Financial Management Standards
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.
Revenue Budget Monitoring
Accountable to the relevant Cabinet Portfolio Member, Chief Executive and Directors’ Management Team for spending within budget and reporting any variations, actual or estimated and the action proposed to correct overspends. Where a Business Unit Head is accountable for a service which comes within the remit of a Director required by statute to have operational responsibility for the budget, they are responsible to that Director, and not the Chief Executive.
Responsible for identifying high risk budgets and other areas for more detailed review.
Responsible for accepting the advice/recommendations/assistance of Directors appointed by the Chief Executive to intervene.
Manage the revenue resources within their Business Unit taking account of any tensions between service and corporate objectives
Virements – Revenue
Ensure staff adhere to the policy and regulations governing virement.
Accountable to the relevant Cabinet Portfolio Member and Chief Executive for complying with the policy and regulations.
Approving virements between services for which they are responsible.
Obtaining the necessary approvals from Cabinet.
Notifying Accountancy of all approved virements.
Treatment of Year End Balances – Revenue
Ensuring staff adhere to the policy governing treatment of year-end balances.
Reporting any overspend, and the action agreed to address it, to Directors’ Management Team. Where the Business Unit Head is responsible for a service which comes under the remit of a Director for statutory reasons, the reporting is to that Director, not Directors’ Management Team.
Accountable to Directors’ Management Team for the implementation of action relating overspent budgets carried forward.
Submitting a “Carry Forward of Year End Balance Certificate” for the carry forward of a net underspend to the Section 151 Officer by 31 March. (Click here for a blank Carry Forward of Year End Balance Certificate.)
Accountable to the relevant Cabinet Portfolio Member and Chief Executive for complying with the policy and regulations.
Identifying year-end balances and proposing treatment for them.
Notifying Accountancy of year-end balances and proposed treatment.
Reporting to Cabinet, Chief Executive and Directors’ Management Team in the Revenue Outturn Report issued in the financial year following the year of the carry forward, detailing how underspends were used and how overspends have been addressed.
Capital and Contracts Monitoring
Accountable to Cabinet Portfolio Member and Chief Executive for spending within budgets and reporting any variations, actual or estimated to Cabinet and Scrutiny and Review Panels.
Proposing and implementing action to be taken to correct variations against budget for their Business Unit’s capital schemes.
Working with any nominated Director appointed to assist their service with regards the performance of capital schemes.
Complying with the financial regulations in Part IV.
Accounting Policies
Accountable to the relevant Cabinet Portfolio Member and Chief Executive for complying with the approved policies and ensuring that all their Officers are aware of and meet the requirements of the policies.
Maintenance of Accounting Records
Accountable for maintaining and ensuring financial records are accurate in line with this Framework and any specific advice /requirements of the Section 151 Officer.
Seeking approval of the Section 151 Officer before making any procedural changes and providing an audit trail from source documents to the General Ledger.
The Annual Statement of Accounts
Complying with the accounting guidance and timetable issued by the Section 151 Officer and supplying all information required to complete the Statement of Accounts.
Providing the Section 151 Officer with information required for the Revenue Outturn Report which details how carry forward items from the previous financial year have been addressed in the current financial year.
Performance Plans
Producing and publishing performance plans for their Services, in accordance with any procedures established by the Chief Executive and Directors.
Contributing to the preparation and development of Performance Plans in line with statutory and local requirements/timetable, taking account of corporate objectives and service improvement priorities.
Implementation of approved Performance Plans.
Monitoring and reporting on Performance Plans to Directors’ Management Team on a monthly basis.
Financial Strategy
Developing a robust business case for each capital and major revenue proposal in line with this Framework.
Contributing to the development of the Financial Strategy.
Implementing the Financial Strategy within their Business Units.
Resource Allocation – Revenue
Reflecting available resource in Service Plans and Performance Plans.
Provide any information required for the purposes of updating the budget model and for information on spending pressures.
Provide the Section 151 Officer with data for calculating Government Grant and budget forecasts.
Resource Allocation – Capital
Producing robust Business Plans for their services including full revenue implication analysis, and exit strategies if relevant.
Working up Asset Management Plans for their services.
Preparing Capital bids supported by a robust business plan.
Propose treatment for obsolete assets.
Budget Format
Determining their own requirements in consultation with Section 151 Officer.
Revenue Budget Preparation
Accountable to the relevant Cabinet Portfolio Member and Chief Executive and Directors’ Management Team for ensuring that revenue budgets for their service areas comply with the Financial Strategy and guidance.
Ensuring that budget estimates are prepared in line with guidance and reflect agreed Service Plans as submitted to Cabinet.
Capital Expenditure
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.
Capital Funding Sources
Preparing bids for capital resources.
Identification of surplus and under utilised assets.
Complete the Capital Scheme Evaluation procedure for specific schemes.
Obtain the certification of the Section 151 Officer for all grant bids and acceptances.
Provide information to the Section 151 Officer detailing any financial limitations associated with grant funding.
Fees & Charges
Applying the Fees & Charges Strategy when developing, Service Plans and Revenue Budgets.
Assisting in the development and improvement of the Fees and Charges Strategy.
External Funding
Prepare comprehensive business cases for external funding bids. In the case of school’s the Governing Body is responsible for this not a Business Unit Head.
Ensure the Section 151 Officer signs all bids.
Ensuring comprehensive business cases are produced, risks and exit strategies are identified, and any internal budget provisions are available including match funding, for external funding bids.
Reserves
Nominating an officer who will be responsible for setting the level of reserves in consultation with the Section 151 Officer.
The responsible officer will report on reserves to Chief Executive as part of the annual budget and closure of accounts process in consultation with the Section 151 Officer.
Ensuring s106 monies are spent in accordance with the conditions of the funds, are properly accounted for and utilised in accordance with statutory provisions.
Managing within budget any project that comes under the Local Improvement Fund within their Business Unit.
Borrow to Invest to Save
Prepare business cases in accordance with the policy and regulations in this Framework and submit them to the Section 151 Officer.
Ensure proposals are consistent with Service Plans
Risk Management & Insurance
Collectively develop risk management controls and the Risk Management Policy.
Ensuring that all employees are aware of the Council’s Risk Management policy statement, and that risk management processes are followed within their service areas and are regularly reviewed.
Compile a Risk Register identifying and profiling the risks affecting their service(s).
Accountable to Directors’ Management Team for the implementation of the Risk Management Policy within their Business Unit.
Comply with the Council’s Risk Management Strategy and Policy.
Internal Audit
Ensuring that prompt consideration and suitable responses are made regarding recommendations in audit reports.
Ensuring that any agreed action is carried out in a timely and efficient fashion.
Taking all necessary steps to prevent loss and securing records and documentation against removal or alteration.
External Financial Audit
Ensuring all documentation and systems are up to date and available for inspection.
Allow access at all reasonable times to information requested by the external auditor, including any requests that are made by Financial Services on behalf of the external auditor.
Preventing Fraud and Corruption
Collectively for the development and maintenance of an anti-fraud and anti-corruption policy.
Reporting any suspected irregularities or financial impropriety.
Instigating the use of the Council’s disciplinary procedures where appropriate.
Maintaining a register of interests of Officers within their areas.
Inventories
Ensuring that inventories of assets are maintained in their areas in line with detailed procedures in Part IV.
Reporting deficiencies to the Chief Executive and Section 151 Officer.
Allocating responsibility for individual inventories to specific officers.
Security of Assets
Maintaining a database, in a format approved by the Section 151 Officer for all properties, plant and machinery and moveable assets currently owned or used by the Council within their service areas.
Ensuring that suitable insurance cover in maintained in consultation with the Section 151 Officer. Should this be the HOLCG in light of insurance and risk management transferring Business Units?
Stocks
Ensuring the proper custody of stock under their supervision and that they are subject to an effective system of recording and control.
Writing off discrepancies in accordance with the write off procedures in this Framework.
Reporting discrepancies to the Section 151 Officer.
Asset Disposal
Provide the Chief Executive with a report detailing the legal, financial and other implications of a disposal resulting from a development brief. Negotiations will not be conducted until Cabinet approval has been received.
Ensuring that Asset Disposal Procedures are followed, income is received, and appropriate accounting entries are made.
Ensure that Asset Management Group are involved at all stages of a disposal and that any direction is followed.
Treasury Management
Acquiring the prior approval of the Section 151 Officer for leasing any assets.
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.
To notify the Treasury Management Team of anticipated significant income or expenditure items (over £1m) in order to inform Cashflow projections.
Grant Claims and Bids
To comply with the bids and claims processes and grant requirements.
Ensuring that staff within their service areas are aware of the policy and follow the detailed procedures for making grant claims.
Identifying and pursuing suitable grant funding and ensuring that any requirements of the funding are met in full by the services in receipt.
Pursuing corporate opportunities for grant funding.
Completion of a Grant Application Certificate (click here for a blank Grant Application Certificate).
Staffing
Controlling total staff numbers within their service areas and complying with Personnel Policies, including budget requirements.
Ensuring processes are in place and that Officers are properly trained in financial procedures and management.
Lost Property
Ensuring that all employees are aware of the lost property policy and that it is fully complied with.
Information Systems
Accountable to the relevant Cabinet Portfolio Member and Chief Executive for ensuring that the information contained within systems is accurate and up to date.
Proper operation of financial processes in their own areas.
Any changes made to agreed procedures by Business Unit Heads to meet their own specific service needs should be agreed with the Head of Resources.
Ensure their staff receive relevant financial training r.
Ensure staff are aware of their responsibilities under the Freedom of Information legislation.
Ensure advice is obtained from the Head of Resources on any new ICT project prior to entering into any agreement.
Ensuring compliance with Council’s ICT strategy.
Ensure compliance with various Acts of Parliament covering Data Protection and Computer Security, and to ensure all officers are made aware of their responsibilities.
Ensuring Officers within their service area are made aware of and comply with the Council’s e-mail, Intranet and World Wide Web policies.
Ensure all purchases of computer hardware/software and consumables, are requested via IT services. Not a requirement for schools
Ensuring there are no conflicts concerning Officers conducting private work.
Ensure that upgrades and enhancements to the existing corporate ICT infrastructure (both hardware and software), that are specifically required by their service area, are funded by the service, both initially and ongoing, and where the ongoing costs are brokered by IT Services agreements with third parties on behalf of the Council, the necessary budgets be vired to IT Services recharges.
Agree with the Head of Resources proposals for any major development and/or implementation of ICT systems.
Income
Identify Officers authorised to act in respect of income collection together with the limits of their authority.
Ensure there is a separation of duties within their service areas concerning income collection and processing.
Establish and ensure appropriate recovery procedures are undertaken, with the assistance of the Authority’s debt recovery service, for debts which are not paid promptly.
Issuing official reports or maintaining other documentation for income collection.
In consultation with the S151 Officer, ensure adequate recording, collection and security measures are in place for the collection of income.
Payments to Employees & Members
Notify the Section 151 Officer as soon as possible, and in the form prescribed by him, of all matters affecting the payment of any emoluments.
Ensure appointments are made in accordance with the requirements of the Councils personnel policies and within budgets.
Ensure adequate and effective systems are operated for personnel and payroll procedures.
Provide an up-to-date list of the names and specimen signatures of officers authorised to sign records to the Section 151 Officer.
Ensuring payroll transactions are processed only through the Council’s payroll system and also that Payroll Services are promptly notified of any changes to staff within their service area i.e. starters, leavers, transfers between service areas, sickness, maternity and paternity leave etc.
Carefully consider the employment status of individuals employed on a “self employed consultant or sub contract” basis. The Inland Revenue applies a tight definition for employee status and in cases of doubt, advice should be sought from the Section 151 Officer.
Ensure that the details of any employee benefits in kind are notified to the Section 151 Officer to comply with Inland Revenue annual reporting legislation.
Ensure compliance with the “Guidelines on the Retention and Destruction of Documents”.
Ordering/Paying for Goods
Sign form FSC 016 “Persons Authorised to Certify Invoices on Behalf of the Budget Manager” once completed by each authorised signatory for their section, ensuring that only officers of an appropriate level are authorised to certify invoices for payment. Rework this form so that is does not refer to Director.
Promptly notify Creditor Payments of any changes, i.e. those staff members who have left the employment of the Business Unit/Authority should be removed from the list within an appropriate timescale.
Ensure orders for all goods and services are in a format agreed with the Section 151 Officer.
Ensure individuals do not use official orders to obtain goods or services for their private use.
Ensure that there is sufficient budgetary provision for the raising of any order.
Ensure payment is only made when a proper VAT invoice has been received, checked, coded and certified for payment.
Ensure separation of duties at different stages of ordering and paying for goods.
Ensure that the Business Unit maintains and reviews periodically a list of Officers approved to certify and authorise invoices.
Ensuring the Business Unit obtains value for money from purchases by obtaining competitive prices for goods and services of the appropriate quality, with regard to any best practice guidelines.
Ensure Contract Procedures are fully complied with when obtaining goods/services.
Consult with and obtain agreement of the Section 151 Officer before entering into a loan, leasing or rental agreements.
Notify the Section 151 Officer immediately of any expenditure to be incurred as a result of statute, a court order, or other legal requirement but where there is no budgetary provision.
Ensure compliance with the Authority’s Procurement Policy. (Click here for the policy)
Ensure compliance with the “Guidelines on the Destruction of Documents”.
Ensure that all invoices are submitted to Financial Services for payment in time to meet the performance indicator for prompt payment.
Banking Arrangements & Cheques
Consulting and agreeing with the Section 151 Officer all arrangements for the opening, closing and maintenance of any bank account relating to the Council’s business.
Reconciliation of Bank Accounts as agreed with the Section 151 Officer.
Petty Cash/Imprest Accounts
Ensuring employees within their areas who operate imprest accounts do so in line with the instructions issued by the Section 151 Officer.
Unofficial Funds
Notify the Section 151 Officer and seek agreement for the setting up of all new unofficial funds where the income and expenditure is independent of the Council’s accounts.
Ensure all unofficial funds are controlled by an Officer who is employed by the Council or a semi-autonomous authority.
Maintaining records in accordance with this Framework of every unofficial fund showing all income and expenditure and arranging an independent annual audit
Ensure there is at least an annual update of the account where the funds of the unofficial fund are held by a bank or building society.
Claims for Expenses & Allowances
Ensure all staff claims for expenses relate to Council duties, are in line with the Council’s scheme the most cost effective and approval is granted in advance whenever possible.
Ensuring that the arrangements issued by the Section 151 Officer are complied with.
Gifts & Hospitality
Maintain a register of interests, which indicates any direct or indirect interest or any personal connection whatsoever that Officers may have in or with any organisation with which they are dealing on behalf of the Council.
Taxation
Ensure that the correct VAT liability is attached to all income and that all VAT recoverable on purchases complies with HM Customs and Excise regulations.
Ensure that, where construction and maintenance works are undertaken, the contractor fulfils the necessary CITDS requirements.
Ensure that all persons employed by the Council are added to the Council’s payroll, except where the individuals are bona-fide self-employed or are employed by a recognised staff agency.
Ensure compliance with the guidance on taxation issued by the Section 151 Officer is complied with.
All information requested by an external inspector with regards taxation matters is provided whether requested directly by the external inspector or an officer of the Council making a request on their behalf.
Trading Accounts
Consult with the Section 151 Officer where a Business Unit wishes to enter into a contract with a third party where the contract expiry date exceeds the remaining life of their main contract with the Authority. In general, such contracts should not be entered into unless they can be terminated within the main contract period without penalty.
Observe all statutory requirements in relation to trading accounts.
Write-Offs
Identification of Officers authorised to make write-offs.
Obtain the Section 151 Officers counter signature to all write-offs covered by Part IV.
Ensure there are proper accounting entries for write-offs.
Work for Third Parties
Ensure that the approval of the Cabinet is obtained before any negotiations are concluded to work for third parties.
Provide information to the Monitoring Officer for the maintenance of a register of all contracts entered into with third parties.
Ensure that a risk assessment is undertaken and all necessary insurances are in place.
Ensure that no contract is subsidised by the Authority.
Ensure that, wherever possible, payment is received in advance of the delivery of the service.
Ensure that the Service has the appropriate expertise to undertake the contract.
Ensure that such contracts are complimentary to the services provided for the Authority.
Ensure all contracts are properly documented.
Provide appropriate information to the Section 151 Officer to enable a note to be entered into the statement of accounts.
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