LEGAL TOPIC NOTE 55

THE NATIONAL ASSOCIATION OF LOCAL COUNCILS
109 GREAT RUSSELL STREET LONDON WC1B 3LD

Model Financial Regulations 2020 version 4

Millom without PARISH COUNCIL

FINANCIAL REGULATIONS
AMENDMENTS

DATE AMENDMENT VERSION

January
2021

1. General
1.1 Addition of 1 sentence re governing policies
1.9 Definition of the role of RFO redefined

2. Accounting and Audit (Internal and External)
2.4 Changes to titles of responsibility
2.7 and 2.8 Changes to the definition of Internal and
External Auditors
2.10 removal of sentence “unless the correspondence is
of a purely administrative nature”

3 Annual Estimates (Budget)
heading to include “Forward Planning” which includes a
requirement in 3.2 for a 3 year budget forecast on
revenue spending

4. Budgetary Control and Authority to Spend. This
section has been totally rewritten

5. Banking Arrangements and Authorisation of Payments
Changes to 5.5 addition of sections b and c
New sections 5.6, 5.7, 5.8, 5.10, 5.11

6. change of title to “Instructions for the making of
payments”

9 Income
9.2 removed and a new definition included
9.5 removed and a new definition included
9.9 new – re cash handling

10 Orders for Works Goods and Services
New 10.2 re responsibility for the issuing of orders

11 Contracts
11.1a(ii) change to definition of legal professionals
Removal of all other definitions and restructuring and
addition of 11.1(b) through to (j)

August
2023

4.1 addition responsibility for Clerk for items below £500 4

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MILLOM WITHOUT PARISH COUNCIL

FINANCIAL REGULATIONS

January 2021

Amendments Approved on 4 September 2023

INDEX

1. GENERAL .................................................................................................................. 3

2. ACCOUNTING AND AUDIT (INTERNAL AND EXTERNAL) .................................................. 6

3. ANNUAL ESTIMATES (BUDGET) .................................................................................. 7

4. BUDGETARY CONTROL AND AUTHORITY TO SPEND ..................................................... 7

5. BANKING ARRANGEMENTS AND AUTHORISATION OF PAYMENTS .................................. 8

6. PAYMENTOF ACCOUNTS ............................................................................................ 8

7. PAYMENT OF SALARIES ........................................................................................... 12

8. LOANS AND INVESTMENTS ....................................................................................... 13

9. INCOME .................................................................................................................. 13

10. ORDERS FOR WORK, GOODS AND SERVICES ............................................................. 14

11. CONTRACTS ............................................................................................................ 15

12. PAYMENTS UNDER CONTRACTS FOR BUILDING OR OTHER CONSTRUCTION WORKS .... 16

13. ASSETS, PROPERTIES AND ESTATES ........................................................................ 16

14. INSURANCE ............................................................................................................. 17

15. CHARITIES .............................................................................................................. 18

16. RISK MANAGEMENT ................................................................................................. 18

17. SUSPENSION AND REVISION OF FINANCIAL REGULATIONS ......................................... 18

These Financial Regulations were approved by the Council at its Meeting held on1 March 2021

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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 and the Internal Financial Control
System.

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;

• acts under the policy direction of the council;

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• 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.

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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 £500; 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).

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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 or a cheque signatory 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 any 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

• have 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.

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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 The Clerk must each year, by no later than the end of 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 council.

3.2 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.

3.3 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.

3.4 The approved annual budget shall form the basis of financial control for the ensuing
year.

4 BUDGETARY CONTROL AND AUTHORITY TO SPEND (whole section)

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 £500;
• a duly delegated committee of the council for items over £500; or
• 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

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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 in 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 £250. 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

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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 ruled off and initialled by the Chairman of the Meeting. A detailed
list of all payments shall be disclosed within 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 Clerk 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 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 [or finance committee]; or
c) fund transfers within the councils banking arrangements up to the sum of
£10,000, provided that a list of such payments shall be submitted to the next
appropriate meeting of council or finance committee.

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 [or Finance Committee].

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.

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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.

5.11. Any changes in the recorded details of suppliers, such as bank account records,

shall be approved in writing by a Member.

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 effected 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 (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

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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.

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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/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 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 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 (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.

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7.6 Any termination payments shall be supported by a clear business case and reported
to the council. Termination payments shall only be authorised by council.

7.7 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 (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/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.

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9.3. The council will review all fees and charges at least 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 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.

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 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.

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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 bylegal 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/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 Regulations1.

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)2.

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 one member of council.

1 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
2 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)

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g) Any invitation to tender issued under this regulation shall be subject to Standing
Orders[ ], 3[insert reference of the council’s relevant standing order] 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 [£100] 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.

13 ASSETS, PROPERTIES AND ESTATES

13.1 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

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payable and purpose for which held in accordance with Accounts and Audit
Regulations.

13.2 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.

13.3 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).

13.4 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).

13.5 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.

13.6 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.

14 INSURANCE

14.1 Following the annual risk assessment (per Regulation 17), the RFO shall effect all
insurances and negotiate all claims on the council's insurers.

14.2 The RFO 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 effected by the council and the property
and risks covered thereby and annually review it.

14.4 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.

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14.5 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 by the council.

15 CHARITIES

15.1 Where the council is sole managing trustee of a charitable body the Clerk/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 shall arrange for any audit or independent examination as may be required by
Charity Law or any Governing Document.

16 RISK MANAGEMENT

16.1 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.

16.2 When considering any new activity, the Clerk shall prepare a draft risk assessment
including risk management proposals for consideration and adoption by the council.

17 SUSPENSION AND REVISION OF FINANCIAL REGULATIONS

17.1 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.

17.2 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.