1 Financial Management Standards

1.1 Overview

Financial Management covers all financial accountabilities in relation to the running of the Authority, including the policy framework and budget.  All Members and Officers have a duty to abide by the highest standards of probity in dealing with financial issues.  This is facilitated by ensuring everyone is clear about the standards to which they are working and the controls that are in place to ensure that these standards are met.  School’s Governing Bodies also need to refer to School’s Financial Regulations with regards Effective Management.

1.2 Responsibility/Accountability

1.2.1 All (click here for all responsibilities for all)

As representatives and employees within a public sector organisation propriety must not only exist in all actions, but also be seen to exist in all actions.  Being entrusted with public money to provide services brings with it responsibilities and accountability.

Resources should be used effectively and efficiently for the benefit of the public and not for individual gain or profit.

Financial transactions must be properly accounted for, recorded and audited to ensure financial propriety.

Failure to respond to such requirements may result in sanctions against either the individual or the Council.

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

Upholding the provisions of this framework, ensuring that its principles are maintained.

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

Reviewing, maintaining, complying with and recommending changes to this Framework and its principles.

1.2.4 Scrutiny & Review Panels (click here for all responsibilities for Scrutiny & Review panels)

Examining Cabinet decisions and holding the Cabinet to account.

Making recommendations on future policy options and for reviewing the general policy and service delivery of the Authority.

1.2.5  Chief Executive (click here for all responsibilities for the Chief Executive)

Ensuring the Financial Framework is implemented across the Council.

1.2.6 Directors (click here for all responsibilities for Directors)

Ensure that the  full financial implications of all proposals for corporate policies and strategies have been evaluated, confirming that the risks have been identified and that corporate objectives and service improvement priorities have been taken into account

Complying with and making recommendations to Cabinet on future strategies for achieving Council policies and strategies and the means by which they are implemented.

1.2.7 Monitoring Officer (click here for all responsibilities for the Monitoring Officer)

Promoting and maintaining high standards of ethics and probity.

Advising on whether a decision is likely to be illegal.

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

• Section 151 of the Local Government Act 1972 requires the Authority to appoint a suitably qualified officer responsible for the proper administration of its financial affairs.

• A legal duty to submit a section 114 report on unlawful expenditure, a loss or deficiency or an unlawful item of account as a result of the exercise of executive functions, to the executive, and must send copies of the report to every member of the authority, the external auditor and the mayor.

• Personal responsibility for the stewardship and safeguarding of public money and for demonstrating that high standards of probity exist.

• Duty to report inappropriate financial management as well as wrongdoing.

• Accountable to the Council and the appropriate Accountancy Body through the relevant disciplinary procedures for the maintenance of proper financial standards.

• Accountable to the Council Taxpayer and other residents for the maintenance of proper financial standards.

• Maintaining a continuous review of the Financial Framework and submitting any additions or changes necessary to the Cabinet for Council approval. 

1.2.9 Business Unit Heads (click here for all responsibilities for Business Unit Heads)

Accountable to the relevant Cabinet Portfolio Member and Chief Executive for the implementation of this Framework and for ensuring that their officers within their respective service areas comply.

Assisting Directors in the development and implementation of corporate policies and strategies.

Lead in the development and implementation of any financial service strategies.

1.3 Policy

The Financial Framework must be kept up to date and consistently applied by all Members and Officers.