Financial Regulations
2022-23

THE NATIONAL ASSOCIATION OF LOCAL COUNCILS

109 GREAT RUSSELL STREET LONDON WC1B 3LD
Model Financial Regulations 2020 version 3

WHICHAM PARISH COUNCIL
FINANCIAL REGULATIONS

AMENDMENTS

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WHICHAM PARISH COUNCIL
FINANCIAL REGULATIONS

July 2023
Amendments Approved on 7 April 2021
Reviewed and approved 6 September 2023

INDEX

1. GENERAL……………………………………………………………………………………………………………….3
2. ACCOUNTING AND AUDIT (INTERNAL AND EXTERNAL)………………………………………….7
3 ANNUAL ESTIMATES (BUDGET) AND FORWARD PLANNING…………………………………….8
4 BUDGETARY CONTROL AND AUTHORITY TO SPEND (whole section)……………………….9
5 BANKING ARRANGEMENTS AND AUTHORISATION OF PAYMENTS………………………..10
6 Instructions for the making of payments………………………………………………………………12
7 PAYMENT OF SALARIES…………………………………………………………………………………………14
8 LOANS AND INVESTMENTS………………………………………………………………………………….. 15
9 INCOME………………………………………………………………………………………………………………..16
10 ORDERS FOR WORK, GOODS AND SERVICES……………………………………………………….17
11 CONTRACTS………………………………………………………………………………………………………..18
12 PAYMENTS UNDER CONTRACTS FOR BUILDING OR OTHER CONSTRUCTION WORKS
………………………………………………………………………………………………………………………………..19
13 ASSETS, PROPERTIES AND ESTATES…………………………………………………………………….20
14 INSURANCE…………………………………………………………………………………………………………21
15 CHARITIES…………………………………………………………………………………………………………..21
16 RISK MANAGEMENT……………………………………………………………………………………………21
17 SUSPENSION AND REVISION OF FINANCIAL REGULATIONS………………………………..22

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;

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 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;
 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;

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 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 £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.

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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.

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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 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.

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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

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.

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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 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.

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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.

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

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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

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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.

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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 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.

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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 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.

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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.

9.3. The council will review all fees and charges at least annually, following a
report of the Clerk.

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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,

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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 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 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/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

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

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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.

g) Any invitation to tender issued under this regulation shall be subject to
Standing Orders 18 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

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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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 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).

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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.

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

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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.