The basic facts of the case were that Lord Hanningfield claimed the House of Lords overnight subsistence allowance, payable to peers who have to spend the night in the capital because of their parliamentary duties, even though he returned to his home in Essex every night.
You calculate cash flow from ops, roughly speaking, this way: add to net income any noncash charges (such as for depreciation or an allowance for future tax bills), then add favorable changes in such balance sheet items as accounts payable and accounts receivable.