Budgeting

15 Capital Expenditure

15.1 Overview

Separate Government and accounting rules apply to capital than those applying to revenue. A definition of both can be found in Part I of this Framework.

Capital schemes can generally only commence after being agreed by Cabinet as outlined in Section 112 of this Framework. 

Governing Bodies also need to refer to the School’s Financial Regulations and consider both the requirements laid out below and those within the Regulations.

15.2 Responsibility/Accountability

15.2.1 Council (click here for all responsibilities for the Council)

Approve the inclusion of schemes into the approved Capital Programme.

15.2.2 Cabinet (click here for all responsibilities for the Cabinet)

Recommend the inclusion of schemes into the Council’s approved Capital Programme to Council.

Recommend the Prudential Indicators to Council for approval based on the proposed Capital Programme.

15.2.3 Directors (click here for all responsibilities for Directors)

Comply with the Council’s Capital Strategy and other guidance concerning capital schemes and controls issued by the Section 151 Officer.

Leading on the efficient and effective allocation of capital resources in line with corporate objectives and service improvement priorities.

15.2.4 Section 151 Officer (click here for all responsibilities for the Section 151 Officer)

Ensure all capital expenditure proposals are considered by Cabinet.

In consultation with  Business Unit Heads prepare and issue advice/instructions regarding the treatment of capital expenditure.

Maintaining the Prudential Indicators against those approved by Council.

15.2.5 Business Unit Heads (click here for all responsibilities of Business Unit Heads)

Ensuring that all capital proposals have undergone a project appraisal in accordance with the Asset Management process.

Review the capital programme for their services’ regularly and report for each scheme

on the costs to date, 
the expenditure profile,
estimated final cost,
any expected variations.

Ensure adequate records are maintained in respect of all capital contracts.

Submit reports to Cabinet, of any variation in contract costs in excess of 10% of the capital budget provision.

Ensure that credit arrangements, such as leasing agreements, are not entered into without the prior approval of the Section 151 Officer and, if applicable, approval of the scheme through the capital programme.

Consult with the Section 151 Officer and seek the Cabinet’s approval, where bids for additional funding or additional borrowing approvals or unsupported borrowing are proposed.

Ensure that all capital schemes have a nominated officer with responsibility for monitoring control of scheme costs and scheme progress.

Accountable for ensuring that no loans are made to third parties or interests acquired in companies, joint ventures, or other enterprises without consulting the Section 151 Officer and obtaining approval from the Cabinet.

Ensuring that corporate funding (up to the maximum agreed) is used as the last source of financing for capital schemes where funding is in part from service budgets or external sources.  Any corporate resources not used must be returned and are not available for re-allocation to alternative schemes.

15.3 Policy (click here for the detailed procedures)

Capital Expenditure can only be incurred when approved by Cabinet as outlined in Section 112 of this Framework, or in line with the School’s Financial Regulations.