DONNINGTON PARISH COUNCIL
FINANCIAL REGULATIONS

These Financial Regulations were adopted by the Council at its Meeting held in May 1996.

1. GENERAL

1.1 These financial regulations govern the conduct of the financial transactions of the
Council and may only be amended or varied 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 affairs.
1.3 The RFO shall be responsible for the production of financial management information.

2. ANNUAL ESTIMATES

2.1 Each Committee (if any) shall formulate and submit proposals to the Council in respect
of revenue and capital costs for the following financial year not later than the end of
November each year.
2.2 Detailed estimates of all receipts and payments for the year shall be prepared each year
by the RFO.
2.3 The Council shall review the estimates not later than the end of January each year and
shall fix the Precept to be levied for the ensuing financial year. The RFO shall supply
each member with a copy of the approved estimates.
2.4 The annual budgets shall form the basis of financial control for the ensuing year.

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3. BUDGETARY CONTROL

3.1 Expenditure on revenue items may be incurred up to the amounts included in the
approved budget.
3.2 No expenditure may be incurred which will exceed the amount provided in the revenue
budget,
3.3 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 against that
planned.
3.4 The Clerk may incur expenditure on behalf of the Council which is necessary to
carryout 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 £2OO. The Clerk shall report the action to the
Council as soon as practicable thereafter.
3.5 Unspent provisions in the revenue budget shall not be carried forward to a subsequent
year.
3.6 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.
3.7 All capital works shall be administered in accordance with the Council's standing orders
and financial regulations relating to contracts.

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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 Accounts and Audit Regulations 1996 as amended.
4.2 The RFO shall be responsible for completing the annual financial statements of the
Council as soon as practicable after the end of the financial year and shall submit them
and report thereon to the Council.
4.3 The RFO shall be responsible for completing the Accounts of the Council contained in
the Annual Return (as supplied by the Auditor appointed from time to time by the Audit
Commission) and for submitting the Annual Return for approval and authorisation by
the Council within the timescales set by the Accounts and Audit Regulations 1996 as
amended, or set by the Auditor.
4.4 The RFO shall be responsible for ensuring that there is adequate and effective system of
internal audit of the Council's accounting, financial and other operations in accordance
with Regulation 5 of the Accounts and Audit Regulations 1996 as amended. Any
officer or member of the Council shall, if the RFO or Internal Auditor requires, make
available such documents of the Council which appear to the RFO or Internal Auditor
to be necessary for the purpose of the internal audit and shall supply the RFO or Internal
Auditor with such information and explanation as the RFO or Internal Auditor
considers necessary for that purpose.
4.5 The Internal Auditor shall carry out the work required by the RF0, or by the Council,
with a view to satisfactory completion of the Internal Auditors Report section of the
Annual Return as compiled annually by the Audit Commission, The Internal Auditor,
who shall be competent and independent of the operations of the Council, shall report to
Council in writing on a regular basis with a minimum of one annual report in respect of
each financial year.
4. The RFO shall make arrangements for the opportunity for inspection of the accounts,
books, and vouchers required by Audit Commission Act 1998 section 15 and the
Accounts and Audit Regulations 1996 as amended,
4.7 The RFO shall, as soon as practicable, bring to the attention of all councillors any
correspondence or report from the Internal or External Auditor, unless the
correspondence is of a purely administrative matter.

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5. BANKING ARRANGEMENTS AND CHEQUES

5.1 The Council's banking arrangements shall be made by the RFO and approved by the
Council. They shall be regularly reviewed for efficiency.
5.2 A schedule of the payments required, forming part of the Agenda for the Meeting, shall
be prepared by the RFO and, together with the relevant invoices, be presented to
Council, if the schedule is in order it shall be authorised by a resolution of the Council
and shall be initialled by the Chairman of the Meeting. If more appropriate the detail
may be shown in the Minutes of the Meeting,
5.3 Cheques drawn on the bank account in accordance with the schedule referred to in
paragraph 5.2 or in accordance with paragraph 6.4 shall be signed by two members of
Council.
5.4 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.

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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 Clerk. The
Clerk shall satisfy him/herself that the work, goods or services to which the invoice
relates shall have been received, carried out, examined and approved.
6.3 The RFO shall examine invoices in relation to arithmetic accuracy and shall analyse
them to the appropriate expenditure heading. The Clerk shall take all steps to settle all
invoices submitted, and which are in order, at the next available Council Meeting.
6.4 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 and RFO certify that there is no dispute
or other reason to delay payment, the Clerk may (not withstanding para 6.3) 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.
6.5 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 RF0 (for example for postage or minor
stationery items) shall be refunded on a regular basis, at least quarterly,

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7. PAYMENT OF SALARIES

7.1 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 Council.
7.2 Payment of salaries and payment of deductions from salary such as may be made for
tax, national insurance and pension contributions, may be made in accordance with the
payroll records and on the appropriate dates, provided that, each payment is reported
to and ratified by the next available Council Meeting.

8. LOANS AND INVESTMENTS

8,1 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.
8.2 The Council's Investment Policy, shall be in accordance with the Trustee Act 2000, and
shall be reviewed on a regular basis (at least annually).
8.3 All investments of money under the control or the Council shall be in the name of the
Council.
8.4 All borrowings shall be effected 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.
8.5 All investment certificates and other documents relating thereto shall be retained in the
custody of the RFO.

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9. INCOME

9. I 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 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.

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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 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,
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.

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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.
(iii) for work to be executed or goods or materials to be supplied which constitute 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 £250 (in
excess of this sum the Clerk and RFO shall act after consultation with the Chairman and
Vice Chairman of Council)-,
(vi) for goods or materials proposed to be purchased which are proprietary articles and/or
are only sold at a fixed price.

(b) Where it is intended to enter into a contract exceeding £50,000 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 invite tenders from at least three firms to be taken from the appropriate approved list.
(c) 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.
(d) 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.
(e) 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.
(f) If less than three tenders are received for contracts above £50,000 or if all the tenders are
identical the Council may make such arrangements as it thinks fit for procuring the goods or
materials or executing the works.
(g) Any invitation to tender issued under this regulation shall contain a statement to the effect of
Standing Orders 61, 63 and 64.
(h) When it is to enter into a contract less than £50,000 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 £1,000 and above £100 the Clerk or RFO 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.

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12. PAYMENTS UNDER CONTRACTS FOR BUILDING OR OTHER
CONSTRUCTION WORKS

12.1 Payments on account of the contract sum shall be made within the time specified in the
contract by the RFO upon authorised certificates of the architect or other consultants
engaged to supervise the contract (subject to any percentage withholding as may be
agreed in the particular contract).
12.2 Where contracts provide for payment by installments the RFO shall maintain a record of
all such payments. In any case where it is estimated that the total cost of work carried
out under a contract, excluding agreed variations, will exceed the contract sum of 5% or
more a report shall be submitted to the Council.
12.3 Any variation to a contract or addition to or omission from a contract must be approved
by the Council and Clerk to the Contractor in writing, the Council being informed
where the final cost is likely to exceed the financial provision.

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13. STORES AND EQUIPMENT

13.1 The officer in charge of each section shall be responsible for the care and custody of
stores and equipment in that section.
13.2 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.
13.3 Stocks shall be kept at the minimum levels consistent with operational requirements.
13.4 The RFO shall be responsible for periodic checks of stocks and stores at least annually.

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 Regulation 4(3)(b) of the Accounts and Audit
Regulations 1996 as amended.
14.2 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 £50.

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15. INSURANCE

15. Following an annual risk assessment, the RFO shall effect all insurances and negotiate
all claims on the Council's insurers.
15.2 The Clerk shall give prompt notification to the RFO of all new risks, properties or
vehicles which require to be insured and of any alterations affecting existing insurances,
15.3 The RFO shall keep a record of all insurances effected by the Council and the property
and risks covered thereby and annually review it.
15.4 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.
15.5 All appropriate employees of the Council shall be included in a suitable fidelity guarantee
insurance, which shall cover the maximum risk exposure as determined by the Council.

16. CHARITIES

16.1 Where the Council is sole 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.

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17. RISK MANAGEMENT

17.1 The Clerk with the RFO shall prepare and promote risk management policy statements
in respect of all activities of the Council.
17.2 When considering any new activity the Clerk and RFO shall prepare a draft Risk
Management policy for the activity and shall bring a draft addressing the legal and
financial liabilities and Risk Management issues that arise to Council for consideration
and, if thought appropriate, adoption.

18. REVISION OF FINANCIAL REGULATIONS

18.1 It shall be the duty of the Council to review the Financial Regulations of the Council
from time to time.

Donnington Parish Council

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