YOU CAN DO SOMETHING ABOUT IT!

It is becoming clear that many MPs have been making use of a particular administrative feature of The Incidental Expenses Provision (IEP) in such a way that raises very reasonable suspicions of abuse.

"Petty Cash" is mentioned nowhere in their own Green Book and is mentioned only on their "Member's Reimbursement Form" as a line under "Please ensure: any claims for petty cash do not exceed £250 per month".

Many many MPs have noticed this provision and used it extensively - many claiming the maximum per month (to the penny) each and every month (or dam close to it). How the “petty cash” requirement can be exactly the same each month and virtually always to the maximum for these MPs is a question that needs answering.

Really useful link for finding out how your MP figures here (I would advise going through those IEP claim forms just to double check the totals before writing to them).

http://www.dailymail.co.uk/news/article-1194463/MPs-claimed-250-month-pe...

What do you do if your MP is "maxing-out" the "petty cash"?

Well, some might say we can do nothing as their rules allow them to claim this and not account for it. I would argue that is not correct and there is a lot you can do about it. Let me explain - please bear with me it is worth it.

From their own Green Book (the rules) Pg. 15...

5.1.1. Scope of the allowance:
The Incidental Expenses Provision (IEP) is available
to meet costs incurred on Members’ Parliamentary
duties. It cannot be used to meet personal costs,
or the costs of party political activities or campaigning.
The paragraphs which follow outline the main areas
of expenditure which we recognise as incurred in
supporting these duties, but it is each Member’s
responsibility to ensure that all expenditure funded by
the IEP is wholly, exclusively and necessarily incurred
on Parliamentary duties.

An MP has clear "responsibility to ensure that all expenditure funded by the IEP is wholly, exclusively and necessarily incurred on Parliamentary duties." This simply cannot be done in regard to “petty cash” because of the very nature of "cash" (it disappears all too easily) without accounting for the “petty cash” and any MP who is not accounting for it is failing in their responsibility here. There rules also state that this provision "... cannot be used to meet personal costs". The "petty cash" claims will go straight into the MP's bank account (most probably their personal account - it could be the case that the more honourable MPs have a separate bank account set up for running their Parliamentary affairs - but I guess not for most - good question to ask) so, if it is not accounted for elsewhere as "petty cash", it is obvious that the money is being used to meet "personal costs" and they are in trouble. Or are we to believe any MP who has the effrontery to claim that he or she just keeps a "running total in my head" of when, where and how much "petty cash" he/she spends and - hey presto - at the end of each and every month - it just happens to be £250.00 exactly. Answer - no - we do not believe it.. so don't try it!

Green Book again - from the Introduction by the speaker Pg. 1:

"Members themselves are responsible for ensuring
that their use of allowances is above reproach."

Any MP handling "petty cash" without a system of accounting for it simply cannot be "above reproach".

IN A NUTSHELL - THERE WILL BE A CLEAR AUDIT TRAIL FOR THIS CASH IF THE MP IS ABOVE REPROACH - NO AUDIT TRAIL - UNWILLINGNESS TO SHOW IT - MP IS POTENTIALLY DISHONEST/CRIMINAL - CASE TO ANSWER.

We should be able to safely assume, from any such claims against “petty cash”, that the full amount claimed each month (e.g. £250 for many - the maximum) had already been converted into “cash”. That is what happens to “petty cash” - it is its purpose. This “petty cash” should then have been used wholly, exclusively and necessarily in order to help you fulfil the MP's Parliamentary duties.

The “petty cash” needs to be dealt with properly via an appropriate system with a petty cash “float” (or “floats”), a system of accounting (including a “petty cash book/ledger”, the issuing of “petty cash vouchers”), a list of authorised handlers of “petty cash” etc. This is essential to protect all concerned in the handling of the “petty cash” against false claims of misappropriation and to ensure the legitimate expenditure of the money. Such a system is essential for an MP to fulfil their obligation in this regard - of being “above reproach”.

That said there is clear and simple "inbound audit trail" - the MP's bank statements. The fact that The Fees Office does not require any receipts from an MP as they claim through the IEP to replenish the “petty cash” float is immaterial. The responsibility for an appropriate system of accounting for this petty cash begins, remains and ends with the MP as the person who “draws down” these sums to, we assume, their personal account, upon which they then draw out the “cash”. There will, of course, be supporting evidence here, in the form of bank statements they should provide (redacted as necessary).

This is the first "hurdle" the MP needs to clear to demonstrate probity here. If they cannot produce bank statements (suitably redacted if necessary) in order to demonstrate that the monies where withdrawn as cash at appropriate intervals and amounts at least commensurate with their “petty cash” claims against the IEP - they are in real trouble.

The "expenditure audit trail" will be the petty cash ledger/book along with "petty cash vouchers" mentioned above. Again if there is none of this - the MP has a serious case to answer.

WHAT CAN YOU DO?

If you have stuck with me this far you can see that you can do a lot.

1) Identify if your MP is suspicious in this regard. Use link near top of this post.
2) Write to them (use one of my letters as a template if you wish - see my blog for Oliver Heald MP).
3) Call there office/s (they will have a House of Commons office and, probably, a Constituency office) and ask their staff and/or office manager how petty cash is handled.
4) If you get no satisfaction write to The Parliamentary Commissioner (this is the correct person to complain to about any MP - minister or not).
5) Write to their Constituency Party Chairperson.
6) Write to their Party Leader in Parliament.
7) Make a request under The Freedom of Information Act for this specific information.
8) Consider writing to your Chief Constable and sharing your suspicion that a crime under the Fraud Act 2006 or The Theft Act 1968 might have been committed and you would like him/her to investigate.

Remember, by helping to clean out the scoundrels you are doing your bit for our democracy - a precious thing that has been undermined by the venality of many MPs.