CROFTON PARISH COUNCIL

                                   

  FINANCIAL STANDING ORDERS 2012.

 

These financial regulations shall govern the conduct of the financial transactions of the council and may only be amended or varied by resolution of the council

 

1.     GENERAL

 

The Clerk shall be the responsible financial officer (RFO).

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.

The RFO shall be responsible for the production of financial management information.

 

2.     ANNUAL ESTIMATES

 

The council shall formulate, if required, a rolling capital programme not later than the end of January each year.

Detailed estimates of receipt and expenditure on revenue services, and receipts and expenditure on capital account, shall be prepared each year by the RFO.

The council shall review the estimates and recommend the precept to be levied for the ensuing financial year, not later than the end of January in each year.

The RFO shall supply each member with a copy of the budget monitor each quarter.

The quarterly budget monitor shall form the basis of financial control for the ensuing year.

 

3.     BUDGETARY CONTROL

Expenditure on the revenue account may be incurred up to the amounts included in each approved budget heading (unless a virement has been approved by the council)

but subject to approval by the Parish Council.

The Clerk or member of a working party, may incur expenditure on behalf of the Council which is necessary to carry out any repair and replacement, subject to the following;

1. When the nature of the work is urgent, subject to a limit of £500 in each financial year.

2. When the nature of the work is non-urgent subject to a limit of £200 in each financial year.

In each instance it will be reported to the council as soon as practicable.

The Chair may incur similar expenditure to a limit of £250, in each financial year.

There will be a Chairs allowance of £200, to spend on behalf of the Council.

The RFO shall provide the council with a quarterly statement of receipt and expenditure, under each head of the approved annual revenue and capital budgets.

Where expenditure is incurred and the sum required cannot be met from savings made elsewhere within the councils approved budget, it shall be subject to the provisions of a supplementary estimate approved by the council.

No expenditure shall be incurred in relation to any capital project, no contract entered into or tender accepted involving expenditure on capital account, unless the council is satisfied that it is contained in the rolling capital programme and that the necessary capital funds are available, or the requisite borrowing approval can be obtained and has been approved by the full Council.

All capital works shall be administered in accordance with the council’s financial regulations relating to contracts.

 

4. ACCOUNTING AND AUDIT

 

All accounting procedures and financial records of the council shall be determined by the RFO as required by the Accounts and Audit Regulations 2011.

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 shall submit them to and report thereon to the council.

The following principles shall be observed in connection with accounting duties.

The duty of providing information, calculating, checking and recording sums due to, and from, the council, should be separated as completely as possible from the duty of collecting or dispersing them.

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 Accounts and Audit Regulations 2011.

Any officer or member of the council shall, if the RFO requires, make available such documents of the council which relate to their accounting and other records, as appear to the RFO to be necessary for the purpose of the audit, and shall supply the RFO with such information and explanation as the RFO considers necessary for that purpose.

 

5. BANKING ARRANGEMENTS AND CHEQUES

 

The council’s banking arrangements shall be made by the RFO and approved by the council.

One current account and one savings account shall be maintained with an appropriate financial institution.

The RFO shall be allowed to move funds between the accounts of the Parish Council and report the action to the council as soon as practicable.

Cheques drawn on the bank account shall be signed by the two members of the council, in an instance where two members are not available to sign the cheques, the RFO shall have authority to make the payment subject to approval by the Chair or in his/her absence the Vice Chair.

 

6. PAYMENT OF ACCOUNTS

 

All payments shall be effected by cheque or online banking.

All invoices for payment shall be examined, verified and certified by the RFO.

Before certifying an invoice the officer shall satisfy himself that the work, goods or services to which the invoice relates have been received, carried out, examined and approved.

Duly certified invoices shall be passed to the RFO who shall examine them in relation to arithmetical accuracy and authorisation, and shall code them to the appropriate expenditure head.

All duly certified invoices will then be entered on to a payments and receipts spreadsheet.

The RFO may allow members to make payment for the purpose of defraying operational and other expenses up to a maximum of £200.

Invoices for payments made shall be forwarded to the RFO with a claim for reimbursement.

 

 

 

7. PAYMENT OF SALARIES AND WAGES

 

The payment of all salaries shall be made by cheque or standing order.

 

8. LOANS AND INVESTMENTS

 

All loans and investments as requested by the council, shall be negotiated by the RFO in the name of the council, and shall be for a set period of time in accordance with council policy.

No changes to loans and investments should occur unless reported to the council and agreed

All investments of money under the control of the council shall be in the name of the council.

All borrowings shall be effected in the name of the council.

All investment certificates and other documents relating thereto shall be retained in the custody of the RFO.

 

9. INCOME

 

The collection of all sums due to the council shall be the responsibility of and under the supervision of the RFO.

Particulars of all charges to be made for work done, services rendered or goods supplied shall be notified to the RFO.

The RFO shall be ultimately responsible for the collection of all accounts due to the council.

The council will review all fees and charges annually, following a report by the RFO.

Any bad debts shall be reported to the council.

All sums received on behalf of the council shall be banked by the RFO.

A reference to the related debt, or otherwise, indicating the origin of each cheque, shall be entered on the paying-in slip.

Every transfer of official money from one member of the council to another member shall be signed for by the receiving officer.

 

10.ORDERS FOR WORK, GOODS AND SERVICES

 

Council approval must be sought in the following instances;

An official order, letter or e-mail shall be issued for all work, goods and services unless a formal contract is to be prepared.

Copies of orders issued shall be maintained.

All officers of the council 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 cash transaction.

 

11.CONTRACTS

Where the supply of goods, materials or the execution of works is not to exceed £3000, then there is not a requirement to enter into a contract, the RFO will, where practicable, seek a minimum of three estimates/quotes, in this instance.

Where it is intended to enter into a contract exceeding £3000, but not exceeding £10,000, in value for the supply of goods or materials or for the execution of works, then the Clerk shall give public notice of such intention.

Notice of a contract exceeding £10,000 shall state the general nature of the intended contract, and state the name and address of the person to whom the tenders are to be addressed, and the last date by which those tenders should reach that person, and that have to be in sealed envelopes.

Tenders received should be opened by the RFO, in the presence of a witness.

Neither the council or any committee is bound to accept the lowest tender.

If no tenders are received or if all tenders are identical, the council may make such arrangements for procuring the goods or materials or executing the work as it thinks fit.

 

12. INSURANCE

 

The RFO shall effect all insurance and negotiate all claims on the council’s insurer.

The RFO shall insure that all new risks, properties or vehicles which require to be insured are added to existing insurance.

The RFO shall keep a record of all insurance effected by the council and the property and risks covered thereby and annually review it.

The RFO shall be notified of any loss liability or damage or of any event likely to lead to a claim.

All appropriate employees of the council shall be included in a suitable fidelity guarantee insurance.

 

13. REVISION OF FINANCIAL REGULATIONS

 

It shall be the duty of the council to review the financial regulations of the council from time to time and to make such changes as the council considers are required.

 

 

22 April 2012