Finance Regulations
Cherry Willingham Parish Council
FINANCIAL REGULATIONS
Name of Policy FINANCIAL REGULATIONS
Adoption of revised new model financial regulations (2019 version)
Date adoption approved by Council 18th January 2021
Revision 1 19/7/2021 FC 2021-104 c)a)i)
Revision 2 17/04/2023 FC 2022-227 a)vi/vii/viii
CHERRY WILLINGHAM PARISH COUNCIL
FINANCIAL REGULATIONS 2019 FOR ENGLAND
1. General 2
2. Accounting and audit (internal and external) 4
3. Annual estimates (budget) and forward planning 5
4. Budgetary control and authority to spend 5
5. Banking arrangements and authorisation of payments 6
6. Instructions for the making of payments 8
7. Payment of salaries 9
8. Loans and investments 10
9. Income 11
10. Orders for work, goods and services 11
11. Contracts 12
12. Assets, properties and estates 13
13. Insurance 14
14. Risk management 14
15. Suspension and revision of Financial Regulations 14
These Financial Regulations were adopted by the council at its meeting held on
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General
UNLESS OTHERWISE STATED AMOUNTS DETAILED BELOW ARE EXCLUDING VAT.
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 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.
1.6. 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.
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;
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● 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:
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● determine and keep under regular review the bank mandate for all council bank
accounts;
● approve any grant or a single commitment in excess of £1000 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. 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 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;
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● 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. Annual estimates (budget) and forward planning
[3.1. Each committee shall review its forecast of revenue and capital receipts and payments.
Having regard to the forecast, it shall thereafter formulate and submit proposals for the
following financial year to the council not later than the end of October each year including
any proposals for revising the forecast].
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 relevant committees
and the council.
3.3. The council shall consider annual budget proposals in relation to the council’s 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. Budgetary control and authority to spend
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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 £1000
● a duly delegated committee of the council for items up to £1000; or
● the Clerk and/or the RFO, 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
RFO or 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 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 £300. 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 £500 or 15% of the budget.
4.9. Changes in earmarked reserves shall be approved by council as part of the budgetary
control process.
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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 and forward it to
two cheque signatories for approval. The cheque signatories shall review the schedule for
compliance and shall authorise payment. A detailed list of all payments shall be disclosed
within or as an attachment to the agenda of the meeting immediately after 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 after receiving approval from the two cheque signatories.
5.5. The RFO shall have delegated authority to authorise the payment of items only in the
following circumstances:
a) 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
b) 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 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 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.
5.8 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.
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5.9. 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.
5.10 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 authorised payments, including salaries, shall be affected by Internet Banking
Transfer by the RFO (with a single payment limit of £2500 and a daily total limit of £2500)
other than those paid by Direct Debit or Visa Debit. The RFO shall maintain a record of
which Members authorised the payments.
6.4. Cheques for payments exceeding £2500 shall be drawn on the bank account and shall
be signed by two members of council recorded as cheque signatories 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. 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.
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6.9. 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.
6.10. 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.
6.11. 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.
6.12. Where internet banking arrangements are made with any bank, the 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.
6.13. 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.
6.14. 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 RFO, the Clerk, a member. A programme of
regular checks of standing data with suppliers will be followed.
6.15. Any Debit Card issued for use will be specifically restricted to the RFO and will also be
restricted to a single transaction maximum value of £1000 + VAT unless authorised by
council in writing before any order is placed.
6.16. 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 [or RFO] (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.
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.
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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. 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.
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.
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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.
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
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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. 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 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 £10000 or more, the council
shall comply with the relevant requirements of the Regulations 1 .
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) 2 .
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
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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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 18d 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 £1000 and above £500 the Clerk or RFO
shall strive to obtain 2 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.
13. Assets, properties and estates
131. 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 £50.
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)
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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).
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 in consultation with the Clerk.
14.2. The RFO shall keep a record of all insurances effected by the council and the property
and risks covered thereby and annually review it.
14.3. 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.
14.4. 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 by the council, or duly delegated committee.
15. Risk management
15.1. The council is responsible for putting in place arrangements for the management of
risk. The Clerk with the RFO shall prepare, for approval by the council, risk management
policy statements in respect of all activities of the council. Risk policy statements and
consequential risk management arrangements shall be reviewed by the council at least
annually.
15.2. When considering any new activity, the Clerk with the RFO shall prepare a draft risk
assessment including risk management proposals for consideration and adoption by the
council.
16. Suspension and revision of Financial Regulations
16.1. 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.
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16.2. 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.