Financial Regulations

Financial Resolutions of Snape with Thorp Parish Council

1 Responsible Finance Office (RFO)

The Responsible Finance Officer is a statutory office and appointed by the Council. The Clerk of the Council will take on this role of managing the Council’s financial affairs in accordance with Proper Practices. The RFO will also be required to run the Council’s payroll processes ensuring payments to the Clerk and HMRC are made appropriately via cheques duly signed as per section 4 below.

1. Estimates and Precept

The RFO will compile estimates of income and expenditure annually for the Council’s consideration. The Council will review the budget not later than the end of December in preparation for the precept being agreed, and submitted to the Collection Authority in December. During the year the budget will be reviewed against actual expenditure and income. Amendments to the budget will be discussed in Council and changes minuted.

1. Income and Expenditure

The RFO will supply regular updates of income and expenditure throughout the year and detail actual figures against estimate. Significant underspends or overspends will be brought to the attention of the Council and action taken to address any discrepancies. Underspent revenue will be identified and earmarked to reserves by a Council resolution.

1. Accounting and Audit
   1. The RFO will determine all accounting procedures and financial records of the Council in accordance with the Accounts and Audit Regulations.
   2. The RFO will complete the annual financial statements of the Council including the annual return as soon as practicable after the end of the financial year and will submit and report on them to the Council. The Council will review each year and ensure that there is an adequate, effective system of internal audit of the Council’s accounting, financial and other procedures in line with Proper Practice.
   3. An Internal Auditor will be appointed by the Council to carry out the work required to comply with the Proper Practice. The person appointed will be competent and independent of the operation of the Council.
   4. The RFO will submit the Annual Return to the External Auditor by the due date, ensuring the return is complete.

1. Banking Arrangements and Cheques

The Council’s banking arrangements, including the Bank Mandate, will be made by the RFO and approved by the Council. They will be regularly reviewed for efficiency.

The Council will permit the RFO to obtain banking statements to support her duties in reconciling payments and receipts. The RFO will NOT be able to take any action with regard to the Council’s accounts.

A resolution of the Council will nominate at least three members to be authorised by the Council to sign cheques.

1. 1. 1. All items of expenditure will be authorised by the Council and the payments approved. The RFO will examine invoices and verify and certify the expenditure.
      2. Cheques will be completed for all transactions and signed by two authorised Councillors.
      3. Any utility bill may be paid by Direct Debit provided that the instructions are signed by two authorised Councillors.

1. Loans and Investments

All loans and investments will be negotiated in the name of the Council and will be set for a period approved by the Council.

All borrowings will be in the name of the Council and will not be entered into until necessary approvals have been given. Any application will be approved by Council, especially the terms and purpose. These terms must be reviewed annually

All investments of money under the control of the Council will be in the name of the Council and all certificates or other documents will be retained by the RFO.

1. Contracts and Purchase Orders

An official order or letter will be issued for all work or service paid for by the Council. All Councillors and officers are responsible for obtaining good value for money at all times. An officer placing an order on behalf of the Council will ensure that good value and appropriate terms are obtained for the transaction.

Orders for values £500 to £2000 require a minimum of two quotations; for values above £2000 three quotations are required. Contracts exceeding £50,000 require additional safeguards and will follow Proper Practice.

All estimates will be approved by the Council; while the Council is not obliged to accept the lowest quotation the reasons for accepting the quotation will be recorded.

1. Assets

The RFO will ensure that an appropriate and accurate Register of Assets is maintained by the Council. It will be reviewed at least annually, in conjunction with a health and safety inspection of assets if appropriate.

1. VAT

The RFO will promptly complete any VAT Return that is required. Any repayment claim due in accordance with the VAT Act 1974 section 33 will be made at least annually coinciding with the financial year.

1. Insurance

Following the annual risk assessment the Council will review the level of insurance cover and ensure it is adequate and appropriate for the activities of the Council.

Minimum cover will include Public Liability, Employers Liability, Money and Fidelity Guarantee.

11. Risk Assessment

A risk assessment will be undertaken annually of all the activities of the Council and a report approved by the Council. This assessment will also cover the appropriateness of the internal audit arrangements. The Risk Assessment will be reviewed annually.

If the Council undertakes a new activity not covered by the existing risk assessment an assessment will be undertaken before the activity commences.

Agreed – May 2017