Houghton-on-the-Hill Parish Council. Index to Financial Regulations

Transcription

1 Houghton-on-the-Hill Parish Council Index to Financial Regulations Financial Regulation Page 1 General 1 2 Annual Estimates 1 3 Budgetary Control 2 4 Accounting and Audit 3 5 Banking Arrangements and the Making of Payments 3 6 Payment of Accounts 5 7 Payment of Salaries, Wages and Expenses 5 8 Loans and Investments 7 9 Income 8 10 Orders for Work, Goods and Services 8 11 Contracts 9 12 Insurance Revision of Financial Regulations Properties and Estates 13 Houghton Financial Regulations

2 Houghton-on- the Hill Parish Council Financial Regulations * Please Note: The RFO is also the Clerk* 1. General 1.1 These financial regulations shall govern the conduct of the financial transactions of the Council and shall only be amended by resolution of the Council. 1.2 The Responsible Financial Officer (RFO) under the policy direction of the Council shall be responsible for the proper administration of the Council s financial affairs. 1.3 The RFO shall be responsible for the production of financial management information. 2. Annual Estimates 2.1 A budget shall be prepared by the RFO not later than the end of November in each year. 2.2 Where practicable, during December of each year the Council shall set the precept to be levied for the ensuing year. 2.3 The budget shall form the basis of the financial control for the ensuing year. 1

3 3. Budgetary Control 3.1 Revenue expenditure may be incurred up to the amounts included in the Council s budget. 3.2 The RFO shall provide the Council with a statement of income and expenditure at the end of each financial quarter or more frequently if requested. 3.3 The Clerk may incur expenditure on behalf of the Council which is either:- a) of such urgency that, in the opinion of the Clerk, it must be done at once, whether or not there is budgetary provision or b) in respect of grounds maintenance works that, in the opinion of the Clerk, it is desirable to carry out in order to maintain the service standards as detailed in appropriate contracts. Expenditure at a) and b) above is subject to a financial limit of 300. The Clerk shall report the action taken to the Council as soon as practicable thereafter. 3.4 No expenditure shall be incurred in relation to any capital project and no contracts entered into or tender accepted involving expenditure on capital account unless the Council is satisfied that the necessary funds are available, or the requisite borrowing approval can be obtained. 2

4 4. Accounting and Audit 4.1 All accounting procedures and financial records of the Council shall be determined by the RFO as required by the appropriate Accounts and Audit Regulations or other Statutory Instrument which may supersede those Regulations. 4.2 The RFO shall be responsible for completing the annual accounts of the Council as soon as practicable after the end of the financial year and in any case by the statutory date and submit such accounts and report thereon to the Council. 4.3 The RFO shall be responsible for maintaining an adequate and effective system of internal audit of the Council s accounting, financial and other operations in accordance with the appropriate regulation(s). 5. Banking Arrangements and the Making of Payments 5.1 The Council s banking arrangements shall be made by the RFO and approved by the Council. 5.2 A schedule of payments shall be presented to the Council and if in order shall be authorised for payment by a resolution of the Council. 5.3 Cheques or orders for payment drawn on the bank account in accordance with the schedule as presented to the Parish Council shall be signed by two members of the Parish Council in accordance with a resolution instructing that payment. A member who is a bank signatory, having a connection by virtue of family or business relationships with the beneficiary of a payment, should not, under normal circumstances, be a signatory to the payment in question. 3

5 5.4 Electronic transactions (e,g BACS, CHAPS or Internet Banking Transfer) drawn on the Council s bank accounts shall be authorised by two members of the Council. 5.5 Any Prepaid Card issued for use will be specifically restricted to the Clerk and will be restricted to a single transaction maximum value of 250 unless authorised by the Council before any order is placed. The Clerk will top up the card by not less than on each occasion in order to maintain a balance of not less than Authorisation for such transactions will be made in accordance with paragraph

6 6. Payment of Accounts 6.1 All payments shall be effected by cheque or other order drawn on the Council s bankers. 6.2 All invoices for payment shall be examined verified and certified by the RFO as evidenced by the presentation to Council for payment. Before such certification the RFO shall be satisfied that the works, goods or services to which the invoice relates have been received, carried out, examined and approved. 6.3 If a payment is necessary to avoid a charge to interest under the Late Payment of Commercial Debts (Interest) Act 1998, and the due date for payment is before the next scheduled Meeting of Council, where the Clerk certifies that there is no dispute or other reason to delay payment, the Clerk may (not withstanding para 6.2) take all steps necessary to settle such invoices provided that a list of such payments shall be submitted to the next appropriate meeting of Council. 6.4 The Council will not maintain any form of cash float. All cash received must be banked intact. Any payments made in cash by the Clerk (for example for postage or minor stationery items) shall be refunded on a regular basis, at least quarterly. 7. Payment of Salaries, Wages and Expenses 7.1 It shall be the responsibility of the RFO to calculate payment of salaries and wages in accordance with the rates in force and arrange for such payment to be made via the Business Payments Service of the Council s banker, cheque or other means agreed by the Council. 5

7 7.2 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 salaries shall be as agreed by the Council. 7.3 Payments to employees of net salary and to the appropriate creditor of the statutory and discretionary deductions shall be recorded in a separate confidential record. This record is not open to inspection or review (under the Freedom of Information Act 2000 of 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 the Audit Commission Act 1998, or any superseding legislation. 6

8 7.4 The Council may pay to both co-opted and elected members, allowances in respect of travelling and subsistence, including an allowance in respect of travel by bicycle or other non-motorised form of transport, undertaken or incurred in connection with the performance of any duty within the following categories:- a) Any duty approved by the Council b) Any duty of a class so approved, namely meetings at: i. Leicestershire and Rutland Association of Local Councils ii. Harborough District Council iii. Leicestershire County Council c) In connection with the discharge of a function of the authority Prior approval of a travelling and subsistence allowance must be obtained in all instances unless it is in connection with b) and c) above. Travelling and subsistence in connection with b) and c) above should, wherever possible, also receive prior approval of the Parish Council. If notification is received of a qualifying event (i.e. 7.3 b)) which occurs before the next meeting of the Parish Council, travelling and subsistence shall be payable and payment will be considered for approval at the next Parish Council meeting. 8. Loans and Investments 8.1 All loans and investments shall be negotiated by the RFO in the name of the Council after approval by the Council and shall be for a set period of time in accordance with Council policy. 8.2 All investments of money under the control of the Council shall be in the name of the Council. 8.3 All borrowings shall be in the name of the Council. 7

9 8.4 All investment certificates and other documents relating thereto shall be retained in the custody of the RFO. 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 Any sums found to be irrecoverable and any bad debts shall be reported to the Council. 9.3 All sums received on behalf of the Council shall be banked with such frequency as the RFO considers necessary. 9.4 The RFO shall promptly complete any VAT Return that is required. 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 Order books shall be controlled by the RFO All members and the Officers are responsible for obtaining value for money at all times. An officer issuing an official order is to ensure as far as reasonable and practicable that the best available terms are obtained in respect of each transaction, usually by obtaining three or more quotations or estimates from appropriate suppliers, subject to any de minimis provisions in Regulation 11 (I) below. 8

10 10.4 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 An invitation to tender shall state the general nature of the intended work or service to be provided and shall be required to be delivered in sealed envelopes. All tenders for the same work shall be opened at the same time by such persons as the Council may direct The Council shall decide from time to time a financial limit for work to be carried out or service provided above which tenders shall be sought The Council shall not be obliged to accept the lowest or any tender. 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 these regulations shall 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 solicitors, accountants, surveyors and planning consultants; 9

11 (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 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 sold only at a fixed price. (b) Where the council intends to procure or award a public supply contract, public service contract or public works contract as defined by The Public Contracts Regulations 2015 the Regulations ) which is valued at 25,000 or more, the council shall comply with the relevant requirements of the 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 ( 164,176) b. For public works contracts 5,225,000 Euros ( 4,104,394) 10

12 (d) (e) 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. 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 Order 16, and shall refer to the terms of the Bribery Act (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 shall obtain 3 quotations (priced descriptions of the proposed supply); where the value is below 3,000 and above 100 the Clerk shall strive to obtain 3 estimates. Otherwise, Regulation 10.3 above shall apply. (i) The council shall not be obliged to accept the lowest or any tender, quote or estimate. 11

13 (j) Should it occur that the council, or duly delegated committee, does not accept any tender, quote or estimate, the work is not allocated and the council requires further pricing, provided that the specification does not change, no person shall be permitted to submit a later tender, estimate or quote who was present when the original decision making process was being undertaken. 12. Insurance 12.1 The RFO shall be responsible for effecting all insurance and negotiating all claims against the Council s insurers The RFO shall give prompt notification to the Council of all new risks and of any amendments affecting existing cover All appropriate employees of the Council shall be included in suitable fidelity guarantee cover. 13. Revision of Financial Regulations 13.1 It shall be the duty of the Council to review these financial regulations from time to time. 12

14 14. Properties and Estates 14.1 The Clerk shall make appropriate arrangements for the custody of all title deeds of properties owned by the Council. The RFO shall ensure a record is maintained of all properties owned 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 No property shall be 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