Hi I am one of the CA student. Can I know, What are the virement rules?
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Key controls for the schemes of virement are:
(a) it is administered by the Head of Finance within guidelines set by the Full
Council. Any variation from this scheme requires the approval of the Full Council;
(b) the overall budget is agreed by the
Cabinet and approved by the Full Council.
Chief officers and their nominated Spending Control Officers are therefore authorised
to incur expenditure in accordance with the estimates that make up the budget. The
rules below cover virement; that is, switching resources within approved estimates or
between budget headings. For the avoidance of doubt, a list of approved budget
headings will be maintained by the Head of Finance;
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G/COMMM/WILLETT/G 2005/SCHEME OF VIREMENT
BUDGET AND POLICY
FRAMEWORK RULES
APPENDIX
SCHEME OF VIREMENT
Purpose of Scheme
1. The scheme of virement is intended to enable the Cabinet, Chief Officers and their
staff to manage budgets with a degree of flexibili
ty within the overall policy framework
determined by the Full Council and, therefore, to optimise the use of resources.
2. The scheme of virement empowers the Portfolio Holder to manage the resources
under his or her control and, therefore, to be accountable to the Cabinet and Full
Council for their financial performance.
Key Controls
3. Key controls for the schemes of virement are:
(a) it is administered by the Head of Finance within guidelines set by the Full
Council. Any variation from this scheme requires the approval of the Full Council;
(b) the overall budget is agreed by the
Cabinet and approved by the Full Council.
Virement is permitted only within and between Directly Incurred and Exceptions costs, at the appropriate percentage of FEC, with the exception of the equipment heading. For grants awarded from 1 April 2011 onwards, virement into or out of equipment is not permitted.
BUDGET AND POLICY
FRAMEWORK RULES
APPENDIX
SCHEME OF VIREMENT
Purpose of Scheme
1. The scheme of virement is intended to enable the Cabinet, Chief Officers and their
staff to manage budgets with a degree of flexibili
ty within the overall policy framework
determined by the Full Council and, therefore, to optimise the use of resources.
2. The scheme of virement empowers the Portfolio Holder to manage the resources
under his or her control and, therefore, to be accountable to the Cabinet and Full
Council for their financial performance.
Key Controls
3. Key controls for the schemes of virement are:
(a) it is administered by the Head of Finance within guidelines set by the Full
Council. Any variation from this scheme requires the approval of the Full Council;
(b) the overall budget is agreed by the
Cabinet and approved by the Full Council.
Chief officers and their nominated Spending Control Officers are therefore authorised
to incur expenditure in accordance with the estimates that make up the budget. The
rules below cover virement; that is, switching resources within approved estimates or
between budget headings. For the avoidance of doubt, a list of approved budget
headings will be maintained by the Head of Finance;
G
Rev: 2
G/COMMM/WILLETT/G 2005/SCHEME OF VIREMENT
BUDGET AND POLICY
FRAMEWORK RULES
APPENDIX
SCHEME OF VIREMENT
Purpose of Scheme
1. The scheme of virement is intended to enable the Cabinet, Chief Officers and their
staff to manage budgets with a degree of flexibili
ty within the overall policy framework
determined by the Full Council and, therefore, to optimise the use of resources.
2. The scheme of virement empowers the Portfolio Holder to manage the resources
under his or her control and, therefore, to be accountable to the Cabinet and Full
Council for their financial performance.
Key Controls
3. Key controls for the schemes of virement are:
(a) it is administered by the Head of Finance within guidelines set by the Full
Council. Any variation from this scheme requires the approval of the Full Council;
(b) the overall budget is agreed by the
Cabinet and approved by the Full Council.
Chief officers and their nominated Spending Control Officers are therefore authorised
to incur expenditure in accordance with the estimates that make up the budget. The
rules below cover virement; that is, switching resources within approved estimates or
between budget headings. For the avoidance of doubt, a list of approved budget
headings will be maintained by the Head of Finance;
(c) virement does not create additional overall budget liability. Chief Officers are
expected to exercise their discretion in managing their budgets responsibly and
prudently. For example, they should ai
m to avoid supporting recurring expenditure
from one-off sources of savings or additional income, or creating future
commitments, including full-year effects
of decisions made part way through a year,
for which they have not identified future resources. Chief Officers must plan ahead to
fund such commitments from within their own budgets, so as to avoid the need for
supplementary estimates.