Health Service Executive

National Financial Regulations

HEALTH SERVICE
EXECUTIVE

NATIONAL FINANCIAL
REGULATION

OTHER STAFF COSTS

NFR - 15

Ver 4.0 10/09/2014 Page 1 of 10

 Health Service Executive
National Financial Regulations

NFR – 15 Other Staff Costs

15.1 Introduction on page 3

15.2 Purpose on page 3

15.3 Scope on page 3

15.4 Assistance/Further Information on page 3

15.5 Effective Date on page 3

15.6 Allowable Expenses on page 4

15.7 Disallowable Expenses on page 7

15.8 Procedure for Claiming Reimbursement on page 7

15.9 Roles and Responsibilities on page 7

15.10 Segregation of Duties on page 8

15.11 Reporting of Irregularities on page 8

15.12 Audit on page 8

15.13 Appendix on page 10

Ver 4.0 10/09/2014 Page 2 of 10

 Health Service Executive
National Financial Regulations

15.1. Introduction

15.1.1. The Health Service Executive (HSE) has responsibility for the stewardship and
proper management of public funds granted to it for the provision of health and
personal social services. Staff, in the performance of their duties, may incur
expenses which can be reclaimed as an allowable expense from the HSE.

15.1.2. Expense claims should be made on the standard claim form (Refer Appendix 1).

15.1.3. Expense claims should be accompanied with the proper vouchers and receipts.

15.1.4. It is expected that employees will keep the level of expenses to a minimum.

15.1.5. This document should be read in conjunction with the following National
Financial Regulations (NFRs):
• HSE NFR-05: Travel & Subsistence Regulation
• HSE NFR-01: Purchase to Pay Regulation
Refer to HSE National Intranet - National Financial Regulations for these
related documents.

15.2. Purpose

15.2.1. To document policies and procedures for the reimbursement of allowable

expenses.

15.2.2. To establish control procedures to ensure that only allowable expenses are
paid.

15.3. Scope

15.3.1. This regulation applies to allowable expenses incurred by HSE officers incurred
wholly, exclusively and necessarily in the performance of the duties of their
employment.

15.4. Assistance / Further Information

15.4.1. Additional information regarding this regulation should be addressed to the

Assistant Chief Financial Officer (ACFO) Finance Specialists.

15.4.2. Requests for derogation from specified directives should be made in writing to
the above ACFO, and may be implemented only after written authorisation is
received.

15.4.3. It is intended that this regulation will be regularly updated to reflect and
incorporate new and additional legislative and other directives. Notifications will
be issued on HSE National Intranet - National Financial Regulations and via
email communications.

15.5. Effective Date

15.5.1. This directive is effective immediately and supersedes all prior regulations
issued relating to reimbursement / payment of other staff costs.

Ver 4.0 10/09/2014 Page 3 of 10

 Health Service Executive
National Financial Regulations

15.6. Allowable Expenses

15.6.1. Subscriptions to professional, trade/ business publications or the purchase of

books/periodicals are allowable at the discretion of the relevant Assistant
National Director/equivalent salary grade where access to such information is
seen as necessary for the discharge of ones duties. Purchase of
books/periodicals should only be undertaken following consideration of local
library services.

15.6.2. Protective Clothing such as hard-hats, safety glasses, work gloves, steel-toed
boots, etc. These should generally be paid through a purchase order. However
in the event that they are paid through personal funds, they are a reimbursable
expense. Prior approval from Line Manager is required to purchase such items
through personal funds.

15.6.3. Conference/Registration fees: Approved cost of attendance at courses and

conferences, necessary for the performance of an employee’s duties should
generally be paid through a purchase order. However in the event they are
paid through personal funds, they are a reimbursable expense. Prior approval
by Line Manager to attend conferences must be attained in all such instances
and a receipted bill or registration confirmation with the fee noted are required
to substantiate the claim.

15.6.4. eWorking is regarded as a method of working using information and

communication technology in which the work that is carried out is not bound to
any particular location. eWorking involves:

• Working at home on a full time or part time basis

• Working some of the time at home and the remainder in the office
• Working while on the move, with infrequent or occasional visits to the
office.
• Logging onto the employer’s computer remotely
• Sending and receiving email, data or files remotely
• Developing ideas, products and services remotely.

The following are the allowable expenses to be reimbursed to the employee in

eWorking situations:

• Generally the HSE will provide equipment, such as computers,

printers, scanners, fax machines, etc. and software to enable the
employee work from home.
• The provision of a telephone line purely for business use is an
allowable expense.

In the event that some of these expenses are paid through personal funds, they
are a reimbursable expense.

15.6.5. Home and personal mobile telephone calls

The HSE should not pay any part of line rental unless formal arrangements are
deemed essential for emergency service requirements.

• Where line rental is deemed a requirement for business purposes then

an amount equal to 50% of the cost of the line rental may be paid. Any
payment in excess of this is subject to tax and should be processed
through the employee’s payroll area.

Ver 4.0 10/09/2014 Page 4 of 10

 Health Service Executive
National Financial Regulations

• Supporting documentation, such as a copy statement with the claimed

calls highlighted, must be attached together with an explanation as to
why the call was made and to whom.

• The HSE will not pay any part of broadband bundle costs, phone line
rental or private call costs unless formal arrangements are deemed
essential for emergency on call service requirements or under the
arrangements outlined in the paragraph above.

15.6.6. Fax, photocopying, postage and email/internet charges for business purposes
only, may be reclaimed when supported by receipts.

15.6.7. Refund of Academic Fees - Please refer to the Human Resources (HR)
Division for further details of the “Refund of Academic Fees Scheme”.

15.6.8. Annual Membership Fees of a Professional Body

(a ) For the tax years 2004 to 2010, Section 118(5E) Taxes Consolidation Act
(TCA) 1997 provided that expenses incurred by an employer1 on behalf of an
employee in connection with the payment (or reimbursement) of annual
membership fees of a professional body were exempt from tax where such
membership was regarded as “relevant to the business” of the employer.

Following the enactment of Section 7 of the Finance Act 2011, this tax
exemption is not available for the tax year 2011 and subsequent tax years.
Accordingly, the deductions of tax, PRSI and the Universal Social Charge
(USC) must, subject to the exceptions below, be made from pay in respect of
the notional income amount of any payment or reimbursement by the HSE of
membership fees of a professional body on behalf of an employee.

(b) Tax deductibility of employee expenses – Section 114 TCA 1997

In addition to expenses of travel, Section 114 TCA 1997 provides for a tax
deduction in respect of expenses incurred wholly, exclusively and necessarily
by an individual in the performance of the duties of his or her employment. In
the context of annual membership fees of a professional body, whilst each
case is examined on its own facts and circumstances, Revenue will operate in
accordance with the following guidance for the tax year 2011 and subsequent
years.

- Where there is a statutory requirement for membership of a professional body

etc.

In some instances, individuals are required by statute to be registered

members of a designated professional body, association, society, council, etc.
before they can carry out the duties of their employment. A deduction under
Section 114 TCA 1997 is allowed in respect of the annual registration or
membership fees in such instances.

In other instances, a statutory provision may provide that an individual

registered with, or a member of, a professional body, association, society,
council, etc, has a right, by virtue of such registration or membership, to plead
or be heard in representing a client of his or her employer before a court or

1
Employer is the Health Service Executive.

Ver 4.0 10/09/2014 Page 5 of 10

 Health Service Executive
National Financial Regulations

tribunal. A deduction under Section 114 TCA 1997 is allowed in respect of the
annual registration or membership fees in such instances provided the duties of
the employment require the individual to appear and plead before a tribunal.

- Where there is a requirement for a practising certificate or licence

In some instances, outside of a specific statutory requirement, individuals are

obliged to have a current practising certificate or licence issued by a
professional body, association, society, council etc. before they can carry out
the duties of their employment. An income tax deduction is allowed in respect
of both the annual membership fees payable to such body, association, etc.
and in respect of the cost of the practising certificate or licence where there is a
requirement of that body, association, etc. that an individual must hold a
current practising certificate or licence issued by it before that individual can
carry out the duties of his/her employment in respect of which the certificate or
licence refers.

- Other situations where membership fees of a professional body may be

deductible

Apart from the foregoing, an income tax deduction under Section 114 TCA
1997 will be allowed in respect the annual membership fee payable by an
employee to a professional body, association, society, council, etc. where -

1. the duties of the employee and the duties of the employment require the
exercise or practice of the occupation or profession in respect of which the
annual membership fee refers;
2. the employee so exercises or practices the occupation or profession in
respect of which the annual membership fee refers; and
3. membership of the professional body is an indispensable condition of the
tenure of the employment.

(c) Operation of payroll deduction

The effect of Section 7 Finance Act 2011 is that the deductions of tax, PRSI
and the USC must now be made from pay in respect of the notional income
amount of any payment of membership fee of a professional body paid by an
HSE on behalf of an employee. However, for ease of administration and to
avoid unnecessary claims under Section 114 TCA 1997, where –

• an employer pays or reimburses a membership fee to a professional body

on behalf of an employee; and
• a deduction under Section 114 TCA 1997 would be available as outlined
in paragraphs above,

deductions of tax, PRSI and USC need not be made from pay in respect of the
notional income amount attributable to such annual membership or registration
fee. Where such deductions are not made an employee is, of course,
precluded from making a claim under Section 114 TCA 1997 in respect of such
fees, etc.

Ver 4.0 10/09/2014 Page 6 of 10

 Health Service Executive
National Financial Regulations
2
15.7. Disallowable Expenses

15.7.1. The following list disallowable expenses:

• Employee event costs.

• Spouses’ / Partners’ / Childrens’ travel costs.

• Parking fines or Traffic violation fines (including clamping fees).

• Travel club membership – giving access to airport lounges, complimentary

drinks etc.

• Gifts for employees such as Retirement / Leaving gifts.

• Miscellaneous hotel charges -. laundry, personal phone calls, meals, pay-

per-view TV channels, alcoholic beverages.

• Floral gifts to employees and/or their family members

• Phone usage on airline unless business emergency

15.8. Procedure for Claiming Reimbursement

15.8.1. Expenses should be claimed on the standard claim form in Appendix 1

attached.3

15.8.2. All sections of the form should be fully completed.

15.8.3. Each expense should be clearly defined.

15.8.4. Claim forms must be signed by the claimant and authorised by their Line
Manager.

15.8.5. Line managers under no circumstances should authorise a claim form that has
not been fully completed.

15.8.6. All claims should have the required original supporting documentation.

15.8.7. Credit card or debit card vouchers/statements will not be accepted.

15.8.8. The claimant’s refunds shall be processed through accounts payable/payroll

systems.

15.9. Roles and Responsibilities

15.9.1. HSE Directorate Responsibilities

• Ensure it has suitable policies and practices in place to protect HSE from
illegitimate expenditure and to ensure that monies are used appropriately
and effectively.
2
This list is not conclusive and all queries can be directed to Line Management. In all cases reference should be
made to the directive in 15.1.1.
3
These forms may be amended to acquire compatibility with the relevant systems, while ensuring that the details on
the standard forms constitute the minimum data to be captured for the process.

Ver 4.0 10/09/2014 Page 7 of 10

 Health Service Executive
National Financial Regulations

• Ensure that it communicates its policies and procedures to employees in a

formal policy statement.

15.9.2. The Director General (DG) of the HSE carries overall responsibility for:
• The appropriate spending of the Vote.
• Is liable to be called to account before the Board of the Oireachtas (via
The Public Accounts Committee (PAC)).

15.9.3. The line manger is responsible for approving the reimbursement of expenses
and should ensure that:
• Claims have prior approval, where appropriate.
• The expenditure is reasonable and for legitimate business purposes.
• Expenses are properly vouched.
• Claims are submitted in a timely manner.

15.9.4. Every employee has the responsibility to ensure that their expense claims
conform to this procedure.

Employee claim forms must be submitted in a timely manner. In normal

circumstances forms should be submitted immediately following a transaction.
Claim forms that have not been completed in full or correctly by the employee
or certified for payment by the line manager will be returned to the
employee/Line Manager for completion. The delay caused by returning a claim
form may result in failure to meet the intended payment deadline.

15.9.5. Relevant payroll or accounts payable processing officers will check that:
• Each claim has valid supporting receipts/vouchers.
• The claim is accurate.
• Claims are properly signed and certified.

15.10. Segregation of Duties

15.10.1. It is the responsibility of each line manager or equivalent grade or officers

designate to ensure appropriate segregation of duties to eliminate possibility
of collaboration.

15.11. Reporting of Irregularities

15.11.1. Any member of staff who considers that there may have been an irregularity
that could lead to misappropriation of funds or an instance of fraud must
communicate the facts surrounding this instance in writing to their Line
Manager immediately. The Manager to whom the matter has been reported
must inform their line manager or equivalent, the relevant Assistant National
Director of Finance, National Director Internal Audit for appropriate action. For
further information please refer to HSE Policies, Procedures Guidelines and in
particular to the HSE Protected Disclosures of Information Policy at HSENet -
HSE National Intranet - Policies, Procedures & Guidelines

15.12. Audit

15.12.1. The external and internal auditors of the HSE have the right to unrestricted
access to all premises, vouchers, documents, books of account, and
computer data and to any other information which they consider relevant to
their enquiries and which is necessary to fulfil their responsibilities. Both
internal and external auditors also have the right to verify assets and the right
of direct access to any employee or person responsible for the administration
Ver 4.0 10/09/2014 Page 8 of 10
 Health Service Executive
National Financial Regulations

or management of HSE funds with whom it is felt necessary to raise and

discuss such matters.

15.12.2. Sample checks by auditors may take place at regular intervals in each
financial year.

15.12.3. Every officer shall attend at such place and at such time as may be appointed
by the auditor and shall submit his/her records, books and accounts for
examination and checking.

15.12.4. Where any irregularities are disclosed at the checking of the accounts of an
officer, the internal/external auditor shall report such irregularities to the Chief
Financial Officer (CFO), who shall cause a full investigation to be made and
shall take all necessary action.

Ver 4.0 10/09/2014 Page 9 of 10

 Health Service Executive
National Financial Regulations

15.13. Appendix 1 – Claim Form

REIMBURSEMENT OF OTHER STAFF COSTS

Complete all green sections

Name: Grade Personnel No. Cost Centre

Cost
Receipts Element
Date Allowable Expense Attached Amounts Code Summary of duties carried out
Y/N €
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
€0.00
Total claimed € €0.00

Certification

I certify that the expenses charged have been actually and necessarily disbursed solely in relation to the public service on which I am engaged, and the particulars furnished
herein are in all respects true.

Signed:……………………….
…………………………………………………………….... Date:…../………/………..
Claimant
I hereby certify that I have examined this claim for expenses; I am satisfied that the expenses set out were necessarily performed in the discharge of the officer's duties and
that the amounts shown are correct.

Signed: …………………………………………………………………….. Date:…../………/………..

Certifying Officer

Please submit to relevant Processing division

To Be Completed by relevant processing division

CHECKED BY PROCESSING OFFICER:………………………………………………………………..

Date:…../………/………..

AUTHORISED BY:………………………………………………………………………………………………………
Date:…../………/………..

Ver 4.0 10/09/2014 Page 10 of 10