FINANCIAL
REGULATIONS 2021 FOR ENGLAND
1.
General 2
2.
Accounting and audit (internal and external) 4
3.
Annual estimates (budget) and forward planning 6
4.
Budgetary control and authority to spend 6
5.
Banking arrangements and authorisation of payments 7
6.
Instructions for the making of payments 9
7.
Payment of salaries 11
8. Loans
and investments 12
9.
Income 13
10.
Orders for work, goods and services 14
11.
Contracts 14
12. Payments
under contracts for building or other construction works 16
13.
Stores (not applicable)
14.
Assets, properties and estates 16
15.
Insurance 17
16.
Charities 17
17. Risk
management 18
18.
Suspension and revision of Financial Regulations 18
1. General
1.1.
These financial regulations govern the conduct of financial management by the
council and may only be amended or varied by resolution of the council.
Financial regulations are one of the council’s three governing policy documents
providing procedural guidance for members and officers. Financial regulations
must be observed in conjunction with the council’s standing orders[1] and
any individual financial regulations relating to contracts.
1.2. The
council is responsible in law for ensuring that its financial management is
adequate and effective and that the council has a
sound system of internal control which facilitates the effective exercise of
the council’s functions, including arrangements for the management of risk.
1.3. The
council’s accounting control systems must include measures:
1.4.
These financial regulations demonstrate how the council meets these
responsibilities and requirements.
1.5. At
least once a year, prior to approving the Annual Governance Statement, the
council must review the effectiveness of its system of internal control which
shall be in accordance with proper practices.
1.6.
Deliberate or wilful breach of these Regulations by an employee may give rise
to disciplinary proceedings.
1.7.
Members of council are expected to follow the instructions within these
Regulations and not to entice employees to breach them. Failure to follow
instructions within these Regulations brings the office of councillor into
disrepute.
1.8. The
Responsible Financial Officer (RFO) holds a statutory office to be appointed by
the council. The Clerk has been appointed as RFO for this council and these
regulations will apply accordingly.
1.9. The
RFO;
1.10.
The accounting records determined by the RFO shall be sufficient to show and
explain the council’s transactions and to enable the RFO to ensure that any
income and expenditure account and statement of balances, or record of receipts
and payments and additional information, as the case may be, or management information
prepared for the council from time to time comply with the Accounts and Audit
Regulations.
1.11.
The accounting records determined by the RFO shall in particular contain:
1.12.
The accounting control systems determined by the RFO shall include:
1.13.
The council is not empowered by these Regulations or otherwise to delegate
certain specified decisions. In particular any decision regarding:
1.14. In
addition, the council must:
1.15. In
these financial regulations, references to the Accounts and Audit Regulations
or ‘the regulations’ shall mean the regulations issued under the provisions of
section 27 of the Audit Commission Act 1998, or any superseding legislation,
and then in force unless otherwise specified.
In these
financial regulations the term ‘proper practice’ or ‘proper practices’ shall
refer to guidance issued in Governance
and Accountability for Local Councils - a Practitioners’ Guide (England)
issued by the Joint Practitioners Advisory Group (JPAG), available from the
websites of NALC and the Society for Local Council Clerks (SLCC).
2. Accounting and audit (internal and
external)
2.1. All
accounting procedures and financial records of the council shall be determined
by the RFO in accordance with the Accounts and Audit Regulations, appropriate
guidance and proper practices.
2.2. On
a regular basis, at least once in each quarter, and at each financial year end,
a member other than the Chairman shall be appointed to verify bank
reconciliations (for all accounts) produced by the RFO. The member shall sign
the reconciliations and the original bank statements (or similar document) as
evidence of verification. This activity shall on conclusion be reported,
including any exceptions, to and noted by the council.
2.3. The
RFO shall complete the annual statement of accounts, annual report, and any
related documents of the council contained in the Annual Return (as specified
in proper practices) as soon as practicable after the end of the financial year
and having certified the accounts shall submit them and report thereon to the
council within the timescales set by the Accounts and Audit Regulations.
2.4. The
council shall ensure that there is an adequate and effective system of internal
audit of its accounting records, and of its system of internal control in
accordance with proper practices. Any officer or member of the council shall
make available such documents and records as appear to the council to be
necessary for the purpose of the audit and shall, as directed by the council,
supply the RFO, internal auditor, or external auditor with such information and
explanation as the council considers necessary for that purpose.
2.5. The
internal auditor shall be appointed by and shall carry out the work in relation
to internal controls required by the council in accordance with proper
practices.
2.6. The
internal auditor shall:
2.7.
Internal or external auditors may not under any circumstances:
2.8. For
the avoidance of doubt, in relation to internal audit the terms ‘independent’
and ‘independence’ shall have the same meaning as is described in proper
practices.
2.9. The
RFO shall make arrangements for the exercise of
electors’ rights in relation to the accounts including the opportunity to
inspect the accounts, books, and vouchers and display or publish any notices
and statements of account required by Audit Commission Act 1998, or any
superseding legislation, and the Accounts and Audit Regulations.
2.10.
The RFO shall, without undue delay, bring to the attention of all councillors
any correspondence or report from internal or external auditors.
3. Annual estimates (budget) and forward
planning
3.1.
Each committee (if any) shall review its three-year forecast of revenue and
capital receipts and payments. Having regard to the forecast, it shall
thereafter formulate and submit proposals for the following financial year to
the council not later than the end of [November] each year including any
proposals for revising the forecast.
3.2. The
RFO must each year, by no later than [December], prepare detailed estimates of
all receipts and payments including the use of reserves and all sources of
funding for the following financial year in the form of a budget to be
considered by the [relevant committee and the] council.
3.3. The
council shall consider annual budget proposals in relation to the council’s three year forecast of revenue and capital receipts and
payments including recommendations for the use of reserves and sources of
funding and update the forecast accordingly.
3.4. The
council shall fix the precept (council tax requirement), and relevant basic
amount of council tax to be levied for the ensuing financial year not later
than by the end of January each year. The RFO shall issue the precept to the
billing authority and shall supply each member with a copy of the approved
annual budget.
3.5. The
approved annual budget shall form the basis of financial control for the
ensuing year.
4. Budgetary control and authority to spend
4.1.
Expenditure on revenue items may be authorised up to the amounts included for
that class of expenditure in the approved budget. This authority is to be
determined by:
Such
authority is to be evidenced by a minute or by an authorisation slip duly
signed by the Clerk, and where necessary also by the appropriate Chairman.
Contracts
may not be disaggregated to avoid controls imposed by these regulations.
4.2. No
expenditure may be authorised that will exceed the amount provided in the
revenue budget for that class of expenditure other than by resolution of the
council, or duly delegated committee. During the budget year and with the
approval of council having considered fully the implications for public
services, unspent and available amounts may be moved to other budget headings
or to an earmarked reserve as appropriate (‘virement’).
4.3.
Unspent provisions in the revenue or capital budgets for completed projects
shall not be carried forward to a subsequent year.
4.4. The
salary budgets are to be reviewed at least annually [by October] for the
following financial year and such review shall be evidenced by a hard copy
schedule signed by the Clerk and the Chairman of Council or relevant committee.
The RFO will inform committees of any changes impacting on their budget
requirement for the coming year in good time.
4.5. In
cases of extreme risk to the delivery of council services, the clerk may
authorise revenue expenditure on behalf of the council which in the clerk’s
judgement it is necessary to carry out. Such expenditure includes repair,
replacement or other work, whether or not there is any budgetary provision for
the expenditure, subject to a limit of [£500]. The Clerk shall report such
action to the chairman as soon as possible and to the council as soon as
practicable thereafter.
4.6. No
expenditure shall be authorised in relation to any capital project and no
contract entered into or tender accepted involving capital expenditure unless
the council is satisfied that the necessary funds are available
and the requisite borrowing approval has been obtained.
4.7. All
capital works shall be administered in accordance with the council's standing
orders and financial regulations relating to contracts.
4.8. The
RFO shall regularly provide the council with a statement of receipts and
payments to date under each head of the budgets, comparing actual expenditure
to the appropriate date against that planned as shown in the budget. These
statements are to be prepared at least at the end of each financial quarter and
shall show explanations of material variances. For this purpose
“material” shall be in excess of [£100] or [15%] of the budget.
4.9.
Changes in earmarked reserves shall be approved by council as part of the
budgetary control process.
5. Banking arrangements and authorisation of
payments
5.1. The
council's banking arrangements, including the bank mandate, shall be made by
the RFO and approved by the council; banking arrangements may not be delegated
to a committee. They shall be regularly reviewed for safety and efficiency.
5.2. The
RFO shall prepare a schedule of payments requiring authorisation, forming part
of the Agenda for the Meeting and, together with the relevant invoices, present
the schedule to council. The council shall review the schedule for compliance
and, having satisfied itself shall authorise payment by a resolution of the
council. The approved schedule shall be signed by two Councillors. A detailed list
of all payments shall be disclosed within or as an attachment to the minutes of
the meeting at which payment was authorised. Personal payments (including
salaries, wages, expenses and any payment made in relation to the termination
of a contract of employment) may be summarised to remove public access to any
personal information.
5.3. All
invoices for payment shall be examined, verified and certified by the RFO to
confirm that the work, goods or services to which each invoice relates has been
received, carried out, examined and represents expenditure previously approved
by the council.
5.4. The
RFO shall examine invoices for arithmetical accuracy and analyse them to the
appropriate expenditure heading. The RFO shall take all steps to pay all invoices
submitted, and which are in order, at the next available council meeting.
5.5. The
Clerk and RFO shall have delegated authority to authorise the payment of items
only in the following circumstances:
a) If a payment is necessary to avoid a charge
to interest under the Late Payment of Commercial Debts (Interest) Act 1998, and
the due date for payment is before the next scheduled Meeting of council, where
the Clerk and RFO certify that there is no dispute or other reason to delay
payment, provided that a list of such payments shall be submitted to the next
appropriate meeting of council;
b) An expenditure item authorised under 5.6
below (continuing contracts and obligations) provided that a list of such
payments shall be submitted to the next appropriate meeting of council;
5.6. For
each financial year the Clerk and RFO shall draw up a list of due payments
which arise on a regular basis as the result of a continuing contract,
statutory duty, or obligation (such as but not exclusively) Salaries, PAYE and
NI, Superannuation Fund and regular maintenance contracts and the like for
which council [,or a duly authorised committee,] may authorise payment for the
year provided that the requirements of regulation 4.1 (Budgetary Controls) are
adhered to, provided also that a list of such payments shall be submitted to
the next appropriate meeting of council.
5.7. A
record of regular payments made under 5.6 above shall be drawn up and be signed
by two members on each and every occasion when payment is authorised - thus
controlling the risk of duplicated payments being authorised and / or made.
5.8. In
respect of grants a duly authorised committee shall approve expenditure within
any limits set by council and in accordance with any policy statement approved
by council. Any Revenue or Capital Grant in excess of £5,000 shall before
payment, be subject to ratification by resolution of the council.
5.9.
Members are subject to the Code of Conduct that has been adopted by the council
and shall comply with the Code and Standing Orders when a decision to authorise
or instruct payment is made in respect of a matter in which they have a
disclosable pecuniary or other interest, unless a
dispensation has been granted.
5.10.
The council will aim to rotate the duties of members in these Regulations so
that onerous duties are shared out as evenly as possible over time.
6. Instructions for the making of payments
6.1. The
council will make safe and efficient arrangements for the making of its
payments.
6.2.
Following authorisation under Financial Regulation 5 above, the council, a duly
delegated committee or, if so delegated, the Clerk or RFO shall give
instruction that a payment shall be made.
6.3. All
payments shall be affected by Internet banking or cheque, or otherwise, in
accordance with a resolution of council.
6.4.
Cheques or orders for payment drawn on the bank account in accordance with the
schedule as presented to council or committee shall be signed by two members of
council in accordance with a resolution instructing that payment. A member who
is a bank signatory, having a connection by virtue of family or business
relationships with the beneficiary of a payment, should not, under normal
circumstances, be a signatory to the payment in question.
6.5. To
indicate agreement of the details shown on the cheque or order for payment with
the counterfoil and the invoice or similar documentation, the signatories shall
each also initial the cheque counterfoil.
6.6.
Cheques or orders for payment shall not normally be presented for signature
other than at a council or committee meeting (including immediately before or
after such a meeting). Any signatures obtained away from such meetings shall be
reported to the council at the next convenient meeting.
6.7. If
thought appropriate by the council, payment for utility supplies (energy,
telephone and water) and any National Non-Domestic Rates may be made by
variable direct debit provided that the instructions are signed by two members
and any payments are reported to council as made. The approval of the use of a
variable direct debit shall be renewed by resolution of the council at least
every two years.
6.8. If
thought appropriate by the council, payment for certain items (principally
salaries) may be made by banker’s standing order provided that the instructions
are signed, or otherwise evidenced by two members are retained and any payments
are reported to council as made. The approval of the use of a banker’s standing
order shall be renewed by resolution of the council at least every two years.
6.9. If
thought appropriate by the council, payment for certain items may be made by
BACS or CHAPS methods provided that the instructions for each payment are
signed, or otherwise evidenced, by two authorised bank signatories, are retained
and any payments are reported to council as made. The approval of the use of
BACS or CHAPS shall be renewed by resolution of the council at least every two
years.
6.10. If
thought appropriate by the council payment for certain items may be made by
internet banking transfer provided evidence is retained showing which members
approved the payment.
6.11.
Where a computer requires use of a personal identification number (PIN) or
other password(s), for access to the council’s records on that computer, a note
shall be made of the PIN and Passwords and shall be handed to and retained by
the Chairman of Council in a sealed dated envelope. This envelope may not be
opened other than in the presence of two other councillors. After the envelope
has been opened, in any circumstances, the PIN and / or passwords shall be
changed as soon as practicable. The fact that the sealed envelope has been
opened, in whatever circumstances, shall be reported to all members immediately
and formally to the next available meeting of the council. This will not be
required for a member’s personal computer used only for remote authorisation of
bank payments.
6.12. No
employee or councillor shall disclose any PIN or password, relevant to the
working of the council or its bank accounts, to any person not authorised in
writing by the council or a duly delegated committee.
6.13.
Regular back-up copies of the records on any computer shall be made and shall
be stored securely away from the computer in question, and preferably off site.
6.14.
The council, and any members using computers for the council’s financial
business, shall ensure that anti-virus, anti-spyware and firewall software with
automatic updates, together with a high level of security, is used.
6.15.
Where internet banking arrangements are made with any bank, the Clerk [RFO]
shall be appointed as the Service Administrator. The bank mandate approved by
the council shall identify a number of councillors who will be authorised to
approve transactions on those accounts. The bank mandate will state clearly the amounts of payments that can be instructed
by the use of the Service Administrator alone, or by the Service Administrator
with a stated number of approvals.
6.16.
Access to any internet banking accounts will be directly to the access page
(which may be saved under “favourites”), and not through a search engine or
e-mail link. Remembered or saved passwords facilities must not be used on any
computer used for council banking work. Breach of this Regulation will be
treated as a very serious matter under these regulations.
6.17.
Changes to account details for suppliers, which are used for internet banking
may only be changed on written hard copy notification by the supplier and
supported by hard copy authority for change signed by the Clerk [the RFO. A
programme of regular checks of standing data with suppliers will be followed.
6.18.
Any Debit Card issued for use will be specifically restricted to the Clerk [and
the RFO] and will also be restricted to a single transaction maximum value of
[£500] unless authorised by council or finance committee in writing before any
order is placed.
6.19. A
pre-paid debit card may be issued to employees with varying limits. These
limits will be set by the council. Transactions and purchases made will be
reported to the [council] and authority for topping-up shall be at the
discretion of the [council].
6.20.
Any corporate credit card or trade card account opened by the council will be
specifically restricted to use by the Clerk [and RFO] and shall be subject to
automatic payment in full at each month-end. Personal credit or debit cards of
members or staff shall not be used under any circumstances.
6.21.
The council will not maintain any form of cash float. All cash received must be
banked intact. Any payments made in cash by the Clerk [or RFO] (for example for
postage or minor stationery items) shall be refunded on a regular basis, at
least quarterly.
7. Payment of salaries
7.1. As
an employer, the council shall make arrangements to
meet fully the statutory requirements placed on all employers by PAYE and
National Insurance legislation. The payment of all salaries shall be made in
accordance with payroll records and the rules of PAYE and National Insurance
currently operating, and salary rates shall be as agreed by council, or duly
delegated committee.
7.2.
Payment of salaries and payment of deductions from salary such as may be
required to be made for tax, national insurance and pension contributions, or
similar statutory or discretionary deductions must be made in accordance with
the payroll records and on the appropriate dates stipulated in employment
contracts, provided that each payment is reported to the next available council
meeting, as set out in these regulations above.
7.3. No
changes shall be made to any employee’s pay, emoluments, or terms and
conditions of employment without the prior consent of the [council].
7.4.
Each and every payment to employees of net salary and to the appropriate
creditor of the statutory and discretionary deductions shall be recorded in a
separate confidential record (confidential cash book). This confidential record
is not open to inspection or review (under the Freedom of Information Act 2000
or otherwise) other than:
a)
by any councillor who can demonstrate a need to know;
b)
by the internal auditor;
c)
by the external auditor; or
d) by any person authorised under Audit
Commission Act 1998, or any superseding legislation.
7.5. The
total of such payments in each calendar month shall be reported with all other
payments as made as may be required under these Financial Regulations, to
ensure that only payments due for the period have actually been paid.
7.6. An
effective system of personal performance management should be maintained for
the senior officers.
7.7. Any
termination payments shall be supported by a clear business case and reported
to the council. Termination payments shall only be authorised by council.
7.8.
Before employing interim staff, the council must consider a full business case.
8. Loans and investments
8.1. All
borrowings shall be affected in the name of the council, after obtaining any
necessary borrowing approval. Any application for borrowing approval shall be
approved by Council as to terms and purpose. The application for borrowing
approval, and subsequent arrangements for the loan shall only be approved by
full council.
8.2. Any
financial arrangement which does not require formal borrowing approval from the
Secretary of State/Welsh Assembly Government (such as Hire Purchase or Leasing
of tangible assets) shall be subject to approval by the full council. In each
case a report in writing shall be provided to council in respect of value for
money for the proposed transaction.
8.3. The
council will arrange with the council’s banks and investment providers for the
sending of a copy of each statement of account to the Chairman of the council
at the same time as one is issued to the Clerk or RFO.
8.4. All
loans and investments shall be negotiated in the name of the council and shall
be for a set period in accordance with council policy.
8.5. The
council shall consider the need for an Investment Strategy and Policy which, if
drawn up, shall be in accordance with relevant regulations, proper practices
and guidance. Any Strategy and Policy shall be reviewed by the council at least
annually.
8.6. All
investments of money under the control of the council shall be in the name of
the council.
8.7. All
investment certificates and other documents relating thereto shall be retained
in the custody of the RFO.
8.8. Payments
in respect of short term or long-term investments, including transfers between
bank accounts held in the same bank, or branch, shall be made in accordance
with Regulation 5 (Authorisation of payments) and Regulation 6 (Instructions
for payments).
9. Income
9.1. The
collection of all sums due to the council shall be the responsibility of and
under the supervision of the RFO.
9.2.
Particulars of all charges to be made for work done, services rendered or goods supplied shall be agreed annually by the council,
notified to the RFO and the RFO shall be responsible for the collection of all
accounts due to the council.
9.3. The
council will review all fees and charges at least every two years, following a
report of the Clerk.
9.4. Any
sums found to be irrecoverable and any bad debts shall
be reported to the council and shall be written off in the year.
9.5. All
sums received on behalf of the council shall be banked intact as directed by
the RFO. In all cases, all receipts shall be deposited with the council's
bankers with such frequency as the RFO considers necessary.
9.6. The
origin of each receipt shall be entered on the paying-in slip.
9.7.
Personal cheques shall not be cashed out of money held on behalf of the
council.
9.8. The
RFO shall promptly complete any VAT Return that is required. Any repayment
claim due in accordance with VAT Act 1994 section 33 shall be made at least
annually coinciding with the financial year end.
9.9.
Where any significant sums of cash are regularly received by the council, the
RFO shall take such steps as are agreed by the council to ensure that more than
one person is present when the cash is counted in the first instance, that
there is a reconciliation to some form of control such as ticket issues, and
that appropriate care is taken in the security and safety of individuals
banking such cash.
9.10.
Any income arising which is the property of a charitable trust shall be paid
into a charitable bank account. Instructions for the payment of funds due from
the charitable trust to the council (to meet expenditure already incurred by
the authority) will be given by the Managing Trustees of the charity meeting
separately from any council meeting (see also Regulation 16 below).
10. Orders for work, goods and services
10.1. An
official order or letter shall be issued for all work, goods and services
unless a formal contract is to be prepared or an official order would be
inappropriate. Copies of orders shall be retained.
10.2.
Order books shall be controlled by the RFO.
10.3.
All members and officers are responsible for obtaining value for money at all
times. An officer issuing an official order shall ensure as far as reasonable
and practicable that the best available terms are obtained in respect of each
transaction, usually by obtaining three or more quotations or estimates from
appropriate suppliers, subject to any de minimis provisions in Regulation 11.1
below.
10.4. A
member may not issue an official order or make any contract on behalf of the
council.
10.5.
The RFO shall verify the lawful nature of any proposed purchase before the
issue of any order, and in the case of new or infrequent purchases or payments,
the RFO shall ensure that the statutory authority shall be reported to the
meeting at which the order is approved so that the minutes can record the power
being used.
11. Contracts
11.1.
Procedures as to contracts are laid down as follows:
a) Every contract shall comply with these
financial regulations, and no exceptions shall be made otherwise than in an
emergency provided that this regulation need not apply to contracts which
relate to items (i) to (vi) below:
i. for
the supply of gas, electricity, water, sewerage and telephone services;
ii. for specialist services such as are
provided by legal professionals acting in disputes;
iii. for work to be executed or goods or
materials to be supplied which consist of repairs to or parts for existing
machinery or equipment or plant;
iv. for work to be executed or goods or
materials to be supplied which constitute an extension of an existing contract
by the council;
v. for additional audit work of the external
auditor up to an estimated value of £500 (in excess of this sum the Clerk and
RFO shall act after consultation with the Chairman and Vice Chairman of
council); and
vi. for goods or materials proposed to be
purchased which are proprietary articles and / or are only sold at a fixed
price.
b) Where the council intends to procure or
award a public supply contract, public service contract or public works
contract as defined by The Public Contracts Regulations 2015 (“the
Regulations”) which is valued at £25,000 or more, the council shall comply with
the relevant requirements of the Regulations[2].
c) The full requirements of The Regulations,
as applicable, shall be followed in respect of the tendering and award of a
public supply contract, public service contract or public works contract which
exceed thresholds in The Regulations set by the Public Contracts Directive
2014/24/EU (which may change from time to time)[3].
d) When applications are made to waive
financial regulations relating to contracts to enable a price to be negotiated
without competition the reason shall be embodied in a recommendation to the
council.
e) Such invitation to tender shall state the
general nature of the intended contract and the Clerk shall obtain the
necessary technical assistance to prepare a specification in appropriate cases.
The invitation shall in addition state that tenders must be addressed to the
Clerk in the ordinary course of post. Each tendering firm shall be supplied
with a specifically marked envelope in which the tender is to be sealed and
remain sealed until the prescribed date for opening tenders for that contract.
f) All sealed tenders shall be opened at the
same time on the prescribed date by the Clerk in the presence of at least two
members of council.
g) Any invitation to tender issued under this
regulation shall be subject to Standing Order [18d] and shall refer to the
terms of the Bribery Act 2010.
h) When it is to enter into a contract of less
than £25,000 in value for the supply of goods or materials or for the execution
of works or specialist services other than such goods, materials, works or
specialist services as are excepted as set out in paragraph (a) the Clerk or
RFO shall obtain 3 quotations (priced descriptions of the proposed supply);
where the value is below [£3,000] and above [£500]the Clerk or RFO shall strive
to obtain 3 estimates. Otherwise, Regulation 10.3 above shall apply.
i) The
council shall not be obliged to accept the lowest or any tender, quote or
estimate.
j) Should it occur that the council, or duly
delegated committee, does not accept any tender, quote or estimate, the work is
not allocated and the council requires further
pricing, provided that the specification does not change, no person shall be
permitted to submit a later tender, estimate or quote who was present when the
original decision-making process was being undertaken.
12. Payments under contracts for building or
other construction works
12.1.
Payments on account of the contract sum shall be made within the time specified
in the contract by the RFO upon authorised certificates of the architect or
other consultants engaged to supervise the contract (subject to any percentage
withholding as may be agreed in the particular contract).
12.2.
Where contracts provide for payment by instalments the RFO shall maintain a
record of all such payments. In any case where it is estimated that the total
cost of work carried out under a contract, excluding agreed variations, will exceed
the contract sum of 5% or more a report shall be submitted to the council.
12.3.
Any variation to a contract or addition to or omission from a contract must be
approved by the council and Clerk to the contractor in writing, the council
being informed where the final cost is likely to exceed the financial
provision.
14. Assets, properties and estates
14.1.
The Clerk shall make appropriate arrangements for the custody of all title
deeds and Land Registry Certificates of properties held by the council. The RFO
shall ensure a record is maintained of all properties held by the council,
recording the location, extent, plan, reference, purchase details, nature of
the interest, tenancies granted, rents payable and purpose for which held in
accordance with Accounts and Audit Regulations.
14.2. No
tangible moveable property shall be purchased or otherwise acquired, sold,
leased or otherwise disposed of, without the authority of the council, together
with any other consents required by law, save where the estimated value of any
one item of tangible movable property does not exceed [£250].
14.3. No
real property (interests in land) shall be sold, leased or otherwise disposed
of without the authority of the council, together with any other consents
required by law. In each case a report in writing shall be provided to council
in respect of valuation and surveyed condition of the property (including
matters such as planning permissions and covenants) together with a proper
business case (including an adequate level of consultation with the
electorate).
14.4. No
real property (interests in land) shall be purchased or acquired without the
authority of the full council. In each case a report in writing shall be
provided to council in respect of valuation and surveyed condition of the
property (including matters such as planning permissions and covenants)
together with a proper business case (including an adequate level of
consultation with the electorate).
14.5.
Subject only to the limit set in Regulation 14.2 above, no tangible moveable
property shall be purchased or acquired without the authority of the full
council. In each case a report in writing shall be provided to council with a
full business case.
14.6.
The RFO shall ensure that an appropriate and accurate Register of Assets and
Investments is kept up to date. The continued existence of tangible assets
shown in the Register shall be verified at least annually, possibly in
conjunction with a health and safety inspection of assets.
15. Insurance
15.1.
Following the annual risk assessment (per Regulation 17), the RFO shall effect all insurances and negotiate all claims on the
council's insurers.
15.2.
The Clerk (if not also the RFO) shall give prompt notification to the RFO of
all new risks, properties or vehicles which require to be insured and of any
alterations affecting existing insurances.
15.3.
The RFO shall keep a record of all insurances effected by the council and the
property and risks covered thereby and annually review it.
15.4.
The RFO shall be notified of any loss liability or damage or of any event
likely to lead to a claim, and shall report these to
council at the next available meeting.
15.5.
All appropriate members and employees of the council shall be included in a
suitable form of security or fidelity guarantee insurance which shall cover the
maximum risk exposure as determined [annually] by the council, or duly
delegated committee.
16. Charities
16.1.
Where the council is sole managing trustee of a charitable body the Clerk and
RFO shall ensure that separate accounts are kept of the funds held on
charitable trusts and separate financial reports made in such form as shall be
appropriate, in accordance with Charity Law and legislation, or as determined
by the Charity Commission. The Clerk and RFO shall arrange for any audit or
independent examination as may be required by Charity Law or any Governing
Document.
17. Risk management
17.1.
The council is responsible for putting in place arrangements for the management
of risk. The Clerk shall prepare, for approval by the council, risk management
policy statements in respect of all activities of the council. Risk policy
statements and consequential risk management arrangements shall be reviewed by
the council at least annually.
17.2.
When considering any new activity, the Clerk ( or
delegated Councillor) shall prepare a draft risk assessment including risk
management proposals for consideration and adoption by the council.
18. Suspension and revision of Financial
Regulations
18.1. It
shall be the duty of the council to review the Financial Regulations of the
council from time to time. The Clerk shall make arrangements
to monitor changes in legislation or proper practices and shall advise the
council of any requirement for a consequential amendment to these Financial
Regulations.
18.2.
The council may, by resolution of the council duly notified prior to the
relevant meeting of council, suspend any part of these Financial Regulations
provided that reasons for the suspension are recorded and that an assessment of
the risks arising has been drawn up and presented in advance to all members of
council.
Version
number |
Date
Approved |
Amendments
made |
Next
Review Date |
V1 |
7
January 2021 |
|
|
V2 |
6
February 2023 |
Yes |
February
2024 |
|
|
|
|
|
|
|
|
.
[2] The Regulations require
councils to use the Contracts Finder website to advertise contract
opportunities, set out the procedures to be followed in awarding new contracts
and to publicise the award of new contracts
[3] Thresholds currently
applicable are:
a) For public supply and public service
contracts 209,000 Euros (£181,302)
b) For public works contracts 5,225,000
Euros (£4,551,413)