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BRETTON PARISH COUNCIL - FINANCIAL REGULATIONS
1. General These Financial Regulations have been prepared as a supplement to the Council's Standing Orders and apply to all of its financial transactions. The Financial Regulations are based on the assumption that the Parish Clerk will also be acting as Responsible Financial Officer (RFO). All references are therefore to the RFO. If these two offices are split, the Council will need to determine how the responsibilities should be divided. 2. Accounting system and statement of accounts The
RFO will be responsible for maintaining up to date accounting records. 3. Allowances and expenses Allowances and expenses claimed by members and employees will be paid only in accordance with procedures adopted by the Council, and are not to exceed nationally agreed rates. All approved allowances and expenses must be claimed within three months of the allowance or expense becoming due. Expense claims should include relevant invoices, showing VAT where possible. 4. Audit The RFO will be responsible for liasing with the external auditor appointed by the Audit Commission, including: "
Exhibiting statutory notices. The Council will appoint a suitable Internal Auditor, who will: "
undertake relevant checks during the course of the year 5. Bank accounts The RFO is to make arrangements to open such bank accounts as the Council may direct, which will normally include a current account, a "no notice" deposit account and a deposit account subject to notice. At least every three years, the Finance Committee is to consider the adequacy and cost of the Council's banking arrangements, and to decide whether to obtain quotations for future banking services. Cheques and orders for other forms of payment shall be signed by two members of the Council from amongst those on the authorised list of signatories approved by the Council. The RFO (and Parish Clerk, if separately appointed) will not be authorised signatories. The RFO shall be responsible for the security of cheques and passwords relating to the Council's bank accounts. The RFO will monitor cash flow and transfer funds between accounts as necessary to maximise interest income. At monthly intervals, the RFO will reconcile the Council's bank accounts to the Cash Book, taking such follow up action as may be necessary, e.g. in relation to unpresented cheques. 6. Budget preparation The RFO is to prepare a draft budget statement by 30 November each year for submission to the Finance Committee, with columns showing the original and revised estimates for the current financial year and the initial estimates for the next financial year. The budget statement is also to show the Council's estimated balance in hand at the end of the current year and at the end of the next financial year. The Finance Committee will consider the draft budget and make recommendations to the Council, including as to the level of provision to be made for grants and for capital expenditure. It will also recommend the extent of the precept required, allowing for a reasonable level of balances to be retained. The full Council will consider and approve the budget in time for the RFO to notify the precept to Peterborough City Council by the required date. At regular intervals (not less than three times each year) the RFO will prepare a budgetary control statement to the Finance Committee, setting out actual income and expenditure compared against the annual budget. The Finance Committee will examine each budgetary control statement and present it to the Council with any appropriate recommendations. 8. Contracts and orders All goods and services required by the Council shall be obtained following the placing of an official order by the RFO (except where the Council is follows the procedures set out in paragraphs 8.6 and 8.7). Prior to placing any order, the RFO will check that the proposed purchase is within budget. The RFO will be responsible for ensuring that best value is obtained from all purchases. The Council will make use where possible and appropriate of suppliers selected by the Eastern Shires' Purchasing Organisation (ESPO) or of those selected by Peterborough City Council (PCC) following competitive tendering, (subject to the Parish Council receiving equivalent terms). For larger value items, where it is not possible to use ESPO or PCC suppliers, the following arrangements will apply: " For items costing between £500 and £1,000 the RFO will obtain and record competitive quotations from at least three recognised suppliers. " For items costing between £1,000 and £10,000, the RFO will prepare a specification of the Council's requirements against which written quotations will be requested from at least three recognised suppliers. The quotations received will be reported to the Council for decision. Where the value of the intended contract is expected to exceed £10,000 and where the use of an ESPO or PCC supplier is not appropriate, the Council will obtain legal advice as to the procedures that should be adopted. This advice will cover matters such as advertising the Council's intentions, information to be obtained from potential tenderers, selection of tenderers, arrangements for the return and opening of tenders, notification of award of the contract and completion of contract documentation. The full Council will make decisions on the award of such contracts after consideration of a written report. Circumstances may arise where the Council is unable to obtain competitive tenders or quotations in accordance with the above procedures, or to use an ESPO or PCC supplier, or where, after considering a specific report, it decides that such arrangements will not provide best value. In such cases, the Council may proceed as it thinks fit, but subject to the overriding requirement to obtain best value for the public and to recording in its minutes the reasons why a particular course of action has been adopted. 9. Financial records The Council's financial records will normally be kept for six years, except that statements of account, cash books, contracts under seal, and all information relating to any land transactions or loans must be kept indefinitely. 10. Grants to individuals and organisations Grants will be made in accordance with policies agreed by the Council and only to residents of Bretton or to organisations that exist wholly or mainly for the benefit of Bretton. Grants will not normally be awarded to any organisation operated with a view to profit. The Finance Committee may decide on grant applications involving expenditure of less than £500, which are in accordance with Council policy. The Committee will make recommendations to the Council in respect of other applications. If the Council decides to give a grant outside of the terms of its agreed policy on an exceptional basis, the reasons for the decision are to be recorded in the minutes. Where possible, the RFO is to arrange for invoices for equipment, etc. that is subject to grant aid to be addressed to the Council and paid by the Council direct to the supplier. Where this is not feasible, receipts for money spent must be obtained from the grant aided organisation or individual as soon as possible. 11. Income The Council may decide on the charges to be made in respect of any of the services it provides, and on any exemptions or reliefs applying to such charges. The RFO will be responsible for billing and collecting such charges and any other income due to the Council. All income received is to be to be banked intact as soon as possible. An official receipt must be given in respect of any cash income. Any decision to remit or write off income is to be made by the Council on receipt of a report from the RFO. Any
surplus equipment is to be disposed of to the highest bidder or at
the best price reasonably obtainable, following a procedure to be
determined by the Council in each case. The Council may decide to
donate surplus items of little cash value to local organisations or
charities. The RFO will report to the Finance Committee annually on the extent of risks faced by the Council, action needed to manage such risks, and the extent of insurance cover required. The Committee will report to the Council, including advice as to whether competitive insurance quotations should be sought. Any occurrence that may give rise to an insurance claim must be promptly reported to the RFO, who will advise the Council's insurers as soon as possible. Where a contractor is employed to undertake works or services for the Council, the RFO will obtain evidence that the contractor has in place adequate public liability insurance cover. 13. Irregularities Any member or employee of the Council who suspects that financial irregularity may have taken place in relation to its affairs must report such suspicions to the Chairperson as soon as possible. The Chairperson will then consult with the Internal Auditor and authorise appropriate action. The Internal Auditor will report to the Council as to the outcome of investigations. 14. Leasing of equipment Any decision to enter into a lease or hire arrangement shall be made by the Council following the consideration of a report setting out the financial implications over the full term, including any termination payment. 15. Legal powers The RFO is responsible for establishing that legal powers exist for all proposed expenditure or grants before commitments are made. If there is any doubt, advice must be sought from CALC or NALC. 16. Loans If the Council wishes to take out a loan to finance capital expenditure, it must ensure that relevant statutory authority is obtained. A report must be made to full Council setting out the relevant terms of the proposed loan and the annual expenditure that will be incurred over the whole term of the loan. 17. Payments The RFO will lay before the Council all accounts for payment and claims against the Council, except as provided for in paragraph 17.2. Where it is necessary to make a payment before it has been authorised by the Council, the RFO shall certify its correctness and urgency. Payment can then be authorised by the relevant committee (within their spending limits), or by the Chairperson or Vice Chairperson (acting together). A member may be nominated at the Council's AGM as a substitute for this purpose in the absence of the Chairperson or Vice Chairperson. The RFO will include any items approved under the terms of this paragraph in the payment report to the next meeting of the Council. The RFO will report to the Council or Finance Committee to seek instructions in relation to any outstanding invoice, which is subject to dispute. 18. Payroll and superannuation The Council will determine the salary range applicable to any post prior to advertisement. Any proposal to regrade a post or to make additional payments must be considered by full Council prior to implementation. The Council will take any decisions to settle employment claims or to award discretionary redundancy payments or superannuation benefits, only after considering a written report from a suitably qualified external adviser. 19.
Purchasing card 20. Taxation (PAYE and VAT) 20.1 The RFO will be responsible for ensuring that arrangements are made so that all PAYE payments and returns (Income Tax and National Insurance) are correctly assessed and forwarded to the Inland Revenue within the required deadlines. 20.2 The RFO will identify separately all VAT incurred by the Council and will lodge claims for reimbursement from HM Customs and Excise at no more than six monthly intervals. |