Guidance

Guidance to licensing authorities

The Gambling Commission's guidance for licensing authorities.

Published
1 April 2021

Last updated
19 July 2023 - Changes

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Guidance to licensing authorities

1 - Delegated Financial Limits

All delegations are subject to the requirement that spending proposals falling within Managing Public Money Annex 2.2, box A.2.2C should be referred to DCMS (opens in new tab). These are:

items which are novel, contentious or repercussive, even if within delegated limits
items which could exceed the agreed budget and Estimate limits
contractual commitments to significant spending in future years for which plans have not been set
items requiring primary legislation (e.g. to write off NLF debt or PDC)
any item which could set a potentially expensive precedent
where Treasury consent is a specific requirement of legislation.

Unlimited (unless otherwise specified)

1.1. Capital Expenditure

Up to £1.5 million

Expenditure on new construction, land, extensions of, and alterations to, existing buildings and the purchase of any other fixed assets (for example machinery, plant, and vehicles), art works and additions to the collection with an expected working life of more than one year. Also includes exchanges of fixed assets.

Treasury approval required

Expenditure on the signing of new leases, renewals of existing leases, the non-exercise of lease break options, any new property acquisitions (including those made through a Public Finance Initiative Provider), new build developments, sale and leaseback, and any freehold sales as part of national property controls.

1.2. Single Tender Contracts

The delegation for single tender contracts is set at £50,000 for each contract. Proposals for awarding single tender contracts outside this delegated limit must have the prior approval of DCMS before any contract is awarded.

1.3. Gifts

Gifts received by the Gambling Commission up to £1,000

In a financial year, any one gift or total of gifts by the Gambling Commission:

to one person/organisation
to staff. Gifts to staff are also subject to the following Cabinet Office guidance (opens in new tab).

Proposals for making gifts outside this delegated limit must have the prior approval of DCMS. The Gambling Commission must keep a record of gifts given. Details of gifts to one person/organisation should be noted in the annual accounts if, individually or collectively, they exceed £1,000.

1.4. Fraud

No delegation. All cases of attempted, suspected or proven fraud, irrespective of the amount involved, must be reported by the Gambling Commission to the Department as soon as it is discovered.

1.5. Non-Statutory Contingent Liabilities

Up to £1OO,OOO.

1.6. Losses and Special Payments

The write-off of losses or approval of special payments should only be carried out by staff authorised to do so by and on behalf of the Gambling Commission Accounting Officer. The Gambling Commission should consult DCMS where cases:

involve important questions of principle
raise doubts about the effectiveness of existing systems
contain lessons which might be of wider interest
are novel or contentious
might create a precedent for other departments in similar circumstances
arise because of obscure or ambiguous instructions issued centrally.

1.6.1. Classification of Losses

Classification of Losses
Type	Description	Delegation
A.	Losses
(i)	Cash losses: physical losses of cash and its equivalents (for example, banknotes, credit cards, electronic transfers, payable orders)	£10,000
(ii)	Bookkeeping losses: unvouched or incompletely vouched payments, including missing items charges to clear inexplicable or erroneous debit balances.	£100,000
(iii)	Exchange rate fluctuations: losses due to fluctuations in exchange rates or revaluations of currencies.	£100,000
(iv)	Losses of pay, allowances and superannuation benefits paid to civil servants, members of the armed forces and NDPB employees overpayments due to miscalculation, misinterpretation, or missing information unauthorised issues, for example, inadmissible payments losses arising from other causes, for example, non-disclosure of full facts by the beneficiary, short of proven fraud.	£10,000
(v)	Losses arising from overpayments of social security benefits, grant, subsidies, etc. arising from miscalculation, misinterpretation or missing information.	£10,000
(vi)	Losses arising from failure to make adequate charges for the use of public property or services.	£10,000
B.	Stock write offs and impairments: the accounting loss incurred as a result of the reduction of the holding value of stock or inventory to an impaired or nil fair value in accordance with the relevant accounting principles.	£1,000,000
C.	Losses of accountable stores:
(i)	because of proven or suspected fraud, theft, arson or sabotage, or any other deliberate act (including repairable damage caused maliciously to buildings, stores, etc. even where a legal claim is not possible).	£10,000
(ii)	losses arising from other causes.	£10,000
D.	Fruitless payments and constructive losses	£10,000
E.	Claims waived or abandoned	£10,000

A record of losses should be maintained and if the total of losses or special payments in the year exceeds £300,000, the annual accounts should include a statement, with any individual losses and special payments exceeding £300,000 specifically identified.

1.6.2. Special Payments

Special severance payments:There is no delegation for special severance payments (payments made to the employee outside their statutory or contractual entitlement upon termination of their employment contract). Each payment, regardless of value will require HM Treasury approval before an offer can be made.

Redundancy payments:All redundancy payments outside contractual terms, require DCMS and Cabinet Office permission in all cases.

Special payments
Type	Special payments description	Delegation
(i)	Extra-contractual and ex gratia payments to contractors	£10,000
(ii)	Other ex gratia payments	£10,000
(iii)	Compensation payments	£10,000
(iv)	Extra-statutory and extra-regulatory payments	£10,000
(v)	Consolatory payments: a special payment to address an inconvenience or hardship to a third party, arising from administrative failures for example, where the organisation has not acted properly or provided a poor service. These can include: wrong advice, discourtesy, mistakes and delays	£500

1.6.3. Disposal of Assets and Income Projections

Unlimited subject to the Gambling Commission taking professional advice when disposing of land and property assets, and taking account of the protocol set out in the Managing Public Money Asset Management.

All assets disposals, regardless of value, should be notified to DCMS through the routine monthly financial reporting processes.

The Gambling Commission must also notify DCMS as soon as it is aware that the aggregate annual total of receipts is likely to exceed the amounts below notified to the Department at the Spending Review.

Disposal of assets and income projections
Year	Income projection
2016/17	£18,800,000
2017/18	£18,500,000
2018/19	£18,300,000
2019/20	£18,100,000

Last updated: 19 July 2023

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