Adopted 11th May 2026, 015/26

1. General

  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.
  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.
  3. Wilful breach of these regulations by an employee may result in disciplinary proceedings.
  4. In these Financial Regulations:
    • ‘Accounts and Audit Regulations’ means the regulations issued under Sections 32, 43(2) and 46 of the Local Audit and Accountability Act 2014, or any superseding legislation, and then in force, unless otherwise specified.
    • “Approve” refers to an online action, allowing an electronic transaction to take place.
    • “Authorise” refers to a decision by the council, or a committee or an officer, to allow something to happen.
    • ‘Proper practices’ means those set out in The Practitioners’ Guide
    • Practitioners’ Guide refers to the guide issued by the Joint Panel on Accountability and Governance (JPAG) and published by NALC in England or Governance and Accountability for Local Councils in Wales – A Practitioners Guide jointly published by One Voice Wales and the Society of Local Council Clerks in Wales.
    • ‘Must’ and bold text refer to a statutory obligation the council cannot change.
    • ‘Shall’ refers to a non-statutory instruction by the council to its members and staff.
  5. The Responsible Financial Officer (RFO) holds a statutory office, appointed by the council. The Clerk has been appointed as RFO and these regulations apply accordingly. 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 control systems;
    • ensures the accounting control systems are observed;
    • ensures the accounting records are kept up to date;
    • seeks economy, efficiency and effectiveness in the use of council resources; and
    • produces financial management information as required by the council.
  6. The council must not delegate any decision regarding:
    • setting the final budget or the precept (council tax requirement);
    • the outcome of a review of the effectiveness of its internal controls
    • approving accounting statements;
    • approving an annual governance statement;
    • borrowing;
    • declaring eligibility for the General Power of Competence; and
    • addressing recommendations from the internal or external auditors
  7. In addition, the council shall:
    • determine and regularly review the bank mandate for all council bank accounts;
    • authorise any grant or single commitment

2. Risk management and internal control

  1. The council must ensure that it has a sound system of internal control, which delivers effective financial, operational and risk management.
  2. The Clerk/RFO 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.
  3. When considering any new activity, the Clerk/RFO shall prepare a draft risk assessment including risk management proposals for consideration by the council.
  4. At least once a year, the council must review the effectiveness of its system of internal control, before approving the Annual Governance Statement.
  5. The accounting control systems determined by the RFO must include measures to:
    • ensure that risk is appropriately managed;
    • ensure the prompt, accurate recording of financial transactions;
    • prevent and detect inaccuracy or fraud; and
    • allow the reconstitution of any lost records;
    • identify the duties of officers dealing with transactions and
    • ensure division of responsibilities.
  6. At least once in each quarter, and at each financial year end, two members other than the Chair shall be appointed to verify bank reconciliations (for all accounts) produced by the RFO. The members shall sign and date the reconciliations after cross-referencing 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.
  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. Accounts and audit

  1. All accounting procedures and financial records of the council shall be determined by the RFO in accordance with the Accounts and Audit Regulations.
  2. The accounting records determined by the RFO 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:
    • day-to-day entries of all sums of money received and expended by the council and the matters to which they relate;
    • a record of the assets and liabilities of the council;
  3. The accounting records shall be designed to facilitate the efficient preparation of the accounting statements in the Annual Governance and Accountability Return.
  4. The RFO 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.
  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.
  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 RFO, internal auditor, or external auditor with such information and explanation as the council considers necessary.
  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.
  8. The council shall ensure that the internal auditor:
    • is competent and independent of the financial operations of the council;
    • reports to council in writing, or in person, on a regular basis with a minimum of one written report during each financial year;
    • can demonstrate competence, objectivity and independence, free from any actual or perceived conflicts of interest, including those arising from family relationships; and
    • has no involvement in the management or control of the council
  9. Internal or external auditors may not under any circumstances:
    • perform any operational duties for the council;
    • initiate or approve accounting transactions;
    • provide financial, legal or other advice including in relation to any future 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.
  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.
  11. 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 documents required by the Local Audit and Accountability Act 2014, or any superseding legislation, and the Accounts and Audit Regulations.
  12. The RFO shall, without undue delay, bring to the attention of all councillors any correspondence or report from internal or external auditors.

4. Budget and precept

  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.
  2. Budgets for salaries and wages, including employer contributions shall be reviewed by the HR Committee 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 HR Committee. The Clerk/RFO will inform committees of any salary implications before they consider their draft budgets.
  3. No later than November each year, the RFO shall prepare a draft budget with detailed estimates of all income and expenditure for the following financial year, taking account of the lifespan of assets and cost implications of repair or replacement.
  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 as part of the budget setting process.
  5. Each committee (if any) shall review its draft budget and submit any proposed amendments to the council not later than the end of November each year.
  6. The draft budget with any committee proposals, including any recommendations for the use or accumulation of reserves, shall be considered by the council.
  7. Having considered the proposed budget forecast, 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.
  8. 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 and must disclose at the start of the meeting that Section 106 applies to them.
  9. The RFO 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.
  10. The agreed budget provides a basis for monitoring progress during the year by comparing actual spending and income against what was planned.
  11. Any addition to, or withdrawal from, any earmarked reserve shall be agreed by the council.

5. Procurement

  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. Guidance is provided in Schedule 2: Obtaining best value for purchases under £1,500.
  2. The RFO 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.
  3. Every contract shall comply with the council’s Standing Orders and these Financial Regulations and no exceptions shall be made, except in an emergency.
  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 Procurement Act 2023 and The Procurement Regulations 2024 or any superseding legislation (“the Legislation”), must be followed in respect of the tendering, award and notification of that contract.
  5. Where the estimated value is below the Government threshold, the council shall (with the exception of items listed in paragraph 5.12) obtain prices as follows:
  6. For contracts estimated to exceed £60,000 including VAT, the Clerk shall seek formal tenders from at least three suppliers. Tenders shall be invited in accordance with Appendix 1.
  7. For contracts estimated to be over £30,000 including VAT, the Council must comply with any requirements of the Legislation regarding the publication of invitations and notices.
  8. For contracts greater than £5,000 excluding VAT the Clerk/RFO shall seek at least 3 fixed-price quotes;
  9. where the value is between £1,500 and £5,000 excluding VAT, the Clerk/RFO shall try to obtain 3 estimates which might include evidence of online prices, or recent prices from regular suppliers.
  10. For smaller purchases, the Clerk/RFO shall seek to achieve best value for money by following Schedule 2: Obtaining best value for purchases under £1,500.
  11. Contracts must not be split to avoid compliance with these rules.
  12. The requirement to obtain competitive prices in these regulations need not apply to contracts that relate to items (i) to (iv) below:
    1. specialist services, such as legal professionals acting in disputes;
    2. repairs to, or parts for, existing machinery or equipment;
    3. works, goods or services that constitute an extension of an existing contract;
    4. goods or services that are only available from one supplier or are sold at a fixed price.
  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 or relevant committee. Avoidance of competition is not a valid reason.
  14. The council shall not be obliged to accept the lowest or any tender, quote or estimate.
  15. Individual purchases within an agreed budget for that type of expenditure may be authorised by:
    • the Clerk, under delegated authority, for routine expenditure within agreed budgets
    • a duly delegated committee of the council for all items of expenditure within their delegated budgets and in accordance with their Terms of Reference, as approved by the council.
    • the council for all other items

    Such authorisation must be supported by a minute (in the case of council or committee decisions) or other auditable evidence trail.

  16. No individual member, or informal group of members may issue an official order or make any contract on behalf of the council.
  17. No expenditure may be authorised that will exceed the budget for that type of expenditure other than by resolution of the council or a duly delegated committee acting within its Terms of Reference except in an emergency.
  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 £5,000 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.
  19. No expenditure shall be authorised, no contract entered into or tender accepted in relation to any major project, unless the council or duly delegated committee is satisfied that the necessary funds are available and that where a loan is required, Government borrowing approval has been obtained first.
  20. An official order, letter, or email, shall be issued for all work, goods and services above £1,500 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.
  21. Any ordering system can be misused and access to them shall be controlled by the RFO.

6. Banking and payments

  1. The council’s banking arrangements, including the bank mandate, shall be made by the RFO and authorised by the council; banking arrangements shall not be delegated to a committee. The council has resolved to bank with Barclays Bank (current and saving accounts), Cooperative Bank (savings), CCLA (savings), Santander Bank (savings). The arrangements shall be regularly reviewed for security and efficiency.
  2. The council must have safe and efficient arrangements for making payments, to safeguard against the possibility of fraud or error. The council follows this procedure:
    1. At each council meeting (monthly) a Schedule of Income and Expenditure is produced for scrutiny and authorisation, forming part of the agenda for the meeting. Relevant invoices are available upon request and scrutiny of invoices forms part of the quarterly internal control process.
    2. When the authorisation of invoices is done as a batch this shall include a statement that all invoices listed have been ‘examined, verified and certified’ by the Clerk/RFO and/or Deputy Clerk.
    3. The Schedule of Income and Expenditure details individual expenditure items for the previous month, along with respective minute references i.e., where expenditure has been approved at a meeting of the council or a duly authorised committee or approved by the Clerk pursuant to their delegated authority (Scheme of Delegation/para 5.15 FR).
    4. All direct debit expenditure is approved by the council at the May Annual Parish Council Meeting in accordance with FR paragraph 6.6 and 7.9 and is noted on the monthly Schedule of Income and Expenditure.
    5. The council shall review the Schedule of Income and Expenditure for compliance and, having satisfied itself, shall authorise payment by resolution.
    6. The authorised Schedule of Income and Expenditure shall be signed at the meeting by two Counsellors below the last item. The Schedule of Income and Expenditure shall be disclosed within or as an attachment to the official minutes of that meeting, signed by the Chair as approved and a correct record.
    7. The council may nominate at the meeting, the two authorised signatories who will approve the pending online payments, as set up by the Service Administrator in accordance with paragraph 7 below.
    8. After each council meeting approved expenditure is paid via Online Banking via the process set out in paragraph 7.
    9. At each council meeting (monthly) a Budget Report is produced for scrutiny detailing expenditure against approved budget headings.
  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 RFO.
  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.
  5. All payments shall be made by online banking, in accordance with a resolution of the council, or duly delegated committee, or a delegated decision by an officer, unless the council resolves to use a different payment method.
  6. For each financial year the RFO 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.
  7. The Clerk/RFO shall have delegated authority to authorise payments in the following circumstances:
    1. for routine payments within agreed budgets
    2. payments of up to £5,000 excluding VAT in cases of serious risk to the delivery of council services or to public safety on council premises.
    3. 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/RFO certify that there is no dispute or other reason to delay payment, provided that a list of such payments shall be submitted to the next appropriate meeting of council.
    4. 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.

7. Electronic payments

  1. Where internet banking arrangements are made with any bank, the RFO shall be appointed as the Service Administrator. The bank mandate agreed by the council shall identify at least two councillors who will be authorised to approve transactions on those accounts when required and a minimum of two people will be involved in any online approval process where required. The Clerk may be an authorised signatory, but no signatory should be involved in approving any payment to themselves. Any signatory having a family or business relationship with the beneficiary of a payment shall not, under normal circumstances, be a signatory to that payment.
  2. All authorised signatories shall have access to view the council’s bank accounts online.
  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.
  4. The Service Administrator shall set up all items due for payment online. Payments for approval shall be sent via the online banking system to an authorised signatory.
  5. In the prolonged absence of the Service Administrator another council Officer who is an authorised signatory shall set up any payments due before the return of the Service Administrator.
  6. Two councillors shall sign the Schedule of Income & Expenditure at each Full Council meeting (para 6.2). Once an Officer (authorised signatory) has input the payment details via online banking, against the approved Schedule of Income and Expenditure, one Councillor (authorised signatory) will approve/authorise the release of these payments using the online banking system (dual authorisation).
  7. Evidence shall be retained showing which Member approved the payment online via the minutes.
  8. 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 (paragraph 6.6 above).
  9. 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.
  10. 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/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.
  11. Account details for suppliers may only be changed upon written notification by the supplier verified by the Clerk/RFO and two authorised signatories. 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.
  12. 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.
  13. Remembered password facilities other than secure password stores requiring separate identity verification should not be used on any computer used for council banking.

8. Cheque payments

  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.
  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.
  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.
  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. Payment cards

  1. Any Debit Card issued for use will be specifically restricted to the Clerk/RFO and will also be restricted to a single transaction maximum value of £1,000 unless authorised by council or finance committee in writing before any order is placed.
  2. A pre-paid debit card may be issued to employees with varying limits. These limits will be set by the council. Transactions and purchases made will be reported to the council and authority for topping-up shall be at the discretion of the council.
  3. Any corporate credit card or trade card account opened by the council will be specifically restricted to use by the Clerk/RFO and any nominated staff as approved by the council or a duly authorised committee and any balance shall be paid in full each month.
  4. Personal credit or debit cards of members or staff should not be used wherever possible, except for expenses of up to £100 including VAT, incurred in accordance with existing council policy e.g., Scheme of Delegation.

10. Petty Cash

  1. The RFO shall maintain a petty cash float of up to £100 and may provide petty cash to Officers for the purpose of defraying operational and other expenses.
    1. Vouchers for payments made from petty cash shall be kept, along with receipts to substantiate every payment.
    2. Cash income received must not be paid into the petty cash float but must be separately banked, as provided elsewhere in these regulations.
    3. Payments to maintain the petty cash float shall be shown separately on any Schedule of Income and Expenditure presented for approval.

11. Payment of salaries and allowances

  1. As an employer, the council must make arrangements to comply with the statutory requirements of PAYE legislation.
  2. Councillors allowances (where paid) are also liable to deduction of tax under PAYE rules and must be taxed correctly before payment.
  3. 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 or relevant committee.
  4. 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.
  5. 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.
  6. 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 quarterly by two Councillors via the Internal Controls procedure to ensure that the correct payments have been made.
  7. 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.
  8. Before employing interim staff, the council or relevant committee must consider a full business case.

12. Loans and investments

  1. Any application for Government approval to borrow money and subsequent arrangements for a loan must be authorised by the council and recorded in the minutes. All borrowing shall be in the name of the council, after obtaining any necessary approval.
  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 council, following a written report on the value for money of the proposed transaction.
  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.
  4. All investment of money under the control of the council shall be in the name of the council.
  5. All investment certificates and other documents relating thereto shall be retained in the custody of the RFO.
  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.

13. Income

  1. The collection of all sums due to the council shall be the responsibility of and under the supervision of the RFO.
  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 RFO shall be responsible for the collection of all amounts due to the council.
  3. Any sums found to be irrecoverable and any bad debts shall be reported to the council by the RFO and shall be written off in the year. The council’s approval shall be shown in the accounting records.
  4. All sums received on behalf of the council shall be deposited intact with the council’s bankers, with such frequency as the RFO considers necessary. The origin of each receipt shall clearly be recorded on the paying-in slip or other record.
  5. Personal cheques shall not be cashed out of money held on behalf of the council.
  6. The RFO shall ensure that VAT is correctly recorded in the council’s accounting software and that any VAT Return required is submitted from the software by the due date.
  7. Where significant sums of cash are regularly received by the council, the RFO 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.
  8. Any income that is the property of a charitable trust shall be paid into a charitable bank account. Instructions for the payment of funds due from the charitable trust to the council (to meet expenditure already incurred by the authority) will be given by the Managing Trustees of the charity meeting separately from any council meeting.

14. Payments under contracts for building or other construction works

  1. Where contracts provide for payment by instalments the RFO 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.
  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.

15. Stores and equipment

  1. The Officer in charge of each section/department shall be responsible for the care and custody of stores and equipment in that section/department.
  2. Delivery notes shall be obtained in respect of all goods received into store or otherwise delivered and goods must be checked as to order and quality at the time delivery is made.
  3. Stocks shall be kept at the minimum levels consistent with operational requirements.
  4. The RFO shall be responsible for periodic checks of stocks and stores, at least annually.

16. Assets, properties and estates

  1. The Clerk shall make arrangements for the safe custody of all title deeds and Land Registry Certificates of properties held by the council.
  2. The RFO 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.
  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.
  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 £250. In each case a written report shall be provided to council with a full business case.

17. Insurance

  1. The RFO 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.
  2. The Clerk/RFO shall give prompt notification to the council’s insurance broker of all new risks, properties or vehicles which require to be insured and of any alterations affecting existing insurances.
  3. The Clerk/RFO 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/RFO shall negotiate all claims on the council’s insurers.
  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.

18. Charities

  1. Where the council is sole managing trustee of a charitable body the Clerk and RFO shall ensure that separate accounts are kept of the funds held on charitable trusts and separate financial reports made in such form as shall be appropriate, in accordance with Charity Law and legislation, or as determined by the Charity Commission. The Clerk and RFO shall arrange for any audit or independent examination as may be required by Charity Law or any Governing Document.

19. Suspension and revision of Financial Regulations

  1. The council shall review these Financial Regulations annually and following any change of Clerk/RFO. The Clerk shall monitor changes in legislation or proper practices and advise the council of any need to amend these Financial Regulations.
  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.
  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.

20. Appendix 1 – Tender process

  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 Orders 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.

21. Schedule 1: Scheme of Delegation

Introduction

This Scheme of Delegation authorises the Proper Officer and Responsible Financial Officer (which may be one and the same person), Standing Committees and Sub-committees of the Council to act with delegated authority in the specific circumstances detailed.

Responsible Financial Officer

The Clerk shall be the Responsible Financial Officer to the Council and shall be responsible for the Council’s accounting procedures, in accordance with the Accounts and Audit Regulations in force at any given time.

Proper Officer

The Clerk shall be the Proper Officer of the Council and as such is specifically authorised, alongside details in the Standing Orders, to:

  • Receive declarations of acceptance of office;
  • Receive a copy of every Councillor’s register of interests;
  • Receive and retain plans and documents;
  • Sign Notices or other documents on behalf of the Council;
  • Receive and retain copies of By-laws made by Cornwall Council;
  • Certify copies of By-laws made by the Council and other such orders as adopted by the Council;
  • Sign summonses to attend meetings of the Council;
  • Keep proper records for all meetings, and
  • Receive from Cornwall Council’s Monitoring Officer any documents in relation to Complaints received under The Members’ Code of Conduct and report this at the next convenient meeting of the Council.

In addition, the Clerk has the delegated authority to undertake the following matters on behalf of the Council:

  • The day to day administration of services, together with routine inspection and control.
  • Day to day supervision and control of all staff employed by the Council.
  • Authorise routine expenditure within the agreed budget.
  • Authorise training or attendance at conferences and events as agreed within budget.
  • Emergency expenditure up to £5,000 outside of the agreed budget subject to immediate report back to the next meeting of the appropriate Committee or Council. Such expenditure may include repair, replacement or other work. Sums greater than £5,000 only in consultation with the Chair of the Council and the Chair of the appropriate Committee.
  • Call any extra meetings of the Council or any Committee as necessary, having consulted with the Chair of the Council and the Chair of the appropriate Committee.
  • Respond to correspondence requiring or requesting information relating to previous decisions of the Council.
  • Deal with matters specifically delegated by Council or Committee.
  • Issue press releases on any Council activity exercised in accordance with Council policy.
  • Editorial control of the Council’s website and social media.

Delegated actions of the Clerk shall be in accordance with Standing Orders, Financial Regulations and this Scheme of Delegation and with directions given by the Council from time to time.

Council

The following matters are reserved to the Council for decision, notwithstanding that the appropriate Committee(s) may make recommendations thereon for the Council’s consideration.

  • Setting the Precept.
  • Borrowing money.
  • Incurring capital expenditure not specifically included in the Council’s approved estimate of expenditure for the time being.
  • Appointing Members to Committees.
  • Approving and amending Standing Orders, Financial Regulations, the Scheme of Delegation, and the Terms of Reference of Committees.
  • Dates of meetings of the Council.
  • Appointment or nomination by the Council of persons to fill vacancies on outside bodies arising during the Council year.
  • Filling of vacancies occurring on any Committee of the Council during the Council year.
  • Approving the annual return.
  • Confirming eligibility to exercise the General Power of Competence.
  • Agreement to undertake new services.
  • Prosecution or defence in a court of law, and
  • Nomination or appointment of representatives of the Council at any inquiry on matters affecting the Parish, excluding those matters specific to a committee.

Powers and Duties of Committees

Subject to the foregoing, and in observance of decisions of the Council on matters of principle or policy or not covered by a Committee’s Terms of Reference, all the Council’s relevant powers and duties shall be delegated to Committees in accordance with their Terms of Reference unless otherwise specified. The acts and proceedings of a Committee shall:

  • where they are delegated to the Committee, so far as is legally permissible be deemed the acts and proceedings of the Council;
  • as regards other matters, be subject to confirmation by the Council, and when confirmed shall be deemed the acts and proceedings of the Council;
  • in all respects be subject to the provisions of the Council’s Standing Orders and Financial Regulations except as otherwise determined by the Council.

The Council may at any time without prejudice to executive action already taken revoke any executive power delegated to a Committee.

Detailed delegated authority schemes for each Committee is set out in each Terms of Reference, which are resolved by Full Council only.

Working Groups/Parties

Working Groups/Parties may be formed by resolution of the Council or a Committee at any time. The work of such a Working Group/Party will be decided upon at the time it is formed by means of a Minute detailing the Terms of Reference. Each Working Group/Party will report back with recommendations to the Council or the Committee that formed it – or as otherwise directed. The Working Group will be disbanded by resolution of Council or the parent Committee to which it reports once it has completed its agreed objectives.

Delegation – Limitations

Committees, Sub Committees, Working Parties and Officers shall, at all times, act in accordance with the Council’s Standing Orders, Financial Regulations and this Scheme of Delegation and, where applicable, any other rules, regulations, schemes, statutes, By-laws or orders made and with any directions given by the Council from time to time.

22. Schedule 2 – Obtaining best value for purchases under £1,500

Introduction

The Financial Regulations of the Council sets out clear methods for obtaining best value for purchases made by the Parish Council over the value of £1,500. This schedule gives a further framework for how the Council will strive to obtain best value for purchases below the value of £1,500. This schedule works alongside the rules set out in the Financial Regulations document, and Schedule 1: Scheme of Delegation, and does not supersede them.

New purchases

When seeking goods or services which are not part of the day-to-day running of the Council, the default protocol will be to seek three quotes/estimates for the items. From time to time, it may be feasible and appropriate to bring quotes/estimates to Council or a duly authorised Committee for resolution, though a judgment will be made by the Clerk, balancing the additional administration and time delay involved in this process, to assess if this is appropriate. Other than occasions when it is appropriate for the Council to pass a resolution, the Scheme of Delegation shall be followed, and the Clerk will be responsible for selecting the best value quote/estimate. Where new purchases are of low value, a brief scan of the market, both online and offline, will be undertaken by Officers and the Clerk, or an Officer delegated by the Clerk, will be responsible for selecting the best value option.

Routine purchases

The Council is able to open trade accounts with a variety of suppliers for the regular day-to-day purchases required. These include, for example, consumables (toilet roll, janitorial supplies, stationery) maintenance and repair supplies and other such goods and services. Officers will regularly review standard purchases and assess best value suppliers. A record of the review shall be kept in accordance with the attached form.

Best value

As per Financial Regulations, the Council is not obliged to accept the lowest price. Moreover, as well as cost, an assessment of best value shall also be considered: –

  • Reliability and trust in the supplier
  • Quality of the product or service
  • Durability of the product
  • Environmental and ecological impacts of the purchase
  • Ethical concerns
  • Local economic benefits (i.e. using local suppliers)
  • Any knock-on costs, such as generating high numbers of invoices requiring staff time and cost to administer
  • Any other matters particular to the purchase in question

Officers will enter negotiations with suppliers as appropriate to further obtain best value, and shall demonstrate awareness and diligence, ensuring comparisons are like for like. Balancing the best value factors will be a professional judgment of the Clerk, who will ultimately authorise expenditures that are within budget as the Financial Regulations and Scheme of Delegation states.

Market knowledge

When seeking to obtain best value for significant purchases, and for annual reviews of suppliers, officers shall draw on any expertise or market knowledge within Council personnel, including Councillors and staff. Any Councillors with interests declared in such supplier companies will not, however, involve themselves in such reviews or advisory roles.

Obtaining best value FORM

Requirement [Please explain what is required & why]
Supplier

[ At least 3]

 Price

[ Please attach all quotes to this form]

 Best Value* Notes

*Best value

Reliability and Trust in the supplier (R/T) | Quality of the product or service (Q) | Durability of the product (D) | Environmental and ecological impacts of the purchase (En) | Ethical concerns (Eth) | Local economic benefits (i.e. using local suppliers) (L) | Any knock-on costs, such as generating high numbers of invoices requiring staff time and cost to administer (Ad) | Market knowledge (MK) | Any other matters particular to the purchase in question (Misc)

Appointed

To be completed by Clerk/Deputy Clerk

Budget

[code & annual amount]

 Current available Committee (Y/N)
Signed off