Christow Parish Council

CHRISTOW PARISH COUNCIL

Clerk: Penny Clapham, Penton Chapel, Christow, Exeter EX6 7NP

01647-253066 email:

Financial Regulations

1General

1.1These 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.

1.2The responsible financial officer (RFO) under the direction of the Parish Council shall be responsible for the proper administration of the Council’s financial affairs.

1.3The RFO for Christow Parish Council is the Clerk.

1.4The RFO shall be responsible for the production of financial management information.

2The Annual Budget

2.1Detailed estimates of income and expenditure on revenue services, and receipts and payments on capital account when necessary, shall be prepared each year by the RFO.

2.2The RFO shall supply each member with a copy of the budget, not later than the January meeting.

2.3The annual budget shall form the basis of financial control for the ensuing year.

3Budgetary Control

3.1The RFO shall report to the Council in the event of any significant departure from the approved budget.

3.2The clerk may incur expenditure on behalf of the Council which is necessary to carry out 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 £1,000. The clerk shall report the action to the Chairman as soon as practicable thereafter.

3.3The clerk may incur expenditure on behalf of the Council for office supplies or office equipment repair, subject to a limit of £100 per item.

4Accounting

4.1All accounting procedures and financial records of the Council shall be determined by the RFO as required by the Accounts and Audit Regulations 2003.

4.2The records of the Council are:

Receipts & Payments Account

Recreation Field Users Debtors Summary and Recreation Field Expenditure Account

CHRISTOW PARISH COUNCIL – FINANCIAL REGULATIONS.

Allotment Holders Debtors Summary

A list of the names and addresses of allotment holders

Plan of the allotments

Register of Purchased Graves

Register of Grave Spaces

Register of Burials

Cemetery receipt book

Copies of Burial Grants

Burial Plan

Application forms for a grave space and burial or cremation certificates

Applications to erect a memorial

List of cemetery fees

Clerk’s Expenses Sheets

Asset Register

The Minutes

4.3The RFO shall be responsible for completing the annual accounts and shall submit them to the Council before the end of May.

4.4The RFO shall be responsible for producing a bank reconciliation upon receipt of the bank statement, for every meeting.

4.5The RFO shall be responsible for reclaiming VAT.

4.6The RFO shall be responsible for completing the annual return and shall submit it to the Council before the Audit date.

5Banking Arrangements and Cheques

5.1The Council’s banking arrangements shall be made by the RFO and approved by the Council.

5.2The relevant invoices should be presented at the Parish Council meeting. The expenditure should be approved by the Council and recorded in the Minutes.

5.3Cheques shall be signed by two authorised councillors.

5.4The RFO shall be a signatory on the bank account in order to deal with any banking queries.

6Payment of Accounts

6.1All payments shall be effected by cheque or other order drawn on the Council’s bankers.

6.2The RFO should satisfy herself that the work, goods or services to which the invoice relates have been received or carried out.

CHRISTOW PARISH COUNCIL – FINANCIAL REGULATIONS

7The Clerk’s Salary and PAYE/NIC

The Council is responsible for setting up PAYE online as an employer; the clerk to operate the PAYE system and be responsible for the end of year returns.

8Loans and Investments

8.1All loans and investments shall be negotiated by the RFO in the name of the Council. Changes to loans and investments should be reported to the Council at the earliest opportunity.

8.2All investments of money under the control of the Council shall be in the name of the Council.

8.3All borrowings shall be made in the name of the Council.

8.4All investment certificates and other documents relating thereto shall be retained in the custody of the RFO.

9Income

9.1The collection of all sums due to the Council shall be the responsibility of the RFO.

9.2The Council will review all fees and charges annually, following a report from the clerk.

9.3Any bad debts shall be reported to the Council.

9.4All receipts shall be deposited with the Council’s bankers within a week.

9.5A reference to the related debt, or otherwise, indicating the origin of each cheque, shall be entered on the paying-in slip.

10Orders for Work, Goods and Services

10.1An official letter shall be issued for all work, goods and services unless a formal contract is to be prepared or an official letter would be inappropriate. Copies of letters issued shall be maintained.

10.2 The Council and the RFO are responsible for obtaining value for money at all times. An officer issuing an official order shall 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.

11Contracts

11.1Procedures 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 the items below:

for the supply of gas, electricity, water, sewerage and telephone services;

for specialist services such as are provided by solicitors, accountants, surveyors and planning consultants;

CHRISTOW PARISH COUNCIL – FINANCIAL REGULATIONS

for work to be executed or goods or materials to be supplied which consist of repairs to or parts for existing machinery or equipment or plant;

for work to be executed or goods or materials to be supplied which constitute an extension of an existing contract by the Council;

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);

for goods or materials proposed to be purchased which are proprietary articles and/or are only sold at a fixed price.

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.

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.

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. Tenders are to be sent, in a sealed marked envelope, to the clerk by a stated date and time.

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.

Any invitation to tender issued under this regulation shall contain a statement to the effect of Standing Orders 61, 63 and 64.

11.2When it is to enter into a contract less than £50,000 and above £200 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 set out in paragraph (a) the Clerk shall obtain 3 quotations.

11.3If less than three tenders, quotes or estimates, are received or if all of the tenders, quotes, or estimates are identical the Council may make such arrangements as it thinks fit for procuring the goods or materials or executing the works.

11.4The Council shall not be obliged to accept the lowest tender, quote or estimate.

12Payments under Contracts for Building or Other Construction Works

12.1Payments 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.

12.2Where contracts provide for payments by instalments the RFO shall maintain a record of all such payments. In any case when it is estimated that the total cost of work carried out under a

CHRISTOW PARISH COUNCIL – FINANCIAL REGULATIONS

contract, excluding fluctuation clauses, will exceed the contract sum by 5% or more a report shall be submitted to the Council.

Any variation to a contract or addition to or omission from a contract must be approved by the clerk in writing, the Council being informed where the final cost is likely to exceed the financial provision.

13Properties and Estates

13.1The clerk shall make appropriate arrangements for the custody of all title deeds of properties owned by the Council. The RFO shall ensure that a record is maintained of all properties owned by the Council recording the nature of the interest, tenancies granted, rents payable and the purpose for which held.

13.2No property shall be sold, leased or otherwise disposed of without the authority of the Council.

14Insurance

14.1The RFO shall effect all insurances and negotiate all claims on the Council’s insurers in consultation with the Council.

14.2The insurances should be reviewed annually.

14.3All appropriate employees of the Council shall be included in a suitable fidelity guarantee insurance.

15Internal Controls

15.1The invoices, the cheque book, and the bank paying-in book are checked by the Chairman against the receipts and payments which are recorded in the Minutes at that meeting.

15.2The bank statement and the bank reconciliation are checked by the Chairman.

16Independent Internal Auditor

16.1The Council shall appoint an independent and competent internal auditor who will report to the Council at least annually and complete Section 4 of the Annual Return

17External Audit

17.1The Council’s appointed auditor is the person responsible for setting the date of the commencement of the audit period from which time electors may exercise their rights.

17.2A notice shall be displayed, on the Parish Council notice board, that states that the accounts will be available for inspection for 20 full working days prior to the audit. At least 14 days notice must be given, which means that the notice must be displayed at least 6 weeks prior to the audit.

17.3The notice shall state:the period during which the accounts and other documents will be available for inspection;the place at which they will be available for inspection by appointment;the name and address of the auditor; the rights conferred on the public by

CHRISTOW PARISH COUNCIL – FINANCIAL REGULATIONS

17.4sections 14 and 15 of the Audit Commission Act 1998 (public inspection of accounts and right to challenge), especially the effects of subsection 4 and 5 requiring prior written notice of objections to be sent to the auditor and the Council;

the auditor’s appointed date.

17.5On completion of the audit the RFO shall display a copy of the statement of accounts and the auditor’s certificate (Sections 1-3 of the annual return) on the Parish Council notice board for at least 14 days. Copies may be purchased by any person on payment of a reasonable sum.

These revised Financial Regulations were approved by the Council by resolution at a meeting held on the 6thMarch 2012.

Signed ………………………………………… Date ……………………………………………….

Chairman

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