Financial Regulations Approved September 2023

INDEX FOR FINANCIAL REGULATIONS 

1.    GENERAL

2.    PRECEPT

3.    BUDGETARY CONTROL

4.    ACCOUNTING & AUDIT

5.    BANKING ARRANGEMENTS & CHEQUES

6.    PAYMENT OF ACCOUNTS

7.    PAYMENT OF SALARIES

8.    LOANS & INVESTMENTS

9.    INCOME

10.    PURCHASES/SERVICES

11.    CONTRACTS

12.    PAYMENT UNDER CONTRACTS FOR BUILDING OR OTHER CONSTRUCTION WORKS

13.    PROPERTIES & ESTATES

14.    INSURANCE

15.    RISK MANAGEMENT
 


FINANCIAL RULES & REGULATIONS FOR WITHERN WITH STAIN PARISH COUNCIL (7 Parish Councillors Elected or Co-opted)

GENERAL:

These Financial Regulations were adopted by the Council at its meeting held on 30th May 2022, they govern the conduct of the Parish Council and may only be amended or varied by resolution of the Council, and they should be reviewed and amended regularly.


1. GENERAL

1.1    These financial regulations govern the conduct of the financial transactions of the Council and may only be amended or varied by resolution of the Council.    
1.2    The Parish Clerk (who is also the Responsible Financial Officer (RFO) under the policy direction of the Council, shall be responsible for the proper administration of the Council’s affairs.
 
1.3    The RFO/Clerk (hereafter where the ‘Clerk is named it assumes RFO responsibilities) shall be responsible for the production of financial management information.

2. PRECEPT    

2.1    Each committee (if any) shall formulate and submit proposals to the Council in respect of revenue and capital costs for the following year to set the Precept for the year., no later than the end of October each year. So that there is time to review before setting the precept at the beginning of January.

2.2    Detailed estimates of all receipts and payments for the year shall be prepared by the Clerk.

2.3    The Council shall review the estimates no later than the end of November each year and shall fix the Precept to be levied for the ensuing financial year.  

3. BUDGETARY CONTROL

3.1    Expenditure on revenue items may be incurred up to the amounts included in the approved budget.

3.2    The Clerk shall regularly provide the Council with a statement of receipts and payments to date under each head of the budgets comparing the actual expenditure against that planned.  

3.3    Unspent provisions in the revenue budget shall not be carried forward to a subsequent year; they will be put in a reserve pot and kept separate from the yearly budget.

3.4     No expenditure shall be incurred 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, or the requisite borrowing approval has been obtained.

3.5    All capital works shall be administered in accordance with the Council’s standing orders and financial regulations relating to contracts.


4. ACCOUNTING & AUDIT

4.1    All accounting procedures and financial records of the Council shall be determined by the Clerk as required by the Accounts and Audit Regulations 1996 as amended.

4.2    The Clerk shall be responsible for completing the annual financial statements of the Council as soon as practicable after the end of the financial year and shall submit them and report thereon to the Council. The Audit will be completed ready for checking at the AGM.

4.3    The Clerk shall be responsible for completing the Accounts of the Council contained in the Annual Return (as supplied by an auditor appointed from time to time by the Audit Commission) and for submitting the Annual Return.
 
4.4    The Clerk shall be responsible for ensuring that there is an adequate and effective system of internal audit of the Council Accounts in accordance with Regulation 5 of the Accounts and Audits Regulations 1996 as amended.

4.5    The Internal Auditor shall carry out the work required by the Clerk, or by the Council, with a view to satisfactory completion of the Internal Auditors Report section of the Annual Return as compiled annually by the Audit Commission.  The Internal Auditor, who shall be competent and independent of the operations of the Council, shall report to the Council in writing on a regular basis with a minimum of one annual report in respect of each financial year.

4.6    The Clerk shall make arrangements for the opportunity for inspection of the accounts, books and vouchers required by Audit Commission Act 1998, section 15 and the Accounts and Audit regulations 1996.

4.7    The Clerk shall, as soon as practicable, bring to the attention of all Councillors, any correspondence or report from the Internal or External Auditor, unless the correspondence is of a purely administrative matter.

5. BANKING ARRANGMENTS & CHEQUES

5.1.    The Council’s banking arrangements shall be made by the Clerk and approved by the Council.  They shall be regularly reviewed. 

5.2    A schedule of the payments required forming part of the agenda for the meetings shall be prepared by the Clerk and together with invoices be presented to the Council, if more appropriate the detail may be shown in the minutes of the meeting.

5.3    Cheques drawn from the bank account in accordance with the schedule (as in paragraph 5.2) or in accordance with paragraph 6.4, shall be signed by two members of the Council.

5.4    To indicate agreement of the details shown on the cheque or order for payment with the counterfoil and the invoice, the signatories shall initial each cheque counterfoil.


6. PAYMENT OF ACCOUNTS

6.1    All payments shall be effected by cheque, electronic transfer only when authorised by two council members or other order drawn on the Council bankers.

6.2    All invoices for payment shall be examined, verified and certified by the Clerk.  The Clerk shall be satisfied that the work, goods or services to which the invoice relates have been received, carried out, examined and approved.

6.3    The Clerk shall examine invoices in relation to arithmetical accuracy and take steps to settle all invoices submitted at the next Council meeting.


6.4    If a payment is necessary to avoid a charge of interest under the late payment of Commercial Debts (interest) Act 1998, and the due date for payment is before the next scheduled meeting, where the Clerk certifies that there is no dispute or other reason to delay payment the Clerk shall take all steps to settle the invoices provided that a list is submitted at the next meeting.

6.5    The Council will not maintain any form of cash float, all cash received must be banked intact.  Any payments made by the Clerk shall be refunded on a regular basis.
    

7. PAYMENT OF SALARIES

7.1    Salaries are agreed by the Council.

7.2    Payment of salaries may be made in accordance with the payroll records.  All payments shall be ratified at the next available Council meeting.  It is contractual that staff are responsible for their own tax, NI and pension deductions.


8. LOANS & INVESTMENTS

8.1    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.

8.2    The Council’s investment policy shall be in accordance with the Trustee Act 2000 and shall be reviewed on a regular basis.

8.3    All investments of money under control of the Council shall be in the name of the Council.

8.4    All borrowings shall be effected in the name of the Council, after obtaining borrowing approval.

8.5    All investment certificates and other documents relating thereto shall be retained in the custody of the Clerk.


9. INCOME

9.1    The collection of all sums due to the Council shall be the responsibility of and under the supervision of the Clerk.


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 by the Clerk and the Clerk shall be responsible for the collection of all accounts due to the Council.

9.3    The Council will review all fees and charges annually, 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 may be written off in the year.

9.5    All sums received on behalf of the Council shall be banked intact as directed by the Council.  In all cases, all receipts shall be deposited into the Council’s bank account.

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 Clerk shall promptly complete any VAT Return that is required.  Any repayment claim in accordance with VAT Act 1994 section 33 shall be made quarterly.

9.9    Where any significant sums of cash are regularly received by the Council, the Clerk shall take such steps as agreed by the Council and 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.

10. PURCHASES/SERVICES
    
10.1    An official order or letter shall be issued for all work, goods and services unless a formal contract is prepared or an official order would be inappropriate.  Copies of orders should be retained.

10.2    Order books shall be controlled by the Clerk.

10.3    All members and officers are responsible for obtaining value for money at all times.  An officer issuing an official order is to 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 provisions in Regulation 11 (I) below.


10.4    The Clerk 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 Clerk 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 made other than in an emergency.

b).    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.

c).    All tenders must be addressed to the Clerk in the ordinary course of post.  

d).    When entering into a contract of less than (£50,000) in value for the supply of goods or materials or for the execution of works or specialist services as are excepted as set out in paragraph a) the Clerk where possible shall obtain 3 quotations. Where the value is less than £2,000 the Clerk will strive to obtain 3 estimates.  Otherwise regulation 10 (3) above shall apply.

e).    The Council shall not be obliged to accept the lowest or any tender, quote or estimate.

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 Clerk 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 Clerk 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 by 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 notified to the contractor in writing by the Clerk, the Council being informed where the final cost is likely to exceed the financial provision.
13.    PROPERTIES & ESTATES

13.1    The Clerk shall make appropriate arrangements for the custody of all title deeds of properties owned by the Council.  The Clerk shall ensure a record is maintained of all properties owned 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 regulation 4(3)(b) of the Accounts and Audit regulations 1996 as amended.

13.2    No property shall be 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 £50.

14    INSURANCE

14.1    The Clerk will present an annual risk assessment to the Council. 

14.2    The Clerk shall give prompt notification to the Council of all new risks, properties or vehicles which require to be insured and of any alterations affecting existing insurances.

14.3    The Clerk shall keep a record of all insurances and claims on behalf of the Council

14.4    The Clerk shall be notified of any loss liability or damage or any event likely to lead to a claim, and shall report these to the Council at the next meeting.

14.5    All Councillors and appropriate employees of the Council shall be included in a suitable fidelity guarantee insurance which shall cover the maximum risk exposure as determined by the Council.

15.    RISK MANAGEMENT

15.1    The Clerk shall prepare and promote risk management policy statements in respect of activities of the Council.

15.2    When considering any new activity the Clerk shall prepare a draft Risk Management policy for the activity and shall bring a draft addressing the legal and financial liabilities and risk management issues that arise to the Council for consideration.

END