal
Value of items disposed within last 30 days
Book value of inventory in stock
Inventory Accounting
Value of monthly movement
136 PREVIOUS NEXT

MENU
Inventory Sub-Process Map
7.1 Master Data Setup and Maintenance Inventory - Process Maps INVENTORY
PRINCIPLES
METRICS
Start
Request Inventory Process Map Symbol Key

Master Data
Creation / Change
Task Automated
Task
Start End
MDM Approver
Approve Start of End of

Master Data process process
Change
Connector
Input/Output
from/to
another OR
process
Perform
Confirm Transactional Run Open AND
Consistency Replicate to
Review Quality and Master Transaction
Other Systems
MDM Team
and Data Reports

Conventions Maintenance Point at which
a process
splits into
two routes
Decision
Retained
Finance
137 PREVIOUS NEXT

MENU
Inventory Sub-Process Map Inventory - Process Maps INVENTORY

PRINCIPLES
7.3 Managing Inventory (A) – Inventory Stock Take METRICS
7.3 Managing Inventory (A) – Inventory Stock Take

Warehouse Team
Perform
Reconcile
Inventory Count
Start Inventory Count to
and Assess Perform Stock Reconcile Stoke
GL
Usability Take Take to GL
Task Automated
Task
Warehouse Approver
Start End
Approve
Investigate Adjustments in
System Start of End of
Exceptions process process
Connector
Input/Output
from/to
another OR
Inventory Team (Member)
process
AND
Report Reconciled 7.7Inventory

Inventory
Accounting
Adjust GL when Plan Formal Stock Actuals to Finance Accounting
Point at which
Required Take with Auditors a process
splits into
two routes
Decision
Retained
Finance
138 PREVIOUS NEXT

MENU

PRINCIPLES
7.3 Managing Inventory (B) – Ordering METRICS
7.3 Managing Inventory (B) – Ordering

Prepare Internal
Purchase Requisition / Order to
Move Inventory Inventory Ordered 7.7Inventory
Inventory
Accounting
Accounting
No
Task Automated
Task
No
Business Approver
Start End
Requisition /
Yes Order Material? Start of End of
Approve Internal process process
Requisition / Order
Yes
Connector
Input/Output
from/to
another OR
process
AND
Perform Additional
Approval when
SRO
Point at which
Required a process
splits into
two routes
Decision
Retained
Finance
139 PREVIOUS NEXT

Inventory Sub-Process Map
7.3 Managing Inventory (C) – Stock Transfers and Movements MENU
Inventory - Process Maps INVENTORY

PRINCIPLES
METRICS
7.3 Managing Inventory (C) – Stock Transfers and Movements

Raise Stock Transfer

Purchase Request Online Using
Self-Service

Business Approver
Does Transfer Approve Stock

Require Tax Advice? No Automated
Transfer Request Task
Task
Yes Start End
Start of End of
process process
Warehouse Team
Yes Count Inventory and

Compare to Receipt / End Connector
Transfer Documentation Input/Output
from/to
another OR
process
AND
Point at which
Tax Team
Provide Tax a process

Advice splits into
two routes
Decision
Retained
Finance
140 PREVIOUS NEXT

Inventory Sub-Process Map MENU
7.4 Processing Inventory Transactions Inventory - Process Maps INVENTORY

PRINCIPLES
METRICS
7.4 Processing Inventory Transactions
1.4 1.4 1.4 Generate Pick and

AND
1.4
P2P: Receipts P2P:1.4
Receipts P2P: 1.4
Receipts Pack List and Labels
Receipts Receipts Receipts
Warehouse Team
7.3 Managing
7.3 Managing Process Map Symbol Key
Inventory
Inventory
Record Damaged
Use Bar Code
Receive Inventory Items Returned to
Scanner to Input Task Automated
Supplier on System Task
Inventory
Start End
Start of End of
process process
AP Team (Invoicing)
Connector
Input/Output
from/to
another OR
7.7 Inventory process
7.7Accounting
Inventory AND
Accounting
Point at which
a process
splits into
two routes
Decision
Retained
Finance
141 PREVIOUS NEXT

7.5 Manage Logistics (A)
MENU
Inventory - Process Maps INVENTORY

PRINCIPLES
METRICS
7.5 Manage Logistics

Warehouse Team
Inspect Compare
Select Items for Log
Start Quality of the Approved Order
Shipping Shipment
Goods to Selected Goods
Task Automated
Task
Warehouse Security
Start End
Check Goods Start of End of

Leaving process process
Warehouse for
Documentation
Connector
Input/Output
from/to
another OR
process
AR Team (Invoices)
AND
Raise Invoice 2.3 Invoice

2.3 Invoice Point at which
Generation a process
Generation
splits into
two routes
Decision
Retained
Finance
142 PREVIOUS NEXT

MENU

PRINCIPLES
7.6 Inventory Disposal METRICS
7.6 Inventory Disposal

Warehouse Team
Identify
Managing Inventory Obsolete
7.3 Managing Yes Dispose of Inventory
Inventory
Inventory

Business Approver
Approve
No Automated
Disposal? Task
Task
Start End
Start of End of
process process
Inventory Team
Adjust Inventory
in GL
Connector
Input/Output
from/to
another OR
process
AND
Inventory Approver
Point at which
a process
Review Revised Inventory splits into
Inventory 7.7Accounting
Inventory two routes
Decision
Accounting
Retained
Finance
143 PREVIOUS NEXT

Inventory Sub-Process Maps MENU
7.7 Inventory Accounting Inventory - Process Maps INVENTORY

PRINCIPLES
METRICS
7.7 Inventory Accounting
Receipts Enter New Item

Warehouse Team
into Inventory
Task Automated
Generate Task
Review Prepare Inventory
Accounting Entries
Categorisation
Inventory Team
for Inventory Ageing Report Start End

of Inventory
Movements
Start of End of
Record Inventory process process
Re-calculate Transactions & Reconcile Stock
Using IAS 2 Transfer to GL at Balances to GL
Period Close
Connector
Input/Output
from/to
another OR
process
Inventory Approver
Review Inventory AND

Review Calculation Ageing Report
Period End
Accounting
Period End Accounting Point at which
a process
splits into
Review two routes
Decision
Reconciliation
Retained
Finance
144 PREVIOUS NEXT

MENU
Inventory Sub-Process Maps
7.8 Management Information and Analytics Inventory - Process Maps INVENTORY
PRINCIPLES
METRICS

(Requestor)
Employee
Request Standard
End Report Using
Self-Service
No
Superuser
Reporting

Yes
Analytics
Task Automated
Perform Data
Team
Task
Analytics
Start End
Start of End of
Reporting
process process
Financial

Team
Connector
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
145 PREVIOUS NEXT

MENU
Investment Appraisal PRINCIPLES

METRICS
Planning Building a
Tracking Compliance & Process Supporting
Investment Business Engagement
Benefits Controls Management Activities
Decision Case
Engagement Investment
Applicable Plan Green Book Investment Plan Benefits Process
Appraisal Core Design
to all Compliance Appraisal Tracking Governance
Committee
Committee
Identify Engage Reviewers / Report on Benefits Performance Investment

Investment Approvers Achieved Monitoring Appraisal Policy
Opportunity
Investment Appraisal principles have Identify Align with Project / Final Report and Supporting
Supporting Programme Close Benefits
been designed to aid the use of the Resources Management Tracking Technology
Green Book and act as supplementary
guidance.
Consult
Stakeholders
145 PREVIOUS NEXT

MENU
Investment Appraisal - Principles INVESTMENT

METRICS
Planning Investment Decision

1 A cross-government checklist is used to support the business case planning process.
Finance Business Partners (FBPs) and economic analysts work closely with project teams to provide access to finance and economic expertise
2
Applicable to All and support in building a business case.
Cross-government guidance is available to define the role of a Senior Responsible Office (SRO), including their role supporting
3
investment appraisal activities.
4 Departments are responsible for performing ongoing horizon scanning for investment opportunities.
Identify Investment Opportunity 5 Investment opportunities are identified as part of strategic planning, major programmes or ahead of major fiscal events.
6 A department strategic fit assessment of opportunities identified must be approved before building a business case.
7 Business case authors are identified and briefed about the investment opportunity and their respective roles.
Keyholders are identified at the earliest opportunity and clear responsibilities and accountabilities formalised as part of the planning process.
8
This is to be led by the SRO.
Identify Supporting Resources 9 Business Case authors may not be nominated as keyholders.
10 Requirements for external support are identified and a procurement strategy agreed.
11 Responsibilities and accountability of the SRO are outlined in a delegation of authority letter (or relevant document).
12 A range of stakeholders are identified that may be required to provide information for the business case.
Consult Stakeholders Meetings are established to obtain initial input and feedback from keyholders and key stakeholders to support the planning process. For
13
example, there may be discussions on the scope of the investment decisions and dependencies with other activities in a portfolio of changes.
146 PREVIOUS NEXT

MENU

METRICS
Building a Business Case

14 The project's category and classification is assessed based on overall value of the project and the type of capability being delivered.
The type of business case (BJC, OBC, FBC, SOC) is clearly defined and documented. Documentation should include scope and justification
15
for chosen option. Experts to provide assistance with each business case which should be made available as required.
The project's category will identify the approving authority and the level of scrutiny required based on cross-government
16
delegation authority levels.
17 The assessment will determine the most appropriate way to engage with and ensure compliance with the HM Treasury Green Book.
The relevant guidance is reviewed, as appropriate. This includes, but is not restricted to:
- The Green Book, HM Treasury Business Case guidance to using the Five Case Model
- Training and Accreditation in Best Practice Business Cases
Plan Green Book Compliance 18 - Checklist for Assessing Business Cases
- A Short 'Plain English' Guide to Assessing Business Cases
- Agile Digital and IT Projects: Clarification of Business Case Guidance
- MacPherson Review on Business Critical Models and the Aqua Book
The HM Treasury Green Book team are consulted on potentially novel or contentious investment appraisal approaches or where further
19
guidance is required, in conjunction with the Investment Appraisal Committee (see principles 41-53).
HM Treasury Green Book templates (and supporting spreadsheets such as NPV models), are used as the basis for business case
20
deliverables. The latest versions are accessed from the HM Treasury website.
Specific notes and guidance to support interpretation of HM Treasury Green Book templates in the specific context of the department are
21
added.
Engagement
The Investment Appraisal Committee are notified that an investment appraisal decision is being prepared and a time is booked with the
22
committee to scrutinise the business case.
Engage Investment Appraisal The business base is presented to a Pre-Investment Appraisal Committee ahead of the review by the Investment Appraisal
Committee 23
Committee. Points noted by the Pre-IAC are forwarded to the IAC for inclusion in their decision making process.
24 The Investment Appraisal Committee update a tracker that records details of the investment decisions that are being taken.
25 Internal and external approval thresholds for investment appraisal are clearly defined and documented.
Engage Reviewers / Approvers An investment appraisal timetable is formally drawn up, clearly including investment appraisal committee review and keyholder review /
26
approval deadline dates. All keyholders and committees are made aware of time constraints.
147 PREVIOUS NEXT

MENU

METRICS
27 Once approved, the Business Case Owner must adhere to project and programme governance structure and best practice principles.
Align with Project /
Programme Management Supporting evidence of decisions and approvals is retained throughout the investment appraisal process and transferred to the SRO / Project
28
Manager.
Tracking Benefits
A clear strategy and plan is established to confirm how benefits will be tracked. This describes the measures that will be used, the timescales
29 and roles and responsibilities of individuals / groups involved. This will also outline potential decisions that may be required in response to
insight on benefits being delivered.
30 Benefits evaluation is overseen by the SRO, on behalf of the Accounting Officer.
Plan Benefits Tracking 31 Benefits are monitored by the most appropriate team with clearly assigned ownership.
32 Tolerance levels are clearly defined for identified benefits.
The planning considers the costs of tracking benefits to ensure that the effort spent monitoring benefits is proportional to the scale of the
33
benefits.
34 Activities are stopped, decommissioned or changed if benefits realisation becomes unachievable through the monitoring process.
35 Regular reports are developed in line with the benefits tracking plan and strategy.
36 Any decisions that are required as a result of the insight delivered through benefits tracking are escalated to the SRO on a timely basis.
Benefits are aggregated into a benefits tracking tool so they can be reported in aggregate to the Investment Appraisal Committee and
Report on Benefits Achieved 37
other interested stakeholders.
38 Lessons learnt are captured as benefits and are tracked.
Benefits are tracked over the expected lifetime of benefits realisation. This timeframe may be revised as the strategy and plan are
39
established, reviewed or altered.
Final Report and Close Benefits
40 Benefits are reported to the Investment Appraisal Committee on a regular basis.
Tracking
148 PREVIOUS NEXT

MENU

METRICS

41 Members of the Investment Appraisal Committee, acting as the SRO of a business case, must be mindful of segregation of duties.
42 A formal Investment Appraisal Committee is established with a clear membership and documented terms of reference.
43 The Investment Appraisal Committee is chaired by a member of the executive management board.
44 Investment Appraisal Committee members are responsible for all investments within their delegated authority.
45 Investment Appraisal Committee members should have line of sight to smaller investment decisions.
46 The Investment Appraisal Committee have a forward look of future investment decisions that will require appraisal.
The Chair of Investment Appraisal Committee confirms the approach to be followed if Business Owners are unsure of the type of
Investment Appraisal Committee 47
business case to follow or contentious items.
48 Delegated authority to approve investment decisions should be aligned with other delegated authorities.
49 Investment policies and processes are outlined within delegation letters.
50 Business cases are approved by keyholders before they are submitted to the Investment Appraisal Committee.
51 Controls are in place to ensure approval thresholds are upheld and are not circumvented.
52 Individuals are appropriately sanctioned if investment decisions are made outside of the investment committee structures.
53 Benefits tracking of prior investments should be considered by the Investment Appraisal Committee in their decision making process.
Process Management
55 Local variations to the standard process are subject to a separate business case approved by the Global Process Owner.
Process documentation is regularly reviewed to ensure that it remains up-to-date and reflects the full range of acceptable variations
Core Design 56
New process designs conform to the Global Design Principles and are subject to review and approval by the Investment Appraisal Global
57
Process Owner.
149 PREVIOUS NEXT

MENU

METRICS
Performance Monitoring Performance reporting is established to monitor the efficiency and effectiveness of the Investment Appraisal processes, including
59
progress towards specific benchmarks and targets.
60 Governance structures are in place to maintain and enforce the Global Design Principles across the Investment Appraisal community.
An Investment Appraisal Global Process Owner (GPO) is responsible for establishing best practice and implementing process
61
The Investment Appraisal Process Owner is nominated for each department and is responsible for overseeing department convergence
62
to best practice and compliance with Global Process Owner expectations.
63
An Investment Appraisal Process Owner network is established across government to share experiences, common issues
Process Governance and support movement to best practice.
64 A Process Owner Integration Forum is established to drive alignment across process networks and address cross process issues.
Departments, Process Owners, HM Treasury, Cabinet Office and other bodies are expected to engage the Process Owners community
65
before introducing new policies or requirements that impact finance processes.
Departments hold a central list of business cases that are being developed for consideration by the Investment Appraisal Committee
67
and a list of smaller investment decisions that fall under the Investment Appraisal Committee threshold of approval.
68 Cross-government policies have been established, including the HM Treasury Green Book and supporting guidance.
Investment Appraisal Policy 69 Cross-government data standards for Investment Appraisal have been established and communicated.
70 Business teams are required to submit investment decisions. Appropriate sanctions are applied if policy is not followed.
71 Standard software products are in place to support the Investment Appraisal.
72 Government data security standards are considered to ensure sensitive business cases are suitably protected.
150 PREVIOUS NEXT

MENU
Investment Appraisal - Metrics INVESTMENT

PRINCIPLES
Approximate no of man-days spent preparing business cases

No of active members of the investment committee
Planning Investment Decisions
Forecast annual capital expenditure subject to investment appraisal
No of ‘Better Business Case’ trained practitioners
No of Green Book compliant business cases produced in last 12 months
Average length of time taken to develop a Full Business Case
No of Business Cases to be reviewed by the investment committee in next 3 months
% of Business Cases approved by investment committee in last 12 months
Engagement
No of Business Cases approved outside of formal governance in last 12 months
Benefits forecast for next 3 years as a result of approved investment decisions
Average time taken from Investment Committee approval to spend approval
No of lessons learnt captured by Business Case Reviewers
No of live projects delivering benefits that are being tracked
No of investments with benefits actively monitored
Whole life cost of ‘live’ investment projects
No of projects in financial distress
Efficiency savings made in-year through approved investments (£s)
Tracking Benefits
% of investment projects scheduled to complete on budget
% of investment projects scheduled to complete on time
% change on actual costs versus business case estimates for projects completed in last 60 days
% change on forecast costs versus business case estimates for largest 5 largest in-flight projects
% no of benefits forecast actually delivered in past 12 months
151 PREVIOUS NEXT

MENU
Project Accounting PRINCIPLES

METRICS
PROCESS MAPS
Master Data Create and Capture Capture

Project Forecast Project MI &
Setup & Plan Project Project Month End
Billing Projects Close Analytics
Maintenance Projects Costs Time
Organisation Define Capture Receive Review Project Prepare Perform Project Transfer Costs Standard Report
Structure/ Timescales Inventory Timesheet Billable Entries Forecasts Cost Review to Assets & Dashboards
Hierarchy Transactions Entries
Define Project Capture Process

Apply Cost Initiate Project Change Project
Project Accounting (PA) principles Project Types Budgets / 3rd party
Rates Billing Adjust Forecasts Corrections Status Data Analytics
Funding Supplier Costs
were designed to ensure consistency
around projects undertaken including
the organisation hierarchy, the creation Define Work Capture
Project Approve Project Process Self-Service
& planning of projects including Templates
Breakdown Employee
Invoices Manage Risks Accruals Reporting
Structure Expenses
templates, and accounting of projects
including capturing time & costs, billing
and forecasting. Manage Project
Export tp
Expenditure Assign Project Capture Payroll Reconcile with External Project
Members Costs Collections GL Management
Categories via AR System
Project Roles Assign Prject Capture Payables

and Staffing Close Period
Classification Transactions
Grades
Approve Projects Apply Overhead
PREVIOUS NEXT
MENU
Project Accounting - Principles PA

METRICS
PROCESS MAPS

1 Project accounting master data is controlled by a central team and all changes are subject to business approval.
2 Governance forums are established to manage the implications of a shared master file when platforms are used by multiple customers.
Relevant to All Master Data
3 Project templates and expenditure categories conform to consistent naming conventions that are applied across government
4 The quality of the master file is regularly reviewed and cleansed to remove inactive, duplicate and out of date records.
5 The project should have a clearly defined hierarchy and governance.
Organisation Structure / Hierarchy 6 The project hierarchy should be aligned to the workflow approval process required on any costs captured in the project.
7 The project hierarchy should be aligned to the workflow approval process required on any budget or funding approval related to the project.
8 Project templates enable similar projects to be classified and reported consistently.
Project templates are used to simplify the creation and set-up of a new project, eg., separate templates may be used for capital
Project Templates 9
projects, operational projects and projects completed on behalf of third parties.
10 Updates to expenditure types are reflected in both existing projects and applicable project templates.
11 Project roles are used to determine the access and approval authorisations assigned to positions.
Project Roles & Staffing Grades 12 The list of project roles defined within the system aligns to the responsibilities within the project.
13 Project roles and their assignments to positions are reviewed regularly to ensure that they remain valid.
Project Governance 14 Project governance forums are established and a timetable is agreed upfront.
Create and Plan Projects

Define Timescales 15 The duration, actual and expected completion project date is held against the project.
Define Project Budgets / Funding 16 Project budgets are identifiable and linked to source funding / investment appraisal, business case and annual budget.
17 A default Work Breakdown Structure (WBS) can be provided directly from the relevant project template.
Define Work Breakdown Structure 18 Custom WBSs are subject to review and approval before transactions can be initiated against the project.
(WBS) 19 Changes to WBSs are subject to review and approval.
20 WBSs are replicated automatically across all systems that hold WBS structures.
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
21 Key project roles are assigned as part of the project creation process.
Roles that enable users to initiate and edit transactions are tightly controlled and only assigned for business purposes. By default, users
Assign Project Members 22
receive read-only access.
23 Project role assignments are reviewed regularly to ensure they remain valid.
24 Every project is classified by a project type.
Assign Project Classification A framework is applied to every project to determine treatment of costs as within Resource Departmental Expenditure Limits (RDEL),
25
Capital Departmental Expenditure Limits (CDEL) or Annually Managed Expenditure (AME).
26 Projects require online approval to ensure they are authorised and set up correctly.
Approve Projects 27 Optional approvers can be added to the approval chain, but system generated approval chains can not be overridden.
28 Approval requests can be accepted or rejected on mobile devices and tablets.
29 Transactions can only be raised against an active project that has been approved.
Relevant to Pll Capture 30 Transactions are assigned to project codes as they are initiated at source.
Project Costs 31 Controls and approvals are performed within the ledger used to initiate the transaction.
32 Corrections and adjustments are performed within the relevant ledger used to initiate the transaction.
Capture Inventory Transactions 33 Inventory transactions are initiated in an integrated inventory ledger and automatically interfaced into the project accounting ledger.
Capture 3rd Party Supplier Costs 34 Procurement transactions are initiated in an integrated purchase ledger and automatically interfaced into the project accounting ledger.
Employee expenses transactions are initiated in an integrated expenses ledger and automatically interfaced into the project accounting
Capture Employee Expenses 35
ledger.
Capture Payroll Costs 36 Payroll costs are initiated in the payroll system and should be interfaced into the project accounting ledger.
Capture Payables Transactions 37 Payable transactions are initiated in an integrated purchase ledger and automatically interfaced into the project accounting ledger.
38 General overheads can be allocated to projects with clear rationale for their purpose and applicable periods.
Apply Overhead 39 Materiality thresholds are applied to overheads.
40 Any general overheads allocated are reviewed regularly to ensure accuracy and validity.
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
Capture Project Time

41 Timesheet entries are initiated and approved in a time recording system and automatically interfaced into the project accounting ledger.
42 Individuals working on projects allocate their time to the relevant project code.
Receive Timesheet Entries
Manual time entries can be entered by an approved individual in the case of missing timesheets. The individual is automatically notified
43
when timesheets are submitted on their behalf.
44 Timesheets are entered on a weekly basis to ensure individuals record their time on a timely basis.
Each individual working on the project, who is not already included as a payroll cost, is assigned an appropriate cost rate to reflect
45
the internal cost of their contribution.
Apply Cost Rates 46 Cost rates for direct employees are created in line with departmental pay grades and provide an accurate reflection of associated costs.
47 Cost rates are regularly reviewed to ensure that they remain valid.
Project Billing
A billing schedule is agreed as the project is initiated. Typically AR invoices will be raised a month in arrears or following the completion of
48
critical milestones.
Review Project Billable Entries 49 Billing instructions are raised within project accounting and passed to AR to raise the invoice and perform debt management.
50 Deferred income adjustments will need to be entered if billing instructions are raised in advance of costs being incurred.
51 Project billing is initiated from the project accounting ledger by the responsible AR party (i.e. Project Manager).
Initiate Project Billing The customer master resides within the AR system and the customer details are reviewed to ensure that the details remain accurate
52
before an AR invoice is raised.
53 Project billing requests are reviewed and approved online prior to being interfaced into the AR ledger.
Approve Project Invoices 54 Optional approvers can be added to the approval chain but system generated approval chains can not be overridden.
55 Approval requests can be accepted or rejected on mobile devices and tablets.
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
56 Incoming payments are applied to the project code (as per the billing instruction) so project value is accurately maintained.
The responsible AR party regularly reviews the payment status of invoices and works with debt management teams to chase outstanding
57
Manage Project Collections via AR values.
58 Escalation processes are in place to request timely payments and manage disputes.
59 A process is in place to take appropriate action, including pausing project work, if customers do not settle outstanding bills.
60 Internal recharges are submitted with clear rationale for their purpose and applicable periods.
61 Agreements on costs of recharges are put in place between parties prior to work commencement.
Internal Recharges
62 Materiality thresholds are applied.
63 Any internal recharges are periodically reviewed to ensure accuracy and validity.
Forecast Projects
64 Forecasts are prepared in line with the project budget with clear documentation of risks, assumptions and volatility.
Prepare Forecasts
65 Forecasts are prepared with a clear understanding of the drivers, including external data, where relevant.
66 Forecasts are reviewed against actual spend on a regular basis.
67 Forecasts are adjusted to manage anticipated increases or decreases to forecast actuals.
Adjust Forecasts 68 Amended forecasts are approved by relevant individuals prior to being used for subsequent monitoring activity.
Where a project is forecast to run over budget, a business case must be raised in accordance with Investment Appraisal principles and
69
approved by the Investment Appraisal Committee.
Manage Financial Risks & 70 Classification of financial risk and opportunity is captured and reviewed on an ongoing basis.
Opportunities 71 Financial risk is flagged for review if over an agreed level.
Project Managers are responsible for reviewing the status of their projects regularly, at least monthly, and taking action to address financial
72
Perform Project Cost Review risks.
73 Financial status of projects are regularly reported and discussed at project governance forums at least quarterly.
Corrections and adjustments are performed within the relevant ledger used to initiate the transaction. This ensures alignment between sub-
Process Corrections 74 ledgers and the project accounting ledger. If a GL journal is required to correct the sub-ledger, the journal is reversed as soon as the
correction is made in the originating system.
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
75 A project team member should inform Finance of any manual accruals / provisions at month end to reflect the actual position of a project.
Process Accruals
76 Accruals are subject to review and approval prior to being applied. All accruals are reversed in the following period.
Reconcile to GL 77 The project ledger is reconciled to the general ledger as part of month-end activities.
Asset Under Construction (AUC) / Work In Progress (WIP) costs are regularly reviewed to ensure they remain valid and are capitalised on a
78
timely basis.
Close Period 79 The projects sub-ledger is closed in line with the common period end timetable.
80 Access to open and close accounting periods is tightly restricted.
Project Close
81 AUC / WIP balances are written-off if they are not expected to be capitalised.
82 Assets depreciation commences as soon as the assets are available for use.
Transfer Costs to Assets 83 Prior to asset transfer, a subject matter expert reviews final asset allocations to ensure they align to appropriate guidelines.
84 Cost schedules for AUC are maintained and retained once AUC is transferred.
85 Transfer of costs to assets is automated via standard functionality.
Upon completion of all costs / billing, the project's finance aspect is set to a 'closed for project costs' status to block further costs on
86
the project.
Change Project Status
A project status may be temporarily re-set to 'open' in the event of late or unexpected costs being received. In this situation, user access is
87
kept to an absolute minimum and costs are subject to review and approval prior to the project being re-opened.
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
MI and Analytics
88 Standard reports are run regularly, at each month end as a minimum, to ensure transactions are progressing.
89 There is a single source of the truth for project accounting reports.
Reporting requirements are shared by multiple customers on the same platform and are delivered using the same report definitions and
Standard Reports & Dashboards 92
94
95 Reports are available to drill down from the project into the underlying transactions.
96 Standard reports are available to support standard notes to the accounts that relate to project accounting.
97 Self-service tools are used to provide analytics and advanced reporting (i.e. committed vs. actual costs, time charges, etc.).
Data Analytics 98 Programme Managers utilise analytics to undertake regular reviews, at least monthly, of projects within their portfolio.
Analytics is used to provide insights and identify trends relating to the financial status of projects and programmes across government. (i.e.
99
long standing projects, projects with negative WIP, projects that significantly exceeded budget, etc.).
100 An appropriate number of trained Reporting Super Users have the ability to create their own reports for specific business purposes.
101

A control framework exists, which has been approved by Internal Audit, listing all key controls within the project accounting process.
102
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
105 A formal policy establishes cross-government segregation of duties principles and guidance on mitigating controls
Compliance / control reports are regularly reviewed to ensure adherence to the process and validate security controls are working and are
Access Controls 106
being observed.
107 Segregation of duties prevent individuals performing multiple stages in the transaction.
Periodic sample checks and reconciliations are performed to confirm that the data contained within the source and destination
systems remains synchronised.
There are approved Business Continuity (BC) plans in place to enable critical activities in the project accounting process to continue in the
111
event of a serious incident.
Business Continuity 112 BC plans are regularly reviewed and tested, at least annually, to ensure remedial action remains effective and actionable.

Core Design Process documentation is regularly reviewed to ensure it remains up-to-date and reflects the full range of acceptable variations
116
New process designs conform to the Global Design Principles and are subject to review and approval by the Project Accounting Global
117
Process Owner.
Performance Monitoring
119 Performance reporting is established to monitor efficiency and effectiveness, including progress towards specific benchmarks and targets.
120
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
122 Governance structures are in place to maintain and enforce the Global Design Principles across the Project Accounting community.
The Project Accounting Global Process Owner (GPO) is responsible for establishing best practice and implementing process
123
124 The Project Accounting Process Owner is responsible for overseeing department convergence to best practice.
125
A Project Accounting Process network is established across government to share experiences, common issues and support movement
to best practice.
Process Governance 126 A GPO Integration forum is established to drive alignment across process networks and address cross process issues (i.e. P2P & R2R).
127
128
includes cross-functional activity, including definitions used in HR.
Processes are subject to regular internal audit and compliance reviews to ensure controls are operating effectively and in line with
129
best practice guidance.
130 Cross-government Project Accounting policies have been established, including cost categorisation and labour rates.
Project Accounting Policy
131 Cross-government data standards for project classifications have been established and communicated.
PREVIOUS NEXT
MENU

METRICS
PROCESS MAPS
132 Standard 'off the shelf' software products are in place to support the project accounting process.
133 Project accounting systems are shared across the department, including large ALBs.
There are simple and easy to maintain interfaces between the project accounting solution and other management tools (procurement,
136
inventory, expenses, etc.).
The organisation design supports effective involvement of key teams in the project accounting process, including Business Partners,
143
Centres of Excellence and transactional teams.
144 Transactional teams are organised by processes to provide strong connections into the project accounting Process Ownership structures.
146 Project accounting processes are shared across the department, including large ALBs.
147 Project accounting activities are shared with other departments across government.
PREVIOUS NEXT
MENU
Project Accounting - Metrics PA

PRINCIPLES
PROCESS MAPS
No of active projects
New expenditure category set-up time (days)
Master Data Setup & Maintenance Frequency of master data reviews
No of expenditure categories
No of inactive categories not used for 12 months
New project set-up cycle time (days)
Create Project
% of projects with incomplete / missing data
% costs waiting for approval / allocation >1 week
No of transactions processed
Capture Project Costs
No of transactions processed accurately
% of manually processed transactions
% of timesheet entries outstanding
Capture Project Time
No of time allocation errors
Value of outstanding project related invoices
Project Billing
No of outstanding project related invoices
No of correcting accounting entries made
Month End
No of project cost reviews
No of projects closed in last 30 days
Project Close
No of projects inactive for 6 months
% of standard reports run in last 60 days
MI & Analytics
No of active self-service reporting users
PREVIOUS NEXT
MENU
9.1 Project Accounting Sub-Process Map Project Accounting - Process Maps PA

PRINCIPLES
Master Data Setup and Maintenance METRICS

Start
Project Manager
Request Project
Accounting Master
Data Creation /
Change
Task Automated
Task
Start End
MDM Approver
Start of End of
Approve process process
Master Data
Change
Connector
Input/Output
from/to
another OR
process
Perform AND
Confirm Transactional Run Open
MDM Team
Consistency Review Replicate to

and Master Transaction
and Quality Other Systems Point at which
Data Reports a process
Conventions Maintenance splits into
two routes
Decision
Retained
Finance
PREVIOUS NEXT
MENU
Project Accounting - Process Maps PA

PRINCIPLES
METRICS
Project Accounting Sub-Process Map

9.2 Create and Plan Projects
9.2 Create and Plan Projects
Manager
Define Prepare Create Work WBS Replicated

Project
Assign Project Assign Project End

Start Timescale for Budget for Breakdown across Systems Process Map Symbol Key
Classification Roles
Project Project Structure
(WBS)
Approve Budget,
Project Accounting Sub-Process Map Classification,
Perform regular
SRO
Review of Project
WBS and Project
9.3 Capture Project Costs Roles
Roles
Task Automated
Task
9.3 Capture Project Costs Start End
Project Code Allocated to Transactions at Source Start of End of

process process
Purchase
Inventory Expenses Payroll
to Pay
Project Manager
Raise
Interface into Allocate Approve
Transaction
Project Accounting General Transaction? Connector
against Active
Ledger Overheads Input/Output
Project from/to
No another OR
Yes process
9.5
9.5 Project AND
Project Billing
Billing
Point at which
a process
splits into
two routes
Decision
Retained
Finance
PREVIOUS NEXT
MENU

PRINCIPLES
METRICS

9.4 Capture Project Time
9.4 Capture Project Time
(Timesheet
Employee
Interface with
Enter Time to Interface Gross
Entry)
Project Accounting
Relevant Project Daily Rate from
Ledger
Payroll Ledger

Manager
Project
Calculate Team Verify Team

Allocate Time Member Cost Member Cost
to Project (hours x daily rate)
Task Automated
Approve Team Task
SRO
9.5 Project Billing (A) Member Cost

Start End
Start of End of
9.5 Project Billing (A) process process
Invoice
(Invoicing)
2.3 Invoice
AR Team
Interface with AR Generation

Ledger Generation
(O2C) 2.3
Connector
Input/Output
9.2 Create from/to
Manager
9.2 Create and Review Customer Review Payment

Project
Create Billing Create Billing another

and Plan
Plan Projects Details and Billing Status of Invoice process
OR
Schedule Instruction
Projects Request
AND
Approve Assess current 9.8

9.8 Project Point at which
SRO
Billing Project Work Project

if Necessary
Close
Close
a process
Request splits into
two routes
Decision
Retained
Finance
PREVIOUS NEXT
MENU

PRINCIPLES
METRICS

9.5 Project Billing – Recharges (B)
9.5 Project Billing – Recharges (B)

9.2Create
Create Agree Costs of
Prepare and
Manager
9.2 and
Project
recharges with
andProjects
Plan Plan Supplier /
Submit Internal
Recharges
Projects Customer
SRO
No Approve Internal Yes 9.7 Month

9.7 Month
Recharges?
Project Accounting Sub-Process Maps End
End Task Automated
Task
9.6 Forecast Projects
Start End
9.6 Forecast Projects

. Start of End of
9.2 Create Review Variance Review Project process process
Manager
9.2 Create and Review 9.7

9.7 Month
Project
and Plan
Plan Projects Prepare Analysis and Classify Project Risk Classification Month
Forecast vs.
Forecast Adjusted Forecast Risk Regularly End
End
Projects Actual Spend
No
Approve
Approve Connector
Project Risk
SRO
Yes Input/Output
Forecast? Classification from/to
another OR
process
AND
Point at which
a process
splits into
two routes
Decision
Retained
Finance
PREVIOUS NEXT
MENU

PRINCIPLES
METRICS

9.7 Month End
9.7 Month End

9.49.4Capture 9.4
9.4 Capture
Manager
Capture Regularly Review Project Perform Capture

Project
Project
Project Costs Address Project
Project Costs
Review Costs including Adjustments Process Map Symbol Key
Financial Risks
Costs Project Status AUC/WIP/R&D within Ledger Costs
Management
Accountant
Reverse Close Projects

Reconcile
Post Required Accruals in Sub-Ledger
Project
Project Accounting Sub-Process Map Journals Following
Period
Ledger to GL
inline with
Timetable Task Automated
9.8 Project Close Task
Start End
9.8 Project Close Start of End of

Management
process process
Accountant
9.5 Project Review Final Review

9.5 Project
Billing Commence
Asset Depreciation
Billing Allocations Calculation
Depreciation
All Project Project Status

Manager
Connector
Project
Calculate Related Costs to ‘Closed’ and Input/Output

Assets Transfer Yes End
Depreciation Captured? closed for from/to
project costs another OR
No process
AND
Point at which
a process
splits into
two routes
Decision
Retained
Finance
PREVIOUS NEXT
MENU
9.9 Management Information and Analytics Project Accounting - Process Maps PA
PRINCIPLES
METRICS

Management
Accountant
Request Standard
End Report Using
Self-Service
No
Superuser
Reporting
Is There a Create New Maintain Report

Need for a New Report and Add Process Map Symbol Key
Catalogue
Yes
Analytics
Automated
Perform Data Task
Team
Task
Analytics
Start End
Reporting Team
Start of End of
process process
Financial

Connector
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
PREVIOUS NEXT
MENU
Record to Report PRINCIPLES

METRICS
PROCESS MAPS
Master Data
Planning & Period End External MI &
Setup & Forecasting
Budgeting Accounting Reporting Analytics
Maintain
Maintain Chart of Prepare Plans & Close Manage Group

Prepare Forecasts Subledgers Board Reports
Accounts Budgets Returns
Perform
Reconciliations
Maintain Approve Plans & Statutory Management
Adjust Forecasts
Record to Report (R2R) principles Heirarchies Budgets Reporting Accounts
mainly focus on the department’s Accounting
strategic, financial, and operation Adjustments
components, and they provide in-depth Maintain Exchange Monitor Actuals Treasury Standard Reports
Manage Risks
ideas on monitoring the performance Rates Against Plan Reporting & Dashboards
Journal Approval
of the department. It involves various
complex processes including collecting,
converting and supplying data to Synchronise Other External Data Analytics
Accounts With Allocations Reporting
stakeholders who want to know Other Systems
whether or not their expectations
were met. This includes various factors
Internal Recharges Self-Service
like financial closing & consolidating, Reporting
master data maintenance, budgeting
and forecasting. Financial
Consolidation
(Year End)
Close Period
Perform Year
End Activites
169 PREVIOUS NEXT

MENU
Record to Report - Principles R2R

METRICS
PROCESS MAPS

1 The Chart of Accounts is controlled by a central team and all changes are subject to business approval.
2 Each Chart of Accounts segment has an identified master data system.
Governance processes are established to manage the implications of a shared Chart of Accounts when platforms are used by
3
multiple customers.
4 The Chart of Accounts conforms to a consistent naming convention that is applied across government.
Maintain Chart of Accounts 5 The Chart of Accounts maps to external reporting requirements and other data structures, including those owned by HR and Procurement.
6 The Chart of Accounts is mapped to OSCAR accounts for HM Treasury reporting and is maintained by the department.
7 The Chart of Accounts is regularly reviewed to remove errors and inactive and duplicate accounts.
8 Suspense accounts are only used for valid business reasons.
Suspense accounts are reviewed by senior management and cleared on a regular basis. Aging analysis is available to identify any
9
longstanding transactions.
10 The accounting structures within the system reflect the actual legal entity and tax structures.
Maintain Hierarchies
11 The GL will hold summary level of detail with full transactional details available in sub-ledgers and / or feeder systems.
Maintain Exchange Rates 12 Exchange rates are loaded into the GL and updated on a regular basis to support the revaluation of foreign currency balances.
Processes are in place to replicate Chart of Accounts changes across all systems that hold Chart of Accounts values (e.g. HR, payroll,
Synchronise Accounts With Other 13
travel, expenses, assets, etc.).
Systems
14 Periodic reconciliations are performed to confirm master data has been accurately updated in relevant systems.
170 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Planning & Budgeting

15 Business planning and budgeting is led by a central team in Finance, who are responsible for coordinating cross-department input.
16 Budgets are clearly aligned to the delivery of policy outcomes. The Chart of Accounts should support this.
17 Plans and budgets are held at a sufficiently granular level of detail to exercise central financial control.
18 Robust and clear budgets are developed and approved for all budget categories.
19 Budget cycles are aligned to Spending Review and Estimate timescales and regularly reviewed.
20 Budgets have defined owners with clear accountability and responsibilities.
21 Financial planning and budgeting is collaborative and involves key stakeholders.
Finance Business Partners work collaboratively with their business counterparts to provide support and challenge during the planning
22
process.
Prepare Plans & Budgets
Business planning and budgeting is documented with supporting narrative and attached documents recorded on the system where
23
possible. Assumptions are explained and justified.
The business planning and budgeting process incorporates What-if simulations and scenario comparison. The system supports
24
maintaining different versions of the plans along with respective comments.
25 Finance confirm that budgets are set in line with the Spending Review and allocated according to departmental strategy and objectives.
26 The department budgetary limits and delegation of authority are formally agreed between departments and HMT.
The department budgetary limits and delegation of authority are formally agreed with each individual and evidenced via delegation letters /
27
emails.
28 Risk and uncertainty is reflected and documented into the planning and budgeting process.
29 Specialist tools are used to support the planning and forecasting process.
171 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
30 Annual budgets are prepared within the wider context of future year plans and Spending Review settlements.
31 A standard template for delegation letters is used across government for the core element of the letter.
32 Delegation of Authority letters to be in place at the start of the financial year.
Prepare Plans & Budgets cont. Delegation of Authority letters are stored electronically and are reviewed periodically to ensure they remain valid and reflect staff moves
33
and departures.
34 Delegation of Authority letters are to be reviewed if a breach occurs.
35 Financial and performance drivers are used as the foundation for the development of financial budgets.
Budgets are understood, challenged and approved by Finance before they are loaded into finance systems. Finance systems should
36
facilitate approval online.
Requests for in year budget movements are reviewed by Finance, and approved in priority order, in line with strategic objectives and
37 outcomes. Typically, budgets are only adjusted in year to reflect structural changes within the department, machinery of government
Approve Plans & Budgets and Supplementary Estimate changes.
There is an audit trail showing visibility on the status of the overall process to show what is changed, when and by whom (e.g. who has
38
submitted plans, which have been reviewed, etc.).
39 There is full traceability and governance over the approval process to support compliance and internal audit work.
40 There is a single source of the truth for budget data which should be the finance system.
41 Budget holder reports, highlighting areas of variance and exception, should be system generated where possible.
42 A common reporting format is defined for budget performance reviews and is used as the basis for budget review meetings.
Budget holders and finance identify over or underspends at the earliest possible opportunity, to ensure effective decisions can be made and
43
funds redistributed where required.
Monitor Actuals Against Plan
A clear and robust financial performance framework is in place, with clear governance outlining the approach to financial performance
44
management and respective roles and responsibilities.
45 Budget holders regularly review self-service reports to monitor budgets, actuals and variances.
46 A formal review of all material budget lines is conducted on a monthly basis to capture rationale for variance and actions to control budgets.
47 The timing of the review of financial performance is aligned to external and internal reporting timescales.
172 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Forecasting
48 Forecasts are prepared by the relevant stakeholders in the department and recorded in the system of record.
Forecasts are prepared with a clear understanding of the underlying drivers, utilising multiple sources of information (including external data,
49
where relevant).
50 Forecasts are prepared with clear documentation of risks, assumptions and volatility.
The effort applied to forecasting different income and expenditure areas is proportionate to the level of volatility and materiality in that
Prepare Forecasts 51
area.
The frequency with which forecasts are reviewed is determined with reference to a prioritisation matrix, which considers the volatility and
52
importance of the underlying data.
Central Finance review the validity and accuracy of forecasts prior to submission to HMT in line with the HMT timetable. Central
53
adjustments are made in an open and transparent manner.
54 Forecasts are interpreted in the context of short, medium and long-term organisational objectives.
Identified over and under spends are reviewed on a continuous basis, and discussed with HMT at an appropriate time, in order to
55
support effective re-allocation of budgets against estimates.
Ownership of forecasts is defined and agreed with all parties across the department. Forecasting systems record the agreed versions and
56
comments.
Adjust Forecasts 57 Adjustments to forecasts are accompanied by a review of impact on financial risks and organisational objectives.
58 Amended forecasts are approved by relevant individuals prior to being used for subsequent monitoring activity.
Effective use of technology supports ease of forecast adjustment, automated where possible. Changes to forecasts should be captured on an
59
audit trail.
60 Risks associated with forecasts are clearly understood and documented as part of the forecasting process.
Manage Risks 61 Clear criteria exists to guide when risks and opportunities are built into forecasts or reported separately.
62 Key risks are presented to the board alongside the forecasts and are reviewed regularly.
173 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Period End Accounting

63 The majority of GL entries are produced automatically from feeder systems and the integrity is confirmed through reconciliations.
Close Sub-ledgers 64 Sub-ledgers are closed in line with the period close calendar.
After sub-ledger / feeder system data is transferred to the GL, an exception report is reviewed prior to the journal posting to ensure that no
65
errors have occurred during the import. Any errors are investigated and resolved.
66 The scope and timings of Balance Sheet reconciliations are agreed and documented.
Each key reconciliation account has a named owner or post holder (where possible) within the department responsible for account analysis
67
and reconciliation.
68 The timing of reconciliations are aligned to reporting deadlines and captured as part of the period end checklist.
Perform Reconciliations
69 Balance Sheet reconciliations are documented in a defined format to provide consistency across the department.
70 Ageing analysis is available to identify any longstanding reconciling items.
71 Balance Sheet reconciliations are subject to management review.
Materiality thresholds are applied to prevent effort being spent processing low value adjustments. These thresholds may be changed for year
72
end and auditing purposes. Journals below the threshold are rejected as part of the approval process.
Adjustments to financial information are carried out in the sub-ledger or originating system to ensure that the underlying systems remain
73 aligned to the GL. If a GL journal is required to correct the sub-ledger, the adjustment is reversed as soon as the correction is made in the
originating system.
Controls are in place to restrict the range of account codes that are available to particular groups of users. For example, users are only able to
74
post journals to the legal entities that they have responsibility for.
Accounting Adjustments 75 A report showing all manual journals posted for the period will be reviewed to identify any exceptions or anomalies.
76 Manual journals conform to a consistent journal type / purpose that is applied across government.
77 The system prevents manual journals being posted to control accounts.
78 System controls prevent out of balance journals from being posted.
79 Recurring journals are used to automate regular adjustments, and are reviewed periodically.
80 No adjustments are applied to prior accounting periods.
174 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
81 Manual journals are raised online.
82 Manual journals can be approved on mobile devices and tablets in line with 'digital by design' principles.
Journal Approval
83 Manual journals are subject to review and / or approval by a separate individual prior to posting in order to enforce segregation of duties.
84 Journal approval limits are appropriately role-aligned and also aligned to the scale of the department, so as not to inhibit ways of working.
85 Optional journal approvers can be added to the approval chain by the originator but system generated approvers cannot be overridden.
86 Accounting details should be captured correctly as transactions are created in order to reduce the volume of internal recharges.
Where recurring adjustments and allocations are required these are processed by a single recurring journal entry for the period of their
Allocations 87
existence.
88 Recurring adjustments are periodically reviewed to ensure that they remain accurate.
89 Internal recharges are minimised and submitted with clear rationale for their purpose and applicable periods.
Departmental materiality thresholds are documented and applied to prevent effort being spent processing low value adjustments.
Internal Recharges 90
Thresholds may be changed at year end and for auditing purposes.
91 Any internal recharges are periodically reviewed to ensure that they remain accurate and relevant.
92 Financial consolidation and eliminations are automated where possible.
Template returns are submitted from all entities to support the financial consolidation if not on the same core finance system. These are
93
reviewed for completeness.
94 An analytical review is performed on the consolidated financial position to consider completeness and accuracy of individual returns.
Financial Consolidation (Year End Specialist tools are used to support the financial consolidation process. This will simplify data management, improve control and
95
Activity) provide more sophisticated functionality, including the ability to store reporting narrative.
96 Transactions can be traced from consolidated data to source data (including journals and adjustments).
Material mismatches in cross-departmental transactions for both statutory and whole of government accounts are identified and resolved
97
in a timely manner.
98 There is a full audit trail of the source of all adjustments and approvals for those adjustments.
175 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
99 Access to open and close accounting periods is tightly restricted.

100 Only one monthly GL accounting period (P1-12) is normally open at a time apart from month end when two periods can be open.
101 Once an accounting period is closed it should not be re-opened.
Close Period 102 The department period end timetable is aligned to external reporting requirements.
103 Communications are centrally co-ordinated for period end and year end to ensure that the timetable is executed.
There is a checklist in place for the period end covering all necessary steps with clear ownership for each task. This is reviewed and verified
104
as complete prior to closing the GL period.
105 Automated tools and workflows are used to control the period end close process.
106 Separate adjustment periods are defined in order to identify audit and other adjustments from the year end ledger position.
Adjustment periods are reserved for material adjustments identified by Central Finance or as part of the audit processes. Access to post
Perform Year End Activities 107
into adjustment periods is limited to a small number of authorised individuals.
When the final period is closed, an automated process clears the P&L accounts to retained earnings and brings forward the balance sheet
108
accounts to a new period.
External Reporting
109 Group returns are required in a consistent format to enable group consolidation in accordance with HM Treasury FReM.
Manage Group Returns The format of group returns supports automated consolidation and elimination of financial information, enabled by technology where
110
possible.
Production of the annual statutory accounts is automated to the fullest extent possible. Manual adjustments to the data are kept to a
111
minimum and are supported by a complete audit trail.
Significant or unusual transactions in the year are considered as early as possible, interpreted against accounting and budgeting requirements
112
and treatment agreed with HMTand external audit.
Statutory Reporting 113 Preparation of statutory financial statements is delivered from a shared, centralised environment.
Preparation of statutory financial statements is driven from a consistent template across the organisation and group entities, agreed in
114
advance of the year end period.
A clear timetable for the production of the financial statements should be developed for the organisation and group, aligning to the
115
timetable for parliamentary reporting, audit and board / committee dates.
176 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Whole of Government Accounts

116 Whole of government accounts annual submissions are completed in accordance with HMT whole of government accounts guidance.
Reporting
117 Processes and technology are in place to support automated reporting of financial information to HMT.
Financial information reported to HM Treasury is consistent with information used internally for management purposes and decision making
118
and statutory reporting.
HM Treasury Reporting (OSCAR)
Where adjustments are required to financial information prior to issuing to HMT, these adjustments are clearly documented and
119
communicated.
120 Regular communication is maintained with HMT, either by written briefings or periodic (at least monthly) meetings.
External report requests, including PQs, FOIs, statistical reporting, programme reporting and non-standard data requests, are
121
identified, allocated and managed from a departmental central team.
122 External reporting requests should be referenced and verified against published data (where it exists).
There is a single point of contact (SPoC) to coordinate requests. The SPoC is not necessarily responsible for completion of the request, but
Other External Reporting 123
is allocated the task of ensuring the response is made within the allocated timescales.
The SPoC will confirm if a current request has been asked previously so that consistency is applied to the response and additional effort is
124
reduced.
125 Sensitive data is redacted prior to releasing reports externally in line with the Information Commissioner’s Office (ICO) guidelines.
There is a single source of the truth to support external financial reporting, achieving consistency in reporting regardless of where the
126
reports originate from (i.e. HR, Finance and Procurement all draw reports from the same source).
127 Standard reports are available directly from the system to support external reporting, including an I&E, Balance Sheet and Cash Flow Forecast.
Principles Applicable to All Reporting requirements that are shared by multiple customers on the same platform are delivered using the same report definition which is
128
External Reporting centrally controlled on behalf of all customers (e.g. returns to Cabinet Office, HM Treasury, Office for National Statistics, etc.).
129 The appropriate historical data is retained electronically to support external reporting commitments (i.e. audit activity, OSCAR, etc.).
External reports are formally approved by staff at the appropriate grade before they are issued. The review process includes
130
checking whether similar data has been previously quoted externally.
177 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
MI & Analytics
Board packs are produced in a timely manner to enable the contents to be reviewed ahead of board meetings. Financial data in the board
131
packs is system generated where possible.
Board packs clearly identify key decisions that are expected and provide the information required to support decision making in a clear and
132
Board Reports concise format, e.g. dashboard and exception reporting.
Board packs provide strategic and operational information in a concise manner. The content typically includes I&Es, forecasts, KPIs,
133
performance summary, key developments, risks, issues and is linked to the Single Departmental Plans.
134 Executive level reports can be accessed on mobile devices and tablets.
Management Accounts are produced (at least monthly) which cover all budgetary control limits and key areas of spend including
135
programme, admin and capital and are reviewed by the business.
Departmental Management 136 Consolidated Management Accounts are produced and reviewed on a quarterly basis.
Accounts When different systems are used, template returns are submitted from all entities in order to support the preparation of Consolidated
137
Management Accounts.
138 An analytical review is performed on the Consolidated Management Accounts to consider completeness and accuracy of individual returns.
139 Drill down functionality is available to allow users to view transactional details.
140 The requirements of report users are understood and built into standard reporting formats.
Key reports are produced with a consistent, standardised format that complies with good practice standards (i.e. dashboard style) and aligns
141
to financial requirements (i.e. control totals and relevant targets).
Standard reports are run regularly for control or compliance purposes (i.e. to ensure transactions are progressing such as the number
142
of journals awaiting approval).
Data Analytics 144 Finance data sets are combined with HR, Procurement, Policy and Operational data in order to generate new insights.
145 Data visualisation tools are used to support the analysis and interpretation of data.
146 Self-service tools are used to provide access to standard dashboards and reports.
There is a periodic review of the reporting catalogue to ensure the purpose and use of each report is clear. When after investigation, the
147
need for the report is not proven, production of the report is ceased.
178 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
149

A control framework exists, that has been subject to review by Internal Audit, listing all key controls within the R2R process. At a minimum,
150
Access Controls 154
Segregation of duties prevent individuals performing multiple stages in the transaction (i.e. correcting journals cannot be entered
155
and approved by the same user and this is prevented by the system).
There are approved Business Continuity plans in place to enable critical activities in the R2R process to continue in the event of a serious
159
incident.
179 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS

164
165 New process designs conform to the Global Design Principles and are subject to review and approval by the R2R Global Process Owner.
Performance Monitoring Performance reporting is established to monitor R2R efficiency and effectiveness, including progress towards specific benchmarks and
167
targets.
Departmental managers are responsible for ensuring that their staff are aware of latest process guidance and are informed of
168
Knowledge Management appropriate training courses.
170 Governance structures are in place to maintain and enforce the Global Design Principles across the R2R community.
The R2R Global Process Owner is responsible for establishing best practice and implementing process improvement and
171
172 The R2R Process Owner is responsible for overseeing department convergence to best practice.
R2R Process Owners should be aware of changes to best practice and current issues / developments and be actively engaged with
173
HMT and Cabinet Office for guidance on best practice.
A R2R Process Owner network is established across government to share experiences, common issues and support movement to
174
A Process Owner Integration Forum is established to drive alignment across process networks and address cross-process issues (i.e.
175
P2P & O2C).
176
requirements that impact the finance processes.
Shared terminology is required, including the definition of key terms, to ensure language is used consistently across departments. This
177
includes cross-functional activity, including definitions used in HR.
178
practice guidance.
180 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
179 Cross-government R2R policies have been established, including materiality limits, common close timetables, etc.
R2R Policy
180 Cross-government data standards for accounting classifications have been established and communicated.
181 Standard 'off the shelf' software products are in place to support the R2R process.
182 R2R systems are shared across the department, including large ALBs.
There are simple and easy to maintain interfaces between the transactional accounting solution and other management tools (such as HR
185
system, reporting systems, etc.).
The organisation design supports effective involvement of key teams in the R2R process, including Business Partners, Centres of
192
193 Transactional teams are organised by processes to provide strong connections into the R2R Process Ownership structures.
195 R2R processes and teams are shared across the department, including large ALBs.
196 R2R activities are shared with other departments across government.
181 PREVIOUS NEXT

MENU
Record to Report - Metrics R2R

PRINCIPLES
PROCESS MAPS
No of active cost centres in chart of accounts

Master Data Setup &
No of cost centres in chart of accounts inactive for 18 months
Maintainenance
Cycle time from chart of account set-up request to completion
No of in-year budget changes
Planning & Budgeting Value of changes to budgets after first submission
Difference in original submission & FBP scrutinised version
Full Year outturn as a percentage of full year forecast (at period 6)
Forecasting Current month actuals as a percentage of the prior month forecast for the month (monthly)
HM Treasury Usability Score, Timeliness Test and Arrears Test (monthly)
No of days from the start to the end of month end to period close
Period End Accounting Percentage of balance sheet accounts reconciled on time
No of manual journal entries in the previous month
No of new external reports created
No of external reports that are manually created i.e. not a standard system report
External Reporting
Days spent on External Reporting
PQs / FOIs responses within allocated timescales
MI & Analytics No of changes to reporting catalogue each month
No of self-approved journal postings
182 PREVIOUS NEXT

Record to Report Sub-Process Map
10.1 Master Data Setup and Maintenance MENU
Record to Report - Process Maps R2R

PRINCIPLES
METRICS
Period End
Start Period End
Accounting
Financial Reporting Team
Replicate Accounting
across all systems
Perform
Maintain Chart of Reconciliation to
Accounts ensure Systems
Updated Task Automated
Task
Start End
Start of End of
process process
Connector
Financial Controller
Input/Output
from/to
Approve Changes another OR
process
to CoA
AND
Point at which
a process
splits into
two routes
Decision
Retained
Finance
183 PREVIOUS NEXT

Record to Report Sub-Process Map MENU
10.2 Planning and Budgeting (A)

Record to Report - Process Maps R2R
PRINCIPLES
METRICS
10.2 Planning and Budgeting (A)

Budget Holder
Work with
Finance to
Prepare No Approve
Budget / Budget and
Plans Plans

Collate Document Prepare Confirm Confirm
Management
Budgets
Accountant
Budgets and Business What-If Budgets Load

Plans with Planning Simulation & Inline with Allocated Budgets
Key and Scenario Spending According to into System
Stakeholders Budgeting Comparison Review Dept. Strat. &
Automated
Obj. Task
Task
Start End
Yes
Business Partner
Work with Align Budgets Start of End of

Challenge
Finance
Start Budget Holder to Delivery of process process

Budget and
to Prepare Policy
Plans
Budget / Plans Outcomes
Connector
Input/Output
Sign Off from/to
another OR
Budget and process
Plans
Finance Director
AND
Point at which
a process
Planning splits into
and Decision
two routes
Budgeting
Retained
Finance
184 PREVIOUS NEXT

MENU
Record to Report Sub-Process Map Record to Report - Process Maps R2R

PRINCIPLES
10.2 Planning and Budgeting (B) - Government METRICS
10.2 Planning and Budgeting (B) - Government

Budget Holder
Receive
allocation
and DoA
Task Automated
Task
Budget limits & Start End

Agree Ring Fence
DoA Formally
Depreciation
Agreed via Start of End of
Balance with HMT process process
Letter
Connector
Input/Output
from/to
another OR
process
AND
Agree Ring Fenced

HMT
Depreciation Point at which

a process
Balance with FC splits into
two routes
Decision
Retained
Finance
185 PREVIOUS NEXT

MENU
Record to Report Sub-Process Map Record to Report - Process Maps R2R

PRINCIPLES
10.2 Planning and Budgeting (C) - Monthly METRICS
10.2 Planning and Budgeting (C)

Budget Holder
Planning and Monitor

Budgeting Actuals vs.
Plan
Task Automated
Management Accountant
Task
Start End
Support Budget Holder
with Variance Analysis
Start of End of
process process
Connector
Input/Output
from/to
another OR
process
Participate in
Business Partner
AND
Monthly Budget
End
Review
Finance
Point at which
a process
splits into
two routes
Decision
Retained
Finance
186 PREVIOUS NEXT

10.3 Forecasting Record to Report - Process Maps R2R

PRINCIPLES
METRICS
10.3 Forecasting
Budget Holder
Lead
Review Review Adj. &
Preparation
Start Forecasts Impact on
of Forecast
Financial Risks &
Org. Objectives

Business Partner
Finance
Challenge Strategic
Forecasting
Task Automated
Task
Start End
Document
Management
Accountant
Enter Generate Risks, Variance Adjust

Forecast Forecast Assumptions Analysis Forecast Start of End of
process process
and Volatility
No Connector
Input/Output
Submit from/to
Approve Yes another
AND Forecast to process
OR
Consolidated HMT
Finance Director
Forecast AND
End
Point at which
Present a process
Forecasts and splits into
two routes
Key Risks to Decision
the Board
Retained
Finance
187 PREVIOUS NEXT

MENU
Record
Record to Report Sub-Process Map to Report - Process Maps
R2R
PRINCIPLES
10.4 Period End Accounting METRICS
10.4 Period End Accounting

Review &
GL Team
Start Close Subledger Submit Template

Post Close
In-line with Internal Return End
Manual Period
Calendar Recharges Submitted
Journals

Management
Accountant
Perform Balance Prepare Prepare

Sheet Accounting Manual
Yes
Reconciliations Adjustments Journals
Task Automated
Task
Finance Director
Start End
Approve
Start of End of
Period End process process
No
Connector
Controller
Review and
Financial
Input/Output
Verify from/to
Period End another OR
Checklist process
AND
Reporting Team
Point at which
a process
Financial
Review splits into

Review Review Review Perform Complete two routes
Accounting Decision
Exception Reconciliati Internal Analytical Period End
and Recurring
Report ons Recharges Review Checklist
Adjustments
Retained
Finance
188 PREVIOUS NEXT

MENU
Record to Report Sub-Process Map
Record to Report - Process Maps
10.5 External Reporting – Annual Report and Accounts
R2R
PRINCIPLES
METRICS
10.5 External Reporting – Annual Report and Accounts

Reporting Team
Financial
Consolidation Elimination of Prepare Annual Prepare

Manage Group
of Group Financial Statutory Manual
Returns
Returns Information Accounts Adjustments

Review
Accountant
Period End Submit

Financial
Close Consolidation
Group
and
Return
Eliminations
Task Automated
Task
Start End
Controller
Financial
Review
Statutory Start of End of
Accounts process process
Financial Director
Approve Input/Output
Connector
No Statutory from/to
Accounts another OR
process
AND
No
Yes
Business Director
Point at which
Financial a process
splits into
Approve Information two routes
Yes End Decision
Statutory Reported to
Accounts HMT
Retained
Finance
189 PREVIOUS NEXT

10.6 MI and Analytics Record to Report - Process Maps R2R

PRINCIPLES
METRICS
10.6 MI and Analytics

Accountant
Retain Data
Financial
Review Monthly Submit

to Support
Management Template
External
End
Accounts Return
Reporting
Management
Accountant
Prepare Prepare
Board Monthly
Reports Management
Accounts
Analytics Team
Task Automated
Perform Task
Data
Analytics Start End
Start of End of
process process
Prepare
Reporting
Financial
Consolidated Perform
Team
Quarterly Analytical
Management Review
Accounts
Connector
Input/Output
from/to
another
Controller
OR
Financial
process
Review
Board packs AND
Point at which
a process
splits into
Director
Finance
two routes
Decision
Retained
Finance
190 PREVIOUS NEXT

MENU
Tax PRINCIPLES
PROCESS MAPS
Master Data
MI &
Setup & Policy Tax Activity
Reporting
Maintainance
Exception
Set Up and
Maintain Tax Rules Consultation Review Payroll Reporting, External Reporting
and Processes
Compliance &
Errors
Set Up and Asset

Maintain Tax Rates Implementation Management Internal Reporting
Tax principles were designed in and Codes
collaboration with the Tax Centre of
Excellence. Principles cover setup &
maintenance of tax rates and codes,
and tax reporting requirements.
191 PREVIOUS NEXT

MENU
Tax - Principles TAX

PROCESS MAPS

Tax rules are set up centrally according to the legal status of the entity. If the entity's legal status changes, there needs to be a review of
2
tax rules.
3 Each entity has registered for, and holds, a VAT registration number from HMRC, where appropriate.
Tax implications related to Machinery of Government and other changes and their funding arrangements are reviewed and approved
4
Set Up and Maintain Tax Rules by the business before execution.
and Processes 5
A process is in place for legal entities to manage and differentiate between business and non-business activities and adhere to government
reporting.
6 Every transaction must have a VAT rate applied via a centrally controlled VAT system code.
7 An Import VAT process is in place that allows VAT to be charged on imports from overseas suppliers who are not UK VAT registered.
Each legal entity has registered for, and holds, an Economic Operator Registration and Identification (EORI) number for customs and duty
8
purposes where appropriate to do so.
9 Income tax and NI rates are set by legislation and are controlled by PAYE operator.
United Nations Standard Product and Service Codes (UNSPSC) are set and maintained by the Cabinet Office. Each legal entity controls
10
additions and deletions centrally.
VAT rates and HMT contracted-out services have been aligned to product categories and, in turn, UNSPSC. These linkages are
Set Up and Maintain Tax Rates 11
maintained centrally.
and Codes 12 VAT treatment is determined at the point of procurement and is automated.
13 Business sales and related input VAT purchases will be coded utilising the appropriate VAT system codes.
The tax associated with staff expenses and benefits is automated through the system and maintained centrally with all changes subject to
14
business approval.
Policy
15 Regular communication channels are maintained by the Tax Centre of Excellence with departments, HMRC and HMT.
Consultation 16 Direction and interpretation of policy within departments is led centrally.

The Tax Centre of Excellence should be consulted and informed on the tax implications of complex purchase contracts, projects,
17
policy and legislation changes.
192 PREVIOUS NEXT

MENU

PROCESS MAPS
All authorisations, concessions, approvals and / or exemptions from HMRC must be managed, approved, held and recorded on a log by
18
Implementation the department. Records are maintained of formal HMRC meetings.
19 Policy changes are disseminated via appropriate channels. Local policy documentary guidance is updated centrally.
20 The Tax Centre of Excellence monitor and review all tax implications to additions or changes to legislation and government policy.
Review 21 The Tax Centre of Excellence advise departments on tax implications to additions or changes to legislation and government policy.
22 The Tax Centre of Excellence review and respond to government consultations.
Tax Activity
A distinction of employment type must be available at commencement of posting to ensure legislation can be met in relation to tax
23
implications.
24 Benefits, loans and salary sacrifice schemes are operated in line with HMT and HMRC guidance.
An automated process is in place via payroll to identify and capture taxable transactions related to salary sacrifice schemes and taxable
Payroll 25
benefits.
A process is in place to identify and capture dual taxation implications. These must be taken into account when considering all appointments,
26
transfers and movements of personal effects.
27 A process is in place to support and calculate employment tribunal activity including compensation, interest and tax implications.
A process is in place to ensure the tax implications of assets when procuring, selling or transferring assets are considered and checked
28 centrally.
The tax point is based on the date the supply took place, the payment received or invoice date, in line with HMRC or applicable country
29 guidance.
Asset Management A process is in place to determine most tax efficient customs procedure for the import, export or movement of goods. Core data exists
30
to make the appropriate customs declaration.
Consideration is taken centrally within the department of tax treatment when importing or exporting assets of all asset categories within
31
the legal entity.
193 PREVIOUS NEXT

MENU

PROCESS MAPS
The system generated tax code can only be overridden in exceptional circumstances, with appropriate financial approval and corrective
32
action taken at source.
33 A process is in place to report coding errors to relevant parties over thresholds, and a system is in place to capture all relevant information.
34 A process is in place to manage tax suspension conditions, monitoring timeframes and reporting completion to relevant tax authorities.
Exception Reporting,
Compliance and Errors 35 A process is in place to capture losses and report tax implications to relevant tax authorities.
36 A process is in place to recover excise overpayments and /or claim refunds from relevant tax authorities.
37 Regular department discussions with HMRC should be facilitated centrally, alongside policy leads where appropriate.
38 Any tax compliance activities with HMRC are led centrally within given timescales.
MI & Reporting
39 All statutory tax returns are drawn from the system, compiled and submitted by due dates.
External Reporting 40 A process is in place to report all taxable transactions related to salary, salary sacrifice schemes, loans and benefit.
A process is in place to gather data from the system to enable aggregation, completion and timely submission of PAYE Settlement
41
Agreement (PSA) to HMRC.
42 Payslips, P60s and P11Ds are produced by agreed due dates.
43 Internal reports are produced by agreed due dates.
Internal Reporting
44 Tax records are maintained and retained in line with legal reporting obligations.
45 Financial System operators develop and make available a common set of related reports.

Access Controls 46 Read access to financial systems, via core reports, should be available to all who have undertaken requisite training.
194 PREVIOUS NEXT

MENU

PROCESS MAPS
Procedures are in place to maintain and embed the Global Design Principles. Advice should be taken from the Tax Centre of
47
Excellence as necessary.
The Tax Global Process Owner (GPO), alongside the Tax Centre of Excellence, is responsible for establishing best practice and
48
implementing process improvement and harmonisation of policies, processes and systems across government.
49 The Departmental Process Owner is responsible for overseeing department convergence to best practice.
Overarching Governance Controls Process documentation is regularly reviewed to ensure it remains up-to-date and reflects the full range of acceptable variations
52
53 New Global Process Designs conform to the Global Design Principles and are subject to review and approval by GPO in conjunction
with the Tax Centre of Excellence.
54 A formal continuous improvement initiative for Global Design Principles is in place and reports through the Global Process Owner.
Departmental resource, alongside the Tax Centre of Excellence, establishes performance reporting to monitor tax efficiency
55
and effectiveness, including progress towards specific benchmarks and targets.
56
training courses.
57 The Tax Centre of Excellence ensures a resourcing resilience plan (as a profession) is in place.
There are approved Business Continuity plans in place to enable critical activities in the Tax process to continue in the event of a serious
58
Business Continuity incident.
59 BC plans are regularly reviewed and tested, at least annually, to ensure remedial action remains effective and actionable.
61 Assurance and risk control processes are in place to inform the legal entity’s annual assurance report.
Assurance Development of an annual programme of self-assurance checks to regularly test the quality and accuracy of data underpinning transactions,
62
statutory returns, submissions and declarations for the entity's Annual Report and Accounts.
195 PREVIOUS NEXT

MENU

PROCESS MAPS

A Departmental Tax Process Owner network is established across government to share experiences, common issues and support
63
HMT, Cabinet Office, HMRC and other bodies are expected to engage the Tax Centre of Excellence before introducing new policies or
64
requirements that impact the finance processes, and vice versa.
Core Design
Shared terminology is required, including definition of key terms, to ensure language is used consistently across entities. This includes
65
66
practice guidance.
67 The Tax Centre of Excellence shares experience and best practice and raises awareness of key tax issues across the virtual tax team network.
68 Regular tax network meetings / forums held by the Tax Centre of Excellence.
Knowledge Management Individuals are responsible for undertaking training, as advised by their manager and in accordance with the Tax Training Strategy led by the
69
Tax Centre of Excellence.
70 The Tax Centre of Excellence has a process in place to ensure case ruling knowledge is captured and shared.
73 There are simple and easy to maintain interfaces between the transactional accounting solution and other management tools.
Process Governance 74 Values displayed within the system are tailored to the user in order to provide an intuitive user experience.
196 PREVIOUS NEXT

MENU

PROCESS MAPS
The organisation design supports effective involvement of key teams in the Tax process, including business partners, centres of excellence
80
and transactional teams.
Organisation Design
82 Tax processes and resources are shared across the department, including ALBs.
83 Tax activities are shared with other entities across government.
84 Expansion and utilisation of Centre of Excellence for Process Ownership to represent and support multiple entities.
197 PREVIOUS NEXT

MENU
Tax Sub-Process Maps
11.1 Master Data Setup and Maintenance Tax - Process Maps TAX
PRINCIPLES

Start Start
(Requestor)
Employee
Request Tax Rules Request Tax Rates

Data Creation or and Codes Data
Change Creation or Change

Approver
Approve Master
MDM
Data Change
Task
Task Automated
Automated
Task
Task
Perform Transactional Replicate to
and Master Data Other Systems Start
Start End
End
Maintenance
Confirm Consistency
and Conventions Start of
Start of End of
End of
process
process process
process
MDM Team
Run Open
Transaction
Reports
Connector
Connector
Input/Output
Input/Output
Review Quality from/to
from/to
11.211.2
Policy another
another OR
OR
process
process
Policy
AND
AND
Request Tax Rates Point

Point atat which
which
PAYE Operator
aa process
process
and Codes Data splits into
splits into
Creation or Change two routes
two routes
Decision
Decision
Start Business
Retained
SSC CoE External
Finance
198 PREVIOUS NEXT

MENU

Tax - Process Maps TAX
PRINCIPLES
11.2 Policy
11.2 Policy
11.3
11.3 Tax
11.1 Master
11.1 Master Tax Activity
Data Setup Activity
Data Setup
Tax Accountant
Implement Policy Act on CoE

Propose Policy Change via Advice on Policy
Change Appropriate Tax Implications
Task Automated
Channel if Required Task
Start End
Start of End of
process process
Consulted on Tax Monitor and

Tax Team
Implications of Policy Review Tax

and Legislation Implications of
Changes Policy Changes Connector
Input/Output
from/to
another OR
process
AND
Yes
Approve Point at which

HMRC
Authorisations, a process
splits into
End No Concessions and/or two routes
Decision
Exemptions?
Retained
Finance
199 PREVIOUS NEXT

MENU
Tax Sub-Process Maps Tax - Process Maps TAX

PRINCIPLES
11.3 Tax Activity (A)- Payroll

11.3 Tax Activity (A)- Payroll
11.2
11.2
Policy
Policy
Identify and Capture End

Taxable Transactions
(e.g. Salary Sacrifice)
via Payroll
Tax Accountant
Identify and Capture

Identify
Dual Taxation Automated
Employment Task
Task
Implications for
Types Impacted
Payroll Employee
by Policy Change
Transfers Start End
Calculate Employment Start of End of

Tribunal Activity process process
Including Compensation,
Interest and Tax
Implications
Connector
Input/Output
No from/to
another OR
process
AND
HMT and HMRC

Tax Team
Guidance Yes Point at which

on Salary Sacrifice a process
Applied? splits into
two routes
Decision
Retained
Finance
200 PREVIOUS NEXT

Tax Sub-Process Maps MENU
Tax - Process Maps

11.3 Tax Activity (C)– Exception Reporting, Compliance and Errors TAX
PRINCIPLES
11.3 Tax Activity (B)– Asset Management
11.2
11.2
Policy
Policy Generate Coding End
Errors, Tax Suspension
Conditions and Losses
Tax Accountant
Reports
Recover Excise
Overpayments and/
Error in Tax or Claim Refunds
Correct Tax Code
Code Generated from Relevant Tax
No at Source Automated
Authorities Task
Task
Start End
Start of End of
process process
Approve Tax Code

Over ride in Yes AND
Exceptional Connector
Circumstance? Input/Output
from/to
another OR
process
AND
Receive Relevant
Reports Point at which
Tax Team
a process
splits into
two routes
Decision
Retained
Finance
201 PREVIOUS NEXT

Tax Sub-Process Maps MENU
Tax - Process Maps

11.3 Tax Activity (C)– Exception Reporting, Compliance and Errors TAX
PRINCIPLES
11.3 Tax Activity (C) – Exception Reporting, Compliance and Errors
11.2
11.2
Policy
Policy Generate Coding End
Errors, Tax Suspension
Conditions and Losses
Tax Accountant
Reports
Recover Excise
Overpayments and/
Error in Tax or Claim Refunds
Correct Tax Code
Code Generated from Relevant Tax
No at Source Automated
Authorities Task
Task
Start End
Start of End of
process process
Approve Tax Code

Over ride in Yes AND
Exceptional Connector
Circumstance? Input/Output
from/to
another OR
process
AND
Receive Relevant
Reports Point at which
Tax Team
a process
splits into
two routes
Decision
Retained
Finance
202 PREVIOUS NEXT

MENU
11.4 Management Information and Analytics Tax - Process Maps TAX
PRINCIPLES

Management
Accountant
Request Standard
End Report Using
Self-Service
No
Superuser
Reporting

Yes
Analytics
Task Automated
Perform Data
Team
Task
Analytics
Start End
Reporting Team
Start of End of
process process
Financial

Connector
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
203 PREVIOUS NEXT

MENU
Non-Current Assets PRINCIPLES

METRICS
PROCESS MAPS
Master Data
Create Asset Asset MI &
Setup & Period End Retire Asset
Masters Changes Analytics
Maintain
Maintain Asset Create Assets Asset Standard Reports

Revaluations Run Depreciation Sell or Gift Asset
Categories Automatically & Dashboards
The entire practice of acquiring, using, Maintain Create Assets

Asset Impairments
Dispose or
Manually Close Period Data Analytics
recording, accounting and the disposal Depreciation Rules Write Off Asset
of assets fall under the scope of these

principles. The specific activities and Amend Asset
Maintain Modified Details
goals involved in Non-current Asset Historic Cost
Tagging & Security Perform Year
Reinstate Asset Depreciation
Marking End Activities Forecasts
(NCA) differ among different kinds Accounting Rules
of assets, but the use of best practice
Amend Asset Life
methods for planning, accounting,
Transfer Historic Cost
deployment, usage, and maintenance Assets Under Accounting Sale & Self-Service
Leaseback Reporting
can be applied to all of them. Construction Adjustments
Amend Asset
Category
Transfer Between Intangible Assets

Departments
Asset
Enhancements
Physical Asset
Finance Leases
Splitting Assets Verification
Private Finance Internal Asset

Initiatives (PFI) Transfers
204 PREVIOUS NEXT

MENU
Non-Current Assets - Principles NCA

METRICS
PROCESS MAPS
Master Data Setup & Maintainenance

Asset master data is controlled by a central team and all changes are subject to business approval. This includes asset categories,
1
depreciation methods, useful life estimates and valuations.
Governance processes are established to manage the implications of shared asset master data when platforms are used by
2
multiple customers.
Maintain Asset Categories & Asset master data conforms to consistent conventions that are applied across government, supporting the capture of information required
Maintain Depreciation Rules 3 to inform accurate and appropriate recording in line with the HM Treasury FReM, Consolidated Budgeting Guidance (CBG), Manging Public
Money and OSCAR.
The quality of the asset master file is regularly reviewed and cleansed to remove inactive, duplicate and out of date records and to
4
capture the results of physical verification exercises.
5 Asset master file changes are replicated automatically across all systems that hold asset details.
Maintain Modified Historic Cost
6 Indexation values are provided from a central source which are aligned across government on an asset category basis.
Accounting (MHCA) Rules
Create Asset Master

As many of the asset details as possible, including VAT treatment, are imported from accounts payable and project accounting systems
7
to minimise data keying.
Controls are in place to ensure asset records are only created where the organisation owns the asset (or has a finance lease), and
8
Create Assets Automatically assets belonging to other organisations (e.g. sub-tenants and suppliers) are not erroneously added to the register.
10
Manual requests for asset creation are raised online, using a rules based system or self-service by the individuals that require the assets,
Create Assets Manually 11
and are appropriately authorised.
205 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Checks are performed to ensure that key fields, including the unique ID, category, cost centre, location and owner have been completed
12
correctly for all new assets.
Consistent asset naming conventions, which are aligned to government accounting rules and the Consolidated Budgeting Guidance, are
13
applied to easily identify assets.
14 A capitalisation threshold is defined to ensure low value items are correctly recognised as operational expenditure.
15 Reports are generated for purchases over the capitalisation threshold that have not been added to the fixed asset register.
Reports are generated and used to monitor high value purchases that have not been added to the fixed asset register to assess whether they
16
need to be added.
17 Links are established between related assets when they are created.
Principles Applicable to Asset
Asset owners are assigned to assets; this could be an employee, post holder or at cost centre level. If the employee is the Asset
Creation Regardless of Creation 18
Owner, then these assignments are reallocated as individuals leave the organisation or move roles.
Method
Tangible assets are created in line with current HM Treasury FReM requirements, and CBG (for budgeting), ensuring that applicable values
19
and asset life are aligned.
Investment property assets are created in line with current HM Treasury FReM requirements, and CBG (for budgeting), ensuring that
20
applicable values and asset life are aligned.
Agile development projects are capitalised correctly with research and development components separately identified with reference to the
21
latest guidance from current accounting standards and HM Treasury.
Agile development projects should be monitored on a case by case basis and regularly reviewed to establish when expenditure meets the
22
capitalisation criteria.
Intangible assets are created in line with current HM Treasury FReM requirements, and CBG (for budgeting), ensuring that applicable values
23
and asset life are aligned.
Asset tags are placed on physical assets that are required to be monitored or tracked in order to support asset identification during the
24
Tagging & Security Marking verification process.
25 Security measures are taken to mark and protect physical assets that are at a high risk of theft or accidental loss.
26 Asset Under Construction / Work In Progress costs are regularly reviewed to ensure they remain valid and are capitalised on a timely basis.
Transfer Assets Under
27 Regular reviews of the write-offs are undertaken to ensure correct asset values and continuous improvement.
Construction
28 Assets depreciation commences as soon as the assets are available for use.
206 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
29 Asset transfers are subject to business approval and tax implications checked with the Tax Centre of Excellence prior to being executed.
Asset transfers between departments (that are not Machinery of Government transfers) are agreed at fair value following the fair value
Transfer Between Departments 30 measures included in the latest IFRS, with appropriate evidence of such, prior to any transactions or transfers taking place. All transactions or
transfers require business approval.
The accounting impact will be assessed and agreed between both the sending and receiving departments before an asset transfer request is
31
completed.
32 Leases are classified in accordance with the HM Treasury FReM.
Finance Leases 33 Creation of finance leases are subject to departmental and Cabinet Office approval.
34 Accounting for finance leases needs to consider all aspects and clauses to ensure lease incentives are appropriately accounted for.
PFI / PF2 transactions and accounting are calculated and processed in alignment with HM Treasury FReM and Consolidated
35
Budgeting Guidance requirements.
For PFI / PF2 contracts with significant value, guidance is sought from HM Treasury, IPA and the Tax Centre of Excellence, to ensure
36
effective and appropriate contracting, accounting, budgeting and tax treatment are correctly applied.
Private Finance Initiatives
A suitable and robust financial model is used as the basis for PFI / PF2 calculations, including relevant charges, asset and liability values. The
37 financial model is developed to enable accounting per HM Treasury FReM and budgeting per CBG, as well as the contractual agreement for
the PFI.
38 Where the accounting and budgeting for PFIs are not the same, "shadow books" are kept to hold assets based on alternative assumptions.
207 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Asset Changes
Assets are periodically reviewed, in alignment with HM Treasury FReM, in order to identify impairments and ensure assets are properly
39
valued.
An impairment may be recognised at the time an asset is created. The impairment assessment may reference the original business case
40
to consider the expected costs and benefits associated with the asset.
Asset revaluations are performed in line with the FReM and departmental fixed asset accounting policy for the prevailing asset category /
41
class.
Asset Impairments /
Asset impairments Calculations to support asset impairments and revaluation are automated where possible and subject to review prior to posting. Postings
42
align with the principles per HM Treasury FReM.
43 Revaluation estimates are performed by individuals with specialist knowledge of the specific asset class.
44 Systems have the capability to support multiple revaluations and / or impairments within the same accounting period.
R&D project costs are reviewed periodically, in line with HM Treasury guidance, to identify possible intangible assets and attribute an
45
appropriate valuation.
46 Changes to asset financial or life details are formally recorded and are subject to formal business approval.
47 Assets are regularly reviewed to ensure that asset details remain correct.
Amend Assets Details / Amend
Asset Life/ Amend Asset Category 48 All changes are recorded on the system and detailed audit trails are maintained.
Self-service functionality is available to enable asset owners to view and verify assets (i.e. asset location or description). All changes
49
will require appropriate approval.
Asset enhancements are recorded in such a manner so that there is a linkage between the original asset record and the enhanced asset
50
Asset Enhancements record.
51 The life of the enhanced asset is reviewed to consider whether this should be aligned to the remaining life of the original asset.
The system supports partial retirements and the ability to split an asset into component parts. This is expected to be used for grouped IT
Splitting Assets 52
assets.
53 The transfer is approved by both parties prior to the transfer taking place.
Internal Asset Transfers
54 The accounting impact will be assessed for both the sending and receiving teams before an asset transfer request is completed.
208 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
Period End
Depreciation / amortisation is calculated automatically by the system and calculations are aligned to the requirements of IFRS, HM
55
Treasury and Consolidated Budgeting Guidance.
56 Depreciation / amortisation charges are subject to review prior to posting.
Run Depreciation / Amortisation
57 Depreciation / amortisation charges are automatically posted to the cost centre that owns the asset.
An appropriate ring-fenced depreciation / amortisation budget should be calculated and agreed with HM Treasury at each
58
Spending Review and requested annually through the Estimates process.
59 Period end processes are completed in line with the month end timetable.
Close Period 60 Fixed asset adjustments are subject to business review and approval.
61 The Fixed Asset Register is reconciled to GL account balances each month as part of the period end process.
62 Asset balances are automatically rolled forward into the new financial year as the previous financial year is closed.
The timing of professional valuations are aligned with the year end timetable. Mid-year valuations should be reviewed to avoid last minute
63
volatility.
Perform Year End Activities 64 The timing of indexation associated with MHCA is aligned with the year end timetable.
65 Accounting is automatically defaulted by the system to ensure postings are right first time and prevent manual reallocation.
66 All year end discrepancies are resolved prior to closing the final period so that corrections are made in the right financial year.
Historic Cost Accounting 67 Historic Cost Accounting entries are entered on a regular basis (at least annually).
Adjustments 68 Standard system functionality is utilised to calculate the accounting entries.
69 Physical verification of all assets is performed on a periodic basis. At a minimum, all material assets are reviewed annually.
Physical Asset Verification 70 The details of sensitive and secure physical assets are anonymised for security purposes.
71 Verification of software assets is performed by system analysis / audit tools.
Retire Asset
Sell / Gift Asset 72 Asset sales / disposals / requirements are subject to formal business approval.
209 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
73 Formal governance is established to authorise asset sales.

Accounting treatment for assets considered as a 'gift' between departments needs to be approved with HM Treasury to ensure compliance
74
with Managing Public Money, and Parliament notified if gift is above the MPM threshold for notification.
75 The tax implications of disposals will be considered, in consultation with tax teams.
76 If an asset can be sold, a sales invoice is raised and the proceeds from the sale entered as the asset disposal is recorded on the system.
Accounting entries for gains and losses on disposal are automatically calculated by the system, and accounted for in line with HM Treasury
Dispose or Write Off Asset 77
FReM and CBG (for budgeting) requirements.
78 Assets may be re-categorised as Assets Held for Sale when the decision has been taken to dispose of the asset.
79 Approval routes are aligned to the rules of the 'Managing Public Money' directive.
80 Approval evidence for the sale, gift, disposal or write-off, is electronically retained against the asset record.
81 Reports are reviewed to ensure that all asset disposals have been appropriately authorised.
Asset reinstatement functionality is used to return previously retired assets into service (rather than creation of a new asset record).
Reinstate Asset 82
Reinstated assets should be reviewed by management.
Sale and Leaseback 83 Sale and leasebacks are processed as two separate transactions.
210 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
MI & Analytics
84 The accounting systems show net book value of assets, gross value and depreciation separately.
85 Standard reports are run regularly to ensure transactions are progressing. For example, long standing AUC / WIP balances are cleared.
86 There is a single source of the truth for transactional NCA reporting.
Reporting requirements are shared by multiple customers on the same platform and are delivered using the same report definitions and
89
91
92 A report that shows the full history of revaluations and impairments is available, including the accounting treatments that were applied.
93 Reports are available to drill down from the asset into the underlying transactions, including revaluations and impairments.
94 Standard reports are available to support the production of the standard notes to the accounts that relate to NCA.
95 Narrative notes to the financial statements should be held within a system for security, control and editing reasons.
96 Self-service tools are used to provide analytics and advanced reporting (e.g. number of assigned assets, depreciation forecasts, etc.).
Data Analytics
97 Asset owners utilise analytics when undertaking asset validity and ownership.
Annual depreciation forecasts, submitted to HM Treasury, are reviewed against actuals on a regular basis, at least quarterly, to ensure they
Depreciation Forecasts 98
remain valid and any differences are understood and explained.
100
211 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS

A control framework exists, that has been subject to review by Internal Audit, listing all key controls within the transactional NCA process.
101
105
Access Controls
Segregation of duties prevent individuals performing multiple stages in the transaction (e.g. disposal transactions are not entered
106
and approved by the same user), and this is enforced by the system.
107 Users with access to perform transactions will not have physical custody of fixed assets, or the ability to authorise the disposal of assets.
109
Interface Controls remains synchronised.
111 Asset records within the system are periodically reviewed to ensure that the records are accurate and complete.
There are approved Business Continuity plans in place to enable critical activities in the NCA process to continue in the event of a serious
112
incident.
Business Continuity 113 Business Continuity plans are regularly reviewed and tested, at least annually, to ensure remedial action remains effective and actionable.

117
118 New process designs conform to the Global Design Principles and are subject to review and approval by the NCA Global Process Owner.
212 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
119 A continuous improvement process is in place and reports through the Process Owner.
Performance Monitoring Performance reporting is established to monitor NCA efficiency and effectiveness, including progress towards specific benchmarks and
120
targets.
Departmental managers are responsible for ensuring that staff are aware of latest process guidance and are informed of appropriate
121
123 Governance structures are in place to maintain and enforce the Global Design Principles across the NCA community.
The NCA Global Process Owner is responsible for establishing best practice and implementing process improvement and
124
125 The NCA Process Owner is responsible for overseeing department convergence to best practice.
NCA Process owners should be aware of changes to accounting standards and be actively engaged with HM Treasury and Cabinet Office for
126
guidance on best practice.
A NCA Process Owner network is established across government to share experiences, common issues and support movement to
127
A Process Owner Integration Forum is established to drive alignment across process networks and address cross process issues (i.e. P2P
128
and R2R).
129
130
includes cross-functional activity, including definitions used in other functions (e.g. in HR and Commercial).
131
practice guidance.
Cross-government transactional NCA policies have been established, including agreed cross-government capitalisation limits, asset
132
NCA Policy lives and reporting.
133 Cross-government data standards for asset classifications have been established and communicated.
213 PREVIOUS NEXT

MENU

METRICS
PROCESS MAPS
134 Standard 'off the shelf' software products are used, where possible, to support the transactional NCA process.
135 Transactional NCA systems are shared across the department, including large ALBs.
136 Cloud software is used in line with the Government’s 'cloud first' strategy.
There are simple and easy ways to maintain interfaces between the transactional accounting solution and other management tools
138
(procurement, inventory, etc.).
The organisation design supports effective involvement of key teams in the NCA process, including Business Partners, Centres of
145
146 Transactional teams are organised by processes to provide strong connections into the NCA Process Ownership structures.
148 Transactional NCA processes and teams are shared across the department, including large ALBs.
149 Transactional NCA activities are shared with other departments across government.
214 PREVIOUS NEXT

MENU
Non-Current Assets - Metrics NCA

PRINCIPLES
PROCESS MAPS
No of master data changes in the last month

Master Data Setup
Cycle time from new category creation request to a new record setup
& Maintainenance
No of asset categories not used for 18 months
Cycle time from new asset creation manual request to a new record setup
Create Asset Master Value of Asset Under Construction (AUC) / Work In Progress (WIP).
Aged profile of asset clearing accounts and WIP / AUC
Value of external asset transfers in the last 12 months
Asset Changes
Value of internal asset transfers in the last 12 months
Run time for Depreciation Process
Value of assets not verified in the last 12 months
Value of assets not revalued in 12 months
Period End
No of man-days effort to complete period end activities.
Value of annual adjustments for modified historic cost accounting
Percentage of physical verification activity complete
Volume of assets retired in the last 12 months
Retire Asset
Value of assets retired in the last 12 months
MI & Analytics Assets at, or approaching, zero NBV in the next 12 months
No of users with write access to the asset register(s)
Governance & Compliance
215 PREVIOUS NEXT

MENU
Non-Current Assets Sub-Process Map Non-Current Assets - Process Maps NCA

PRINCIPLES
12.1 Master Data Setup and Maintenance METRICS
Start
Request Asset Process Map Symbol Key

Master Data
Creation / Change
Task Automated
Task
Start End
MDM Approver
Start of End of
Approve Master process process
Data Change
Requested
Connector
Input/Output
from/to
another OR
process
AND
Confirm Perform
MDM Team
Consistency Transactional Replicate to Run Open

Review
and and Master Data Other Systems Transaction Point at which
Quality
Conventions Maintenance Reports a process
splits into
two routes
Decision
Retained
Finance
216 PREVIOUS NEXT

Non-Current Assets Sub-Process Map MENU
Non-Current Assets - Process Maps

12.2 Create Asset Master (B) – Assets Under Construction NCA
PRINCIPLES
METRICS
12.2 Create Asset Master (A)

Review AUC /
Start
WIP Costs
Task Automated
Task
Fixed Asset Team
Transfer AUC / Start End

WIP and
Commence
Depreciation Start of End of
process process
Connector
Input/Output
from/to
another OR
process
Fixed Asset Approver
AND
Confirm
Depreciation Point at which
Commenced and End a process
Correct splits into
two routes
Decision
Retained
Finance
217 PREVIOUS NEXT

MENU
Non-Current Assets Sub-process Map

12.2 Create Asset Master (C)
Non-Current Assets - Process Maps NCA
PRINCIPLES
METRICS
12.2 Create Asset Master (B) – Assets Under Construction

Request
Request
Start Start PFI
New Lease
Initiative

Business Approver
Approve New
No End
Lease Request? Approve PFI
No End Task Automated
Lease Request? Task
Start End
Yes Yes Start of End of

process process
Fixed Asset Team
Perform Perform
Lease PFI
Accounting Accounting
Connector
Input/Output
from/to
another OR
process
AND
Review Point at which

Review PFI a process
Lease Asset Asset splits into
Accounting Accounting Post PFI Changes two routes
Changes Decision
Journals
Retained
Finance
218 PREVIOUS NEXT

Non-Current Assets Sub-process Map MENU
12.3 Asset Changes (A) Non-Current Assets - Process Maps NCA

PRINCIPLES
METRICS
12.2 Create Asset Master (C)

Employee (Asset
Participate in
Owner)
Asset Revaluation
Review
Create
Asset
Fixed Asset Team
Master Participate in Perform Asset

Asset Identified Asset Revaulation &
as Material? No
Revaluation Impairment Task Automated
Review Calculations Task
Start End
Start of End of
process process
Review Revaluation &

Impairment Period End
Period Connector
Calculations Input/Output
Yes from/to
another OR
process
AND
Asset Valuation Expert
Provide Point at which

Revaluation a process
splits into
Estimate two routes
Decision
Retained
Finance
219 PREVIOUS NEXT

Non-Current Assets Sub-process Map MENU
12.3 Asset Changes (A) Non-Current Assets - Process Maps NCA

PRINCIPLES
METRICS
12.3 Asset Changes (A)

Employee (Asset
Participate in
Owner)
Asset Revaluation
Review
Create
12.2 Create
Asset
Fixed Asset Team
Asset
Master Participate in Perform Asset
Master
Asset Identified Asset Revaulation &
as Material? No
Revaluation Impairment Task Automated
Review Calculations Task
Start End
Start of End of
process process
Review Revaluation &

Impairment Period End Connector
Calculations Input/Output
Yes from/to
another OR
process
AND
Asset Valuation Expert
Provide Point at which

Revaluation a process
splits into
Estimate two routes
Decision
Retained
Finance
220 PREVIOUS NEXT

MENU
Non-Current
Non-Current Assets Sub-Process Maps Assets - Process Maps NCA
PRINCIPLES
12.3 Asset Changes (B)

METRICS
12.3 Asset Changes (B)

Employee (Asset
Create Asset Identify Changes to

Owner)
12.2 Create
Master
Asset Master Asset Details, Life,
Category

Business Approver
Approve
No End Task Automated
Changes? Task
Start End
Start of End of
process process
Fixed Asset Team
Yes Amend Calculate and

Asset in update for
System Financial Change
Connector
Input/Output
from/to
another OR
process
AND
Point at which
Review Fixed Asset Period End a process
Register Period End splits into
two routes
Decision
Retained
Finance
221 PREVIOUS NEXT

MENU
Non-Current Assets Sub-process Map Non-Current Assets - Process Maps NCA

PRINCIPLES
12.3 Transfer of Non-Current Assets (C) METRICS
12.3 Transfer of Non-Current Assets (C)

(Asset Owner)
Employee
12.3
12.3A Asset Request Asset
Asset
Changes Transfer
Changes
Approver
Business
Approve Asset Process Map Symbol Key

No End
Transfer (Export)
No
Business Approver
Department)
(Importing
Task Automated
Task
Approve Asset
Yes Transfer Yes
(Import) Start End
Start of End of
process process
Fixed Asset
Transfer Asset
Between
Team
Departments in
System
Connector
Input/Output
from/to
Fixed Asset
another
Asset OR
Approver
Review Asset 12.3 process

Transfer Values Changes
Asset
and Approve Changes AND
Point at which
a process
splits into
Tax Team
two routes
Decision
Consider Tax
Implications
Retained
Finance
222 PREVIOUS NEXT

MENU
Non-Current Assets Sub-process Map
12.4 Period End (A) Non-Current Assets - Process Maps NCA
PRINCIPLES
METRICS
12.4 Period End

Fixed Asset Team
12.3 Asset
12.3 Run
Changes Perform Asset Balances
Asset Depreciation/ Reconcile FAR
Changes Historic Cost Rolled Forward
Amortisation to GL Balance
Accounting in to Next Period End
Adjustments

Review
Post Review
Review Historic Cost
Depreciation / Fixed Asset Automated
Depreciation / Accounting Task
Amortisation to Reconciliati Task
Amortisation Adjustments
Cost Centre on
Calculation Start End
Start of End of
process process
Business Approver
Approve
No Period End
Adjustments Connector
Input/Output
from/to
another OR
process
AND
No
Close Sub- Point at which
a process
Ledger splits into
Period two routes
Decision
Retained
Finance
223 PREVIOUS NEXT

MENU
Non-Current Assets Sub-process Map Non-Current Assets - Process Maps NCA

PRINCIPLES
12.4 Year End (B) METRICS
12.4 Year End

(Asset Owner)
Employee
Perform
Physical Asset
Verification
Approver
Business
Approve Year End? Process Map Symbol Key
Reconcile FAR Perform Automated

Fixed Asset
12.3 Run Request Task

Asset to GL Balance Historic Cost Asset Balances Task
Team
Asset
Changes Depreciation / Physical Asset Rolled Forward
Changes and Calculate Accounting
Amortisation Verification in to New Year Start End
Adjustments Adjustments End
Yes Start of End of

process process
Review Post
Fixed Asset
Review
Approver
Depreciation / Depreciation / Review Fixed

Asset Historic Cost
Amortisation Amortisation
Reconciliation Accounting
Calculation to Cost Centre
Adjustments
Connector
Input/Output
from/to
another OR
Reporting
Financial
process
Consolidate
Team
Year-End AND
Point at which
a process
splits into
Controller
Financial
two routes
Close Year- Decision
End
Retained
Finance
224 PREVIOUS NEXT

MENU
Non-Current Assets Sub-Process Map
12.5 Retire Asset (A) Non-Current Assets - Process Maps NCA
PRINCIPLES
METRICS
12.5 Retire Asset

(Asset Owner)
Identify
Employee
12.3
Asset
Asset Asset to
Changes
Changes be Sold or
Gifted
Approve
Approver
Business

Asset to
be Sold /
Gifted
Accounting
Reclassify Notify AR Record Perform Automated
Fixed Asset
Review Entries for Task

Approval Asset Proceeds of Disposal Task
Asset as Team of Gains /
Team
Evidence Reports to Material? No Accounting

Ensure Asset Held for Sale of Sale in Losses
Automatically System Start End
Disposal Sale Asset Calculated
Retained
Authorised
Start of End of
process process
Fixed Asset
Approver
Yes Review Period

Period End
Disposal End
Accounting
Connector
Input/Output
from/to
another
Review Tax OR
Tax Team
process
Implications of
High Value AND
Disposals
Point at which
a process
splits into
Approve Decision
two routes
HMT
Assets to
be Gifted
Retained
Finance
225 PREVIOUS NEXT

MENU
Non-Current Assets Sub-Process Map

12.5 Sell /Leaseback Asset (B)
Non-Current Assets - Process Maps NCA
PRINCIPLES
METRICS
12.6 Sell /Leaseback Asset

Employee (Asset
Create
12.2 Notify Finance of
Owner)
Asset
Create wish to Sell and
Asset
Master Leaseback Asset
Master

Fixed Asset Team
Perform Sale and

Leaseback Task Automated
Task
Accounting
Start End
Start of End of
process process
Review Sale and

Leaseback
Accounting Connector
Input/Output
from/to
another OR
process
AND
Point at which
Tax Team
a process
Period splits into
Period
EndEnd two routes
Decision
Retained
Finance
226 PREVIOUS NEXT

MENU
Non-Current Assets Sub-Process Map Non-Current Assets - Process Maps NCA

PRINCIPLES
12.7 Management Information and Analytics METRICS

(Requestor)
Request Standard
Employee

End Report Using
Self-Service
No
Superuser
Reporting

Yes
Analytics
Task Automated
Perform Data
Team
Task
Analytics
Start End
Start of End of
process process
Reporting
Financial

Team
Connector
Input/Output
Drive Insight
Controller
Financial
from/to
Analytics
AND
Point at which
Director
Finance

splits into
Decision

Finance
227 PREVIOUS

Global Design Principles Handbook Interactive v1.3

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Global Design Principles Handbook Interactive v1.3

Uploaded by

Copyright:

Available Formats

Finance Global

Who are we? Why implement Finance Global Design Principles?

Global Processes Menu OVERVIEW

Finance Operations Decision Support Reporting and Control

Purchase to Pay PRINCIPLES

Sourcing & Master Data Management

Set Up and Create

Set Up and Inspect Goods

Embed Disputes and

Purchase to Pay - Principles P2P

Master Data Setup and Maintenance

Purchase to Pay - Principles P2P

Purchase to Pay - Principles P2P

Purchase to Pay - Principles P2P

Purchase to Pay - Principles P2P

Compliance & Controls

Purchase to Pay - Principles P2P

Process Management & Governance

Purchase to Pay - Principles P2P

Purchase to Pay - Metrics P2P

No of suppliers not used for 18 months

No of requisitions awaiting approval with more than one week delay

No and value of duplicate payments

No and percentage of supplier invoices (PO matched) on hold

Procure to Pay Sub-Process Map

1.1 Master Data Setup and Maintenance

Start Start Start

Request Request Request

Request Request AND

Creation or Change Creation or Change Point at which

Start Start Start

1.3 Purchase (A): Catalogue and Pre Sourced Framework Agreements

1.1 Create Purchase

Process Map Symbol Key

Approve PR? No End Task Automated

Yes Start of End of

Procure to Pay Sub-Process Map

1.3 Purchase (B): Non-Catalogue and Specialist One Off

Yes Approve PR? No End

Procure to Pay Sub-Process Map Purchase to Pay - Process Maps P2P

1.4 Receipts METRICS

1.3 Physically Goods and Record Goods

Process Map Symbol Key

Issue Self Billing Goods Receipt 1.5

and Credit Note / AND

1.5 Accounts Payable

Processing Set Time Deleted

Process Map Symbol Key

Purchase to Pay - Process Maps

1.6 Payments Processing METRICS

1.6 Payments Processing

Approved Invoice Process Map Symbol Key

Ready for Payment and

Advice Point at which

Procure to Pay Sub-Process Map

1.8 Manage Requests and Enquiries

Process Map Symbol Key

Log Request or Manage Request

Start splits into

Procure to Pay Sub-Process Map Purchase to Pay - Process Maps P2P

1.9 Management Information and Analytics METRICS

1.9 Management Information and Analytics

Is There a Create New Maintain Report Process Map Symbol Key

Perform Monthly Prepare Financial