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.

1. 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.
1. 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

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. At least once a year, the council must review the effectiveness of its system of internal control, before approving the Annual Governance Statement.
3. 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.
1. At the end of each financial year end, an external auditor shall be appointed to verify bank reconciliations produced by the RFO. The auditor shall sign and date the reconciliations as evidence of this. This activity, including any exceptions, shall be reported to and noted by the council.
2. 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.

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;
1. The accounting records shall be designed to facilitate the efficient preparation of the accounting statements in the Annual Governance and Accountability Return.
2. 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.
3. 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.
4. 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.
5. 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.
6. The council shall ensure that the internal auditor:

is competent and independent of the financial operations of the council;
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
1. 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.
1. 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.
2. 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.
3. The RFO shall, without undue delay, bring to the attention of all councillors any correspondence or report from internal or external auditors.

Budget and precept
1. Before setting a precept, the council must calculate its council tax 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 council at least annually.
3. 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 disclose at the start of the meeting that Section 106 applies to them.
4. 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.
5. The agreed budget provides a basis for monitoring progress during the year by comparing actual spending and income against what was planned.
6. Any addition to, or withdrawal from, any earmarked reserve shall be agreed by the council.
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.
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, 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 £1,000 including VAT, the Clerk shall seek formal tenders from at least three suppliers agreed by the council.
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 £1,000 excluding VAT the RFO shall seek at least 3 fixed-price quotes;
9. where the value is between £1,000 and £3,000excluding VAT, the 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 RFO shall seek to achieve value for money.
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. 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 RFO under delegated authority, for any items below £500 excluding VAT.
the Clerk, in consultation with the Chair of the Council for any items below £1,000 excluding VAT.
the council for all items over £1,000;

Such authorisation must be supported by a minute or other auditable evidence trail.

1. No individual member, or informal group of members may issue an official order unless instructed to do so in advance by a resolution of the council or make any contract on behalf of the council.
Banking and p ayments
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.
2. The council must have safe and efficient arrangements for making payments, to safeguard against the possibility of fraud or error. Dual online authorisation will be required for all payments.
3. Even where a purchase has been approved, the payment must also be authorised and only approved payments shall be authorised to allow the funds to leave the council’s bank.
4. 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 approved by the council before being certified by the RFO.
5. 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.
6. All payments shall be made by online banking in accordance with a resolution of the council unless the council resolves to use a different payment method.
7. 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 regular maintenance contracts and similar items), which the council may authorise in advance for the year.
8. A list of such payments shall be reported to the next appropriate meeting of the council for information only.
9. The RFO shall present a schedule of payments requiring authorisation, forming part of the agenda for the meeting, together with the relevant invoices, to the council. The council shall review the schedule for compliance and, having satisfied itself, shall authorise payment by resolution. A detailed list of all payments shall be disclosed within or as an attachment to the minutes of that meeting.
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 that the Chair will be authorised to approve transactions on the account.
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. Details will be forwarded to the Chair for approval.
5. In the prolonged absence of the Service Administrator an authorised signatory shall set up any payments due before the return of the Service Administrator.
6. Evidence shall be retained showing which members approved the payment online.
7. A full list of all payments made in each period shall be provided to the next council meeting.
8. 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.
9. Remembered password facilities other than secure password stores requiring separate identity verification should not be used on any computer used for council banking.
Cheque payments
1. Cheques issued for payment should be signed by the RFO and countersigned by the Chair.
Payment of salaries and allowances
1. As an employer, the council must make arrangements to comply with the statutory requirements of PAYE legislation.
2. 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.
3. 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.
Income
1. The collection of all sums due to the council shall be the responsibility of and under the supervision of the RFO.
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 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.
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 shall give prompt notification to the Council of all new risks, properties or vehicles which require to be insured and of any alterations affecting existing insurances.
3. The 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 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 by the council.
Suspension and revision of Financial Regulations
1. The council shall review these Financial Regulations annually and following any change of 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.

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 Order [insert reference of the council’s relevant standing order] 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.

Appendix 1 - Tender process

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