1. General 2
2. Accounting and audit (internal and external) 4
3. Annual estimates (budget) and forward planning 6
4. Budgetary control and authority to spend 6
5. Banking arrangements and authorisation of payments 8
6. Instructions for the making of payments 9
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] 17
13. [Stores and equipment] 17
14. Assets, properties and estates 17
15. Insurance 18
16. [Charities] 18
17. Risk management 19
18. Suspension and revision of Financial Regulations 19
These Financial Regulations were adopted by the council at its meeting held on .
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 orders1 and any individual financial
regulations relating to contracts.
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 Model Standing Orders for Councils (2018 Edition) is available from NALC (©NALC 2018)
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;
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.
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 £5,000; 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).
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 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
has 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.
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.
3.2. The RFO must each year, by no later than November, 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.
3.3. 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.
3.4. 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.
3.5. The approved annual budget shall form the basis of financial control for the
ensuing year.
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];
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.
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 £500. 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.
5.1. 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 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 or as an attachment to 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 RFO 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 and RFO 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
c) fund transfers within the councils banking arrangements up to the sum of
£500, provided that a list of such payments shall be submitted to the next
appropriate meeting of council.
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 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.
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.
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.
6.1. 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 affected 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 or committee meeting (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 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.
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 two of the Clerk/RFO and a member. 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/RFO 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. A pre-paid debit card may be issued to employees with varying limits. These limits
will be set by the council [Finance Committee]. Transactions and purchases made will
be reported to the [council] [relevant committee] and authority for topping-up shall be
at the discretion of the [council] [relevant committee].
6.20. Any corporate credit card or trade card account opened by the council will be
specifically restricted to use by the Clerk [and RFO] and shall be subject to automatic
payment in full at each month-end. Personal credit or debit cards of members or staff
shall not be used under any circumstances.
6.21. 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/RFO (for example for postage
or minor stationery items) shall be refunded on a regular basis, at least quarterly.
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.
7.6. An effective system of personal performance management should be maintained
for the senior officers.
7.7. Any termination payments shall be supported by a clear business case and
reported to the council. Termination payments shall only be authorised by council.
7.8. Before employing interim staff, the council must consider a full business case.
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/Welsh Assembly Government (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 or 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).
9.1. 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 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.
[9.10. Any income arising which is the property of a charitable trust shall be paid into a
charitable bank account. Instructions for the payment of funds due from the charitable
trust to the council (to meet expenditure already incurred by the authority) will be
given by the Managing Trustees of the charity meeting separately from any council
meeting (see also Regulation 16 below).]
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 11.1 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.
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 by legal 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 and 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
Regulations2.
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)3.
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.
g) Any invitation to tender issued under this regulation shall be subject to
Standing Orders[ ], 4[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).]
4 Based on NALC’s Model Standing Order 18d ©NALC 2018
[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.]
14.1. 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 payable and purpose for which held in accordance with Accounts and Audit
Regulations.
14.2. 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].
14.3. 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).
14.4. 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).
14.5. 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.
14.6. 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.
15.1. Following the annual risk assessment (per Regulation 17), the RFO shall effect all
insurances and negotiate all claims on the council’s insurers.
15.3. The RFO shall keep a record of all insurances effected by the 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, and shall report these to council at the next available meeting.
15.5. 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 [annually] by the council, or duly delegated
committee.
[16.1. Where the council is sole managing trustee of a charitable body the Clerk and
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 and RFO shall arrange for any audit or independent
examination as may be required by Charity Law or any Governing Document.]
17.1. The council is responsible for putting in place arrangements for the management
of risk. The Clerk/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.
17.2. When considering any new activity, the Clerk/RFO shall prepare a draft risk
assessment including risk management proposals for consideration and adoption by
the council.
18.1. 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.
18.2. 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.
The Model Financial Regulations templates were produced by the National Association
of Local Councils (NALC) in July 2019 for the purpose of its member councils and county
associations. Every effort has been made to ensure that the contents of this document
are correct at time of publication. NALC cannot accept responsibility for errors,
omissions and changes to information subsequent to publication.