Financial regulations

1. General

1.1 These financial regulations shall govern the conduct of the financial transactions of the Council and shall only be amended by resolution of the Council.
1.2 The Responsible Financial Officer (RFO) under the policy direction of the Council shall be responsible for the proper administration of the Council’s financial affairs. The appointment of an RFO does not mean that Council members then have no responsibility for the financial health of the Council – they remain accountable for ensuring the financial viability of the Council.
1.3 The RFO shall be responsible for the production of financial management information.

2. Annual Estimates

2.1 An annual budget recommendation shall be prepared by the Finance and General Purposes Working Group and submitted to the Parish Council. A final budget will be agreed by the Council not later than the end of December in each year.
2.2 At the latest by January of each year the Council shall agree a precept to be levied for the ensuing year.
2.3 The budget shall form the basis of the financial control for the ensuing year.

3. Budgetary Control

3.1 The Council will determine revenue expenditure giving due regard to the annual budget.
3.2 The RFO shall provide the Council with a statement of income and expenditure at each Council meeting and as requested at other times.
3.3 The Clerk may incur expenditure on behalf of the Council which is necessary to carry out any repair replacement or other work which is of such urgency that, in the opinion of the Clerk, it must be done at once, whether or not there is budgetary provision, subject to a financial limit totalling no more that £200 in the period between meetings. The Clerk shall report the action taken to the Council as soon as practicable thereafter.
3.4 No expenditure shall be incurred in relation to any capital project and no contracts entered into or tender accepted involving expenditure on capital account unless the Council is satisfied that the necessary funds are available, or the requisite borrowing approval can be obtained.

4. Accounting and Audit

4.1 All accounting procedures and financial records of the Council shall be determined by the RFO as required by the Accounts and Audit Regulations 2003 or other Statutory Instrument which may supersede those Regulations.
4.2 The RFO shall be responsible for completing the annual accounts of the Council as soon as practicable after the end of the financial year and in any case by the statutory date of 30 June and submit such accounts and report thereon to the Council.
4.3 The RFO shall be responsible for maintaining an adequate and effective system of internal and external audit of the Council’s accounting, financial and other operations in accordance with regulation 6 of the Accounts and Audit Regulations 2003.

5. Banking Arrangements

5.1 The Council’s banking arrangements shall be made by the RFO and approved by the Council.
5.2 Relevant invoices shall be presented to the Council and if in order shall be authorised for payment by the Council.
5.3.1 The Council will authorise three Councillors to sign cheques on its behalf. Cheques drawn on the Council ’s bank accounts shall be signed by two of the three authorised Councillors.
5.3.2 The RFO will reconcile the Council’s bank statement monthly against receipts and expenditure as recorded in the cash book and financial spreadsheet. The most recent bank account statement together with an updated financial spreadsheet will be provided to Councillors by the RFO at each Council meeting.

6. Payment of Accounts

6.1 All payments shall be effected by cheque or by direct debit drawn on the Council’s bankers.
6.2 All invoices for payment shall be examined verified and certified by the RFO as evidenced by the presentation to Council for payment. Before such certification the RFO shall be satisfied that the works, goods or services to which the invoice relates have been received, carried out, examined and approved.

7. Payment of Salaries and Wages

7.1 It shall be the responsibility of the RFO to calculate payment of salaries and wages in accordance with the rates in force, to deduct NI and Income Tax where appropriate, and arrange for such payment to be made in accordance with Section 6 above.

8. Loans and Investments

8.1 All loans and investments shall be negotiated by the RFO in the name of the Council and then put to the Council for endorsement and shall be for a set period of time in accordance with Council policy.
8.2 All investments of money under the control of the Council shall be in the name of the Council.
8.3 All borrowings shall be in the name of the Council.
8.4 All investment certificates and other documents relating thereto shall be retained in the custody of the RFO.

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 Any bad debts shall be reported to the Council.
9.3 All sums received on behalf of the Council shall be banked with such frequency as the RFO considers necessary.

10. Contracts

10.1 An invitation to tender shall detail the intended work or service to be provided and subsequent tenders shall be required to be delivered in sealed envelopes. All tenders for the same work shall be opened at the same time by a minimum of two persons as the Council may direct.
10.2 The Council shall decide from time to time a financial limit for work to be carried out or service provided above which tenders shall be sought.
10.3 The Council shall not be obliged to accept the lowest or any tender.

11. Insurance

11.1 The RFO shall be responsible for affecting all insurance and negotiating all claims against the Council’s insurers.
11.2 The RFO shall give prompt notification to the Council of all new risks and of any amendments affecting existing cover.
11.3 All appropriate employees of the Council shall be included in suitable fidelity guarantee cover.

12. Revision of Financial Regulations

12.1 It shall be the duty of the Council to review these financial regulations annually.

Revised 10th March 2008