GEDNEY PARISH COUNCIL
HEDGEVIEW, 231 BROADGATE, SUTTON ST EDMUND, LINCOLNSHIRE, PE12 OLT
E Mail the.clerk@outlook.com
Financial Regulations
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:
·
for
the timely production of accounts;
·
that
provide for the safe and efficient safeguarding of public money;
·
to
prevent and detect inaccuracy and fraud; and
·
identifying
the duties of officers.
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;
·
acts
under the policy direction of the council;
·
administers
the council's financial affairs in accordance with all Acts, Regulations and
proper practices;
·
determines
on behalf of the council its accounting records and accounting control systems;
·
ensures
the accounting control systems are observed;
·
maintains
the accounting records of the council up to date in accordance with proper
practices;
·
assists
the council to secure economy, efficiency and effectiveness in the use of its
resources; and
·
produces
financial management information as required by the council.
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:
·
entries
from day to day of all sums of money received and expended by the council and
the matters to which the income and expenditure or receipts and payments
account relate;
·
a
record of the assets and liabilities of the council; and
·
wherever
relevant, a record of the council’s income and expenditure in relation to
claims made, or to be made, for any contribution, grant or subsidy.
1.12. The
accounting control systems determined by the RFO shall include:
·
procedures
to ensure that the financial transactions of the council are recorded as soon
as reasonably practicable and as accurately and reasonably as possible;
·
procedures
to enable the prevention and detection of inaccuracies and fraud and the
ability to reconstruct any lost records;
·
identification
of the duties of officers dealing with financial transactions and division of
responsibilities of those officers in relation to significant transactions;
·
procedures
to ensure that uncollectable amounts, including any bad debts are not submitted
to the council for approval to be written off except with the approval of the
RFO and that the approvals are shown in the accounting records; and
·
measures
to ensure that risk is properly managed.
1.13. The
council is not empowered by these Regulations or otherwise to delegate certain
specified decisions. In particular any decision
regarding:
·
setting
the final budget or the precept (council tax requirement);
·
approving
accounting statements;
·
approving
an annual governance statement;
·
borrowing;
·
writing
off bad debts;
·
declaring
eligibility for the General Power of Competence; and
·
addressing
recommendations in any report from the internal or external auditors, shall be
a matter for the full council only.
1.14. In
addition, the council must:
·
determine
and keep under regular review the bank mandate for all council bank accounts;
·
approve
any grant or a single commitment in excess of £2,500.00; and
·
in
respect of the annual salary for any employee have regard to recommendations
about annual salaries of employees made by the relevant committee in accordance
with its terms of reference.
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:
·
be
competent and independent of the financial operations of the council;
·
report
to council in writing, or in person, on a regular basis with a minimum of one
annual written report during each financial year;
·
to
demonstrate competence, objectivity and independence, be free from any actual
or perceived conflicts of interest, including those arising from family
relationships; and
·
has
no involvement in the financial decision making, management or control of the council
2.7. Internal
or external auditors may not under any circumstances:
·
perform
any operational duties for the council;
·
initiate
or approve accounting transactions; or
·
direct
the activities of any council employee, except to the extent that such
employees have been appropriately assigned to assist the internal auditor.
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:
·
the
council for all items over [£5,000];
·
the
Clerk, in conjunction with Chairman of Council or Chairman of the appropriate
committee, for any items below [£500].
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 cheque or other instructions to the council's
bankers, 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 Orders[ ], [4][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 |
September
2019 |
|
May2020 |
May 2020 |
None |
May 2021 |
|
|
May 2021 |
None |
May 2022 |
|
May2022 |
None |
May 2323 |
|
May2023 |
None |
May2024 |
|
|
|
|
.
[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)
[4] Based on NALC’s Model Standing Order 18d ©NALC 2018