PAPER F

INDEX

General

Page 3

Annual Budget

Page 3

Budgetary Control

Page 3

Accounting and Audit

Page 4

Banking Arrangements and Cheques

Page 5

Payment of Accounts

Page 5

Payment of Salaries

Page 6

Loans and Investments

Page 7

Income

Page 7

10.

Contracts and Orders for Goods, Works and Services

Page 7

11.

Payments under Contracts Ordered Under Section 10

Page 8

12.

Assets, Properties and Estates

Page 8

13.

Insurance

Page 8

14.

Risk management

Page 9

15.

Local Government Transparency Code 2015

Page 9

Ryde Town Council - Financial Regulations - September 2020

PAPER F

RYDE TOWN COUNCIL

FINANCIAL REGULATIONS

These Financial Regulations were adopted by the Council at its Meeting held on 12^thMay

2008, and amended on 11 January 2010, 12 May 2014, 7 September 2015, 1 February 2016,

15 May 2017 and 13 May 2019.

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.

1.2

The Responsible Financial Officer (RFO) shall be appointed by the council. The RFO,

acting under the policy direction of the Council, shall administer the Council's financial

affairs in accordance with proper practices.

1.3

The RFO shall produce financial management information as required by the council.

1.4

Prior to approving the annual return the council shall conduct a review of the

effectiveness of its system of internal control which shall be in accordance with proper

practices. The review will take place on a annual basis

1.5

The council shall review these financial regulations annually. The Responsible

Financial Officer 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.

1.6

The Council may delegate some of its powers and responsibilities under these

Regulations to its Committees

ANNUAL BUDGET

The RFO shall prepare an annual budget not later than the end of November to be

2.1

considered by the council. This shall include where possible detailed estimates of

all receipts and payments including the use of reserves and all sources of funding

for the year’

2.2

The Council shall review the budget not later than the end of January each year and

shall fix the Precept to be levied for the ensuing financial year at its February or March

meetings. The RFO shall issue the precept to the billing authority and shall supply

2.3

each member with a copy of the approved budget.

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

BUDGETARY CONTROL

Expenditure on revenue items may be incurred up to the amounts included in the

3.1

approved budget.

No expenditure should be incurred that will exceed the amount provided in the

3.2

revenue budget for that class of expenditure. During the budget year and with the

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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. Any overspends will be reported to the

Finance Committee by the RFO.

3.3

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).

3.4

Unspent provisions in the revenue budget shall not be carried forward to

a subsequent year unless placed in an earmarked reserve by resolution of the

3.5

council.

No expenditure shall be incurred 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, or the requisite

3.6

borrowing approval has been obtained.

All capital works shall be administered in accordance with the Council's standing

orders and financial regulations relating to contracts.

ACCOUNTING AND AUDIT

4.1

All accounting procedures and financial records of the Council shall be determined

by the RFO in accordance with the Accounts and Audit Regulations 2003 or other

statutory instrument which may supersede those regulations.

4.2

The RFO shall complete the annual financial statements of the Council, including

the council’s annual governance and accountability return (AGAR) return, as soon

as practicable after the end of the financial year and in any case by the statutory

date and shall submit them and report thereon to the Council.

• The annual return is in four sections:

o The Annual Internal Audit report

o The Governance Statements

o The Accounting statements

o The External Auditor’s Certificate and Opinion

4.3

The RFO shall ensure that there is adequate and effective system of internal audit of

the Council's accounting, financial and other operations in accordance with proper

practices (regulation 5 of the Accounts and Regulations 2003). Any officer or member

of the Council shall, if the RFO or Internal Auditor requires, make available such

documents of the Council which appear to the RFO or Internal Auditor to be

necessary for the purpose of the internal audit and shall supply the RFO or Internal

Auditor with such information and explanation as the RFO or Internal Auditor

considers necessary for that purpose.

4.4

The Internal Auditor shall be appointed by and shall carry out the work required by

the council in accordance with proper practices. The Internal Auditor shall be

competent and independent of the operations of the Council, and the RFO shall

report the Auditors findings to Council in writing, or in person, on a regular basis, with

a minimum of one annual written report in respect of each financial year. In

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order to demonstrate objectivity and independence, the internal auditor shall be free

from any conflicts of interest and have no involvement in the financial decision

making, management or control of the council.

4.5

The council shall consider and act on any items appearing in the internal audit report

for the financial year just ended.

4.6

The council shall consider and act on any items appearing in the external audit report

for the financial year just ended.

4.7

Sections 1 and 2 of the Annual Return shall be completed and approved by the

council and signed and dated by the Chairman and the Clerk and the minute

reference recorded.

4.8

The RFO shall make arrangements for the opportunity for public inspection of the

accounts, books, and vouchers and for the display or publication of any Notices and

statements of account required by Audit Commission Act 1998 and the Accounts

and Audit Regulations.

4.9

The RFO shall, as soon as practicable, bring to the attention of all councillors any

correspondence or report from the Internal or External Auditor, unless the

correspondence is of a purely administrative nature.

BANKING ARRANGEMENTS AND CHEQUES

5.1

The Council's banking arrangements, including the Bank Mandate, shall be made by

the RFO and approved by the Council. They shall be regularly reviewed for efficiency.

5.2

Cheques drawn on the bank account shall be signed by two members of Council.

The signatories shall each also initial the cheque counterfoil. The authorised

signatories shall be the Mayor and Deputy Mayor, Chairman and/or Vice Chairman

of Finance Committee, Chairman and/or Vice Chairman of Planning Committee and

these will be approved each year by the Council at its AGM.

5.3

The RFO shall be a signatory for the Council’s banking arrangements and the

authorised person to undertake payments by electronic transfer. In the event of the

RFO being unavailable to make electronic payments, this will be undertaken by the

Clerk.

PAYMENT OF ACCOUNTS

6.1

Apart from petty cash, the normal method of payment of money due from the

Council shall be by cheque / Bacs/ direct debit or other order drawn on the Council's

bankers.

6.2

The Clerk and/or RFO have delegated authority to settle any invoice due the

Council. Before payment of accounts is made the Council's Officer responsible

must be satisfied that the goods have been received or works undertaken, are in

accordance with the specification, that the account is correctly made out and that

the relevant expenditure has been properly incurred. A list of all payments made

will be presented at the next Finance Committee meeting for noting.

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6.3

The Council will maintain a cash float not exceeding £250, transactions from which

will be recorded by the Clerk and RFO and reported to the Finance Committee with

the Annual Accounts. Cash payments made by staff will be refunded on a regular

basis, at least quarterly.

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. It

shall be the responsibility of the RFO to oversee and verify the payment of salaries

and for such payment to be approved by the council.

7.2

Variation in hours to basic salary payment shall be agreed by the Clerk and certified

payment made by arrangement through the RFO. Any changes to agreed hours will

be reported to the personnel panel.

7.3

The RFO should be notified of any excess in contractual hours and approval for

payment for these should be sought from the Clerk.

7.4

Payments of monthly salary will be made online by our approved payroll provider

on or near to the 15^thof each calendar month. The RFO (or Clerk) shall approve all

salary payments and release the funds for payment to payroll provider.

LOANS AND INVESTMENTS

8.1

All loans and investments shall be negotiated by the RFO in the name of the Council

and shall be for a set period in accordance with Council policy and should be reported

to the council for approval.

8.2

All investments of money under the control of the Council shall be in the name of the

Council.

8.3

All borrowings and application for borrowing approval shall be approved and be

affected in the name of the Council. The terms and conditions of borrowings shall be

reviewed at least annually.

8.4

All investment certificates and other documents relating thereto shall be retained in

the custody of the RFO.

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.

9.3

The Council will review all fees and charges annually, following a report of the RFO.

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9.4

Any sums found to be irrecoverable and any bad debts shall be reported to the

Council at the next meeting for consideration and appropriate action.

9.5

All sums received on behalf of the Council shall be banked intact within 1 week of

receipt by the RFO.

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.

CONTRACTS AND ORDERS FOR WORKS, GOODS AND SERVICES

10.1

Procedures to be followed for the procurement of goods, services and works are to

be in accordance with the Councils Contract Standing Orders and Procurement

Code of Practice which forms an Appendix to the Councils Standing Orders.

10.2

Every contract shall comply with these financial regulations. No exceptions shall be

made except for the exceptional circumstances detailed in the Contract Standing

Orders. In such cases a contract waiver form shall be completed for approval by Full

Council. The regulations shall not apply to contracts which relate to the following

items:

• For the supply of gas, electricity, water, sewerage and telephone services;

• For additional audit work of the external Auditor up to an estimated value of (£250)

(in excess of this sum the Clerk and RFO shall act after consultation with the

Chairman and Vice Chairman of Council);

10.3

The Clerk to the Council, or appointed Officer authorised by Full Council, shall have

delegated authority to procure and award goods, works or services to a maximum of

£10,000 per contract without prior approval of the Full Council, unless it is

considered that the goods, works or services being procured are of a politically

sensitive nature or are strategically important to the Council. In these circumstances

the authority of the Full Council will be required. In addition, the requirements of

Clause 1.1.10 of the Contract Standing Orders must be complied with for contracts

whose whole life value lies between £5,001 and £10,000.

11.

PAYMENTS UNDER CONTRACTS ORDERED UNDER SECTION 10

11.1

Payments in accordance with the contract shall be made within the time specified in

the contract by the RFO upon authorised certificates of the engineer, architect or

other appointed consultant(s) engaged to supervise the contract in the case or works

or services contracts, and upon the authority of the Clerk to the Council in the case

of goods or supplies up to the value of authority stated in clause 10.3 above (subject

to any percentage withholding as may be agreed in the particular contract).

11.2

Where contracts provide for payment by instalments the RFO shall maintain a record

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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 by 5% or more a report shall be submitted to the Council.

11.3

Not withstanding the provisions of clause 11.2 to these financial regulations any

variation to a contract or addition to or omission from a contract must first be

approved by the Full Council and confirmed in writing to the Contractor by the Clerk,

Full Council will also be informed where the final cost of a contract is likely to exceed

the financial provision.

ASSETS, PROPERTIES AND ESTATES

12.1

The Clerk shall make appropriate arrangements for the custody of all title deeds of

properties owned by the Council. The RFO shall ensure a record is maintained of all

properties owned by the 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 Accounts and Audit Regulations.

12.2

No property shall be 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

£100.

12.3

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.

12.4

The Town Council are required to publish information on Town Council land and

Properties in accordance with the requirements of the Local Government

Transparency Code 2015 (Refer to Clause 15 below)

INSURANCE

13.1

Following the annual risk assessment (per Financial Regulation 15), the RFO shall

effect all insurances and negotiate all claims on the Council's insurers and shall

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keep a record of all insurances effected by the Council and the property and risks

covered thereby and annually review it.

13.2

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.

13.3

The Clerk shall give prompt notification to the RFO of all new risks, properties or

vehicles which require to be insured and of any alterations affecting existing

insurances.

13.4

The RFO shall keep a record of all insurances effected by the Council and the

property and risks covered thereby and annually review it and report to council for

approval.

13.5

All appropriate employees of the Council shall be included in a suitable fidelity

guarantee insurance, which shall cover the maximum risk exposure as determined

by the Council.

RISK MANAGEMENT

14.1

The council is responsible for putting in place arrangements for the management of

risk. The RFO 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.

14.2

When considering any new activity, the RFO shall prepare a draft risk assessment

including risk management proposals for consideration and adoption by the council.

LOCAL GOVERNMENT TRANSPARENCY CODE 2015

15.1

The Town Council shall act in accordance with the Local Government

Transparency Code 2015 issued by the Secretary of State for Communities and

Local Government in exercise of his powers under section 2 of the Local

Government, Planning and Land Act 1980 (“the Act”) to issue a Code of

Recommended Practice (the Code) as to the publication of information by local

authorities about the discharge of their functions and other matters which he

considers to be related.

15.2

The Code does not replace or supersede the existing legal framework for access

to and re-use of public sector information provided by the:

• Freedom of Information Act 2000 (as amended by the Protection of Freedoms

Act 2012)

• Environmental Information Regulations 2004

• Re-use of Public Sector Information Regulations 2005

• Infrastructure for Spatial Information in the European Community (INSPIRE)

Regulations 2009, and

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• Sections 25 and 26 of the Local Audit and Accountability Act 2014 which

provide rights for persons to inspect a local authority’s accounting records and

supporting documentation, and to make copies of them.

15.2

The Town Council shall publish quarterly the following information:

• Expenditure exceeding £500

• Procurement information

15.3

The data and information referred to above will be:

• First published within a period of three months from the date on which the

Council last published that data under the Local Government Transparency

Code 2014 and no later than one month after the quarter to which the data and

information is applicable

• Publish the data and information quarterly thereafter and on each occasion no

later than one month after the quarter to which the data and information is

applicable.

15.4

Information to be published Quarterly

15.4.1

Expenditure exceeding £500

The Town Council will publish details of each individual item of expenditure that

exceeds £500. This includes items of expenditure consistent with Local

Government Association guidance, and will include:

• Individual invoices

• Grant payments

• Expense payments

• Payments for goods and services

• Grants

• Grant in aid

• Rent

• Credit notes over £500, and

• Transactions with other public bodies.

For each individual item of expenditure the following information will be

published:

• Date the expenditure was incurred

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• Local authority department which incurred the expenditure

• Beneficiary

• Summary of the purpose of the expenditure

• Amount

• Value Added Tax that cannot be recovered and merchant category (e.g.

computers, software etc).

15.4.2

Procurement information (Refer also to the Councils Contract Standing

Orders and Procurement Code of Practice)

The Town Council will publish details of every invitation to tender / quote for

contracts to provide goods and/or services with a value that exceeds £5,000.

For each invitation, the following details will be published:

• Reference number

• Title

• Description of the goods and/or services sought

• Start, end and review dates

The Council will also publish details of any contract, commissioned activity,

purchase order, framework agreement and any other legally enforceable

agreement with a value that exceeds £5,000. For each contract, the following

details will be published:

• Reference number

• Title of agreement

• Description of the goods and/or services being provided

• Supplier name and details

• Sum to be paid over the length of the contract or the estimated annual

spending or budget for the contract

• Value Added Tax that cannot be recovered

• Start, end and review dates

• Whether or not the contract was the result of an invitation to quote or a

published invitation to tender, and

Whether or not the supplier is a small or medium sized enterprise and/or a

voluntary or community sector organisation and where it is, provide the relevant

registration number.

15.5

Information to be Published Annually

15.5.1 Town Council Land and Properties

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The Council will publish details of all land and building assets including:

• All service and office properties occupied or controlled by user bodies,

both freehold and leasehold

• Any properties occupied or run under Private Finance Initiative contracts

• All other properties they own or use, for example, hostels, laboratories,

investment properties and depots

• Garages unless rented as part of a housing tenancy agreement

• Surplus, sublet or vacant properties

• Undeveloped land

• Serviced or temporary offices where contractual or actual occupation

exceeds three months, and

• All future commitments, for example under an agreement for lease, from

when the contractual commitment is made.

Information about the following land and building assets are to be excluded from

publication:

• Rent free properties provided by traders

The data and information in this Part will be:

First published within a period of one year from the date on which the Town

Council last published that data under the Local Government Transparency

Code 2014 and not later than one month after the year to which the data and

information is applicable.

Published annually thereafter and on each occasion not later than one month

after the year to which the data and information is applicable.

For each land or building asset, the following information must be published

together in one place:

• Unique Property Reference Number

• Unique asset

• Name of the building/land or both

• Street name - this is the postal road address

• Post town

• United Kingdom postcode

• Map reference

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15.5.2

Grants to Voluntary, Community and Social Enterprise

Organisations

The Town Council will publish details of all grants to voluntary, community and

social enterprise organisations. This will be achieved by either:

• Tagging and hence specifically identifying transactions which relate to

voluntary, community and social enterprise organisations within published

data on expenditure over £500 or published procurement information, or

• By publishing a separate list or register.

For each identified grant, the following information must be published as a

minimum:

• Date the grant was awarded

• Time period for which the grant has been given

• Local authority department which awarded the grant

• Beneficiary

• Beneficiary’s registration number

(Charity or Company Registration

Number)

• Summary of the purpose of the grant, and

• Amount.

15.5.3

Constitution

The Town Council shall make their Constitution available for inspection at their

offices under section 9 of the Local Government Act 2000, and also publish

their Constitution on their website.

Ryde Town Council - Financial Regulations - September 2020