1 General
1.1 These financial regulations shall govern the conduct of the financial transactions of the Parish Council and may only be amended or varied by resolution of the Parish Council.
1.2 The Responsible Financial Officer (RFO) shall be the Clerk, to be confirmed annually.
1.3 The RFO shall, under the direction of the Finance Committee, be responsible for the proper administration of the Parish Council's financial affairs.
1.4 The RFO shall be responsible for the production of the financial management information.
Top of page
2. Annual Estimates
2.1 Each committee shall formulate and submit proposals to the Finance Committee in respect of revenue services and capital projects for inclusion in the rolling capital programme not later than the end of November each year.
2.2 Detailed estimates of income and expenditure on revenue services and of capital expenditure shall be prepared each year by the RFO.
2.3 The Finance Committee shall review the estimates and submit them to the Parish Council not later than the end of January in each year and shall recommend the precept to be levied for the ensuing financial year. The RFO shall supply each member with a copy of the approved estimates.
2.4 The annual capital and revenue budgets shall form the basis of financial control for the ensuing year.
Top of page
3. Budgetary Control
3.1 Expenditure on the revenue account may be incurred up to the amounts included in each approved committee budget.
3.2 No expenditure may be incurred which cannot be met from the amount provided in the appropriate committee revenue budget unless a virement has been approved by the Finance Committee or the Parish Council.
3.3 The RFO shall at each meeting of the Finance Committee provide its members with a financial statement to the end of the previous month together with a cash flow report and a budget report under each head of the approved annual revenue and capital budgets.
3.4 The Clerk may incur expenditure on behalf of the Parish Council which is necessary to carry out any repair, replacement or other work which is of such extreme urgency that it must be done at once, whether or not there is any budgetary provision for the expenditure, subject to a limit of £1,000. The Clerk shall endeavour to obtain the approval of the Chairman and Vice Chairman of the Parish Council prior to taking action and failing this being possible shall report the action to the Chairman and Vice Chairman of the Parish Council as soon as practicable thereafter.
3.5 Where expenditure is incurred in accordance with Regulation 3.4 above and the sum required cannot be met from savings elsewhere within the head of the approved budget, it shall be subject to the provisions of a supplementary estimate approved by the Finance Committee or the Parish Council.
3.6 Unspent provisions in the revenue budget shall not automatically be carried forward to a subsequent year.
3.7 No expenditure shall be incurred in relation to any capital project and no contract entered into or tender accepted involving expenditure on capital account unless the committee concerned is satisfied that it is contained in the rolling capital programme and that the necessary capital funds are available, or the requisite borrowing approval can be obtained.
3.8 All capital works shall be administered in accordance with the Parish Council's Standing Orders and Financial Regulations relating to contracts.
Top of page
4. Accounting and Audit
4.1 All accounting procedures and financial records of the Parish Council shall be adhered to by the RFO as required by the Accounts and Audit Regulations 2003 & Accounts and Audit (Amendment) (England) Regulations 2006.
4.2 The RFO shall be responsible for completing the annual accounts of the Parish Council as soon as practicable after the end of the financial year and shall submit them to and report thereon to the Finance Committee.
4.3 The RFO shall be responsible for maintaining an adequate and effective system of internal audit of the Parish Council's accounting, financial and other operations in accordance with Regulation 6 of the Accounts and Audit Regulations 2003.
Top of page
5. Banking Arrangements and Cheques
5.1 The Parish Council's banking arrangements shall be recommended by the RFO and approved by the Finance Committee. One general current account shall be maintained at the bank.
5.2 A schedule of the payment of money shall be prepared by the RFO and together with the relevant invoices etc. presented to the Finance Committee or Parish Council as appropriate. If the schedule is in order the cheques and counterfoils shall be signed by two authorised Parish Councillors and the Clerk.
Top of page
6. Payment of Accounts
6.1 All payments shall be effected by cheque or other order drawn on the Parish Council's bankers.
6.2 All invoices for payment shall be examined and verified by the RFO and allocated to the appropriate expenditure head. The RFO shall take all possible steps to settle all invoices submitted, and which are in order, according to the terms of the agreed contract.
6.3 All verified invoices will then be entered on the schedule referred to in Regulation 5.2 above.
Top of page
7. Payment of Salaries and Wages
7.1 All time sheets shall be verified by or on behalf of the Clerk.
7.2 Salaries and wages shall be prepared by the RFO in accordance with the payroll records and entered on the schedule referred to in Regulation 5.2 above.
Top of page
8. Loans and Investments
8.1 All loans and investments shall be recommended by the RFO in the name of the Parish Council on instruction from and for approval of the Finance Committee.
8.2 All investments of money under the control of the Parish Council shall be in the name of the Parish Council.
8.3 All borrowings shall be affected in the name of the Parish Council.
8.4 All investment certificates and other documents relating thereto shall be retained in the custody of the RFO.
Top of page
9. Income
9.1 The collection of all sums due to the Parish Council shall be the responsibility of and under the supervision of the RFO.
9.2 The relevant committees of the Parish Council will review all fees and charges annually following a report by the Clerk. A subsequent recommendation will be presented to the Parish Council.
9.3 Any bad debts shall be reported to the Finance Committee for appropriate action to be taken.
9.4 All sums received on behalf of the Parish Council shall be deposited with the Parish Council's bankers by the RFO at the earliest opportunity.
Top of page
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, e.g. postage. Copies of orders issued shall be maintained.
10.2 Orders shall be controlled by the RFO.
10.3 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.
Top of page
11. Contracts
11.1 Wherever practicable, the principle of competitive tendering will be applied.
11.2 Notwithstanding the above, where it is intended to enter into a contract:
11.2.1 Exceeding £2,500 in value for the supply of goods or materials for the execution of works or specialist services the Clerk shall invite tenders from at least three firms.
11.2.2 For expenditure of £2,500 or less in value the Finance Committee shall have executive power.
11.3 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 always contain the commercial terms and, in addition, state that tenders must be addressed to the Clerk and the last date by which such tenders shall reach the Clerk in ordinary course of post.
11.4 If less than three tenders are received for contracts valued above £2,500 or if all the tenders are identical the Parish Council may make such arrangements as it thinks fit for procuring the goods or materials or executing the works, the minutes reflecting its reason.
11.5 The Parish Council shall not be obliged to accept the lowest or any tender.
Top of page
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 the authorisation of the Clerk or such other consultants engaged to supervise the contract.
12.2 Where contracts provide for payment by instalments the RFO shall maintain a record of all such payments. In any case when it is estimated that the total cost of work carried out under a contract, excluding fluctuation clauses, will exceed the contract sum by 5% or more a report shall be submitted to the appropriate committee.
12.3 Any variation to a contract or addition to or omission from a contract must be approved by the Clerk or the appropriate consultant in writing, the Finance Committee having approved the action.
Top of page
13. Stores and Equipment
13.1 The Clerk shall be responsible for the care and custody of stores and equipment.
13.2 Delivery notes must be obtained in respect of all goods received and goods must be checked as regard quality at the time delivery is made.
13.3 Stocks shall generally be maintained at the minimum levels consistent with operation requirements.
Top of page
14. Properties and Estates
14.1 The Clerk shall make appropriate arrangements for the study of all title deeds of properties owned by the Parish Council. The RFO shall ensure a record is maintained of all properties owned by the Parish 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 5(3)(b) of the Accounts and Audit Regulations 2003.
14.2 No property shall be sold, leased or otherwise disposed of without the authority of the Parish Council, save where the estimated value of any one item does not exceed £500.
Top of page
15. Insurance
15.1 The RFO shall affect all insurances and negotiate all claims on the Parish Council's insurers.
15.2 The RFO shall give prompt notification to the Finance Committee 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 affected by the Parish 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.
15.5 All appropriate employees of the Parish Council shall be included in a suitable fidelity guarantee insurance.
Top of page
16. Revision of Financial Regulations
16.1 It shall be the duty of the Finance Committee to review the Financial Regulations of the Parish Council from time to time and to make such recommendations to the Parish Council as the committee considers are required.
Financial Regulations revised: March 2011 |
