Part 4 - Financial procedure rules
Below are the financial procedure rules.
C.1 Directors are responsible for ensuring the development and monitoring of effective and comprehensive systems for identifying, evaluating and controlling significant business risks in their directorates.
C.2 The Chief Financial Officer is responsible for the development, monitoring and review of the Council’s risk management policy statement and strategy, which is approved by Cabinet and for reviewing the effectiveness of risk management. The Chief Financial Officer is also the Council’s principal risk management adviser and co-ordinator.
C.3 The Chief Financial Officer will assess the Council’s overall insurance requirements and will be responsible for arranging all insurance cover. The Chief Financial Officer will review insurance cover on an annual basis and will consult with Directors prior to arranging cover where appropriate. Directors are responsible for providing timely and accurate information to the Chief Financial Officer in relation to any insurance claims.
C.4 Each Director shall be responsible for identifying, assessing and controlling risks within their directorate taking into account any advice that the Chief Financial Officer may have issued.
Audit and Internal Control Requirements:
C.5 The Chief Financial Officer is responsible for advising on effective systems of internal control.
C.6 The Council has determined that the Chief Financial Officer is responsible for conducting a continuous internal audit in accordance with the Accounts and Audit (England) Regulations 2011.
C.7 Directors are expected to co-operate and supply information lawfully required to external auditors and to other external agencies undertaking audit, investigation or inspection such as HMRC. Directors are also expected to co‑operate and supply information reasonably required to internal auditors.
C.8 The Chief Financial Officer and the Monitoring Officer must be notified immediately of all instances of financial irregularity.
Preventing Fraud and Corruption:
C.9 The Chief Financial Officer is responsible for the development and maintenance of an anti-fraud and anti-corruption policy.
Security of Assets
C.10 Directors should ensure that records and assets (including stocks and stores) are properly maintained and securely held. They should also ensure that contingency plans for the security of assets and continuity of service in the event of disaster or system failure are in place.
C.11 Directors must maintain an inventory of furniture and equipment and stock / stores and check at least annually that all items are accounted for. Directors may write off inventory items with a value up to £5,000. Write off of items with a value above this limit require the approval of the Cabinet, Leader of the Council or a Cabinet Member.
Banking and Treasury Management:
C.12 The Chief Financial Officer is responsible for arranging the Council’s banking arrangements including opening and closing of all accounts.
C.13 All electronic transfers of funds will only be made by the Chief Financial Officer or their nominated signatory.
C.14 All other payments made by the Council, with the exception of those made from imprest accounts, will be made by electronic transfer or other payment instrument, bearing the manuscript or facsimile signature of the Chief Financial Officer or their nominee.
C.15 The Authority has adopted CIPFA’s Code of Practice for Treasury Management in Public Services. Under the Code the following four clauses are adopted:
- The Council will create and maintain, as the cornerstones for effective treasury management:
- a treasury management policy statement, stating the policies, objectives and approach to risk management of its treasury management activities
- suitable treasury management practices (TMPs), setting out the manner in which the organisation will seek to achieve those policies and objectives and prescribing how it will manage and control those activities
The content of the policy statement and TMPs will follow the recommendations contained in Sections 6 and 7 of the Code, subject only to amendment where necessary to reflect the particular circumstances of this organisation. Such amendments will not result in the organisation materially deviating from the Code’s key principles.
- The Council’s Audit and Governance Committee will receive reports on its treasury management policies, practices and activities, including, as a minimum, an annual strategy and plan in advance of the year, a mid-year review and an annual report after its close, in the form prescribed in its TMPs.
- The Council delegates responsibility for the implementation and regular monitoring of its treasury management policies and practices to the Audit and Governance Committee and for the execution and administration of treasury management decisions to the Chief Financial Officer, who will act in accordance with the organisation’s policy statement and TMPs and, if they are a CIPFA member, CIPFA’s Standard of Professional Practice on Treasury Management.
- The Council nominates the Audit and Governance Committee to be responsible for ensuring effective scrutiny of the treasury management strategy and policies.
C.16 The Council is responsible for approving the Treasury Management Policy Statement as required by CIPFA’s Code of Practice for Treasury Management in Public Services. The policy statement is proposed to the full Council by the Cabinet, Leader of the Council or a Cabinet Member. The Chief Financial Officer has delegated responsibility for implementing and monitoring the statement.
C.17 The Chief Financial Officer is responsible for reporting to the Cabinet, Leader of the Council or a Cabinet Member a proposed treasury management strategy for the coming financial year at or before the start of each financial year.
C.18 All executive decisions on borrowing, investment or financing shall be delegated to the Chief Financial Officer, who is required to act in accordance with CIPFA’s Code of Practice for Treasury Management in Public Services.