Premier & Cabinet

Type:
Premier's Memorandum
Identifier:
M2005-12
Status:
Archived

M2005-12 Out of Pocket Expenses and Christmas Season Parties

Description

Superseded by M2006-15, supersedes M2003-16

Detailed Outline

With the approach of Christmas and the end of the year, I have decided to reissue the NSW Government Expenses Policy to remind Ministers, Chief Executives and all senior officials of their responsibilities regarding the expenditure of State funds on Christmas and end of year celebrations.

The attached Policy outlines sector-wide requirements, prohibiting the expenditure of State funds on any event that will provide predominantly personal benefit to NSW public sector employees. This restriction also applies to Ministers, members of their family or friends and State officials.

I would also ask you to exercise restraint in the scale and expenditure of any publicly funded reception or similar event to mark Christmas and the end of the year.

Please bring these matters to the attention of all departments and authorities falling within your area of administration.


Morris Iemma MP
Premier and Treasurer


Issued : Workforce Capability (Public Employment Office)
Contact: Gary McGrath, Project Officer
EMail: [email protected]
Telephone no: 9228 4381 Facsimile: 9228 3577
File no: OSA/03714
Date: 8 November 2005
This Memorandum has supersedes Memorandum No. 2003-16.

__________________________________________________________

NEW SOUTH WALES GOVERNMENT EXPENSES POLICY

Expenses relating to Ministers
It is expected that the allowance paid to Ministers would cover most of the normal representation responsibilities associated with the portfolio. However there may be occasions where it is appropriate for expenses incurred to form a valid charge against the hospitality funds of a Department or Authority for which the Minister is responsible.

For such a charge to be acceptable for Ministers, the following will apply:

  • The event to which the charge is related must have a direct business relationship with the Minister's portfolio.
  • Working meals are not to be regular occurrences and would normally have relatively low charges per head and involve participation of persons from outside the portfolio or with senior officers from across the portfolio.
  • The expenditure incurred should not provide a predominantly personal benefit to the Minister, members of their family or friends or officers of organisations coming under their responsibility, eg. Christmas and Easter functions or social functions for staff. However, wreaths or flowers may be purchased for the purpose of a floral tribute to families or as an appreciation for long service to the Department or Authority.
  • Tips would generally not be permissible, except where it may be a normally expected payment.
  • Expenditure on minor gifts of protocol or public relations are not acceptable unless such gifts are in conformity with a particular Department's functions and would be considered acceptable in accordance with community expectations.

The accounting arrangements as outlined for the handling of out-of-pocket expenses for Departmental staff will apply and the charges incurred should fit within the allocation of the particular Department or Authority to whose activities the charges related.

Expenses relating to Chief Executive and Senior Executive Officers:
The question of out-of-pocket expenses incurred by officers is often related to entertainment and other forms of hospitality associated with performing official duties. Department and Authority Heads are responsible (and therefore accountable) to ensure that appropriate controls are exercised in this area of expenditure.

Where an officer is paid a salary and an identified expense allowance, or is paid a remuneration package based on a 'Total Cost to Employer' (as is the case for the Chief Executive and the Senior Executive Services) he or she is expected to cover expenditure of a minor nature associated with work and normal representational responsibilities, such as an occasional round of drinks, confectionery, etc.

The Department Head or authorised senior officer may, in the light of particular circumstances, approve of certain out-of-pocket expenses by such officers forming a charge against the funds of the organisation. Such expenses must be directly related to the performance of an officer's official duties and the costs must be reasonable.

Examples include costs incurred on senior representational duties (such as representing a very senior officer, the head of the organisation or the Minister) and major hospitality duties (such as entertaining a group of interstate/overseas visitors or representatives of private organisations) where there is a definite business relationship with the Department.

Where an officer is in receipt of only a cash salary, expenses of an irregular and/or minor nature associated with work and normal representational duties may be charged against the organisation. Other than in exceptional cases, such officers are required to obtain prior approval of an authorised senior officer for any out-of-pocket expenditure of this nature.

For out-of-pocket expenses incurred by officers to be acceptable as a charge against official funds, the following apply:-

  • The event to which the charge is related must have a direct business relationship with the officer's duties.
  • Working meals are not to be regular occurrences and would normally have relatively low charges per head and involve participation of persons from outside the organisation or, very rarely with senior officers from across the organisation.
  • The expenditure incurred should not provide a predominantly personal benefit to the officers, members of their family or friends eg. staff Christmas and Easter functions or other social functions for staff. Wreaths or flowers may be purchased for the purpose of a floral tribute to families or as an appreciation for long service to the Department or Authority.
  • Tips would generally not be permissible, except where it may be a normally expected payment.
  • Expenditure or minor gifts of protocol or public relations are not acceptable unless such gifts are in conformity with a particular Department's functions and would be considered acceptable in accordance with community expectations.
  • Provision of certain facilities for work purposes at home which would, under normal circumstances, be provided by the officer for personal use, may not be claimed as a legitimate expense eg. payment for a TV antenna which may be installed to enable officers to receive transmissions to be aware of matters raised by the media, as part of their normal duties.

The above requirements do not, of course, apply to expenditures to which legislative, industrial or Treasury directions provide for reimbursements of expenses.

Accounting arrangements
Expenditure on Christmas season parties and out of pocket expenditure are subject to the same standards of documentation and scrutiny (including internal and external audit) as other expenditure.

Agencies should only make payment for expenditure relating directly to their operations. Generally, goods and services should be received before payment is made. Payment should only be made in advance where it is unavoidable.

Overview

Compliance

Not Mandatory

AR Details

Date Issued
Jun 29, 2006
Review Date
Jun 29, 2016
Replaces
Replaced By

Contacts

Contact
Contact us
Phone
02 9228 5555
Publishing Entity
Department of Premier and Cabinet
Issuing Entity
Department of Premier and Cabinet