D-IFF_ident
27th Oct 2006, 02:44
So I was looking through JSP 752, which I found here:
http://www.army.mod.uk/servingsoldier/condofserv/mm/allowances/ss_cos_mm_all_army.html
And was considering this paragraph:
01.0118. Audit and Receipts. A number of allowance payments will be made via the JPA Expenses Claim system. These payments will be subject to a random 5% audit. To facilitate this audit claimants are required to keep the supporting receipts and paperwork for a period of 12 months from the date of claim. Claimants who have received payments for which they are subsequently unable to produce supporting receipts and paperwork for audit may be required to refund the payment.
So I have to keep my recipts for 12 months, except:
03.0172. Receipts and Supporting Documentary Evidence. The payment of
actual costs makes it necessary for all expenditure (NS, DS and IE) to be supported by receipts and supporting documentary authority to undertake the duty. Receipts are required for all expenditure in excess of £5, where these can be reasonably obtained. Where receipts cannot be obtained for items of £5 or more, a statement signed by the Service claimant itemising the expenses is to be retained with a copy of the claim. Service personnel are required to retain a copy of all claims with supporting receipts, authority to travel and, where appropriate, NACs for a period of 12 months after the date of the claim. It is emphasised that these documents are to be retained by the Service claimant and if requested by any authorised person, they are required to produce them for audit/ inspection. An ‘authorised person’ may be the CO or a delegated authority at the Service person’s unit or an external Service or civilian inspection/audit team. HM Revenue and Customs (HMRC) have statutory powers of inspection. Failure to produce these documents will normally lead to recovery of claims/sums paid and/or disciplinary action.
Which I read to suggest that I don't need receipts for anything less than £5.00
Also:
01.0106. Interpretation. Personnel responsible for the administration and implementation of these regulations are expected to interpret them reasonably and intelligently with due regard to the interests of Defence, bearing in mind that no attempt has been made to provide for self-evident exceptions.
The key parts here are: regulations are open to interpretation - by test of reasonableness and intelligence, and receipts are required for all expenditure in excess of £5.
Here, then, are my questions:
1. What constitutes 'expenditure'?
2. Do I need to keep receipts for any given period of claim?
A reasonable and intelligent definition would be 'The act of spending money for goods or services'. Furthermore, considering the sub-reg of 'Where receipts cannot be obtained for items of £5 or more...' a reasonable and intelligent interpretation of the regs would suggest that receipts are NOT required for each and every individual transaction of less than £5.
Consider the following scenario:
I am entitled to capped actuals of £50 for Daily Subsistence.
I buy a McBreakfast for £4.99, then go and buy coffee for £3.99, then take a couple of bottles of water to work with me - for another £4.50. At lunch I get McLunch - £4.99, then treat myself to Ice Cream at Haagen Daas - £4.99, then more coffee - £3.99. A couple of sodas for the afternoon - £2.50. At dinner I go for a tour of the local town - £4.50 here, £3.75 there - until I eventually reach a little over £50 spent for the day.
Do I need to keep any receipts at all? Each example of expenditure has been less than £5.00 - but my total expenditure for the day has been in excess of £5.00. Considering paragraph 03.0172 - 'ITEMS of £5.00' a reasonable and intelligent interpretation of the rules would be that no receipts are required for the day. Further to that - if I claim more than one day of subsistence - say I only claim £4.99 a day for a week - my total expenditure is in excess of £5.00 - but each day is less than £5.00 - do I need to keep receipts to show my total expenditure?
Back to my scenario - I chuck the receipts in the bin. 6 months or so later, when the auditor sends for me I explain that, although I did indeed claim the full £50 for the day - I didn't have any one single expenditure in excess of £5.00 on any 'ITEM' - so I neither have any receipts nor is there a requirement to keep or provide them.
A court martial might follow, but I am confident that any barrister worth his salt could easily tear apart the test of reasonableness of JSP 752.
Any thoughts?
http://www.army.mod.uk/servingsoldier/condofserv/mm/allowances/ss_cos_mm_all_army.html
And was considering this paragraph:
01.0118. Audit and Receipts. A number of allowance payments will be made via the JPA Expenses Claim system. These payments will be subject to a random 5% audit. To facilitate this audit claimants are required to keep the supporting receipts and paperwork for a period of 12 months from the date of claim. Claimants who have received payments for which they are subsequently unable to produce supporting receipts and paperwork for audit may be required to refund the payment.
So I have to keep my recipts for 12 months, except:
03.0172. Receipts and Supporting Documentary Evidence. The payment of
actual costs makes it necessary for all expenditure (NS, DS and IE) to be supported by receipts and supporting documentary authority to undertake the duty. Receipts are required for all expenditure in excess of £5, where these can be reasonably obtained. Where receipts cannot be obtained for items of £5 or more, a statement signed by the Service claimant itemising the expenses is to be retained with a copy of the claim. Service personnel are required to retain a copy of all claims with supporting receipts, authority to travel and, where appropriate, NACs for a period of 12 months after the date of the claim. It is emphasised that these documents are to be retained by the Service claimant and if requested by any authorised person, they are required to produce them for audit/ inspection. An ‘authorised person’ may be the CO or a delegated authority at the Service person’s unit or an external Service or civilian inspection/audit team. HM Revenue and Customs (HMRC) have statutory powers of inspection. Failure to produce these documents will normally lead to recovery of claims/sums paid and/or disciplinary action.
Which I read to suggest that I don't need receipts for anything less than £5.00
Also:
01.0106. Interpretation. Personnel responsible for the administration and implementation of these regulations are expected to interpret them reasonably and intelligently with due regard to the interests of Defence, bearing in mind that no attempt has been made to provide for self-evident exceptions.
The key parts here are: regulations are open to interpretation - by test of reasonableness and intelligence, and receipts are required for all expenditure in excess of £5.
Here, then, are my questions:
1. What constitutes 'expenditure'?
2. Do I need to keep receipts for any given period of claim?
A reasonable and intelligent definition would be 'The act of spending money for goods or services'. Furthermore, considering the sub-reg of 'Where receipts cannot be obtained for items of £5 or more...' a reasonable and intelligent interpretation of the regs would suggest that receipts are NOT required for each and every individual transaction of less than £5.
Consider the following scenario:
I am entitled to capped actuals of £50 for Daily Subsistence.
I buy a McBreakfast for £4.99, then go and buy coffee for £3.99, then take a couple of bottles of water to work with me - for another £4.50. At lunch I get McLunch - £4.99, then treat myself to Ice Cream at Haagen Daas - £4.99, then more coffee - £3.99. A couple of sodas for the afternoon - £2.50. At dinner I go for a tour of the local town - £4.50 here, £3.75 there - until I eventually reach a little over £50 spent for the day.
Do I need to keep any receipts at all? Each example of expenditure has been less than £5.00 - but my total expenditure for the day has been in excess of £5.00. Considering paragraph 03.0172 - 'ITEMS of £5.00' a reasonable and intelligent interpretation of the rules would be that no receipts are required for the day. Further to that - if I claim more than one day of subsistence - say I only claim £4.99 a day for a week - my total expenditure is in excess of £5.00 - but each day is less than £5.00 - do I need to keep receipts to show my total expenditure?
Back to my scenario - I chuck the receipts in the bin. 6 months or so later, when the auditor sends for me I explain that, although I did indeed claim the full £50 for the day - I didn't have any one single expenditure in excess of £5.00 on any 'ITEM' - so I neither have any receipts nor is there a requirement to keep or provide them.
A court martial might follow, but I am confident that any barrister worth his salt could easily tear apart the test of reasonableness of JSP 752.
Any thoughts?