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 Finance Officer (RFO) under the policy direction of the Council shall be responsible for the proper administration of the Council's financial affairs.
1.3
The RFO shall be responsible for the production of financial management information.
1.4
Where a statute, regulation or oder confers a function or duty on the 'Responsible Financial Officer', that person shall be the Clerk to the Council.

2.

ANNUAL ESTIMATES

2.1
Each Committee should formulate and submit spending proposals to the Management and Policy Committee in respect of revenue and capital for the following financial year not later than the end of November each year.
2.2
A draft budget shall be prepared by the RFO not later than the end of December in each year.
2.3
During each year the Council shall set the precept to be levied for the ensuing financial year.
2.4
The budget shall form the basis of the financial control for the ensuing financial year.

3.

BUDGETARY CONTROL

3.1
The RFO shall provide the Council with a statement of income and expenditure as requested.
3.2
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 of £3,000. The Clerk shall report the action taken to the Council (or the appropriate Committee) as soon as practicable thereafter.
3.3
The RFO should provide petty cash to officers for the purpose of defraying operational and other expenses. Vouchers for payments made shall be forwarded to the RFO with a claim for reimbursement.
a)
The RFO shall maintain a petty cash float of £250 for the purpose of defraying operational and other expenses. Vouchers for payments made from petty cash shall be kept to substantiate the payment.
b)
Income received must not be paid into the petty cash float but must be separately banked, as provided elsewhere in these regulations.
c)
Payments to maintain the petty cash float shall be shown separately on the schedule of payments presented to Council for approval.

3.4
No expenditure shall be incurred in relation to any capital project and no contracts entered into or tender accepted 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 (as amended) 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 31st July 2008 and 30th June for subsequent years 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 audit of the Council’s accounting, financial and other operations in accordance with regulation 5 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 (or the appropriate Committee) and if in order shall be authorised for payment by a Council or Committee resolution.

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 as appropriate.

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 and arrange for such payment to be made via the Business Payments Service of the Council’s banker.
7.2
All time sheets shall be examined by the RFO to ensure that they have been signed and duly certified that such time has been worked.

8.

LOANS AND INVESTMENTS

8.1
All loans and investments shall be negotiated by the RFO in the name of the Council after approval by the Council 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.

PROCUREMENT OF WORKS, GOODS AND SERVICES

10.1
The following provisions shall apply:
A.
Up to £1,000 – obtain prices informally to demonstrate value for money.
B.
£1,001 - £5,000 – obtain at least two written quotations.
C.
£5,001 - £50,000 – obtain at least three written quotations based on a detailed specification.
D.
£50,001 and above –the tender procedure rules set out below shall apply.

10.2
In respect of A, B and C above an official order or letter shall be issued and a copy retained on file.
10.3
Where it is intended to enter into a contract exceeding £50001 in value for the supply of goods, works or services, the Clerk shall invite formal tenders from at least five suppliers in accordance with the following procedure:
a)
The invitation to tender shall state the general nature of the intended contract and the Clerk shall prepare (with whatever technical assistance he/she may require) a detailed specification on which the tenders are to be based.
b)
Tenders shall be invited after giving at least 21 days public notice in at least one local newspaper and in such trade journals as the Clerk considers appropriate (where a tender falls under the scope of EC Procurement Rules, their timescales and advertising requirements shall apply).
c)
Tenders are to be sent to the Clerk to the Council in a sealed, marked envelope by a specific date and time after which they will be opened by the Clerk in the presence of at least one Member of the Council.
d)
Tenders are then to be assessed and reported to Council for consideration.
e)
Any invitation to tender shall contain a statement that the Council is not obliged to accept the lowest or any tender.
10.4
Every order or contract shall comply with these Financial Regulations except in an emergency or for the following:
(i)
For the supply of gas, electricity, water, sewerage and telephone services;
(ii)
For specialist services such as are provided by solicitors, accountants and surveyors.
(iii)
For work to be executed or goods 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 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 £2,000 (in excess of this sum the Clerk and shall act after consultation with the Chairman and Vice-Chairman of Council);
(vi)
For goods proposed to be purchased which are proprietary articles and/or are only sold at a fixed price.

11.

INSURANCE

11.1
The RFO shall be responsible for effecting 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.

RISK MANAGEMENT

12.1
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 risk management arrangements shall be reviewed at least once a year by the Council.
12.2
When considering any new activity, the Clerk shall prepare a draft risk assessment including risk management proposals for consideration and adoption by the Council.

13.

REVISION OF FINANCIAL REGULATIONS

13.1
It shall be the duty of the Council to review these financial regulations annually.