STANDING ORDERS & CODE OF CONDUCT

September 2006

STANDING ORDERS (68 -85)

FINANCIAL STANDING ORDERS

68. These financial regulations govern the conduct of financial management by the Council and may only be amended or varied by resolution of the Council. 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 financial control which facilitates the effective exercise of the council's functions, including arrangements for the management of risk and for the prevention and detection of fraud and corruption. These financial regulations are designed to demonstrate how the council meets these responsibilities.

69. The Responsible Financial Officer (RFO) is a statutory office and shall be appointed by the council. [The Clerk has been appointed as RFO for this Council [hereinafter referred to as the Clerk] and these regulations will apply accordingly.] The Clerk, acting under the policy direction of the Council, shall administer the Council's financial affairs in accordance with proper practices. The Clerk shall determine on behalf of the council its accounting records, and accounting control systems. The Clerk shall ensure that the accounting control systems are observed and that the accounting records of the council are maintained and kept up to date in accordance with proper practices.

70. The Clerk shall produce financial management information as required by the Council

71. At least once a year, prior to approving the annual return, the council shall conduct a review of the effectiveness of its system of internal control which shall be in accordance with proper practices.

72. In these financial regulations, references to the Accounts and Audit Regulations shall mean the Regulations issued under the provisions of section 27 of the Audit Commission Act 1998 and then in force.

73. In these financial regulations the term 'proper practice' or 'proper practices' shall refer to guidance issued in Governance and Accountability in local Councils in England and Wales - a Practitioners' Guide which is published jointly by NALC and SLCC and updated from time to time

ANNUAL ESTIMATES

74. The Management Committee shall formulate and submit proposals to the Council in respect of revenue and capital including the use of reserves and sources of funding for the following financial year not later than the end of November each year.

75. Detailed estimates of all receipts and payments including the use of reserves and all sources of funding for the year shall be prepared each year by the RFO in the form of a budget to be considered by the council.

76. The Management Committee shall review the budget and submit it to the Council not later than the end of January each year and shall recommend the Precept to be levied for the ensuing financial year. The Clerk shall issue the precept to the billing authority and shall supply each member with a copy of the approved budget.

77. The annual budgets shall form the basis of financial control for the ensuing year.

78. The Council shall consider the need for and shall have regard to a three year forecast of Revenue and Capital Receipts and Payments which may be prepared at the same time as the annual Budget.

BUDGETARY CONTROL

79. Expenditure on revenue items may be incurred up to the amounts included for that class of expenditure in the approved budget.

80. No expenditure may be incurred that will exceed the amount provided in the revenue budget for that class of expenditure During the budget year and following the recommendation of the Management Committee with the approval of council having considered fully the implications for public services, unspent and available amounts may be vired to other budget headings or to an earmarked reserve as appropriate.

81. The Clerk shall regularly provide the Management Committee with a statement of receipts and 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.

82. The Clerk may incur expenditure on behalf of the Council which is necessary to carry out any repair replacement or other work which is of such extreme urgency that it must be done at once, whether or not there is any budgetary provision for the expenditure, subject to a limit of £1500. The Clerk shall report the action to the Council as soon as practicable thereafter.

83. Unspent provisions in the revenue budget shall not be carried forward to a subsequent year unless placed in an earmarked reserve by resolution of the council.

84. No expenditure shall be incurred 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, or the requisite borrowing approval has been obtained.

85. All capital works shall be administered in accordance with the Council's Standing Orders and financial regulations relating to contracts.

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