V6
1. General ………………………………………………………………………………………………………………………… 3
2. Risk management and internal control …………………………………………………………………………. 4
3. Accounts and audit ………………………………………………………………………………………………………. 5
4. Budget and precept ……………………………………………………………………………………………………… 6
5. Procurement ………………………………………………………………………………………………………………… 7
6. Banking and payments ………………………………………………………………………………………………… 9
7. Electronic payments …………………………………………………………………………………………………… 10
8. Cheque payments ……………………………………………………………………………………………………… 11
9. Payment cards …………………………………………………………………………………………………………… 12
10. Payment of salaries and allowances ………………………………………………………………………….. 12
11. Loans and investments ………………………………………………………………………………………………. 12
12. Income ……………………………………………………………………………………………………………………….. 13
13. Payments under contracts for building or other construction works ……………………………. 13
14. Assets, properties and estates …………………………………………………………………………………… 14
15. Insurance …………………………………………………………………………………………………………………… 14
16. Suspension and revision of Financial Regulations ……………………………………………………… 14
Appendix 1 – Tender process …………………………………………………………………………………………….. 16
These Financial Regulations were adopted by the council at its meeting held on 2 October
2024.
1.1. These Financial Regulations govern the financial management of the council and
may only be amended or varied by resolution of the council. They are one of the
council’s governing documents and shall be observed in conjunction with the
council’s Standing Orders.
1.2. Councillors are expected to follow these regulations and not to entice employees to
breach them. Failure to follow these regulations brings the office of councillor into
disrepute.
1.3. Wilful breach of these regulations by an employee may result in disciplinary
proceedings.
1.4. In these Financial Regulations:
1.5. The Clerk has been appointed as RFO and these regulations apply accordingly.
The RFO;
1.6. The council must not delegate any decision regarding:
1.7. In addition, the council shall:
2.1. The council must ensure that it has a sound system of internal control, which
delivers effective financial, operational and risk management.
2.2. The Clerk shall prepare, for approval by the council, a risk management policy
covering all activities of the council. This policy and consequential risk management
arrangements shall be reviewed by the council at least annually.
2.3. When considering any new activity, the Clerk shall prepare a draft risk assessment
including risk management proposals for consideration by the council.
2.4. At least once a year, the council must review the effectiveness of its system
of internal control, before approving the Annual Governance Statement.
2.5. The accounting control systems determined by the RFO must include
measures to:
2.6. At least once in each quarter, and at each financial year end, a member other than
the Chair {or a cheque signatory} shall be appointed to verify bank reconciliations
(for all accounts) produced by the Clerk. The member shall sign and date the
reconciliations and the original bank statements (or similar document) as evidence
of this. This activity, including any exceptions, shall be reported to and noted by the
council.
2.7. Regular back-up copies shall be made of the records on any council computer and
stored either online or in a separate location from the computer. The council shall
put measures in place to ensure that the ability to access any council computer is
not lost if an employee leaves or is incapacitated for any reason.
3.1. All accounting procedures and financial records of the council shall be determined
by the Clerk in accordance with the Accounts and Audit Regulations.
3.2. The accounting records determined by the Clerk must be sufficient to explain
the council’s transactions and to disclose its financial position with
reasonably accuracy at any time. In particular, they must contain:
3.3. The accounting records shall be designed to facilitate the efficient preparation of the
accounting statements in the Annual {Governance and Accountability} Return.
3.4. The Clerk shall complete and certify the annual Accounting Statements of the
council contained in the Annual {Governance and Accountability} Return in
accordance with proper practices, as soon as practicable after the end of the
financial year. Having certified the Accounting Statements, the RFO shall submit
them (with any related documents) to the council, within the timescales required by
the Accounts and Audit Regulations.
3.5. The council must ensure that there is an adequate and effective system of
internal audit of its accounting records and internal control system in
accordance with proper practices.
3.6. Any officer or member of the council must make available such documents
and records as the internal or external auditor consider necessary for the
purpose of the audit and shall, as directed by the council, supply the Clerk,
internal auditor, or external auditor with such information and explanation as the
council considers necessary.
3.7. The internal auditor shall be appointed by the council and shall carry out their work
to evaluate the effectiveness of the council’s risk management, control and
governance processes in accordance with proper practices specified in the
Practitioners’ Guide.
3.8. The council shall ensure that the internal auditor:
3.9. Internal or external auditors may not under any circumstances:
3.10. For the avoidance of doubt, in relation to internal audit the terms ‘independent’ and
‘independence’ shall have the same meaning as described in The Practitioners
Guide.
3.11. The Clerk 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 documents required by the Local
Audit and Accountability Act 2014, or any superseding legislation, and the Accounts
and Audit Regulations.
3.12. The Clerk shall, without undue delay, bring to the attention of all councillors any
correspondence or report from internal or external auditors.
4.1. Before setting a precept, the council must calculate its council tax (England)
requirement for each financial year by preparing and approving a budget, in
accordance with The Local Government Finance Act 1992 or succeeding
legislation.
4.2. Budgets for salaries and wages, including employer contributions shall be reviewed
by the council at least annually in October for the following financial year and the
final version shall be evidenced by a hard copy schedule signed by the Clerk and
the Chair of the Council. {The RFO will inform committees of any salary implications
before they consider their draft their budgets.}
4.3. No later than November each year, the Clerk shall prepare a draft budget with
detailed estimates of all receipts and payments for the following financial year,
taking account of the lifespan of assets and cost implications of repair or
replacement.
4.4. Unspent budgets for completed projects shall not be carried forward to a
subsequent year. Unspent funds for partially completed projects may only be
carried forward (by placing them in an earmarked reserve) with the formal approval
of the full council.
4.5. The draft budget forecast, including any recommendations for the use or
accumulation of reserves, shall be considered by the council.
4.6. Having considered the proposed budget, the council shall determine its council tax
(England) requirement by setting a budget. The council shall set a precept for this
amount no later than the end of January for the ensuing financial year.
4.7. Any member with council tax unpaid for more than two months is prohibited
from voting on the budget or precept by Section 106 of the Local Government
Finance Act 1992 and must disclose at the start of the meeting that Section
106 applies to them.
4.8. The Clerk shall issue the precept to the billing authority no later than the end
of February and supply each member with a copy of the agreed annual budget.
4.9. The agreed budget provides a basis for monitoring progress during the year by
comparing actual spending and income against what was planned.
4.10. Any addition to, or withdrawal from, any earmarked reserve shall be agreed by the
council.
5.1. Members and officers are responsible for obtaining value for money at all
times. Any officer procuring goods, services or works should ensure, as far as
practicable, that the best available terms are obtained, usually by obtaining prices
from several suppliers.
5.2. The Clerk should verify the lawful nature of any proposed purchase before it is
made and in the case of new or infrequent purchases, should ensure that the legal
power being used is reported to the meeting at which the order is authorised and
also recorded in the minutes.
5.3. Every contract shall comply with these the council’s Standing Orders and these
Financial Regulations and no exceptions shall be made, except in an emergency.
5.4. For a contract for the supply of goods, services or works where the estimated
value will exceed the thresholds set by Parliament, the full requirements of
The Public Contracts Regulations 2015 or any superseding legislation (“the
Legislation”), must be followed in respect of the tendering, award and
notification of that contract.
5.5. Where the estimated value is below the Government threshold, the council shall
(with the exception of items listed in paragraph 6.12) obtain prices as follows:
5.6. For contracts estimated to exceed £60,000 including VAT, the Clerk shall {seek
formal tenders from at least three suppliers agreed by the council] OR advertise an
open invitation for tenders in compliance with any relevant provisions of the
Legislation. Tenders shall be invited in accordance with Appendix 1.
5.7. For contracts estimated to be over £30,000 including VAT, the council must
comply with any requirements of the Legislation1 regarding the advertising of
contract opportunities and the publication of notices about the award of
contracts.
5.8. For contracts greater than £3,000 excluding VAT the Clerk shall seek at least 3
fixed-price quotes;
5.9. where the value is between £500 and £3,000 excluding VAT, the Clerk shall try to
obtain 3 estimates which might include evidence of online prices, or recent prices
from regular suppliers.
5.10. For smaller purchases, the clerk shall seek to achieve value for money.
5.11. Contracts must not be split into smaller lots to avoid compliance with these
rules.
5.12. The requirement to obtain competitive prices in these regulations need not apply to
contracts that relate to items (i) to (iv) below:
5.13. When applications are made to waive this financial regulation to enable a price to
be negotiated without competition, the reason should be set out in a
recommendation to the council. Avoidance of competition is not a valid reason.
5.14. The council shall not be obliged to accept the lowest or any tender, quote or
estimate.
5.15. Individual purchases within an agreed budget for that type of expenditure may be
authorised by:
Such authorisation must be supported by a minute (in the case of council) or other
auditable evidence trail.
5.16. No individual member, or informal group of members may issue an official order
{unless instructed to do so in advance by a resolution of the council} or make any
contract on behalf of the council.
5.17. No expenditure may be authorised that will exceed the budget for that type of
expenditure other than by resolution of the council except in an emergency.
5.18. In cases of serious risk to the delivery of council services or to public safety on
council premises, the clerk may authorise expenditure of up to £2,000 excluding
VAT on repair, replacement or other work that in their judgement is necessary,
whether or not there is any budget for such expenditure. The Clerk shall report such
action to the Chair as soon as possible and to the council as soon as practicable
thereafter.
5.19. No expenditure shall be authorised, no contract entered into or tender accepted in
relation to any major project, unless the council is satisfied that the necessary funds
are available and that where a loan is required, Government borrowing approval
has been obtained first.
5.20. An official order or letter shall be issued for all work, goods and services above
£250 excluding VAT unless a formal contract is to be prepared or an official order
would be inappropriate. Copies of orders shall be retained, along with evidence of
receipt of goods.
5.21. Any ordering system can be misused and access to them shall be controlled by the
Clerk.
1 The Regulations require councils to use the Contracts Finder website if they advertise contract opportunities and also to publicise the
award of contracts over £30,000 including VAT, regardless of whether they were advertised.
6.1. The council’s banking arrangements, including the bank mandate, shall be made by
the Clerk and authorised by the council; banking arrangements shall not be
delegated to a committee. The council has resolved to bank with Natwest. The
arrangements shall be reviewed annually for security and efficiency.
6.2. The council must have safe and efficient arrangements for making payments, to
safeguard against the possibility of fraud or error. Wherever possible, more than
one person should be involved in any payment, for example by dual online
authorisation or dual cheque signing. Even where a purchase has been authorised,
the payment must also be authorised and only authorised payments shall be
approved or signed to allow the funds to leave the council’s bank.
6.3. All invoices for payment should be examined for arithmetical accuracy, analysed to
the appropriate expenditure heading and verified to confirm that the work, goods or
services were received, checked and represent expenditure previously authorised
by the council before being certified by the Clerk. Where the certification of invoices
is done as a batch, this shall include a statement by the Clerk that all invoices listed
have been ‘examined, verified and certified’ by the Clerk.
6.4. Personal payments (including salaries, wages, expenses and any payment made in
relation to the termination of employment) may be summarised to avoid disclosing
any personal information.
6.5. All payments shall be made by online banking/cheque, in accordance with a
resolution of the council, unless the council resolves to use a different payment
method.
6.6. For each financial year the Clerk may draw up a schedule of regular payments due
in relation to a continuing contract or obligation (such as Salaries, PAYE, National
Insurance, pension contributions, rent, rates, regular maintenance contracts and
similar items), which the council may authorise in advance for the year}.
6.7. A copy of this schedule of regular payments shall be signed by two members on
each and every occasion when payment is made – to reduce the risk of duplicate
payments.
6.8. A list of such payments shall be reported to the next appropriate meeting of the
council for information only.
6.9. The Clerk shall have delegated authority to authorise payments in the following
circumstances:
i. any payments of up to £500 excluding VAT, within an agreed budget.
ii. payments of up to £2,000 excluding VAT in cases of serious risk to the
delivery of council services or to public safety on council premises.
iii. any payment necessary to avoid a charge under the Late Payment of
Commercial Debts (Interest) Act 1998 or to comply with contractual terms,
where the due date for payment is before the next scheduled meeting of [the
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.
iv. 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.
6.10. The Clerk shall present a schedule of payments requiring authorisation, forming
part of the agenda for the meeting, together with the relevant invoices, to the
council. The council shall review the schedule for compliance and, having satisfied
itself, shall authorise payment by resolution. The authorised schedule shall be
initialled immediately below the last item by the person chairing the meeting. A
detailed list of all payments shall be disclosed within or as an attachment to the
minutes of that meeting.
7.1. Where internet banking arrangements are made with any bank, the Clerk shall be
appointed as the Service Administrator. The bank mandate agreed by the council
shall identify a number of councillors who will be authorised to approve transactions
on those accounts and a minimum of two people will be involved in any online
approval process. The Clerk may be an authorised signatory, but no signatory
should be involved in approving any payment to themselves.
7.2. All authorised signatories shall have access to view the council’s bank accounts
online.
7.3. No employee or councillor shall disclose any PIN or password, relevant to the
council or its banking, to anyone not authorised in writing by the council or a duly
delegated committee.
7.4. The Service Administrator shall set up all items due for payment online. A list of
payments for approval, together with copies of the relevant invoices, shall be sent
by email to two authorised signatories.
7.5. In the prolonged absence of the Service Administrator an authorised signatory shall
set up any payments due before the return of the Service Administrator.
7.6. Two councillors who are authorised signatories shall check the payment details
against the invoices before approving each payment using the online banking
system.
7.7. Evidence shall be retained showing which members approved the payment online
and a printout of the transaction confirming that the payment has been made shall
be appended to the invoice for audit purposes.
7.8. A full list of all payments made in a month shall be provided to the next council
meeting {and appended to the minutes}.
7.9. With the approval of the council in each case, regular payments (such as gas,
electricity, telephone, broadband, water, National Non-Domestic Rates, refuse
collection, pension contributions and HMRC payments) may be made by variable
direct debit, provided that the instructions are signed/approved online by two
authorised members. The approval of the use of each variable direct debit shall be
reviewed by [the council] at least every two years.
7.10. Payment may be made by BACS or CHAPS by resolution of the council provided
that each payment is approved online by two authorised bank signatories, evidence
is retained and any payments are reported to the council at the next meeting. The
approval of the use of BACS or CHAPS shall be renewed by resolution of the
council at least every two years.
7.11. If thought appropriate by the council, regular payments of fixed sums may be made
by banker’s standing order, provided that the instructions are signed or approved
online by two members, evidence of this is retained and any payments are reported
to council when made. The approval of the use of a banker’s standing order shall be
reviewed by the council at least every two years.
7.12. Account details for suppliers may only be changed upon written notification by the
supplier verified by two of the Clerk and [a member. This is a potential area for
fraud and the individuals involved should ensure that any change is genuine. Data
held should be checked with suppliers every two years.
7.13. Members and officers shall ensure that any computer used for the council’s
financial business has adequate security, with anti-virus, anti-spyware and firewall
software installed and regularly updated.
7.14. Remembered password facilities other than secure password stores requiring
separate identity verification should not be used on any computer used for council
banking.
8.1. Cheques or orders for payment in accordance with a resolution or delegated
decision shall be signed by two members {and countersigned by the Clerk}.
8.2. A signatory having a family or business relationship with the beneficiary of a
payment shall not, under normal circumstances, be a signatory to that payment.
8.3. To indicate agreement of the details on the cheque with the counterfoil and the
invoice or similar documentation, the signatories shall also initial the cheque
counterfoil and invoice.
8.4. Cheques or orders for payment shall not normally be presented for signature other
than at, or immediately before or after a council meeting. Any signatures obtained
away from council meetings shall be reported to the council at the next convenient
meeting.
9.1. 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 in writing before any order is placed.
9.2. Any corporate credit card or trade card account opened by the council will be
specifically restricted to use by the Clerk and any balance shall be paid in full each
month.
9.3. Personal credit or debit cards of members or staff shall not be used except for
expenses of up to £250 including VAT, incurred in accordance with council policy.
10.1. As an employer, the council must make arrangements to comply with the
statutory requirements of PAYE legislation.
10.2. Salary rates shall be agreed by the council, or a duly delegated committee. No
changes shall be made to any employee’s gross pay, emoluments, or terms and
conditions of employment without the prior consent of the council.
10.3. Payment of salaries shall be made, after deduction of tax, national insurance,
pension contributions and any similar statutory or discretionary deductions, on the
dates stipulated in employment contracts.
10.4. Deductions from salary shall be paid to the relevant bodies within the required
timescales, provided that each payment is reported, as set out in these regulations
above.
10.5. Each payment to employees of net salary and to the appropriate creditor of the
statutory and discretionary deductions shall be recorded in a payroll control account
or other separate confidential record, with the total of such payments each calendar
month reported in the cashbook. Payroll reports will be reviewed to ensure that the
correct payments have been made.
10.6. Any termination payments shall be supported by a report to the council, setting out
a clear business case. Termination payments shall only be authorised by the full
council.
10.7. Before employing interim staff, the council must consider a full business case.
11.1. Any application for Government approval to borrow money and subsequent
arrangements for a loan must be authorised by the full council and recorded in the
minutes. All borrowing shall be in the name of the council, after obtaining any
necessary approval.
11.2. Any financial arrangement which does not require formal borrowing approval from
the Secretary of State (such as Hire Purchase, Leasing of tangible assets or loans
to be repaid within the financial year) must be authorised by the full council,
following a written report on the value for money of the proposed transaction.
11.3. The council shall consider the requirement for an Investment Strategy and Policy in
accordance with Statutory Guidance on Local Government Investments, which must
written be in accordance with relevant regulations, proper practices and guidance.
Any Strategy and Policy shall be reviewed by the council at least annually.
11.4. All investment of money under the control of the council shall be in the name of the
council.
11.5. All investment certificates and other documents relating thereto shall be retained in
the custody of the Clerk.
11.6. Payments in respect of short term or long-term investments, including transfers
between bank accounts held in the same bank, shall be made in accordance with
these regulations.
12.1. The collection of all sums due to the council shall be the responsibility of and under
the supervision of the Clerk
12.2. The council will review all fees and charges for work done, services provided, or
goods sold at least annually as part of the budget-setting process, following a report
of the Clerk. The Clerk shall be responsible for the collection of all amounts due to
the council.
12.3. Any sums found to be irrecoverable and any bad debts shall be reported to the
council by the Clerk and shall be written off in the year. The council’s approval shall
be shown in the accounting records.
12.4. All sums received on behalf of the council shall be deposited intact with the
council’s bankers, with such frequency as the Clerk considers necessary. The
origin of each receipt shall clearly be recorded on the paying-in slip or other record.
12.5. Personal cheques shall not be cashed out of money held on behalf of the council.
12.6. Any repayment claim under section 33 of the VAT Act 1994 shall be made quarterly
where the claim exceeds £100 and at least annually at the end of the financial year.
12.7. Where significant sums of cash are regularly received by the council, the Clerk shall
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 record such as ticket
issues, and that appropriate care is taken for the security and safety of individuals
banking such cash.
13.1. Where contracts provide for payment by instalments the Clerk shall maintain a
record of all such payments, which shall be made within the time specified in the
contract based on signed certificates from the architect or other consultant engaged
to supervise the works.
13.2. Any variation of, addition to or omission from a contract must be authorised by the
Clerk to the contractor in writing, with the council being informed where the final
cost is likely to exceed the contract sum by 5% or more, or likely to exceed the
budget available.
14.1. The Clerk shall make arrangements for the safe custody of all title deeds and Land
Registry Certificates of properties held by the council.
14.2. The Clerk shall ensure that an appropriate and accurate Register of Assets and
Investments is kept up to date, with a record of all properties held by the council,
their 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.
14.3. 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.
14.4. No interest in land 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. In each case a written report 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 where required by
law).
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, except where the estimated value of any one
item does not exceed £500. In each case a written report shall be provided to
council with a full business case.
15.1. The Clerk shall keep a record of all insurances effected by the council and the
property and risks covered, reviewing these annually before the renewal date in
conjunction with the council’s review of risk management.
15.2. The Clerk shall give prompt notification of all new risks, properties or vehicles which
require to be insured and of any alterations affecting existing insurances.
15.3. The Clerk shall be notified of any loss, liability, damage or event likely to lead to a
claim, and shall report these to the council at the next available meeting. The Clerk
shall negotiate all claims on the council’s insurers.
15.4. 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. The council shall review these Financial Regulations annually and following any
change of clerk. The Clerk shall monitor changes in legislation or proper practices
and advise the council of any need to amend these Financial Regulations.
16.2. The council may, by resolution 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
presented to all members. Suspension does not disapply any legislation or permit
the council to act unlawfully.
16.3. The council may temporarily amend these Financial Regulations by a duly notified
resolution, to cope with periods of absence, local government reorganisation,
national restrictions or other exceptional circumstances.
1) Any 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.
2) The invitation shall in addition state that tenders must be addressed to the Clerk in
the ordinary course of post, unless an electronic tendering process has been agreed
by the council.
3) Where a postal process is used, 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. 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.
4) Where an electronic tendering process is used, the council shall use a specific email
address that will be monitored to ensure that nobody accesses any tender before the
expiry of the deadline for submission.
5) Any invitation to tender issued under this regulation shall be subject to Standing
Order [insert reference of the council’s relevant standing order] and shall refer to the
terms of the Bribery Act 2010.
6) Where 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, 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.