Part 6 –
Officer Procedure Rules
6.1 FINANCIAL REGULATIONS AND PROCEDURE RULES
CONTENTS
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Rule
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Subject
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1
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The Budget Framework
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2
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Financial Regulations/
Procedures
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3
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Virements
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Appendix
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A
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Financial Regulations/
Procedures 2016/17
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1. THE BUDGET FRAMEWORK
1.1 The Budget Framework
comprises the following;
(a) General Fund Budget
(b) Housing Revenue Account
Budget
(c) General Fund Capital
Strategy
(d) Housing Revenue Account
Capital Programme
1.2 Council is responsible for agreeing the Budget Framework. It is
the responsibility of the Executive (whether the Mayor, the Cabinet, individual
Members or an officer acting on delegated authority) to operate within the
Budget Framework.
1.3 Any proposal or decision by the Mayor or Executive that would result in
expenditure exceeding the limits within the budget framework as defined above
will be considered a breach of that framework, and must be dealt with in
accordance with the Budget and Policy Framework Procedure Rules at Part 4.3 of
the Constitution.
2. FINANCIAL REGULATIONS
2.1
The Corporate Director, Resources is responsible for the administration
of the Council’s financial affairs. As part of her/his duties, s/he will, when
s/he considers it appropriate, issue Financial Regulations/ Procedures which
are the rules governing the management of the Council’s financial resources.
S/he will ensure that the Regulations/ Procedures and any updated or amended versions
are made available to all chief officers, the Mayor and Members of the
Council. These Regulations/ Procedures
and any updated or amended versions will then be placed in Appendix A of these
Rules.
2.2 It is the responsibility of all Chief Officers to comply personally with
Financial Regulations/ Procedures and to ensure that all officers within their
Directorate with financial responsibilities also comply with them. Failure to
comply with Financial Regulations/ Procedures is likely to constitute a disciplinary
offence and be investigated under the appropriate disciplinary procedure.
3. VIREMENT
RULES
3.1 These rules aim to allow the Executive to manage the budget
once it has been approved by Council, whilst also providing for good governance
of financial matters. For more details
on Virements please see FM2, FM5 and FA10 of Appendix A to these Rules.
3.2 A virement is the transfer of resources from one budget head
to another, during a financial year. It is thus the financial consequence of a
change in priority of service delivery or in the means by which services are
delivered. It can also be the use of resources provided within the budget
framework but which are not allocated for any specific purpose e.g. unallocated
contingency. A virement will naturally flow from, and be part of, a decision.
3.3 The Executive shall have the power to vire resources within
each of the above components of the Budget Framework agreed by Council, subject
to the following limitations:
(a) All
individual virement proposals that exceed £1 million require the approval of
Council. Virements for the same budget head, project or substantively similar
purpose which are below the £1m threshold should not cumulatively (over a
period of three months) exceed the £1m limit without the approval of Council.
(b) Individual virements between £250,000 and £1 million must be
reported to the Cabinet for decision.
(c)
Individual virements below £250,000
can be authorised by the relevant Corporate Director/ Chief Officer provided that
any virement so authorised which exceeds £100,000 must be subsequently reported
to the Cabinet for noting.
(d) No virement to or from the
following budgets (irrespective of the amount proposed) shall be made without
the specific agreement of the Corporate Director, Resources:
(i)
Capital Financing (not normally available for virement)
(ii)
Support service and other forms of internal charges (to avoid unintended
impact upon other departments' budget).
(iii)
Rates (to ensure compliance with rating legislation).
(iv)
Insurance (to ensure compliance with insurance policies).
(v)
Pensions (to ensure compliance with Pensions regulations).
3.4 Virements between Directorates
The use of resources
from one Directorate to finance activities in another must be authorised by
Council or the Cabinet (depending on the level of resources involved) but the
decision should only be made after advice from the relevant Corporate Directors
and the Corporate Director, Resources.
However, where the responsibility for a service(s) is merely transferred
from one Directorate to another, the consequent transfer of budget resources is
not deemed to be a virement for the purposes of these Rules.
3.5 Virements – Non-Financial Consequences
The Virement Rules refer
only to the financial consequences of proposals and decisions by the Executive.
However, such proposals and decisions can also impact upon services and upon
the community. This needs to be acknowledged when determining the procedural
arrangements for those proposals and decisions, for example they may represent
a “key decision”.
APPENDIX 1 – Financial Regulations/ Procedures 2016/17
Financial
Planning
London
Borough of Tower Hamlets
Financial Regulations
Introduction
General
The Financial Control Framework
Financial Planning
Financial Management
Risk Management and Control of Resources
Financial Administration
External Arrangements
Appendix A Financial Procedures
Contents
Financial Planning
Financial Management
Control of Resources and Risk Management
Financial Administration
External Arrangements
Key Contacts
Appendix B Detailed Financial Procedures
Appendix C Other Financial Guidelines
Appendix D Glossary and Abbreviations
To conduct
its activities efficiently, a local authority needs to ensure it has Sound financial management policies in place
and that they are strictly adhered to. Part of this process is to establish
financial regulations that set out the financial policies of the authority.
Such regulations are supplemented by detailed financial procedures.
Financial procedures provide clarity about the
financial responsibilities of individuals within the organisation. All
individuals engaged on Council activities are responsible for ensuring that
their actions comply with the objectives specified in the financial and procurement
procedures.
In compiling these regulations and procedures the
objective has been:-
Ø To provide advice on how to undertake the financial
aspects of your duties;
Ø To disseminate best practice throughout the
Council;
Ø To ensure consistency; and
Ø To ensure legal requirements are adhered to.
The procedures have been developed by Directorate
Finance Business Partners and have been the subject of extensive consultation.
However it is obviously impossible for the procedures to cover every
eventuality and an element of interpretation may be necessary. If advice is
required, please contact your Directorate Finance Business Partner.
Zena Cooke
Corporate Director of Resources
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A1
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Application
1. Financial regulations provide the framework for
managing the Council’s financial affairs.
They apply to the Mayor, every elected Member and officer of the Council and anyone acting on its
behalf.
2. The Mayor, all Members, staff, agents and
consultants have a general responsibility for taking action to provide for the
security of the assets under their control, and for ensuring that the use of
these resources is legal, properly authorised, provides value for money and
achieves best value.
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A2
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Delegation
1. The Constitution of the Council sets out the main
delegations and these Regulations identify the additional financial
delegations that the Council has decided to make to its officers. The
Constitution of the Council also includes the
Financial Procedure Rules.
2. Where decisions have been delegated, references
to the Senior Manager refers to these delegations. No other delegations should be inferred
from these Regulations.
3. A ‘Senior Manager’ for the purpose of these
Regulations means the Head of Paid Service , Corporate Directors, Service
Heads, and Budget Managers unless otherwise specified in these Regulations
4. A written record should be maintained of all
corporate and directorate schemes of delegation.
5. The Council operates a system of devolved
financial responsibility under which Directorates administer their financial
affairs. The Finance Business Partners have a dual reporting line to both the
appropriate Corporate Director and the Corporate Director of Resources.
5.1
The
Finance Business Partner is responsible for informing the Corporate Director
of Resources of any issue which may have implications for the exercise of the
Director’s responsibilities under Section 151 of the Local Government Act
1972 and Section 114 of the Local Government Finance Act 1988.
5.2
The
Finance Business Partner is responsible for ensuring Directorate compliance
with the Financial Procedures, Procurement Procedures and other instructions
and guidance issued by the Corporate Director of Resources.
6.
Delegation
empowers junior officers but ultimate managerial accountability remains with
the Senior Manager taking a decision under delegated authority.
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A3
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All staff to have access to Financial Regulations
1.
Senior
Managers are responsible for ensuring that all staff in their Directorate or
Service Area are aware of the existence and content of the Council’s
financial regulations and other internal regulatory documents and that they
comply with them.
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B: The Financial Control
Framework
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B1
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Full Council
1.
Full
Council is responsible for approving the Budget and Policy Framework within
which the Executive operates.
2.
Full
Council is also responsible for approving and monitoring compliance with the
Council’s overall framework of accountability and control. The framework is
set out in the Council’s Constitution and Code of Corporate Governance.
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B2
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The
Executive
1.
The
Executive is responsible for proposing the policy framework and budget to the
full Council, and for discharging executive functions in accordance with the
budget policy framework as contained in the Constitution.
2.
In
making any decision, the Executive must take account of legal and financial
liabilities and risk management and other relevant issues that may arise from
the decision.
3.
The
Executive is responsible for specifying the limits within which officers have
delegated authority to make decisions. These thresholds are as set out in
section B10 of these Regulations.
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B3
B4
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Overview
and Scrutiny
1.
The
Overview and Scrutiny Committee is responsible for scrutinising executive
decisions and for holding the executive to account. The Committee is also
responsible for making recommendations on future policy options and for
reviewing general policy and service delivery of the authority.
Audit
Committee
1.
The
Audit Committee is the Committee charged with scrutinising the financial
governance and system of internal controls of the authority.
2.
The
Audit Committee has right of access to all the information it considers
necessary and can consult directly with internal and external auditors.
3.
The
Audit Committee is responsible for reviewing the external auditor’s reports
and the annual audit letter and internal audit’s annual report.
4.
The
Audit Committee is responsible for approving the Statement of Accounts of the
authority.
5.
The
Audit Committee is responsible for scrutinising the Treasury Management
report.
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B5
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Chief
Executive/Head of Paid Service
1.
The
Chief Executive/Head of Paid Service is responsible for the corporate and
overall strategic management of the Council as a whole.
2.
The
Chief Executive/Head of Paid Service must report to and provide information
for the Executive, the full Council, the Overview and Scrutiny Committee and
other Committees.
3.
The
Chief Executive/Head of Paid Service is responsible for establishing a
framework for management direction, style and standards and for monitoring
the performance of the organisation.
4.
The
Chief Executive/Head of Paid Service is also responsible for ensuring that
all decisions made by the Executive and the reasons for them are made
public. They must also ensure that
Council Members are aware of decisions made by the Executive and of those
made by officers who have delegated executive responsibility.
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B6
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Monitoring
Officer
The Council’s Monitoring Officer is responsible
for:
1.
Promoting
and maintaining high standards of ethical conduct and provides support to the
Standards Committee.
2.
Reporting
any actual or potential breaches of the law or maladministration to the Full
Council and/or the Executive.
3.
Advising
all Councillors and officers about who has authority to take a particular
decision.
4.
Advising
the Executive or Full Council about whether a decision is likely to be
considered contrary or not wholly in accordance with the Budget & Policy
Framework.
5.
Maintaining
an up-to-date constitution.
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B7
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Corporate
Director of Resources
The Corporate Director of Resources is the
officer responsible for financial administration under s.151 of the Local
Government Act 1972 and is responsible for:
1.The
proper administration of the Council’s financial affairs.
2.Setting
and monitoring compliance with financial management standards.
3.Advising
on the corporate financial position and on the key financial controls
necessary to secure sound financial management.
4.Providing
financial information in conjunction with Senior Managers.
5.Ensuring that the
annual statement of accounts is prepared in accordance with International
Financial Reporting Standards, the Code of Practice on Local Authority
Accounting and the Service Reporting Code of Practice within the statutory
deadlines.
6.Preparing
the revenue budget and capital programme relating to the General Fund and the
Housing Revenue Account
7.Ensuring
that reports requesting decisions of Members include appropriate statements
as to the financial and use of resources implications of the matter under
consideration.
8.Treasury
management.
9.Section
114 of the Local Government Finance Act 1988 requires the Corporate Director
of Resources to report to the full Council, executive and external auditor if
the authority or one of its officers:
· has made, or is about to make, a decision which
involves incurring unlawful expenditure.
· has taken, or is about to take, an unlawful
action which has resulted or would result in a loss or deficiency to the
Council.
· is about to make an unlawful entry in the
authority’s accounts.
10. Section 114 of the 1988 Act also requires the
Corporate Director of Resources to nominate a properly qualified member of
staff to deputise should he or she be unable to perform the duties under
section 114 personally.
11. Selecting accounting policies and ensuring that
they are applied consistently.
12. Determining the accounting procedures and records
for the authority.
13. Issuing advice and guidance to underpin the
Financial Regulations.
14. Maintaining a continuous review of the Financial
Regulations and issuing updates as necessary.
15. In conjunction with Senior Managers reporting
breaches of the Financial Regulations to the Audit Committee.
16. Preparing reports to Corporate Management Team
and the Executive to set the Cabinet Thresholds for reporting specific
financial issues to the Executive.
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B8
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Corporate
Directors and Service Heads (Senior Managers)
Corporate Directors and Service Heads are
responsible for:
1.Ensuring
that the Executive are advised of the financial implications of all proposals
and that the financial implications have been agreed by the Corporate
Director of Resources.
2.
Signing
contracts on behalf of the Council.
3.
The
exercise of budgetary control.
4.
Consulting
with the Corporate Director of Resources to seek approval on any matter
liable to affect the Council’s finances materially, before any commitments
are incurred.
5.
Ensuring
that matters requiring a decision by Members are drawn to the attention of
the Corporate Director of Resources before any such decision is taken.
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B9
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Individual
Members of the Council
No financial decisions are delegated to
individual Members of the Council under these Regulations, and no individual
Member may instruct any officer to act in any particular way or to take any
decision without the authority of the Full Council or the delegated authority
of the Executive.
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B10
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Cabinet
Reporting Thresholds
The following thresholds have been set by the
Executive for reports to be submitted to Cabinet/the Executive for approval.
Issues which are projected to involve sums below
the “Delegated Authority Threshold” may be authorised by Corporate Directors
in line with the scheme of delegations.
Issues which are approved by Corporate Directors
under delegated authority but involve sums in excess of the “Noting Report
Threshold” must be the subject of a noting report to the next available
Cabinet.
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Delegated Authority Threshold
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Noting Report Threshold
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Transfer of a budget
allocated for a particular purpose to be used for another purpose
(Virement)
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£250,000
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£100,000
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Approval
of a supplementary or additional of a
Capital Budget
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£250,000
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£100,000
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Waiving Competition
Requirements for Contracts and Orders (Subject to EU Threshold)
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£250,000
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£100,000
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Capital Overspends
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£250,000
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£100,000
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Settlement Of Uninsured
Claims
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£250,000
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£100,000
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C1
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Budgets
(Financial
Procedures FP3 and FP4)
1.
The
process for compilation of the budget will be approved by the Executive on
the advice of the Corporate Director of Resources.
2.
The
draft budget should include projected net expenditure on services and
projects, proposed taxation and other income levels as well as any
contingency funds.
3. The Corporate Director of Resources
is responsible for ensuring that a revenue budget and a Medium Term Financial
Plan for a three year review period are prepared annually for consideration
by the Executive, before submission to the Full Council.
4. Senior Managers will ensure the
proper administration of the Revenue Budgets and the Capital Programme
allocated to them. They will also ensure
compliance with guidance and instructions issued by the Corporate Director of
Resources.
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C2
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Maintenance
of Reserves (Financial
Procedures FP5)
- It is the responsibility of the
Corporate Director of Resources to advise the Executive on prudent
levels of reserves for the Council.
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D1
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Budget Monitoring and Control (Financial Procedures FM5 and FM6)
1. Senior Managers are responsible for
ensuring that within any financial year they take all reasonable measures to
ensure an approved Revenue or Capital Budget within their control is not over
spent.
2. Senior Managers must seek to ensure
that there is no shortfall in the budgeted level of income.
3. When a projected overspend (or under
recovery of income) is forecast to occur in a section of the Revenue Budget,
or on a scheme within the Capital Programme, Senior Managers and other
responsible officers must take measures to eliminate or reduce the overspend
and maintain records of such actions,
4. The Corporate Director of Resources
must be informed of potential budget variances in accordance with budget
monitoring guidelines. The overspend will be the subject of a report to the
Executive.
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E: Risk Management and
Control of Resources
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E1
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Risk
Management (Financial Procedure CR1)
- Audit Committee is responsible
for approving the authority’s risk management policy statement and
strategy and for reviewing the effectiveness of the risk management.
- The Executive is responsible for
ensuring that proper insurance exists where appropriate.
- The Corporate Director of
Resources is responsible for preparing the authority’s risk management
policy statement, for promoting it throughout the authority and for
advising the Executive on proper insurance cover where appropriate.
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E2
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Internal Control (Financial Procedure CR3)
1. Internal control refers to the systems of control devised by
management to help ensure the authority’s objectives are achieved in a manner
that promotes economical, efficient and effective use of resources and that
the authority’s assets and interests are safeguarded.
2. The Corporate Director of Resources is responsible for advising
on effective systems of internal control.
- Senior Managers are responsible
for organising their operations to ensure appropriate controls are in
place, ensure the Council’s objectives are achieved, VFM secured and
assets are safeguarded.
- Such arrangements need to ensure
compliance with all applicable statutes and regulations, and other
relevant statements of best practice.
5. Senior Managers must ensure that
public funds are properly safeguarded and used economically, efficiently, and
effectively and in accordance with the statutory and other authorities that
govern their use.
6. It is the responsibility of Senior
Managers to establish sound arrangements for planning, appraising,
authorising and controlling their operations in order to achieve economy,
efficiency and effectiveness and for achieving their financial performance
targets.
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E3
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Audit
Arrangements (Financial Procedure CR4 and CR5)
1.
The
Accounts and Audit Regulations 2015 require every local authority to maintain
an adequate and effective internal audit.
2.
The
Audit Committee, in conjunction with an Independent Auditor Panel is
responsible for appointing external auditors to each local authority. The basic duties of the external auditor
are governed by part 5 of the Local Audit and Accountability Act 2014.
3.
The
authority may, from time to time, be subject to audit, inspection or
investigation by external bodies such as HM Revenue and Customs, who have statutory
rights of access.
4.
Officers
and Members will cooperate fully with auditors and inspectors in the
pursuance of their duties.
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E4
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Preventing
Fraud & Corruption (Financial
Procedure CR6)
1.
The
Corporate Director of Resources is responsible for the development and
maintenance of an anti-fraud and anti-corruption policy.
2.
Senior
Managers are responsible for designing their systems of controls and putting
in place internal controls that adequately manage the risk of fraud and
corruption.
3. Senior Managers must report all instances of actual or attempted
fraud to the Corporate Director of Resources and/or the Head of Audit and
Risk Management.
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E5
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Assets
(Financial Procedure
CR7)
1.
Senior
Managers shall ensure that records and
assets are properly maintained and securely held
2.
Senior
Managers should ensure that contingency plans for the security of assets and
continuity of service in the event of disaster or system failure are in
place.
3. The Corporate Director of Development & Renewal is
responsible for ensuring that valuations of the Council’s assets are
undertaken for management and reporting purposes.
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E6
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Treasury
Management (Financial Procedure CR11)
1.
The
authority has adopted CIPFA’s Code of Practice for Treasury Management in
Local Authorities.
2.
The
Full Council is responsible for approving the treasury management policy
statement setting out the matters detailed in paragraph 15 of CIPFA’s Code of
Practice for Treasury Management in Local Authorities. The policy statement is proposed to the
full Council as part of the annual budget setting process.
3.
The
Corporate Director of Resources has delegated responsibility for implementing
and monitoring the statement.
4.
All
money in the hands of the authority is controlled by the officer designated
for the purposes of section 151 of the Local Government Act 1972, referred to
in the code as the Director of Finance.
5.
All
executive decisions on borrowing, investment or financing shall be delegated
to the Corporate Director of Resources, who is required to act in accordance
with CIPFA’s Code of Practice for Treasury Management in Local Authorities.
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E7
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Staffing (Financial Procedure CR9)
1.
Full Council is
responsible for confirming the appointment of the Chief Executive/Head of
Paid Service, and has delegated to the Appointments Sub-Committee of the
Human Resources Committee responsibility for appointing to the other Chief
Officer and Deputy Chief Officer posts. These are the only appointments
that elected Members are involved in apart from the 4 group/Mayor’s political
assistants.
2.
The
Chief Executive/Head of Paid Service is responsible for providing overall
management to staff. He or she is also
responsible for ensuring that there is proper use of the evaluation or other
agreed systems for determining the remuneration of a job.
3.
Senior
Managers are responsible for controlling total staff numbers by:
·
Advising
the Executive on the budget necessary in any given year to cover approved
staffing levels.
·
Adjusting
the staffing to a level that can be funded within approved budget provision,
varying the provision as necessary within that constraint in order to meet
changing operational needs.
·
The proper use of
appointment procedures.
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F:
Financial Administration
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F1
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General (Financial Procedure FA1)
1.
The
Corporate Director of Resources is responsible for the operation of the
authority’s accounting systems, the form of accounts and the supporting key
financial records.
2.
Any
changes made by Senior Managers to the existing financial systems or the
establishment of new systems must be approved by the Corporate Director of
Resources.
3.
Senior
Managers are responsible for the proper operation of financial processes in
their own departments.
4.
Any
changes to agreed procedures by Senior Managers to meet their own specific
service needs should be agreed with the Corporate Director of Resources.
5.
Senior
Managers should ensure that their staff receive relevant financial training.
6.
Senior
Managers must ensure that, where appropriate, computer and other systems are
registered in accordance with data protection legislation.
7.
Senior
Managers must ensure that staff are aware of their responsibilities under
freedom of information legislation.
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F2
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Income and
Expenditure (Financial Procedure FA2)
- It is the responsibility of
Senior Managers to ensure that a proper scheme of delegation has been
established within their area and is operating effectively. The scheme
of delegation must be submitted to the Head of Financial Systems and
reviewed annually at minimum.
- The scheme of delegation must identify
staff authorised to act on the Senior Managers’ behalf in respect of
payments, income collection and placing orders, together with the limits
of their authority. The scheme of delegation is subject to the approval
of the Corporate Director of Resources.
- The Executive is responsible for
approving procedures for writing off debts as part of the overall
control framework of accountability and control.
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F3
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Payments to
employees and Members (Financial Procedure
FA4)
1.
The
Corporate Director of Resources is responsible for all remuneration
payments to all staff, including any
payments for severance, and for payment of allowances to Members.
2.
Senior
Managers are responsible for providing information in a timely manner to
enable the Corporate Director of Resources to discharge these
responsibilities.
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F4
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Taxation (Financial Procedure FA5)
1.
The
Corporate Director of Resources is responsible for advising Senior Managers,
in the light of guidance issued by appropriate bodies and relevant
legislation as it applies, on all taxation issues that affect the authority.
2.
The
Corporate Director of Resources is responsible for maintaining the
authority’s tax records, making all tax payments, receiving tax credits and
submitting tax returns by their due date as appropriate.
3.
Senior
Managers are responsible for ensuring that sufficient information is provided
in a timely manner to enable the Corporate Director of Resources to discharge
the Council’s obligations under the tax legislation.
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F5
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Trading accounts
and /business units (Financial Procedure
FA6)
1. It is the responsibility of the
Corporate Director of Resources to advise on the establishment and operation
of trading accounts and business units.
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G1
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Partnerships (Financial Procedure EA1)
1. The Executive is responsible for
approving delegations, including frameworks for partnerships.
2. The Executive is the focus for
forming partnerships with other local public, private, voluntary and
community sector organisations to address local needs.
- The Executive may delegate
functions – including those relating to partnerships – to officers.
Where functions are delegated, the Executive remains accountable for
them to the Full Council.
- The Authority may nominate
individual Members and or officers to represent the Authority on
external bodies.
- The Monitoring Officer is
responsible for promoting and maintaining the same high standards of
ethics in partnerships that apply throughout the Authority.
- The Corporate Director of
Resources will advise on the accounting arrangements to be adopted
relating to partnerships and joint ventures. He or she must ensure that
the risks have been fully appraised before agreements are entered into
with external bodies.
- Senior Managers are responsible
for ensuring that appropriate Council approvals are obtained before any
negotiations are concluded in relation to work with external bodies.
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Appendix A
FP
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18
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FP1
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18
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FP2
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19
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FP3
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20
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FP4
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22
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FP5
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24
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FP6
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25
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FM
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26
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FM1
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26
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FM2
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27
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FM3
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28
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FM4
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29
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FM5
|
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30
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FM6
|
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32
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FM7
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33
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FM8
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34
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FM9
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35
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CR
|
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36
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CR1
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36
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CR2
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38
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CR3
|
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40
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CR4
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42
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CR5
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44
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CR6
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45
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CR7
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46
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CR8
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48
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CR9
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49
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CR10
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50
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CR11
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51
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CR12
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52
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CR13
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53
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CR14
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54
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CR15
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55
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FA
|
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56
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FA1
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56
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FA2
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58
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FA3
|
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61
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FA4
|
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65
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FA5
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68
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FA6
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69
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FA7
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70
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FA8
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72
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FA9
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74
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FA10
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FP1:
Capital Strategy
Background
The Capital Strategy details how capital resources will contribute
to the achievement of the Council’s corporate objectives.
The Capital Strategy is prepared by Corporate Finance under the
sponsorship of the Asset Management & Capital Strategy Board (AMCSB) which
is chaired by the Corporate Director of Development & Renewal.
FP1.1
Objectives
1.
To
ensure that the strategy is produced in accordance with best practice and is
consistent with other key strategies and plans.
2.
To
ensure that the financial information provided in the Capital Strategy is
consistent with medium term financial plans.
FP1.2
Responsibilities of the Chair of Asset Management & Capital Strategy Board
1.
To
revise annually, in consultation with Chief Officers, the Corporate Capital
Strategy within the timetable
established.
2.
To
obtain the approval of the Executive and Full Council.
FP1.3
Responsibilities of Senior Managers
1.
To contribute to the development of the
Capital Strategy within the statutory deadline and to ensure other Directorate plans and strategies are
consistent with it.
2.
To provide information and staff resources to
the Asset Management & Capital Strategy Board when requested.
FP2:
Asset Management Plan
Background
The Council’s Corporate Asset Management Plan (AMP) sets out the
Council’s strategy for the management and maintenance of its asset/property
portfolio.
The Asset Management Plan is prepared by the Corporate Property
team under the sponsorship of the Asset Management & Capital Strategy Board
which is chaired by the Corporate Director of Development & Renewal.
FP2.1
Objectives
1.
To ensure that the plan is produced in
accordance with best practice and is consistent with other key strategies and
plans such as the Community Plan, the Capital Strategy, the Housing 30 year
business plan and Directorate Asset Management Plans.
2.
To ensure that the financial data provided in
the AMP is consistent with medium term financial plans.
FP2.2
Responsibilities of the Chair of Asset Management & Capital Strategy Board
1.
To revise the AMP annually, in consultation
with Senior Managers and within the timetable established.
2.
To obtain the approval of the
Executive for the AMP.
FP2.3
Responsibilities of Senior Managers
1.
To contribute to the development of the AMP
within the statutory deadline and to ensure other Directorate plans and
strategies are consistent with it.
2.
To provide information and staff resources to
the Asset Management & Capital Strategy Board when requested.
FP3: Capital Programmes
Background
The Council produces a three-year capital programme to ensure
resources are maximised, and potential resource gaps identified. This avoids
abortive costs being incurred.
FP3.1
Objectives
1.
A Capital Programme is to be prepared annually
projecting capital expenditure and associated resources for the next 3 years.
2.
All capital receipts are to accrue to the
Corporate pot in the first instance, and are to be allocated on the basis of
criteria corresponding to the capital strategy document.
3.
Central Government resources, which are not
specific to a project or programme area, also accrue to the Corporate pot and
are allocated on the basis of criteria corresponding to the capital strategy
document.
4.
All Directorates are entitled to bid for
resources within the Corporate pot.
5.
All capital programme expenditure must satisfy
the statutory definitions of capital.
6.
The contents and format of the Capital
Programme is to be specified by the Corporate Director of Resources.
FP3.2
Responsibilities of the Corporate Director of Resources
1.
To issue guidelines annually on the format and
content of the three-year capital programme and produce the three-year
programme for approval by the Executive.
2.
To produce the criteria for the approval of
Directorate bids to be allocated corporate capital resources.
3.
To produce a corporate capital programme for
approval by the Executive, including elements to satisfy local priorities.
4.
To devise a mechanism that allocates resources
to Directorate Capital Programmes.
5.
To produce a report for the Executive for the
approval and the allocation of capital resources to Directorates.
FP3.3
Responsibilities of Senior Managers
1.
To prepare bids for capital resources
corresponding to the guidance issued by the Corporate
Director of Resources.
2.
To prepare monitoring reports of the schemes
in the approved capital programme in the format and timetable specified by the
Corporate Director of Resources.
3.
To ensure that records which satisfy internal
and external audit requirements are maintained for all contracts.
4.
To proceed with projects only when there is a
budget within the agreed capital programme and adequate capital resources have
been identified.
5.
To obtain a supplementary capital budget where
an individual Capital Scheme is projected to spend in excess of the original
approval, or an additional scheme needs approval.
·
A supplementary capital budget can be granted
by the appropriate Corporate Director if the overspend is less than £250,000 –
Financial Regulation B10.
·
Executive approval must be obtained for
Supplementary Capital budgets in excess of £250,000. An explanatory report is
required.
6.
To comply with Financial Instructions relating
to procurement as issued by the Corporate Director of Resources.
7.
To
comply with the financial accounting instructions relating to capital items
issued by Corporate Director of Resources.
8.
To ensure that adequate provision is made in
the revenue budget for any ongoing revenue
costs arising from capital schemes.
FP4: Revenue Budget Preparation
Background
Budgets constitute a mechanism, enabling the Council to plan,
authorise, monitor and control revenue resources. They are also the basis on
which the Council Tax is set.
The current elements which comprise the budget setting process are
as set out below:-
1. The Government publishes its spending plans, indicating the
aggregate resources to be allocated to Local Authorities in the medium term.
2. This is followed by final announcement and more information each
year of the resources to be allocated by Central Government to Local
Authorities.
3. The Council has to calculate its tax base, which is formally
approved by the Executive in January.
4. The Greater London Authority will notify the Council of the
amount it requires to be collected from the residents and this is incorporated
into the Council Tax calculation.
6. The Executive must propose its budget to Council in accordance
with the Budget and Policy Framework Procedure Rule.
7. The Council has to agree the level of Council Tax before 11th
March each year and at the same time Full Council will also formally agree a
legal balanced budget.
FP4.1
Objectives
1.
Tax
base to be formally notified to the GLA and levying bodies by 31st January.
2.
Agreement
by Council of the Council Budget by 28th February.
3.
Preparation of the overall
budget in accordance with the Local Government Finance Act 1992.
4.
Formal
adoption of the budget by Full Council before 11th March.
FP4.2
Responsibilities of the Corporate Director of Resources
1.
To
issue detailed guidance and instructions on the procedures, responsibilities
and timetable for preparing Revenue Budgets.
2.
To
provide guideline cash budget options to Members following Government
announcements.
3.
To
work within the political budget strategy provided by the Executive.
4.
To
manage, in conjunction with Directorates, a process to deliver a balanced
budget.
5.
To
calculate the resource/projected expenditure position for the period of the
Medium Term Financial Plan (3-5 years ahead).
6.
To
collate the exemplifications of savings or growth from departments, as required
by the budget strategy.
7.
To
advise and agree the levels of inflation that may be applied to specific areas
of expenditure.
8.
To prepare and submit reports to
the Executive, in line with the Scheme of Delegation, on the aggregate spending
plans of Directorates and on the resources available to fund them, identifying,
where appropriate, the implications for the level of Council Tax to be levied.
9.
To obtain Full Council approval
for both the Council Tax and the budget setting report each year within the
statutory timetable.
FP4.3
Responsibilities of Senior Managers
1.
To take responsibility for delivering the
budget strategy.
2.
To assist in the development and delivery of
the budget process.
3.
When drawing up draft budget requirements, to
have regard to:
·
spending
patterns and pressures revealed through the budget monitoring process.
·
legal
requirements.
·
policy
requirements as determined by the Full Council in the approved policy
framework.
·
initiatives
already under way.
4.
To work within budget limits.
5.
To provide the specific Directorate
information requested.
6.
To compile a Directorate budget within the
guidelines issued by the Corporate Director of Resources.
7.
To obtain the approval of the Executive for
new proposals, of whatever amount, that:
·
create
financial commitments in future years.
·
change
existing policies, initiate new policies or cease existing policies.
·
in
the opinion of the Senior Manager and appropriate Lead Member materially extend
or reduce the Council's services.
FP5: Maintenance of Reserves
Background
The Authority must decide the level of general Reserves it wishes to
maintain as part of its financial planning before it can set the annual Council
Tax.
Reserves are maintained as a matter of prudence. They enable the
authority to provide for unexpected events and thereby protect it from overspending,
should such events occur.
Reserves for specific purposes may also be maintained, such as the
purchase or renewal of capital items. Accounting policies require these to be
differentiated from Provisions, the latter being maintained to meet future
expenditure arising from a past event the timing of which is uncertain and
cannot therefore be contained in the annual budget.
FP5.1
Objectives
1.
To
maintain Reserves in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom:
A Statement of Recommended Practice, LAAP Bulletin 55 and other agreed
accounting policies.
2.
For
each Reserve established, the purpose, usage, procedures for the management and
control of reserves, and basis of transactions should be clearly identified.
3.
Authorisation
of expenditure from Reserves by the appropriate Senior Managers in consultation
with the Corporate Director of Resources.
FP5.2
Responsibilities of the Corporate Director of Resources
1.
To
advise the Executive on prudent levels of Reserves for the Council.
2.
To
recommend the formation or otherwise of earmarked reserves.
3.
To
incorporate the reserve requirement into the annual budget process.
4.
To
ensure that Provisions and Reserves comply with relevant accounting practices
when incorporated into the annual accounts.
FP5.3
Responsibilities of Senior Managers
1.
To
ensure that Reserves are used only for the purposes for which they were
intended.
2.
To
advise the Corporate Director of Resources promptly of risks likely to occur
during the formation of reserves.
FP6: Performance Planning and Management
Background
Directorates are required to provide information for the Council’s
planning and performance management framework.
FP6.1
Objectives
1.
To
ensure that relevant plans are consistent.
2.
To
produce plans in accordance with Council and statutory requirements, and
timetables.
3.
To
ensure that all performance information is accurate, complete and up to date.
4.
To
provide improvement targets which are meaningful, realistic and challenging.
FP6.2
Responsibilities of the Corporate Director of Resources
1.
To
advise and assist Directorates in producing the financial information that
needs to be included in performance plans in accordance with statutory
requirements and agreed timetables.
2.
To
contribute, in collaboration with other Senior Managers, to the development of
corporate and service objectives, targets and performance information.
3.
To
work with Members to build priorities identified within performance plans into
corporate and departmental budgets to enable delivery.
FP6.3
Responsibilities of Senior Managers
1.
To
contribute to the development of performance plans in line with statutory
requirements.
2.
To
develop corporate and service targets and objectives and performance
information.
3.
To
ensure that service plans are clearly aligned with available resources, to
enable the delivery of service priorities.
4.
To
ensure that targets identified within the Council’s planning framework are
built into local work programmes and targets for all staff.
FM:
FINANCIAL MANAGEMENT
FM1:
Financial Management Standards
Background
It is critical that Financial Management standards are consistently
applied throughout the Council and a mechanism exists to promote best practice.
FM1.1
Objectives
1.
To
promote Financial Management standards throughout the Council.
2.
To
establish a monitoring system to review compliance with Financial Management
Standards.
FM1.2
Responsibilities of the Corporate Director of Resources
1.
To
ensure the proper administration of the financial affairs of the Council.
2.
To
maintain and update financial regulations.
3.
To
ensure proper professional practices are adhered to and to act as head of
profession in relation to the standards, performance and development of finance
staff throughout the Council.
4.
To
advise on the key strategic controls necessary to secure sound financial
management.
5.
To
ensure that financial information is available to enable accurate and timely
monitoring and reporting of comparisons of national and local financial
performance indicators.
6.
To
ensure that internal Audit carry out the necessary probity and system checks
required to verify that proper Financial Management Standards are maintained.
7.
To
report on the adequacy of the Council’s reserves and the robustness of the
budget estimates.
FM1.3
Responsibilities of Senior Managers
1.
To
promote the financial regulations and other related standards and procedures in
their Directorates and to monitor adherence to these, in consultation with the Corporate Director of Resources.
2.
To
promote sound financial practices in relation to the standards, performance and
development of staff in their departments.
3.
To
ensure the appropriately accurate coding of expenditure and income to
facilitate financial reporting.
FM2: Virement
Background
The scheme of virement is intended to enable Senior Managers to
manage budgets and optimise the use of resources.
A virement is the transfer of resources from one budget head to
another, during a financial year. It is thus the financial consequence of a
change in priority of service delivery or in the means by which services are
delivered. It can also be the use of resources provided within the budget
framework but which are not allocated for any specific purpose e.g. unallocated
contingency. A virement will naturally flow from, and be part of, a decision.
FM2.1
Objectives
1.
The
Corporate Director of Resources administers the scheme of virement within
guidelines set by Full Council.
2.
The
rules below cover virement; that is, switching resources between approved
estimates or heads of expenditure.
3.
For
the purposes of this scheme, virement is permitted between any budgets that are
the responsibility of the appropriate Corporate Director.
4.
Virement
does not create additional overall budget liability.
5.
Senior
Managers are expected to exercise their discretion in managing their budgets
responsibly and prudently.
6.
The
following rules apply to virements :-
·
Virement
between Capital and Revenue budgets is not
permitted without the approval of the Executive.
·
Virement
between the General Fund and the Housing Revenue Account is not permitted.
·
Virements
may only be used when an increase in one budget is balanced by corresponding
decreases in other budgets.
7.
Target
adjustments are a form of virement that involve transferring budgets between
Directorates, or between a Directorate budget and a Corporate budget.
FM2.2
Responsibilities of the Corporate Director of Resources
1.
To obtain Executive approval for Directorates
virements (target adjustments) between £250,000 and £1 million.
2.
To obtain full Council Approval for all
virements exceeding £1 million.
FM2.3
Responsibilities of Senior Managers
1.
To
notify the Corporate Director of Resources of virements up to the Cabinet
Threshold (£250,000 – Financial Regulation B10) and for target adjustments of
whatever level.
2.
To
prepare a report for the Executive in conjunction with the Corporate Director
of Resources to obtain Executive approval for virements of amounts between
£250,000 and £1 million.
3.
To
prepare a report for the Executive in conjunction with the Corporate Director
of Resources to obtain Full Council approval for virements exceeding £1
million.
FM3: Treatment of Year-End Balances
Background
The rules below cover arrangements for the transfer of resources
between accounting years, i.e. a carry-forward.
FM3.1
Objectives
1.
The objective is to establish appropriate
accounting procedures to ensure that carried forward totals are correct and
meet Council priorities.
FM3.2
Responsibilities of the Corporate Director of Resources
1.
To
administer the arrangements for carry forward within the guidelines approved by
Full Council.
2.
To
report all overspending and underspending on service estimates carried forward
to Members.
FM3.3
Responsibilities of Senior Managers
Overspends
1.
Senior Managers are required to
assess the risk of any overspending of budgets under their control, on a
monthly basis.
2.
In the first instance they are
expected to take any appropriate management action to contain issues within
existing budgetary provision.
3.
The Chief Executive/Head of Paid
Service and Corporate Director of Resources will assist the relevant Corporate
Director in developing possible financial strategies for containing the
position.
Underspends
4.
Net
underspends on service estimates under the control of a Corporate Director must be used in the first instance
to offset any overspending under their control.
5.
Senior
managers are required to assess the risk of underspending on budgets under
their control on a monthly basis.
6.
Where
underspends exist at a Directorate level then in general these will be returned
to the general fund at year end.
7.
However
if Corporate Directors consider there are circumstances in which unspent balances should be carried forward they
should initially contact the Corporate Director of Resources as soon as they
become aware of this; who will then prepare a report for consideration by the
Executive.
FM4: Accounting Policies
Background
The Corporate Director of Resources is responsible for the
preparation of the Council's annual statement of accounts, in accordance with
proper accounting practices including International Financial Reporting
Standards, the Code of Practice on Local Authority Accounting in the United
Kingdom (The CIPFA Code) and the Service Reporting Code of Practice (SERCOP).
FM4.1
Objectives
1.
Establish
systems of internal control to ensure financial transactions are lawful.
2.
Ensure
suitable accounting policies are selected and applied consistently.
3.
Ensure
proper accounting records are maintained.
4.
Financial
statements are produced which give a true and fair view of the financial
position of the Council and its expenditure and income.
FM4.2
Responsibilities of the Corporate Director of Resources
1.
To
select suitable accounting policies in order to comply with the CIPFA Code and
SERCOP and to ensure that they are applied consistently.
2.
To
ensure developments in accounting best practice are incorporated into the
Council’s financial statements.
3.
To
liaise with the external auditor on deviations from standard accounting
practice.
FM4.3
Responsibilities of Senior Managers
1.
To
adhere to the accounting policies and guidelines agreed with Corporate Director
of Resources.
2.
To
notify the Corporate Director of Resources where accounting practices adopted
do not comply with instructions issued.
FM5: Budgetary Control
Background
Budgetary control ensures that resources allocated are utilised for
their intended purposes, are properly accounted for, and provides timely
information on variations from financial targets.
Budgetary control is a continuous process, enabling the Council to
review and adjust its budget targets during the financial year and identifies
managers responsible for defined elements of the budget.
FM5.1
Objectives
1.
Identify
a nominated budget manager for each cost centre.
2.
Ensure budget managers accept
accountability for their budgets, the level of service to be delivered and
understand their financial responsibilities.
3.
Ensure
budget managers follow an approved certification process for all expenditure.
4.
Ensure
income and expenditure are properly recorded and accounted for.
5.
Ensure
levels of service are monitored in conjunction with the budget and necessary
action is taken to align service outputs and budget.
6.
Ensure
actual income and expenditure is equal to that recorded on the corporate financial systems.
FM5.2
Responsibilities of the Corporate Director of Resources
1.
To
establish a framework of budgetary management and control that ensures that:
·
Expenditure
is contained within the budgets approved by the Executive and Full Council.
·
Each
Senior Manager has available timely information on receipts and payments on
each budget.
·
Expenditure
is only incurred against an approved budget.
·
All
officers responsible for incurring expenditure comply with relevant guidance,
and financial regulations.
·
Each
cost centre has a single named manager, determined by the relevant Senior
Manager. As a general principle, budget responsibility should be aligned as
closely as possible to the decision-making processes that incurs expenditure.
·
Significant
variances from approved budgets are investigated and reported by managers
regularly.
2.
To
administer the Council’s scheme of virement.
3.
To maintain the General Ledger
system and chart of accounts to enable information to be accessed for budgetary
control purposes.
4.
To
provide periodic statements of actual expenditure against approved budgets to approved timetables.
5.
To
prepare a corporate monitoring report covering all Directorates and Corporate budgets no less than on a quarterly
basis and report to the Executive.
6.
To
monitor the position regarding contingent liabilities in conjunction with
Senior Managers and ensure
budgetary provision is made where necessary.
FM5.3
Responsibilities of Senior Managers
1.
To
maintain budgetary control within their Services and to ensure that all income and expenditure is properly recorded
and accounted for.
2.
To
ensure that an accountable manager is identified for each item of income and expenditure under the control of the
Senior Manager.
3.
To
ensure the appropriate, accurate coding of expenditure and income to facilitate
financial reporting.
4.
To
ensure that spending remains within the Service's overall budget provision and
that individual budget heads are not overspent, by monitoring the budget and
taking appropriate
corrective action where significant variations from the approved budget are projected.
5.
To
ensure that a monitoring process is in place to review performance
levels/levels of service in conjunction with the budget and is operating
effectively.
6.
To
prepare and submit to the Executive reports on the service's projected
expenditure compared with
its budget, in conjunction with the Corporate Director of Resources.
7.
To
ensure prior approval by the Executive, for new proposals, of whatever amount,
that:-
·
Create
financial commitments in future years
·
Change
existing policies, initiate new policies or cease existing policies
·
Materially
extend or reduce the Council's services.
8.
To
include comments of the Corporate Director of Resources in all reports.
9.
To
ensure compliance with the scheme of virement and delegation.
10.
To obtain the approval of the
Corporate Director for virements between budgets covering services managed by more than one Service Head.
11.
To ensure that the reported
revised budget for the Directorate corresponds with the target agreed with the
Corporate Director of Resources.
12.
To
provide information in the format and timetable specified to enable the
Corporate Director of Resources to prepare periodic reports to be prepared for
submission to Corporate Management
Team and the Executive.
13.
To
contain overall net expenditure within approved budgets.
14.
To
review 'personal' and balance sheet codes every month to ensure that all
revenue impacts are reported as
promptly as possible.
15.
To
advise the Corporate Director of Resources of potential provisions and
contingent liabilities and to review these on a regular basis.
16.
To
provide representation when the Corporate Monitoring report is reported to the
Executive to give any additional explanation required.
FM6: Control of Capital Budgets
Background
Capital budget monitoring ensures that capital resources allocated
by the Executive are used for their intended purposes.
Capital control provides the mechanism to review progress on
capital schemes, by comparison with the capital programme.
The Corporate Capital Monitoring Statement is a report that is
produced every quarter that details projected capital expenditure and
resources.
FM6.1
Objectives
1.
Ensure that there is a nominated
officer for each capital budget, project and programme.
2.
Budget
managers are accountable for their projects and budgets.
3.
Ensure potential resource under
or over provision is identified early in the capital programme cycle to enable remedial action to be taken.
FM6.2
Responsibilities of the Corporate Director of Resources
1.
To
prepare a Corporate Capital Monitoring Statement, to cover all Directorates and
Corporate projects and programmes no less than on a quarterly basis.
2.
To
prepare and submit reports on the Council’s projected expenditure and resources
position to the Executive on a quarterly basis.
3.
To
formulate funding strategies to maximise available resources.
FM6.3
Responsibilities of Senior Managers
1.
To
incur capital expenditure only when resources have been identified to provide funding.
2.
To
submit projections of capital expenditure and resources in a format and timetable
as specified by the Corporate Director of Resources for incorporation into the
capital monitoring statement.
3.
To
notify the Corporate Director of Resources of material funding and expenditure
issues when identified.
4.
To
ensure that records which satisfy the requirements of internal and external
audit are maintained for all capital contracts.
FM7:
The Annual Statement of Accounts
Background
The Council has a statutory responsibility to prepare accounts that
give a true and fair view of its operations during the year by the statutory
deadlines.
The Audit Committee is responsible for approving the statutory
Statement of Accounts.
FM7.1
Objectives
1.
Ensure
draft Accounts are produced by the statutory deadline of the 30th June.
2.
Ensure
Accounts comply with relevant accounting standards.
3.
Ensure
that the Accounts prepared give a true and fair view of the financial position
of the authority.
4.
Ensure
working papers to substantiate the figures in the accounts are prepared to the
satisfaction of the external auditors.
FM7.2
Responsibilities of the Corporate Director of Resources
1.
To
produce a timetable to ensure the accounts are produced within the statutory deadline.
2.
To
produce a closure manual which specifies the information required to enable the
accounts to be produced.
3.
To
select suitable accounting policies and to apply them consistently.
4.
To
make judgements and estimates which are reasonable and prudent.
5.
To
comply with the CIPFA Code and advise Directorates on its application.
6.
To
sign and date the Statement of Accounts, stating that these give a true and
fair view of the financial position of the Council.
7.
To
ensure the Accounts are approved by Audit Committee.
8.
To
liaise with External Audit on the completion of the Statement and the
arrangements for the audit of these.
9.
To
ensure that working papers are prepared to support the statement and these are
sufficient to meet the needs of external audit.
FM7.3
Responsibilities of Senior Managers
1.
To
comply with accounting guidance issued by the Corporate Director of Resources
and to supply the Corporate Director of Resources with information in
accordance with the agreed timetable.
2.
To
comply with the Final Accounts timetable, advising the Corporate Director of
Resources promptly of any potential areas of non-compliance at any stage.
3.
To
ensure that information is provided to Directorates on recharges and other
internal transactions as agreed during the year and at year-end.
4.
To
ensure that monitoring of revenue, capital and personal accounts and regular
reconciliations of holding and suspense accounts are undertaken during the year
at intervals no less frequent than once a month.
5.
To
ensure that adequate records and working papers are made and retained for audit
in relation to the above.
FM8: Accounting Records and Returns
Background
Maintaining proper accounting records is one of the ways in which
the Council discharges its responsibility for stewardship of public resources.
Many of these records and returns are subject to external audit to provide
assurance that they accurately reflect the financial position. They also provide a basis on which the
Council’s external auditors can obtain assurance as to the accuracy of the
financial statements. Accounting records
to be maintained for grants and the associated requirements are also dealt with
under FA8.
FM8.1
Objectives
1.
All
Members, finance staff and budget managers operate within the required
accounting standards and timetables.
2.
All
the Council’s transactions are recorded completely, accurately and on a timely basis.
3.
Procedures
are in place to enable accounting records to be reconstituted in the event of
systems failure.
4.
Reconciliations
are undertaken in a regular and timely manner to ensure transactions are
correctly recorded.
5.
Prime
documents are retained in accordance with legislative requirements.
FM8.2
Responsibilities of the Corporate Director of Resources
1.
To
determine the accounting procedures and records for the Council.
2.
To
arrange for the compilation of all accounts and accounting records
3.
To
make proper arrangements for the audit of the Council’s accounts in accordance
with the Accounts and Audit Regulations 2011 (Amended) and Local Audit &
Accountability Act 2014.
FM8.3
Responsibilities of Senior Managers
1.
To
consult with the Corporate Director of Resources on the accounting procedures
and records to be utilised within the Directorate.
2.
To
comply with the following principles when allocating accounting duties:
·
Separating
the duties of staff providing information about sums due to or from the Council
and calculating, checking and recording these sums from the duty of collecting
or disbursing them
·
Employees
with the duty of examining the accounts of cash transactions must not be
engaged in these transactions.
2.
To
ensure the retention of financial documents in accordance with the requirements
set out in the Council's document retention scheme.
3.
To
ensure that all claims for funds including grants are made by the due date and
properly evidenced.
4.
To
maintain adequate records to provide an audit trail which will satisfy the
Corporate Director of Resources and internal and external audit requirements.
5.
To
supply information required to enable the Statement of Accounts to be completed
in accordance with guidelines issued by and agreed with, the Corporate Director
of Resources.
7.
To
provide information required for, or to ensure completion of, all statutory and
other financial returns and
performance indicators by the due dates.
8.
To
provide regular and timely reconciliations of relevant prime records.
FM9: Finance Comments for Reports
Background
All reports to Corporate Management Team or the Executive must
contain a section, which sets out the comments of the Chief Financial Officer,
enabling the impact of the proposal on the financial position of the Council to
be assessed and so that decisions can be made in full knowledge of the
financial consequences.
FM9.1
Objectives
1.
To ensure that all reports to Corporate
Management Team and the Executive include a section that incorporates the
comments of the Chief Financial Officer prepared by the Directorate Finance
Business Partners.
FM9.2
Responsibilities of the Corporate Director of Resources
1.
To
monitor the standards of the finance comments provided by Directorate Finance
Business Partners.
2.
To
provide finance comments in all cases where there are implications for more
than one Directorate or when corporate resources (revenue or capital) are
required.
3.
To
identify and include any financial implications that impact on current or
future years within the financial plans.
4.
To
issue guidance on the format and contents of financial comments.
FM9.3
Responsibilities of Senior Managers
1.
Authors
must use their discretion on what are the pertinent financial implications of
their report but key issues should include: -
·
impact
on revenue budgets for the current year and future years (if applicable);
·
impact
upon other Directorate budgets for the current year and future years (if
applicable) to ensure that unilateral decisions, which have an impact on other
Directorates, are identified;
·
capital
implications, including capital funding, realisation of capital receipts and
revenue implications (especially the full year effect of current year
decisions);
·
funding,
detailing how the recommendations will be funded. Also set out any implications of not funding
the recommendations;
·
financial
appraisal on the costs and benefits of the scheme plus any financial/economic
consequences;
·
statutory
and audit implications arising from the scheme.
This should cover Section 151, internal control, system security and
risk assessment;
·
implications
in relation to value for money or efficiency.
2.
Finance
comments prepared within the Directorate must be approved by the Directorate
Finance Business Partners.
3.
As
a minimum, Directorate Finance Business Partners must be given at least 5 working
days after all relevant information has been provided to provide financial
comments.
4.
To
ensure financial comments are approved by, and comply with the instructions
issued by the Corporate Director of Resources.
5.
If
there are no financial consequences to the recommendations, the report should
contain a section confirming this.
CR:
CONTROL OF RESOURCES AND RISK MANAGEMENT
CR1: Risk Management
Background
Risk management is:
- the identification, analysis, and
economic control of all risks, which threaten the assets, activities and objectives
of an organisation;
- an umbrella discipline that cuts
across all areas of the authority’s activities, from the strategic to the
operational, and needs to be integral to all activities; and
- about being ‘risk aware’ – in
managing risk the Council seeks to minimise losses, though not necessarily
eliminate threats.
Although services can reduce their exposure to the financial
consequences of certain risks by way of insurance it must be stressed that
insurance does not prevent loss and is not a substitute for good risk
management. By reducing, or even preventing, the incidence of losses, whether
they result from crime or accident, the Council will benefit from reduced costs
of providing insurance cover and will also avoid the disruption and wasted time
caused by losses and insurance claims.
CR1.1
Objectives
1.
Ensure
that procedures are in place to identify, assess, prevent or contain material
known risks, and that these procedures are operating effectively throughout the
Council.
2.
Ensure
a monitoring process is in place to review regularly the effectiveness of risk
reduction strategies and the operation of these controls.
3.
Ensure
Senior Managers are aware that they are responsible for managing relevant risks
and are provided with relevant information on risk management initiatives.
4.
Ensuring
that an up to date Risk Register is maintained for each Directorate.
5.
Ensure
provision is made for losses that might result from the residual risks.
6.
Ensure
acceptable levels of risk are determined and insured against where appropriate.
7.
Ensure
that the Council has identified business continuity plans for implementation in
the event of disaster that results in significant loss or damage to its
resources.
8.
Ensure
risks and risk management are taken into account in decision-making.
CR1.2
Responsibilities of the Corporate Director of Resources
1.
Developing
and maintaining an effective policy and strategy on managing risk, which has
the support of the Head of Paid Service and Chief Officers;
2.
Developing
and maintaining a framework for managing risk;
3.
Keeping
under continuous review the departmental arrangements for managing risk to
ensure that risk is being managed to an acceptable standard, and report to the
Chief Officer if corrective action is necessary; and
4.
Advising
the Council on matters of risk management, and for raising awareness of and
promoting risk management amongst its staff.
CR1.3 Responsibilities
of Senior Managers
1.
Senior
Managers are responsible for ensuring that risk management is integrated into
both the business planning and finance planning processes. Specifically, the
preparation of business plans and budgets are undertaken in the light of the
identified risks facing the authority.
2.
Senior
managers must establish and maintain effective systems and processes for
identifying, profiling, evaluating and managing all significant strategic and
operational risks, which includes
·
the awareness and understanding of the key
issues,
·
the maintenance of a risk register and
·
plans and controls to mitigate and manage
these risks.
3.
To
ensure that risks which have been identified are addressed and mitigated and
that any high or very high risks are addressed in a timely manner.
4.
To
ensure that risk management is incorporated into service plans and project
plans as part of the business planning process.
5.
To
ensure progress and performance towards meeting team / service plan objectives
is monitored regularly.
6.
To
ensure that risk is managed effectively in their service area in accordance
with the risk management policy and procedure.
7.
To
promote risk management and encourage attainment of Risk Management
competencies in their staff.
8.
Manage
significant risks on a daily basis and report on mitigation.
9.
To
notify the Head of Risk Management of any significant risk that takes place
irrespective of whether it was identified through the Department’s risk
management system.
10.
To
seek to minimise the risk of significant service disruption by ensuring that
they have in place appropriate and robust business/service continuity plans.
CR2: Insurances
Background
The Council effects insurance for high level risks, where this is
economic to do so, in order to protect its tax payers against the impact on
local charges, should a catastrophe occur.
It is essential that Directorates advise the Insurance Section of
any change to their activities which insurance underwriters might consider
could materially affect the risk. Failure to do so might invalidate the
insurance cover.
CR2.1
Objectives
1.
Procedures
are in place to identify, assess, prevent or minimise material known risks, and
these procedures are operating effectively throughout the Council.
2.
Monitoring
and regular review of risk reduction strategies.
3.
Procedures
are in place to identify and record all insurance and the property or risk
covered.
4.
Procedures
are in place to notify and record the occurrence of any incident or loss that
may give rise to a claim by the Council for recovery from insurance companies
of the loss.
5.
Procedures
are in place to notify the Insurance Section of any claim against the Council.
6.
Procedures
are in place to investigate claims within required time-scales.
CR2.2
Responsibilities of the Corporate Director of Resources
1.
In
consultation with Senior Managers, to effect a long-term strategy to meet the
Council's insurance requirements on a cost-effective basis.
2.
To
effect corporate insurance cover, through external insurance and internal
funding, and to negotiate all claims in consultation with other officers, where
necessary.
3.
To
include all appropriate employees of the authority in a suitable fidelity
guarantee insurance.
4.
To
offer insurance cover to schools in accordance with Fair Funding arrangements.
5.
To
undertake a review of requirements to support the annual renewal of insurance
contracts.
6.
To
ensure that insurance provisions are adequate to meet anticipated claims.
7.
To
develop and maintain a claims and risk management database including the
identification of claims trends and areas of risk.
8.
To
continually monitor requirements and ensure that covers are appropriate and cost effective.
9.
To
maintain insurance cover, including Public Liability Insurance as required in
the Contracts code.
CR2.3
Responsibilities of Senior Managers
1.
To
maintain records of the current value of buildings and contents in their respective
departments, and to advise the Corporate Director of Resources of such values
on an annual basis.
2.
To
take appropriate measures to minimise the risk of injury to individuals and
loss, damage or theft of any insured property.
3.
To
notify the Corporate Director of Resources of any new or significant change in
the department's risk, which may be material to underwriters.
4.
To
promptly notify the Corporate Director of Resources of any loss, damage or
liability, or any event likely to lead to a claim against the Council, together
with any information or explanation required by the Corporate Director of
Resources or the Council’s insurers and, in the event of theft or wilful
damage, notify the police of the loss or damage.
5.
To
ensure that there are regular reviews of risk within their Directorates.
6.
To
notify the Corporate Director of Resources promptly of all new risks,
properties or vehicles which require insurance and of any alterations affecting
existing insurance.
7.
To
consult the Corporate Director of Resources and the Chief Legal Officer on any
indemnity that the Council is requested to give.
8.
To
ensure that employees, or anyone covered by the Council’s insurance, do not
acknowledge receipt of a claim admit liability or make any offer to pay
compensation that may prejudice the assessment of liability in respect of any
insurance claim. Claims to be re-directed for the attention of the Insurance
Section.
CR3: Internal Control
Background
The Council is complex and beyond the direct control of any one
individual and consequently requires internal controls to manage and monitor
progress towards strategic objectives.
The Council has statutory obligations, and, therefore, requires
internal controls to identify, meet and monitor compliance with these
obligations.
The Accounts and Audit Regulations 2011 (as amended) and the Public
Sector Internal Audit Standards require that the Council conducts a periodic
review of the effectiveness of its system of Internal Control, and shall
publish a statement on the adequacy of internal control with its Statement of
Accounts in the Annual Governance Statement.
The Annual Governance Statement is an integral part of the
Corporate Governance Local Code and provides an overall opinion on the
Council’s control environment. It is signed by the Mayor, and the Chief Executive/Head
of Paid Service.
The Council faces a wide range of financial, administrative and
commercial risks, both from internal and external factors, which threaten the
achievement of its objectives. Internal controls are necessary to identify and
manage these risks.
The system of internal controls is established in order to provide
measurable achievement of:
- Efficient and
effective operations
- Reliable and
integrity of financial information and reporting
- Compliance with
laws and regulations
- Accomplishment
of strategic and operational objectives.
CR3.1
Objectives
1.
To
provide adequate assurance to enable the Mayor and Chief Executive/Head of Paid
Service to sign the annual Statement of Internal Control, by ensuring that key
controls are reviewed on a regular basis, so that an opinion on the
effectiveness of the systems of internal control can be given.
2.
Ensure
managerial control systems operate to define policies, set objectives and plans, monitor financial and other
performance and take appropriate anticipatory and
remedial action.
3.
Ensure
financial and operational control systems and procedures, which include
physical safeguards for assets, segregation of duties, authorisation, contracts
and procurement regulations and approval procedures and information systems are
operating satisfactorily.
4.
Provide
an effective internal audit function that is properly resourced.
CR3.2
Responsibilities of the Corporate Director of Resources
1.
To
assist the Council to put in place an appropriate control environment and
effective internal controls that provide reasonable assurance of effective and
efficient operations, financial stewardship, probity and compliance with laws,
regulations and statutory responsibilities.
CR3.3
Responsibilities of Senior Managers
1.
To
promote an overall effective internal control system. Managerial Control
Systems including appropriate organisation structures, personnel arrangements
and supervision, as well as Financial and Operational Control Systems and
procedures, including physical safeguards of assets, segregation of duties,
authorisation and approval procedures and information systems which should be
documented and regularly reviewed.
2.
To
ensure that internal control systems are regularly reviewed and documented.
3.
To
manage processes to check that established controls are being adhered to and to
evaluate their effectiveness, in order to be confident in the proper use of
resources, achievement of objectives and management of risks.
4.
To
review existing controls in the light of changes affecting the Council and to
establish and implement new ones in line with guidance from the Corporate
Director of Resources. Senior Managers should also be responsible for removing
controls that are unnecessary or not cost or risk effective with the approval
of the Corporate Director of Resources.
5.
To
ensure staff have a clear understanding of the consequences of lack of control.
To establish, review and maintain internal controls to promote implementation
of service plans and programmes and the achievement of the necessary standards
of performance and quality.
6.
To
promote compliance with Council Policy, Constitution, Financial Regulations,
Procurement Procedures, Codes of Conduct and any statutory requirements.
7.
To
promote high standards of integrity in all actions or transactions which
directly or indirectly involve finance. Once developed they should be applied
consistently and not deliberately avoided.
8.
To
promote accuracy, consistency, usefulness and timeliness in all transactions,
in order to provide reliable information to develop and monitor the Council's
policies.
9.
To
ensure details of internal controls are circulated to all relevant employees,
who should be given appropriate instruction and training in their application.
CR4: Internal Audit
Background
Section 151 of the Local Government Act 1972 requires that
authorities "make arrangements for the proper administration of their
financial affairs". The Accounts and Audit Regulations 2011 (as amended)
require that a "relevant body shall maintain an adequate and effective
system of internal audit of their accounting records and control systems".
Internal audit is an independent and objective appraisal function
established by the authority for reviewing the system of internal control. It
examines, evaluates, and reports on the adequacy of internal control. It does
this by objectively reviewing and advising management upon the effectiveness of
their systems of internal control. It aims to provide assurance on the design
and operation of internal controls and provide constructive and positive advice
on control improvement and risk management.
The service review work undertaken by Internal Audit, together with
its corporate governance arrangements are essential and integral to the Head of
Audit & Risk Management Opinion and the Annual Governance Statement.
CR4.1
Objectives
1.
The
Head of Audit and Risk Management has direct access to the Chief Executive/Head
of Paid Service, all levels of management, and directly to elected Members,
and in particular, to the Chair
of the Audit Committee.
2.
The
internal auditors comply with the Auditing Practices Board's guideline Guidance
for Internal Auditors, as interpreted by CIPFA's Code of Practice for Internal
Audit in Local Government in the United Kingdom.
CR4.2
Responsibilities of the Corporate Director of Resources
1.
To
ensure that internal auditors have the authority to:
·
Access
Council officers, premises; access all assets, records, documents, and
correspondence and control systems.
·
Receive
any information and explanation considered necessary concerning any matter
under consideration.
·
Require
any employee of the Council to account for cash, stores or any other Council
asset under their control.
·
Access
records belonging to third parties, such as contractors, voluntary sector,
grant aided bodies when required.
2.
To
ensure that Internal Audit is adequately resourced, and that coverage is
properly planned and determined through assessment of risk and consultation
with management.
3.
To ensure that the scope of Internal
Audit will be such as to provide an unrestricted range of coverage of all the
Council's activities.
4.
To approve the strategic and
annual audit plans prepared by the Head of Audit & Risk Management Services,
which take account of the characteristics and relative risks of the activities
involved.
5.
To
ensure that Internal Audit staff maintain objectivity, and do not perform
internal control functions, or undertake operational tasks.
6.
To
ensure that auditors operate a system based approach and provide assurance on
the adequacy, application and effectiveness of management control and
encouragement and constructive advice on the development and improvement of
control arrangements.
7.
To
ensure that the results of all audit work are properly recorded and promptly
reported to management.
8.
To
ensure that effective procedures are in place to investigate promptly any fraud
or irregularity.
9.
To
ensure that Internal Audit report six monthly to Audit Committee on the
adequacy of the Council's internal control systems.
CR4.3
Responsibilities of Senior Managers
1.
To
ensure that Internal Audit is given access at all reasonable times to premises,
personnel, documents and assets that the auditors consider necessary for the purposes
of their work.
2.
To
ensure that auditors are provided with any information and explanations that
they seek in the course of their work.
3.
To
consider and respond promptly to recommendations in audit reports.
4.
To
ensure that any agreed actions arising from audit recommendations are carried
out in a timely and efficient fashion, where this is not possible, to report to
the Head of Audit and Risk Management.
5.
To
notify the Corporate Director of Resources and Head of Audit and Risk
Management immediately of any suspected fraud, theft, irregularity, improper
use or misappropriation of the Council's property or resources. Pending
investigation and reporting, the Senior Manager should take all necessary steps
to prevent further loss and to secure records and documentation against removal
or alteration.
6.
To
ensure that new systems for maintaining financial records, or records of
assets, or changes to such systems, are discussed with and agreed by the Head
of Audit and Risk Management, prior to implementation.
CR5: External Audit
Background
The Local Audit and Accountability Act 2014 abolished the previous
Audit Commission arrangements and established a new local audit and
accountability framework for local public bodies in England which allows local
bodies to appoint their own independent external auditors.
The external auditor has rights of access to all documents and
information necessary for the audit to be undertaken.
The duties of the external auditor are defined in the Act, which sets out the auditor's
objectives to review and report upon:
1. The audited body’s
financial statements and its statement on internal controls
2. Whether the
audited body has made proper arrangements for securing economy, efficiency and effectiveness in its use
of resources
CR5.1
Objectives
1.
External
auditors are appointed by the Council for a minimum period of five years.
2.
The
Audit Commission code of audit practice will continue to be used by external
auditors to carry out their audits.
3.
To
ensure that the external audit of the Council can be carried out effectively.
CR5.2
Responsibilities of the Corporate Director of Resources
1.
To
ensure that external auditors are given access at all reasonable times to
premises, personnel, documents and assets that the external auditors consider
necessary for the purposes of their work.
2.
To
ensure there is effective liaison between external and internal audit.
3.
To
work with the external auditors and advise the Audit Committee and Senior
Managers on their responsibilities in relation to external audit.
4.
To
specify the format and contents of working papers to ensure adequate audit
trails are available to enable the external auditor to verify the entries.
5.
To
maintain a system of quality control for grants claims to minimise the cost for
this element of the audit.
CR5.3
Responsibilities of Senior Managers
1.
To
ensure that external auditors are given access at all reasonable times to
premises, personnel, documents and assets which the external auditors consider
necessary for the purposes of
their work.
2.
To
ensure that all records and systems are up to date and available for
inspection.
3.
To
comply with instructions issued by the Corporate Director of Resources relating
to the conduct of the external audit.
CR6: Preventing Fraud and Corruption
Background
The Council will not tolerate fraud and corruption in the
administration of its responsibilities, whether from inside or outside the
Council.
The Council's expectation of propriety and accountability is that
members and staff at all levels will lead by example in ensuring adherence to
legal requirements, rules, procedures and good practices.
The Council also expects that individuals and organisations (e.g.
suppliers, contractors, and service providers) with which it comes into contact
will act towards the Council with integrity and without thought or actions involving
fraud and corruption.
CR6.1
Objectives
1.
The
Council has an effective Anti-fraud and Anti-corruption Policy consistent with
the Constitution and maintains a culture that will not tolerate fraud or
corruption.
2.
All
Members and staff act with integrity and lead by example.
3.
Senior
managers are required to deal swiftly and firmly with those who defraud or
attempt to defraud the Council or who are corrupt.
4.
High
standards of conduct are promoted amongst Members of the Council.
5.
The
maintenance of a register of interests in which any hospitality or gifts
accepted must be recorded.
6.
Whistle
blowing procedures are in place and operate effectively.
7.
Legislation
including the Public Interest Disclosure Act 1998 is adhered to.
CR6.2
Responsibilities of the Corporate Director of Resources
1.
To
develop and maintain an anti-fraud and anti-corruption policy.
2.
To
maintain adequate and effective internal control arrangements.
3.
To
ensure that all suspected irregularities are reported to the Head of Audit and
Risk Management, the Head of Paid Service, the Monitoring Officer and the Audit
Committee as appropriate.
4.
To
maintain a “Whistle Blowing” telephone Help-line (0800 528 0294), which any
officer who cannot, for any reason, report an issue to the Senior Manager may confidentially, contact.
CR6.3
Responsibilities of Senior Managers
1.
To
ensure compliance with the Anti-fraud and Anti-corruption Policy and with the
whistle blowing procedures contained therein.
2.
To
ensure that all suspected irregularities are reported to the Head of Audit and
Risk Management.
3.
To maintain of a register of
interests in which any hospitality or gifts accepted must be recorded.
4.
To
ensure that prompt action is taken to initiate investigation of a suspected
irregularity.
5.
To
ensure that prior to commencement of an investigation assessment and
consideration is given to the seriousness of the irregularity and appropriate
advice and assistance is sought from
Internal Audit and/or for
the Corporate Fraud team.
6.
To
ensure that appropriate action is taken during or at the conclusion of the
investigation. This may include changes to internal controls to prevent
repetition, steps to recover any losses incurred, disciplinary proceedings
against individuals, or reporting suspected criminal offences to the police.
CR7: Security of Assets
Background
The Council has an asset portfolio of over £1.8 billion as at 1
April 2014.
To maintain public confidence in its stewardship of public assets
it is essential that the Council has established and effective procedures to
safeguard these assets.
A prerequisite for the effective control and management of assets
is the maintenance of an asset register.
CR7.1
Objectives
1.
Assets
are used only for the purposes of the Council and its service delivery
partners, and are properly accounted for.
2.
Assets
are available for use when required.
3.
The
value of assets is maintained throughout their useful lives.
4.
Redundant
assets are disposed of in accordance with the law and the regulations of the
Council so as to maximise benefits.
5.
A
comprehensive and up to date Asset Register is maintained for Council assets.
6.
All
staff are aware of their responsibilities with regard to safeguarding the
Council's assets and information, including the requirements of the Data
Protection Act and software copyright legislation.
CR7.2
Responsibilities of the Corporate Director of Resources
1.
To
ensure that an Asset Register is maintained in accordance with good practice
for all fixed assets.
2.
The
format of the Asset Register is such that it provides the Council with
information about fixed assets so that they are:
·
safeguarded
·
used
efficiently and effectively
·
adequately
maintained.
3.
To
receive the information required for accounting, costing and financial records
from the relevant Senior Manager.
4.
To
ensure assets are recorded and periodically revalued in accordance with
International Accounting Standard (IAS) 2 – Accounting for Property, Plant and
Equipment.
CR7.3
Responsibilities of Senior Managers
1.
To
establish and maintain appropriate levels of security for all employees, buildings,
property, vehicles and plant, equipment and information within their control.
2.
To
pass title deeds to the Chief Legal Officer, who is responsible for custody of
all title deeds.
3.
To
ensure that no Council asset is subject to personal use by an employee without
proper authority.
4.
To
ensure that the Directorate maintains a register of moveable assets.
5.
To
ensure that assets are identified, their location recorded and that they are
appropriately marked and insured.
6.
To
consult the Corporate Director of Resources in any case where security is
thought to be defective or where it is considered that special security
arrangements may be needed.
7.
To
ensure cash holdings on premises are kept to a minimum and within insurance
limits.
8.
To
ensure that keys to safes and similar receptacles are carried on the person of
those responsible at all times; loss of any such keys must be reported to the
Corporate Director of Resources as soon as possible.
9.
To
minimise the risks of injury to employees or members of the public and minimise
the risk of loss, damage or waste to any asset within their control.
CR8: Inventories
Background
To maintain inventories and record an adequate description of
furniture, fittings, equipment, plant and machinery above £1000 in value in
their departments, together with portable and attractive items (IT equipment,
mobile phones, cameras, etc.), regardless of value.
To ensure that an annual check is undertaken of all items on the
inventory in order to verify location, review condition and to take action in
relation to surpluses or deficiencies, annotating the inventory accordingly.
Attractive and portable items should be identified with security
markings as belonging to the Council.
To ensure that property is only used in the course of the Council's
business, unless the Senior Manager concerned has given permission otherwise.
CR8.2
Responsibilities of the Corporate Director of Resources
1.
To
issue guidelines prescribing the procedures for the maintenance of inventories.
CR8.3
Responsibilities of Senior Managers
1.
To maintain an inventory of all
items valued at £1,000 and above within their control.
2.
To
establish and maintain appropriate levels of security for all employees,
buildings, property, vehicles and
plant, equipment and information within their control.
3.
To minimise risks of injury to
employees, the public and loss, damage or waste to any asset within their
control.
CR9: Staffing
Background
In order to provide the highest level of service, it is crucial
that the Council recruits and retains high calibre, knowledgeable staff, qualified
to an appropriate level.
CR9.1
Objectives
1.
An
appropriate staffing strategy and policy exists, in which staffing requirements
and budget allocations are matched.
2.
Procedures
are in place for forecasting staffing requirements and cost.
3.
Controls are implemented that
ensure that staff time is used efficiently and to the benefit of the Council.
4.
Checks
are undertaken prior to employing new staff to ensure that they are
appropriately qualified, experienced and trustworthy.
CR9.2
Responsibilities of the Corporate Director of Resources
1.
To
act as an advisor to Senior Managers on areas such as National Insurance and pension contributions, as
appropriate.
2.
To evaluate developments in
employment legislation and regulations and ensure that policies and procedures are in place to reflect
current best practice.
CR9.3
Responsibilities of Senior Managers
1.
To
produce an annual staffing budget.
2.
To ensure that the staffing
budget is an accurate forecast of staffing levels and is equated to an appropriate revenue
budget provision (including on-costs and overheads).
3.
To
monitor staff activity to ensure adequate control over absence, overtime,
training and temporary staff etc.
4.
To
ensure that the staffing budget is not exceeded without due authority and that
it is managed to enable the agreed level of service to be provided
5.
To
ensure that recruitment procedures verify that new staff are appropriately
qualified, experienced and trustworthy by checking claimed qualifications and
obtaining suitable references from past employers and other relevant sources.
6.
To
engage temporary staff and consultants in line with current legislation and use
where necessary the vendor managed service to ensure optimised use of
resources.
CR10: Asset Disposal
Background
To ensure the Council does not incur expenditure on maintaining
assets which no longer provide a benefit, it is critical that the Council has
systems which identify such assets and provide for their disposal.
Obsolete, non-repairable or surplus assets should be disposed of in
accordance with Council policies and procedures.
CR10.1
Objectives
1. To
ensure assets for disposal are identified and disposed of at the most
appropriate time.
2. For
items of significant value, disposal should normally be by an informal tender
(as per the process detailed in section 6 of the disposal procedure P4).
However, other disposal methods such as formal tender or public auction can
also be used if deemed appropriate.
3. Procedures
must ensure that the Council has obtained best consideration for the disposal.
CR10.2
Responsibilities of the Corporate Director of Resources
1.
In
conjunction with the Corporate Director, Development & Renewal, issue
guidelines representing best practice for disposal of assets.
2.
To
include in such guidelines an approach that uses Whole Life Costing and Option Appraisal methodology to identify
assets for disposal under the Asset Management Plan.
3.
To
advise on the financial implications and the opportunity costs of the disposal
or non-disposal of assets.
CR10.3
Responsibilities of Senior Managers
1.
To
consult with the Corporate Director of Resources on all proposals for the
disposal of any asset. In addition, in the case of property/land
disposals, the Corporate Director, Development & Renewal, should also be
consulted.
2.
To
ensure that such disposals are recorded in the relevant inventory or Asset
Register. All records of such disposals including income received must be
retained for at least six years or in
the case of documents under seal 12 years.
3.
To
ensure that income received for the disposal of an asset is properly banked and
coded.
4.
To
obtain best consideration on all asset disposals.
5.
To
report on the progress of disposals, to the Chief Financial Officer, for
financial planning purposes.
CR11: Treasury Management
Background
The Council has an annual turnover on its treasury operations of
approximately £5 billion.
To minimise the financial risk associated with these activities it
is critical that the Council establishes parameters within which such
operations are undertaken.
A number of high profile failures by Councils to control their
operations have resulted in the development by CIPFA of a regulatory framework
for Councils.
CR11.1
Objectives
1.
That the Council's borrowings and investments
comply with the CIPFA Code of Practice on Treasury Management and with the
Council's Treasury Management Policy Statement.
CR11.2
Responsibilities of the Corporate Director of Resources
1.
To
arrange the borrowing and investments of the Council in such a manner as to
comply with the CIPFA Code of Practice on Treasury Management and the Council’s
Treasury Management Policy Statement and Treasury Strategy.
2.
To prepare an annual Treasury
Management Strategy statement and Investment Strategy for approval by Council
as part of the budget setting process.
3.
To
prepare an annual report that monitors treasury management performance.
4.
To
obtain the approval of the Executive for any change in Treasury policy.
5.
To ensure that all investments
of money are made in the name of the Council or in the name of nominees
approved by full Council.
6.
To
effect all borrowings and investments in the name of the “Mayor and Burgesses
of the London Borough of Tower Hamlets”.
7.
To
act as the Council's registrar of stocks, bonds and mortgages and to maintain records of all borrowing of money
by the Council.
8.
To
ensure the Council adopts the key recommendations of the Chartered Institute of
Public Finance and Accountancy’s (CIPFA) Treasury Management in the Public
Services: Code of Practice.
9.
To
ensure the Council will create and maintain as an integral part of the Treasury
Management function:-
·
A
Treasury Management Policy Statement stating the policies and objectives of the
treasury management activities.
·
Suitable
Treasury Management Practices detailing how the Council will achieve these
objectives and prescribing how it will control and manage these activities.
10.
To
ensure the Council delegates responsibility for the implementation and
monitoring of its Treasury
Management Policies and Practices to the Corporate Director of Resources and
for the execution and administration of
treasury management decisions to the Capital & Investments Manager.
11.
To
maintain a list of authorised signatories, including copies of the signatures,
who can authorise treasury transactions.
CR11.3
Responsibilities of Senior Managers
1.
To
ensure that loans are not made to third parties and that interests are not
acquired in companies, joint ventures or other enterprises without the approval
of the Executive or full Council as appropriate, following consultation with
the Corporate Director of Resources.
CR12: Trust Funds
Background
The Council administers charitable trust assets with a market value
of approximately £2.3 million as at 1 April 2014.
The Trust is a separate legal entity from the Council and it is
critical that adequate arrangements are made to safeguard assets and ensure
that expenditure incurred relates to the Trust's objectives.
CR12.1
Objectives
1.
To
ensure annual accounts are prepared which comply with the Accounting and Reporting by Charities Statement
of Recommended Practice (SORP).
2.
To
provide annual returns to the Charity Commission within the required deadline.
CR12.2
Responsibilities of the Corporate Director of Resources
1.
To
provide accounting and financial advice when requested.
2.
To
provide resources to undertake an “independent examination” if allowable under
the Charities Act and requested by the administering Directorate.
CR12.3
Responsibilities of Senior Managers
1.
To
arrange for all Trust Funds to be held, wherever possible, in the name of the
Council. All officers acting as trustees by virtue of their official position
shall deposit securities, etc. relating to the trust with the Corporate
Director of Resources, unless the deed otherwise provides.
2.
To
arrange, where funds are held on behalf of third parties, for their secure
administration, approved by the Corporate Director of Resources and to maintain
written records of all transactions.
3.
To
ensure that Trust Funds are operated within any relevant legislation and the
specific requirements for each Trust.
4.
To
prepare annual accounts in accordance with recommended accounting practice for
submission to the Charity Commissioners.
5.
To
carry out annual reconciliations of trust fund bank accounts and submit these
to the Chief Accountant.
CR13: Banking Arrangements
Background
The efficient operation of a bank account is an essential element
of the Council’s financial arrangements.
Bank accounts also represent an area where there is significant
scope for fraudulent activity and it is essential that adequate controls exist.
CR13.1
Objectives
1.
To
ensure that only bank accounts authorised by designated officers, are operated
by the Council.
2.
To
ensure that only authorised entries are made in the Council’s bank account.
CR13.2
Responsibilities of the Corporate Director of Resources
1.
To
have sole responsibility for opening and closing bank accounts.
2.
To
have sole responsibility for the ordering, custody and issue of all cheques.
3.
To
nominate authorised signatories to the Council’s bank accounts.
4.
To ensure that each bank account
is operated within the terms agreed with the Council's bankers.
5.
To
ensure that each bank account is reconciled to payments made and income
received on a monthly basis and that the reconciliation is certified by the
responsible officer.
6.
To
monitor the financial and service performance of the Bank contract on a regular
basis.
7.
To
review contractual arrangements for banking every five years or more frequently
if considered appropriate to give Value for Money.
CR13.3
Responsibilities of Senior Managers
1.
To
ensure that only bank accounts opened and authorised by the Corporate Director
of Resources, are operated by staff within their Directorates.
2.
To
ensure that each bank account is operated within the terms agreed with the
Council's bankers and instructions issued by the Corporate Director of
Resources.
3.
To
ensure that each bank account is reconciled to payments made and income
received on a monthly basis and a copy provided to central finance within 5
working days of each period end.
4.
To
obtain and retain vouchers to support each payment from the accounts. Where
appropriate, an official receipted VAT invoice must be obtained.
5.
To
obtain the approval for any direct debit originated on the Council’s bank
accounts.
6.
To
ensure that the accounts are never used to cash personal cheques or to make personal loans.
7.
To
ensure a list of Authorised Signatories is maintained and passed to the Chief
Accountants Team.
8.
To
seek approval from the Head of Revenues before taking out Merchant ID’s and
ensure all Merchant ID’s are banking standard compliant.
9.
To
provide to the Corporate Director of Resources a reconciliation of each account
as at 31st March each year certified by the nominated officer.
CR14: Imprest Accounts
Background
The Council operates a number of petty cash imprest accounts to
finance minor expenditure.
CR14.1
Objectives
1.
To ensure the minimum petty cash balances are
held consistent with the effective operation of services.
CR14.2
Responsibilities of the Corporate Director of Resources
1.
To
provide employees of the Council with cash or bank imprest accounts as
appropriate to meet minor expenditure on behalf of the Council and to prescribe
rules for operating these accounts.
2.
To
determine the petty cash limit and to maintain a record of all transactions and
petty cash advances made.
3.
To
periodically review the arrangements for the safe custody and control of these
advances.
4.
To
reimburse imprest holders as often as necessary to restore the imprests.
5.
To
issue Guidance Notes on the operation of petty cash imprests.
CR14.3
Responsibilities of Senior Managers
1.
To
ensure that employees operating an imprest account: comply with guidance issued
by the Corporate Director of Resources.
2.
To
ensure that all imprested cash is held securely.
3.
To
ensure petty cash is not utilised for subsistence payments.
4.
To
ensure that VAT is correctly accounted for in all petty cash transactions.
5.
To
submit quarterly reconciliations to the Operational Accountancy Team in Central
Finance.
CR15: Intellectual Property
Background
Intellectual Property is a generic term that includes inventions,
innovations, written documents and computer programs. As a general rule, if it is created by an
employee in the course of their employment, it remains the property of the
employer, not the employee. There are a
number of Acts of Parliament in force that cover various different types of
intellectual property.
Within the Council, many activities that give rise to the creation
of intellectual property. These include: written documents, software
developments, and business process innovations.
This procedure seeks to establish the Council’s rights over intellectual
property created by its employees and prevent loss of rights over such
property.
CR15.1
Key Objectives
1.
To
protect the Council’s ownership of any particular piece of intellectual
property which creates value and over which the Council has rights of
ownership.
2.
To
ensure that the Council’s rights are protected if necessary by the invocation
of relevant legislation.
CR15.2
Responsibilities of the Corporate Director of Resources / Monitoring Officer
1.
To
ensure that the policies and procedures exist that, when implemented throughout
the organisation, safeguard intellectual property assets, and do not contravene
existing statute.
2.
To
ensure that adequate and reasonable safeguards exist to prevent the loss of
Council’s rights over intellectual property.
3.
The
Monitoring Officer to establish and maintain a log of substantial intellectual
property assets.
CR15.3
Responsibilities of Senior Managers
1.
To ensure that all staff
understand that any work carried out while on Council time, whether at home or on Council premises,
written or otherwise, belongs to the Council.
2.
To
ensure checks and balances are effective in preventing infringement of
copyright, designs and patent
legislation. In particular:
·
Only
software acquired legally and installed by the Council should be used on its
computers.
·
Staff
are aware of current relevant legislation.
·
During
systems development, due regard is given to the issue of intellectual property
rights.
FA: FINANCIAL ADMINISTRATION
FA1: Systems
Background
Departments have many systems and procedures relating to the
control of the Council's assets, including purchasing, transaction processing
and management systems. Departments are reliant on computers for their
financial management information. The information must therefore be accurate
and the systems and procedures sound and well administered. They should contain
controls to ensure that transactions are properly processed and errors detected
promptly.
The Corporate Director of Resources has a professional
responsibility to ensure that the Council's financial systems are sound and
should therefore sign off any new developments or changes.
FA1.1
Objectives
1.
Basic
systems and controls are in place to ensure the integrity of data held on
computer systems.
2.
Performance
of systems is communicated to the appropriate managers on an accurate, complete
and timely basis.
3.
Systems
produce timely reports of management information which is usable by managers.
4.
Operating
systems and procedures are secure.
5.
Computer
systems are co-ordinated with manual procedures and operate efficiently
alongside them.
FA1.2
Responsibilities of the Corporate Director of Resources
1.
To
make arrangements for the proper administration of the Council's financial
affairs, including to:
·
Issue
advice, guidance and procedures for officers and others acting on the Council's
behalf.
·
Determine
the accounting systems, form of accounts and supporting financial records.
·
Establish
arrangements for audit of the Council's financial affairs.
·
Approve
any new financial systems to be introduced.
·
Approve
any changes to be made to existing financial systems.
·
Establish
arrangements for access control and general security of the Council's corporate
financial systems.
FA1.3
Responsibilities of Senior Managers
1.
To
ensure that accounting records are properly maintained and held securely.
2.
To
ensure that vouchers and documents with financial implications are not
destroyed, except in accordance with arrangements agreed with the Corporate
Director of Resources.
3.
To
ensure that a complete management trail, allowing financial transactions to be
traced from the accounting records to the original document, and vice versa, is
maintained.
4.
To
incorporate appropriate controls to ensure that, where relevant:
·
All
input is genuine, complete, accurate, timely and not previously processed;
·
All
processing is carried out in an accurate, complete and timely manner;
·
Output
from the system is complete, accurate and timely.
5.
To
ensure that the organisational structure provides an appropriate segregation of
duties to provide adequate internal controls and to minimise the risk of fraud
or other malpractice.
6.
To
ensure there is a documented and tested Disaster Recovery Plan to allow
information system processing to resume quickly in the event of an
interruption.
7.
To
ensure that effective contingency arrangements, including back-up procedures,
exist for computer systems. Wherever possible, back-up information should be
securely retained in a fireproof location, preferably off site or at an
alternative location within the building.
8.
To
ensure that systems are documented and staff trained in operations.
9.
To
consult with the Corporate Director of Resources before changing any existing
system or introducing new systems and to ensure that the approval of the
Corporate Director of Resources has been obtained before any such changes are
implemented.
10.
To
supply the Corporate Director of Resources with an authorised user request form
with appropriate authorisation limits for staff requiring access to the
Council's corporate financial systems.
11.
To
establish a scheme of delegation identifying officers authorised to act upon
the Senior Manager’s behalf in respect of payments, income collection and
placing orders, including variations, and showing the limits of their
authority.
12.
To
supply lists of authorised officers, with specimen signatures and delegated
limits, to the Corporate Director of Resources.
13.
To
ensure that, where appropriate, computer systems are registered in accordance
with data protection legislation and that staff are aware of their
responsibilities under the legislation.
14.
To
ensure that relevant standards and guidelines for computer systems issued by
the Senior Manager are observed.
15.
To
ensure that computer equipment and software are protected from loss and damage
through theft, vandalism, etc.
16.
To
comply with the copyright, designs and patents legislation and, in particular,
to ensure that:
·
Only
software legally acquired and installed by the Council is used on its
computers;
·
Staff
are aware of legislative provisions.
FA2: Income
Background
Income is a vulnerable asset and effective income collection
systems are necessary to ensure that all income due is identified, collected,
receipted and banked properly. It is preferable to obtain income in advance of
supplying goods or services as this improves the Council's cash flow and also
avoids the time and cost of administering debts.
FA2.1
Objectives
1.
All
income due to the Council is identified and coded correctly, in accordance with
Guidance issued by the Corporate Director of Resources.
2.
All
income is collected from the correct person, at the right time, using the
correct procedures and the
appropriate stationery.
3.
All
money received by an employee on behalf of the Council is paid in without delay
to the Council's bank account, and properly recorded. The responsibility for
cash collection should be
separated from that:
·
for
identifying the amount due
·
for
reconciling the amount due to the amount received
4.
Effective
action is taken to pursue non-payment.
5.
Formal
approval for debt write-off is obtained
6.
Appropriate
write-off action is taken within defined timescales
7.
Appropriate
accounting adjustments are made following write off action
8.
All
appropriate income documents are retained and stored.
9.
Money
collected and deposited is reconciled to the bank account by a person who is
not involved in the collection or banking process.
10.
This
note is supplemented by the following detailed Financial Procedures:-
·
Procedures
for Cash Collection Officers (P6)
·
Cash
Handling and Security (P2)
·
Credit
and Debit Card Income (P7)
FA2.2
Responsibilities of the Corporate Director of Resources
1.
To
agree arrangements for the collection of all income due to the Council and to
approve the procedures, systems and documentation for its collection.
2.
To
approve all receipt forms, books or tickets and similar items and be satisfied
that proper arrangements exist for their control.
3.
To
agree the bad debt write-offs in accordance with the current procedure :
·
Debt
below Threshold (£20,000)
Senior
Managers may write off debts with the written agreement of the Corporate
Director of Resources. They must certify that the debts are irrecoverable and
detail the measures taken so far to effect recovery or that the costs involved
do not justify any further attempts to recover them.
·
Debt
above Threshold (£20,000)
Senior
Managers may write off debts exceeding the threshold with the written agreement
of the Corporate Director of Resources and the Chief Legal Officer. They must
certify that the debts are either irrecoverable or that the costs involved do
not justify any further attempts to recover them.
4.
To
ensure that appropriate accounting adjustments are made following write-off
action within the time limits necessary for the reclamation of VAT bad debt
relief (write-off and claim within 42 months of the debt falling due).
5.
To
ensure that official receipts are issued and to maintain other documentation
for income collection.
6.
To
ensure that income is not used to cash personal cheques or make other payments.
7.
To
ensure that systems are in place to report areas of concern to Senior Managers
on a regular basis.
8.
To ensure that recovery
procedures are in place, including legal action for debts unpaid within agreed
timescales.
9.
To
advise Senior Managers on a monthly basis of the position regarding debts
raised by/on behalf of their Departments.
10.
To
ensure, in consultation with Senior Managers, that adequate provision is made
for potential bad debts arising from uncollected income. The level of provision
should be reviewed annually
as part of the closure of accounts.
FA2.3
Responsibilities of Senior Managers
1.
To
review the scales of fees and charges for the services under their control. This is to be undertaken annually as part of
the Budget setting procedure and at other times if necessary.
2.
To
keep a record of the charges set, and the dates when they are to apply.
3.
To
separate the responsibility for identifying amounts due and the responsibility
for collection, as far as is practicable.
4.
To
reach agreement on debt recovery, including legal action where necessary, for debts that are not paid promptly.
5.
To
issue official receipts or to maintain other documentation for income collection.
6.
To
ensure that at least two employees are present when post is opened so that
money received by post is properly identified and recorded (including details
of payment, name of payer and method of payment).
7.
To
obtain from official sources only and hold securely receipts, tickets and other
records of income and to keep a signed record for each issue of controlled
stationery.
8.
To
lock away all income to safeguard against loss or theft, and to ensure the
security of cash handling.
9.
To
ensure that income is paid fully and promptly into the appropriate Council bank
account in the form in which it
is received. Appropriate details should be recorded on to paying in slips to
provide an audit trail. Money collected and deposited must be reconciled to the
bank account on a regular basis.
10.
To
ensure Cash and Disbursement (C&D) returns are completed correctly,
returned promptly and checked thoroughly.
11.
To
forward all relevant paperwork to the Corporate Director of Resources promptly,
including checked C&D returns, banking slips, both copies of cancelled
receipts, any subsidiary income records and completed receipt books.
12.
To
ensure income is not used to cash personal cheques or other payments.
13.
To
supply the Corporate Director of Resources with details relating to work done,
goods supplied, services rendered or other amounts due, to enable the proper
recording of sums due to the
Council and to ensure accounts are processed promptly.
14.
To
use information on debt recovery provided by the Corporate Director of
Resources to monitor recovery of income and flag up areas of concern. Senior
Managers have a responsibility to assist the Corporate Director of Resources in
collecting debts that they have originated, by providing any further
information requested by the debtor, and in pursuing
the matter on the Council's behalf.
15.
To
ensure that levels of cash held are within agreed limits.
16.
To
ensure that every transfer of money and controlled stationery between employees
of the Council is recorded. The receiving officer must sign for the transfer
and the transferor must retain a copy.
17.
To
ensure when a collecting officer leaves the Council or is no longer involved in
cash collection, must arrange for a complete check to be carried out to ensure
that all income has been receipted and banked, all unused receipts are intact
and returned to Head Office, and any change float is repaid. A written record
of this check shall be kept on a form supplied by the Corporate Director of
Resources. The form must be signed by the collecting officer and the officer(s)
carrying out the check. Where responsibility for collection is passed to
another officer, the record shall also be signed by that officer as a receipt
for the financial records, any cash in hand and any change float. The Corporate
Director of Resources is to be informed of all arrangements made under this Instruction, without delay, and
is to be supplied with a copy of the record.
18.
To
recommend to the Corporate Director of Resources all debts to be written off.
Once raised, no bona fide debt may be cancelled, except by full payment or by
its formal write-off. Any debt raised in error may be cancelled. A credit note
to replace or amend a debt can only be issued to correct a factual inaccuracy
or administrative error in the calculation and/or billing of the original debt.
19.
To
notify the Corporate Director of Resources of outstanding income relating to
the previous financial year as soon as
possible after 31 March in line with the timetable determined by the Corporate Director of Resources and
not later than 30 April.
20.
To
regularly compare income received against budget and reflect variations in
budget monitoring reports, together with explanation of any significant
variations.
21.
To
ensure that at least two employees are present when post is opened and that money
received is properly identified and recorded.
22.
To
hold securely, receipts, tickets and other records of income for the year of
account and the following six years.
23.
To
keep all income secure to safeguard against loss or theft, and to ensure the
security of cash handling
24.
To
ensure that income is paid directly into the correct bank account in the form
in which it is received. Appropriate
details should be recorded on to paying in slips to provide an audit trail. Money collected and deposited must be reconciled
to the bank account on a regular basis.
FA3: Ordering and Paying For Work Goods And
Services
Background
Public money should be spent with demonstrable probity and in
accordance with the Council's policies. Councils have a statutory duty to achieve
best value and efficiency. The Council's procedures should help to ensure that
services obtain value for money from their purchasing arrangements. These
procedures should be read in conjunction with the Council's Procurement
Procedures.
Every officer and member of the Council has a responsibility to
declare any links or personal interests that they may have with purchasers,
suppliers and/or contractors if they are engaged in contractual or purchasing
decisions on behalf of the Council, in accordance with the Council’s
Procurement Procedures.
Official orders must be in a form approved by the Corporate
Director of Resources. Official orders must be issued for all work, goods or
services to be supplied to the Council, except for supplies of utilities, periodic
payments such as rent or rates, petty cash purchases and the authorised use of
the Council’s purchase card. Any other
exceptions must be agreed in advance with the Corporate Director of Resources.
Official orders must be raised or order information recorded on the
Council's ordering system.
Official orders must not be raised for any personal or private
purchases, nor must personal or private use be made of Council contracts.
FA3.1
Objectives
1.
All goods and services should be
ordered only by appropriate persons and correctly recorded.
2.
All
goods and services should be ordered in accordance with the Council’s
Procurement Procedures.
3.
Goods
and services received should be checked to ensure they are in accordance with the order.
4.
Goods and services should not be requested, authorised and
receipted by the same officer to ensure separation of duties.
5.
Goods
receipting and payments should not be made unless goods have been received by
the Council to the correct price, quantity and quality standards.
6.
All
payments should be made to the correct person, for the correct amount and
properly recorded, regardless of the payment method.
7.
All
appropriate evidence of the transaction and payment documents should be
retained and stored through
scanned images on the purchasing system for the year of account and the
following six years.
8.
All
expenditure should be accurately recorded against the appropriate budget with
Tax coded correctly.
9.
The
effect of e-business/e-commerce and electronic purchasing requires that
processes are in place to maintain the security and integrity of data for
transacting business electronically.
10.
A formal order including the Council’s relevant terms and
conditions of contract must be placed through the finance system before a
commitment is made to procure. Where access to the finance system is not
available “out of hours”, the request for goods/service may be made verbally or
via email but an official order must be raised at the earliest opportunity and
supporting document retained to evidence prior financial authorisation.
11.
The Council does not accept liability for goods/services
commissioned without following the procurement procedures.
FA3.2
Responsibilities of the Corporate Director of Resources
1.
To
agree the form of official orders and associated terms and conditions.
2.
To
make payments, whether or not provision exists within the estimates, where the
payment is specifically required by statute or is made under a court order.
3.
To
provide advice and guidance on making payments by the most economical means.
4.
To
issue and update Procurement Procedures.
5.
To
determine categories for ordering goods and services and issue thresholds for
competition. The current thresholds for projected expenditure on goods and
services are as set out below :-
|
|
Total
Value
E
|
Authority
|
Competition
|
|
LEVEL 1
One written quotation
|
Up to £10,000
|
Budget
Holder
|
§ No
competitive quotations required.
§ Must use local suppliers. If a
good reason exist for not using local suppliers this should be documented and kept on file.
|
|
LEVEL 2
Three competitive quotes
|
£10,000 to
£25,000
|
Budget
Holder
|
§ Three
organisations to be invited.
§ Must use local suppliers.
If a good reason exist for not using local
suppliers
this should be documented and kept on file.
§ Record of quotation(s) to be retained
for at least 12 months.
|
|
LEVEL 3
|
£25,000 to
£172,514
(EU threshold for
Supplies & Services)
|
Service
Head
|
§ PIF
(Procurement Instruction Form) must be completed.
§ Where
possible supplier selected for quotation
should include suppliers located within TH area.
§ Award criteria to
be decided in advance.
§ Tender managed through the Councils
e-tendering system.
|
|
£25,000 to £4,322,012
(EU threshold for
Works)
|
Service
Head
|
§ PIF
must be
completed.
§ Selection of suppliers from: construction line database.
§ At least four tenders to be invited.
§ Where
possible, suppliers selected must include organisations located within
TH.
§ In the event
that construction line does not hold suitable contractors, selection process
for Level 3 Supplies and Services process should be followed.
|
|
LEVEL 4
EU
Procedure
|
Over £172,514
(Supplies & Services)
Over £4,322,012
(Works)
|
Corporate
Director
|
§ PIF
must be completed.
§ Cabinet approval & Tollgate process to be followed for contract above £250,000 – Supplies and Services; above £5million –Works.
§ Tender process to follow the requirements of the
EU & Public Contracts Regulations 2006.
|
FA3.3
Responsibilities of Senior Managers
1.
To ensure that unique system
generated official orders are used for all goods and services.
2.
To
ensure that verbal orders for work, goods or services are only placed
exceptionally (i.e. in emergencies) and are confirmed with an official system
generated order as soon as possible. Supporting documentation to evidence the
financial authorisation should be attached to the order.
3.
It is the responsibility of the senior managers to ensure that
authorisation rights are assigned to the correct role and right grade
appropriate to the business area/cost centre.
4.
The
authoriser of the order should be satisfied that the goods and services ordered
are appropriate and needed, that there is adequate budgetary provision and that
quotations or tenders have been obtained if necessary. Best Value principles
should underpin the Council's approach to procurement. Value for money should
always be achieved.
5.
To
ensure that full training is received before any officer receives an authorised
Council purchase card (P-card) and that only the authorised card holder uses
the card for any purchases.
6.
To
ensure that P-card transactions are reviewed and approved in accordance with
the P-card user agreement.
7.
To
ensure that goods and services are checked on receipt to verify that they are
in accordance with the order.
This check should - where possible - be carried out by a different officer from
the person who authorised the order. Appropriate entries should then be made in
inventories or stores records.
8.
To
ensure that the Council's corporate financial systems are used for procurement
of, and payment for, work, goods and services with exception of those areas
that have a business specific e-ordering system in use and in agreement with
the Corporate Director of Resources.
9.
To
ensure that payment is not made unless a proper VAT invoice has been received,
checked, coded and certified for payment, confirming:
·
receipt
of goods or services
·
that
the invoice has not previously been paid
·
that
expenditure has been properly incurred, is legal and is within budget provision
·
that
prices and arithmetic are correct and accord with quotations, tenders,
contracts or catalogue prices
·
correct
accounting treatment of tax
·
that
the invoice is correctly coded
·
that discounts have been taken where available
·
that appropriate entries will be made in accounting records
10.
To ensure
that at least two authorised members of staff are involved in the ordering,
receiving and payment process. A different officer from the officer who
requested the order should review and authorise the order.
11.
If the invoice is of greater value than the order raised and
beyond the system tolerances, the invoice should be reviewed and authorised by
the authorising officer upon confirmation of delivery of goods/service from the
requesting officer and supporting documents retained.
12.
To ensure that the department maintains and reviews periodically a
list of staff approved to authorise invoices. Names of authorising officers
together with specimen signatures and details of the limits of their authority
shall be forwarded to the Corporate Director of Resources.
13.
To encourage suppliers of goods and services to receive payment by
Bacs. It is essential however, that payments made by direct debit have the
prior approval of the Corporate Director of Resources.
14.
To
ensure that all undisputed invoices are settled within the agreed terms or 24
days of receipt the invoice.
15.
To ensure that the department
obtains best value from purchases by taking appropriate steps to obtain competitive prices for goods and
services of the appropriate quality.
16.
To
utilise the purchasing procedures outlined in the Council's Procurement Manual
in putting purchases, where appropriate, out to competitive quotation or
tender, covering:
·
Authorised
officers and the extent of their authority
·
Advertisement
for tenders
·
Procedure
for creating, maintaining and revising a standard list of contractors
·
Selection
of tenderers
·
Compliance
with UK and EU legislation and regulations procedures for the submission,
receipt, opening and recording of tenders
·
The
circumstances where financial or technical evaluation is necessary
·
Procedures
for negotiation
·
Acceptance
of tenders
·
The
form of contract documentation / cancellation clauses in the event of
corruption or bribery
·
Contract
records
17.
To
ensure that employees are aware of the Employees Code of Conduct.
18.
To ensure that loans, leasing or rental arrangements are not
entered into without prior agreement from the Corporate Director of Resources.
This is because of the potential impact on the Council's borrowing powers, to
protect the authority against entering into unapproved credit arrangements and
to ensure that value for money is being obtained.
19.
To ensure that all appropriate
payment records are retained and stored. Where possible officers should utilise
scanned images and electronic formats for the year of account and the following
six years. Contract documentation should be retained for twelve years after completion
of the contract.
20.
To
comply with the Procurement Procedures issued by the Corporate Director of
Resources.
FA4: Payments To Employees And Members
Background
Staff costs are the largest item of expenditure for most council
services. It is therefore important that payments are accurate, timely, made
only where they are due for services to the council and that payments accord
with individuals' contractual /pensionable status as appropriate.
It is also important that all payments are accurately and
completely recorded and accounted for through a proper audit trail and that
Members' Allowances are authorised in accordance with the scheme adopted by the
Council, and that payments to the self-employed are treated correctly for the
purposes of statutory deductions such as income tax.
FA4.1
Objectives
1.
Proper authorisation procedures
are in place and that there is adherence to corporate timetables in relation to
the timely production of data relating to starters, leavers, permanent and
temporary variations and enhancements to pay, including the production of
timesheets or claims for staff with varying work patterns.
2.
Frequent
reconciliation of total payroll expenditure against an approved budget, net
payroll expenditure against approved bank account(s), payments of statutory and
non-statutory deductions to third parties (e.g. pension contributions), and
annual year end statutory deductions compared to amounts paid to the Paymaster
General.
3.
All
appropriate payroll and pension documents are retained and stored for the
defined period in accordance with the document retention schedule, and in any
case no less than a minimum of the previous six financial years plus the
current financial year.
4.
That
all statutory and local regulations are complied with in terms of payments and
deductions made through the payroll system (e.g. regulations prescribed by the
HM Revenue and Customs, the National Insurance Contributions Office, the Local
Government Pension Scheme, etc).
FA4.2
Responsibilities of the Corporate Director of Resources
1.
To
arrange and control secure and reliable payment of salaries, pensions,
compensation payments or other emoluments to existing and former employees, in
accordance with procedures prescribed by him or her, on the due date.
2.
To ensure that payments are made
only upon receipt of duly completed and authorised data.
3.
To
make arrangements for payment of all travel and subsistence claims; financial
loss allowance and all other types of
payroll-related allowances to employees and Members.
4.
To
ensure that sufficient separation of responsibilities exists within the Finance
Department to enable payments to be made securely through the payroll system.
5.
To
ensure that all payments accord with the duly authorised national/local rates
and that retrospective pay awards are implemented in a timely manner following
receipt of revised pay scales.
6.
To
record and make arrangements for the accurate and timely payment of PAYE,
Income Tax, National Insurance, pension and all other statutory and
non-statutory payroll deductions.
7.
To
provide advice to secure payment of salaries, pensions and all other related
payroll payments by the most economical means.
8.
To
ensure that there are adequate arrangements for administering pension matters
on a day-to-day basis.
9.
To
ensure the accurate and timely production of statutory returns to the HM
Revenue and Customs, particularly in respect of the financial year-end and the
declaration of employee taxable benefits.
10.
To
provide such advice as may be necessary to ensure that statutory regulations are
followed relating to the taxable
treatment of benefits-in-kind.
FA4.3
Responsibilities of Senior Managers
1.
To
ensure that all appointments are made in accordance with the Council's
regulations and approved establishments, grades and scales of pay.
2.
To
ensure that adequate budget provision exists for:
·
all
employee appointments
·
all
permanent and temporary variations relating to employee appointments
·
all
engagements of self-employed persons
3.
To notify the Corporate Director
of Resources of all appointments, terminations or variations that may affect
the pay or pension of an employee or former employee, in the form and to the
timescale required by the Corporate Director of Resources. In any event this
data should be provided no later than one month after its authorisation.
4.
To
ensure that all actions affecting the retirement benefits of employees (e.g.
early retirement due to ill health) comply with the requirements of the
Council's pension scheme and other appropriate national/local regulations.
5.
To
ensure that adequate and effective systems and procedures are operated, so
that:
·
payments
are only authorised to bona fide employees and other payees
·
payments
are only made where there is a justifiable entitlement
·
conditions
of service and contracts of employment are correctly applied and updated where
appropriate
·
employees'
names and pay-related data listed on the personnel/payroll system are checked
at regular intervals to verify accuracy and completeness.
6.
To
maintain an up-to-date list of the names of officers authorised to sign records
affecting pay, together with a
specimen signature for each authorised officer. The Corporate Director of
Resources must be given an original copy of the list containing the specimen
signatures.
7.
To
ensure that payroll transactions are processed only through the payroll system.
Senior Managers should give careful consideration to the employment status of individuals employed on a
self-employed, consultant or subcontract basis. The HM Revenue and Customs
applies a tight definition for employee status, and in cases of doubt, advice
should be sought from the Corporate Director of Resources.
8.
To
ensure all appointments of consultants are subject to compliance with the
Council’s confidentiality agreement.
9.
To
certify travel and subsistence claims and other allowances. Certification is
taken to mean:
·
for
travel expenses, that journeys were authorised and expenses properly and
necessarily incurred
·
for
travel expenses, that allowances were properly payable by the Council and that
cost-effective use of travel arrangements is achieved.
·
the
employee was properly engaged on Council business and that claims reflect the
actual number of hours/days worked
·
due
consideration should be given to tax implications and that the Corporate
Director of Resources is informed where appropriate.
10.
To ensure that the Corporate
Director of Resources is notified of the details of any employee benefits in kind, to enable full and
complete reporting within the income tax self-assessment system.
11.
To ensure that all appropriate
payroll documents and supporting documentary evidence relating to payment
requests are retained and stored for the year of account and the following six
years.
12.
To
ensure that consultants paid gross are required to sign the self-employment
indemnity form to safeguard the Councils tax position.
FA4.4
Responsibilities of Members
1.
To
submit claims for Members' travel and subsistence allowances on a monthly basis
and, in any event, within one month of the financial year-end.
2.
To
ensure that claims for Members' travel and subsistence are properly incurred on
Council business and that claims are made in accordance with the scheme adopted
by the Council.
FA5: Taxation
Background
The Tax Authorities have extensive powers to fine organisations
that do not correctly account for direct and indirect taxes.
The UK tax regime is extremely complex and it is critical that
systems are operated which enable the tax implications of transactions to be
identified and the Council to demonstrate to the tax authorities that tax has
been correctly accounted for.
It should also be recognised that by failing to adopt tax efficient
transaction structures the Council may be forfeiting real resources.
FA5.1
Objectives
1.
Budget
managers are provided with relevant information on tax issues.
2.
All
taxable transactions are identified and correctly accounted for.
3.
Adequate
records are maintained to satisfy the Tax Authorities.
4.
Tax
returns are submitted to the appropriate authorities within the stipulated
time-scale.
FA5.2
Responsibilities of the Corporate Director of Resources
1.
To
complete all HM Revenue and Customs tax returns for the whole Council.
2.
To
complete a monthly VAT return.
3.
To
complete an annual VAT partial exemption calculation to the satisfaction of the
VAT Inspectors.
4.
To
administer the construction industry tax deduction scheme in accordance with HM
Revenue and Customs instructions.
5.
To
submit returns of taxable transactions in compliance with Section 17/18 Taxes
Management Act 1970.
6.
To
provide tax advice on an ad-hoc basis to Directorates.
7.
To
provide an up to date tax reference manual for Directorate staff.
8.
To
advise Directorates of material changes in VAT legislation and rates.
FA5.3
Responsibilities of Senior Managers
1.
To
ensure that the correct VAT liability is attached to all income due and that
all VAT recoverable on purchases
complies with HM Revenue and Customs regulations.
2.
To
ensure that, where construction and maintenance works are undertaken, the
contractor fulfils the necessary Construction Industry Tax Deduction requirements.
3.
To
ensure that all persons employed by the Council are added to the Council's
payroll and tax deducted from any payments, except where the individuals are
bona fide self-employed or are employed by a recognised staff agency.
4.
To
follow the guidance on taxation issued by the Corporate Director of Resources.
FA6: Trading Accounts, Business Units and
Associated Companies
Background
Trading accounts have become important as local authorities have
developed a more commercial culture. Under the CIPFA Service Reporting Code of
Practice (SeRCOP), authorities are required to keep trading accounts for
services provided on a basis other than straightforward recharge of cost.
SeRCOP requires disclosure of significant trading operations in the
authority’s financial performance reports and end of year final accounts. Where
a Trading Account has sustained a deficit, disclosure requirements include
reporting the remedial action and the result of any such action.
SeRCOP requires that when an internal trading account makes a
profit or loss that would otherwise be borne by the HRA that an appropriate
adjustment be made to the accounts.
FA6.1
Objectives
1.
To
establish the accounting arrangements and operating parameters for Trading Accounts and Business Units.
FA6.2
Responsibilities of the Corporate Director of Resources
1.
To
advise on the establishment, operation and accounting rules for trading
accounts.
FA6.3
Responsibilities of Senior Managers
1.
To
consult with the Corporate Director of Resources where a trading unit wishes to
enter into a contract with a third party where the contract expiry date exceeds
the remaining life of their existing arrangement within the Council. In
general, such contracts should not be entered into unless they can be
terminated within the main contract period without penalty.
2.
To
observe all statutory requirements in relation to trading services, including
the maintenance of a separate trading account to which all relevant income is
credited and all relevant expenditure, including overhead costs, is charged in
accordance with SeRCOP.
3.
To
ensure that the correct VAT liability is attached to all income due and that
all VAT recoverable on purchases complies with HM Revenue and Customs
regulations
4.
To
ensure that, where construction and maintenance works are undertaken, the
contractor fulfils the necessary Construction Industry Tax Deduction
requirements.
5.
To
ensure that all persons employed by the Council are added to the Council's
payroll and tax deducted from any payments, except where the individuals are
bona fide self-employed and have signed the Council’s indemnity regarding
self-employed status or are employed by a recognised staff agency.
6.
To
follow the guidance on taxation issued by the Corporate Director of Resources.
7.
To
ensure that the same accounting principles are applied in relation to trading
accounts as for other services or business units.
8.
To
ensure that each trading service prepares an annual business plan.
FA7: Internal Recharges
Background
Much of the flow of money across the Council originates from
services provided by one department to another. This, in the majority of cases,
stems from internal trading account services.
To facilitate proper controls and the management of the Council's
budgets, transactions need to be raised and processed in an efficient and
effective manner. This should ensure that purchasers are charged promptly and
pay within a commercially acceptable time-scale, and that trading services
invoice their customers in the knowledge that payment will be received within that
stated time-scale. Where practicable these processes will be automated. The
budget for core services e.g. admin buildings, payroll and legal will remain
with the purchaser and the Corporate Director of Resources will stipulate
corporate arrangements for managing these recharges.
For ad-hoc and project works the process follows similar principles
to the ordering of and payment for goods and services.
To ensure that the process is operating in accordance with the
framework, regular departmental monitoring of incoming and outgoing recharges
needs to be carried out.
The Corporate Director of Resources will designate an appropriate
officer to act as an arbitrator to resolve disputes that cannot be settled
between purchaser and provider. This is to ensure that all disputes are
resolved within a stated time-scale and will not adversely affect financial
monitoring.
It is the responsibility of the purchaser to ensure that they have
sufficient resources to pay for commissioned project and ad-hoc work. It is the
responsibility of the provider before work commences to advise the purchaser if
the work is not covered by the core support service budget and needs specific
financing.
FA7.1
Objectives
1.
Recharges
can only be raised by the provider.
2.
Recharges
can only be accepted by the purchaser.
3.
Only
the provider can make amendments to or cancel recharges.
4.
Disputes
can be raised by the purchaser.
5.
Disputes
can be referred for arbitration by either the purchaser or the provider.
6.
Set
time-scales apply to raising, accepting and disputing recharges.
7.
Recharges
or disputes not responded to within the set time-scales will be processed by
the Corporate Director of Resources.
FA7.2
Responsibilities of the Corporate Director of Resources
1.
To
provide standard templates for both journal and recharge entries on the
corporate financial system.
2.
To
ensure that there is separation of duties between inputters and authorisers of entries.
3.
To
monitor the overall processing of recharges across the Council.
4.
To
accept or cancel recharges that are not dealt with in accordance with the
time-scales laid down in the framework.
5.
To
arbitrate on disputed recharges where these cannot be satisfactorily resolved
between departments.
6.
To
lay down clear service standards.
FA7.3
Responsibilities of Senior Managers
1.
To raise and/or process
recharges in accordance with the time-scales laid down in the framework.
2.
To
notify and/or respond to disputed recharges in accordance with the time-scales
laid down in the framework.
FA8: Grants
Background
Ring-fenced and targeted grants remain an important feature of
funding both from central government and other bodies. This may be for on-going
services, such as Housing Benefits Subsidy, as well as one-off funding for
specific projects, such as lottery funding.
Given the number of grants available, the Council needs to monitor
and co-ordinate its response. Equally it needs to analyse what is being
received corporately to help target effort in maximising grant income.
Keeping accurate information is also helpful for managing income
efficiently. This includes making sure the income is coded correctly as soon as
possible on receipt to ensure effective monitoring within departments. Advance
notice of expected income would also help the Treasury officers invest money to
best possible effect.
Managing and correctly coding the expenditure associated with grant
income is also vitally important to maximise income and minimise the risk of
claims being qualified.
FA8.1
Objectives
1.
Development
and maintenance of a list of expected grant income showing amounts expected, when these are expected, where it
should be coded to and the responsible officer.
2.
Monthly
review of expected income against amounts received.
3.
Review
of amounts involved with the risk assessment programme and appropriate action taken.
4.
Recording
of associated expenditure clearly maintained against the grant income.
5.
Agreement
of actual expenditure reconciled to corporate financial systems before claims
or returns agreed.
6.
Incorporation
of gross grant income and expenditure within the annual budget.
FA8.2
Responsibilities of the Corporate Director of Resources
1.
To
maintain a corporate list of expected grants in liaison with External Auditors
and Senior Managers.
2.
To
include the volume and quantity of grants within the risk assessment and
management arrangements.
3.
To
establish accounting codes on the corporate financial system as required by
Senior Managers.
4.
To
invest the money received to best advantage.
5.
To
investigate ways of maximising grant income.
6.
To
build in any agreed financial implications (e.g. match funding) into the budget
strategy.
7.
To
review supporting documentation for claims and returns before submission to
External Auditors in order to secure best practice.
8.
To verify and sign all
government grant claims for authority and for bodies for whom we are the
accounting body.
FA8.3
Responsibilities of Senior Managers
1.
To
maintain a departmental list of expected grant expenditure and income, and
update the Corporate Director of Resources when necessary in order that the
corporate grants list can be maintained.
2.
To ensure that income and
expenditure associated with each grant is separately recorded on the corporate
financial system.
3.
To
credit income received through the corporate bank accounts to the pre-agreed accounting codes within 7-10 working
days.
4.
To
ensure that all claims and returns associated with each grant are fully
supported when submitted to External Auditors for certification. This includes
providing details of grant terms and conditions to Corporate Finance.
5.
To
ensure that any other expenditure associated with the grant (e.g. matching
funding) is contained within the agreed departmental budget.
6.
To
ensure that all claims for funds and the returns required by funding bodies and
External Audit are made by the
specified dates and that claims are received by the Corporate Director of Resources at least 7 days in advance of the
specified dates with a clearly identified
audit trail in a format specified by the funding body.
FA9: Journals
Background
Journals are used to correct the coding of income, expenditure or
balance sheet transactions. Amounts should be coded according to their
classification, in line with accounting best practice and not where the budget
is held. This allows the 'total cost' of services to be analysed correctly.
A large number of journal entries on particular codes may indicate
that transactions are not being coded correctly at source and can therefore be
an indicator of quality.
FA9.1
Objectives
1.
Journals
can only be generated within agreed levels of delegation and security.
2.
Only
authorised inputters and authorisers can generate journal entries.
3.
An authorised list of inputters
and authorisers is maintained by the Corporate Director of Resources on the
corporate finance system to verify compliance.
4.
There
is a separation of duties between inputters and authorisers of journals.
5.
The
corporate financial system will only allow 'balanced' journals to be accepted.
FA9.2
Responsibilities of the Corporate Director of Resources
1.
To
provide a template for journal entries on the corporate financial system.
2.
To
ensure there is separation of duties between inputters and authorisers of
entries.
3.
To
maintain the delegated list of inputters and authorisers, as agreed by Senior
Managers, on the corporate financial system.
4.
To
review the volumes and value of journals on a quarterly basis.
5.
To
approve any budget journals that impact on more than one department.
FA9.3
Responsibilities of Senior Managers
1.
To
provide the Corporate Director of Resources with updated lists of officers
delegated to input and authorise journals.
2.
To
seek approval from the Corporate Director of Resources prior to any budget
journal affecting another department.
3.
To
ensure supporting documents for journals are uploaded to the financial system.
FA10: Record of Corporate Directors Actions
Background
Financial Regulations provide that Senior Managers have discretion
to approve the following actions without obtaining Executive approval:-
- Approve Virements with
a value of up to £250,000
- Approve a Supplementary
or Additional Capital Budget with a value of up to £250,000
- Waive Financial
Regulations on an item with an assessed value of £250,000
- Approve a capital
overspend of up to £250,000.
- Settle Uninsured Claims
of up to £250,000.
However, all exercises of Directors Actions, which involve sums in
excess of £100,000 must be the subject of a noting report to the next available
Cabinet.
FA10.1
Objectives
1.
To
provide a written record of the exercise of discretions by Corporate Directors.
2.
To
ensure there is an audit trail for all such exercises.
3.
To
provide a reasonable explanation for the exercise.
4.
To
ensure all actions have obtained the appropriate authorisation.
FA10.2
Responsibilities of the Corporate Director of Resources
1.
To
update the thresholds for the exercise of discretions under Financial
Regulation B10.
2.
To
provide a noting report to the next available Cabinet for all exercises of
Directors Actions which involve sums in excess of £100,000.
FA10.3
Responsibilities of Senior Managers
1.
To notify the Corporate Director of Resources
of all Corporate Directors Actions in excess of £100,000.
EA: EXTERNAL ARRANGEMENTS
EA1:
Partnerships
Background
The Responsibility for maintaining financial administration and
proper stewardship extend to partnerships and other structures for service
delivery.
A partnership is formed when the Council works with one or more
organisations to achieve better outcomes for the local community, and for the
purpose of these Financial Procedures are defined as "A co-operative
fellowship between two or more independent parties (one of which is the
Council) which is designed to secure some shared or mutual operational
benefits. Examples of Partnerships include arrangements entered into under the
Local Strategic Partnership, Sure Start, and the use of Health Act Section 31
flexibilities, including pooled budgets.
The main reasons for entering into a partnership are:
-
To provide new and better ways of achieving desired outcomes
-
The potential for accessing new resources
- The desire
to find new ways to share risk
A Partner is defined as either:
- An
organisation (private or public) undertaking, part funding, providing resources
in kind e.g. Premises, IT systems, or staff or participating as a beneficiary
in a project
Or
- A body whose
nature or status give it a right or obligation to support the project.
Partners participate in projects by:
- Acting as a
project deliverer or sponsor, solely or in concert with others
- Acting as a
project funder or part funder
- Providing
non-cash resources e.g. Use of premises, staffing expertise, administrative
support or IT systems. It is important
that a value is placed on contributions in kind in order to determine whether
the partnership represents best value.
- Being the
beneficiary group of the activity undertaken in a project.
Partners have common responsibilities:
- To be
willing to take on a role in the broader programme appropriate to the skills
and resources of the partner organisation.
- To act in
good faith at all times and in the best interests of the partnership’s aims and
objectives.
- To be open
about any conflict of interests that might arise.
- To encourage
joint working and promote the sharing of information, resources and skills
between public, private and community sectors.
- To hold
confidentially any information received as a result of partnership activities
or duties that is of a confidential or commercially sensitive nature.
- To act
wherever possible as ambassadors for the project.
- The Council
must reconcile the broad aims of partnership working, and the duty of prudent
and efficient management of the Council’s resources.
EA1.1
Objectives
1
The
objectives for the Council are:-
1.1
All
new partnerships should be reported as required by the partnership scheme of
delegation, as if they were a contract.
All partnerships must adhere to local government and other statutes and
to financial regulations and standing orders.
The value of the partnership for this purpose is the sum of the
council’s contribution over the life of the partnership (whether capital of
revenue) and the value of any contributions in kind e.g. Premises, staffing,
I.T. systems etc.
1.2
All
partnerships should have a written agreement between the partners covering the
following points:-
·
The
obligations and potential liabilities of the council should be clear in each
case.
·
The
purpose of the partnership and the benefits that are expected to derive from it
for the individual partners and for the local community.
·
The
names of the partner organisations.
·
The
governance arrangements for the partnership – i.e. who can make decisions on
behalf of the partnership, under what authority, and with what terms of
reference.
·
A
named partner organisation to be responsible for managing the finances and keeping the accounts of
the partnership
·
The
financial regulations that will apply (usually those of the organisation that
will manage the finances and keep the accounts).
·
A
clear statement of the purpose of the partnership, including the target client
group, the services to be provided to the client group and which partner is to
provide which services.
1.3
Agreed
service targets and responsibilities consistent with the Council’s performance
framework and statutory duties.
1.4
A
partnership scheme of delegation.
1.5
The
responsibility of each partner for providing information to the partnership (including financial and
accounting information) and the format and frequency with which the information
will be provided. This to include
regular financial monitoring, financial planning and budgeting, financial
reporting and an annual statement of accounts.
1.6
The
contribution that each partner will make both in cash and in kind.
1.7
Arrangements
for dealing with financial surpluses or deficits and how they will be divided
between the partners.
1.8
Arrangements
for any carry forward of a surplus or deficit between financial years.
1.9
Arrangements
for varying the level of contribution both in cash and in kind. These should include an annual review of the
effect of inflation on contributions.
1.10
Identification
of risks, financial or otherwise, related to the partnership and how they will
be allocated between partners.
1.11
Insurance
arrangements.
1.12
A
statement on the treatment of VAT and any other tax implications of the
partnership.
1.13
Responsibility
for internal audit, and the appointment of an external auditor.
1.14
The
process for reviewing the performance of the partnership and evaluating it
against agreed objectives.
1.15
The
duration of the partnership and the agreed end date or review date.
1.16
The
implications of any partner terminating their involvement before the agreed end or review date.
1.17
Where
income is being raised by charges there should be a charges policy and this
must be consistent with the authority’s fees and charges strategy and statutory
duties.
1.18
Partnerships
must be justified to Members by demonstrating that the partnership will deliver
‘added value’ compared with the council’s option of delivering the service
alone.
1.19
Partnerships
will often be negotiated, rather than formal tenders sought. Value for money,
however, still needs to be demonstrated.
EA1.2
Responsibilities of the Corporate Director of Resources
1.
To
advise on controls that will ensure that resources are not wasted.
2.
To
advise on the key elements of funding a project. They include:
·
A
scheme appraisal, including a financial appraisal of partners if necessary, for
financial viability in both the current and future years
·
Risk
appraisal and management
·
Resourcing,
including taxation issues
·
Audit,
security and control requirements
·
Carry-forward
arrangements
·
To
ensure that the accounting arrangements are satisfactory.
EA1.3
Responsibilities of Senior Managers
1.
To
maintain a register of all partnerships entered into with external bodies in
accordance with procedures specified by the Corporate Director of Resources.
2.
To
ensure that, before entering into agreements with external bodies, a risk
management appraisal has been prepared for the Corporate Director of Resources.
3.
To
ensure that such agreements and arrangements do not impact adversely upon the
services provided by the Council.
4.
To
ensure that all agreements and arrangements are properly documented and that
advice is sought from the Head of Legal Services where appropriate.
5.
To
ensure that financial monitoring on the whole partnership is available in the
format and frequency specified by the Corporate Director of Resources –
including any financial risks to the Council arising from the actions or
spending of other members of the partnership.
6.
To
provide appropriate information to the Corporate Director of Resources to
enable a note to be entered into the Council’s Statement of Accounts concerning
material items and to comply with the SeRCOP guidance on accounting for partnership arrangements.
Where full consolidation into the Council’s group accounts is required,
financial information (including balance sheet and income & expenditure
statement) to be provided to Corporate Finance within six weeks at year-end.
7.
To
agree accounting procedures and practices with Corporate Director of Resources.
KEY
CONTACTS
For further information on specific areas, please contact the
following officers:
|
Financial
Planning
|
|
|
|
Capital
Strategy
|
Ann Sutcliffe
|
Ext. 4077
|
|
Capital
Programmes
|
Ekbal Hussain
|
Ext. 4737
|
|
Revenue Budget
Preparation
|
Ekbal Hussain
|
Ext. 4737
|
|
Maintenance of
Reserves
|
Ekbal Hussain
|
Ext. 4737
|
|
Performance
Planning
|
Ekbal Hussain
|
Ext. 4737
|
|
Asset
Management Plan
|
Ann Sutcliffe
|
Ext. 4077
|
|
Financial
Management
|
|
|
|
Financial
Management Standards
|
Kevin Miles
|
Ext. 6791
|
|
Virement
|
Ekbal Hussain
|
Ext. 4737
|
|
Treatment of
Year End Balances
|
Kevin Miles
|
Ext. 6791
|
|
Accounting
Policies
|
Kevin Miles
|
Ext. 6791
|
|
Budgetary
Control
|
Ekbal Hussain
|
Ext. 4737
|
|
Control of
Capital Budgets
|
Kevin Miles
|
Ext. 6791
|
|
The Annual
Statement of Accounts
|
Kevin Miles
|
Ext. 6791
|
|
Accounting
Records and Returns
|
Kevin Miles
|
Ext. 6791
|
|
Finance
Comments for Reports
|
Dir. Finance
Business Partners
|
|
|
Risk
Management & Control of Resources
|
|
|
|
Risk
Management & Insurance
|
Minesh Jani
|
Ext. 0738
|
|
Internal
Control
|
Tony Qayum
|
Ext. 4773
|
|
Internal Audit
|
Minesh Jani
|
Ext. 0738
|
|
External Audit
|
Kevin Miles
|
Ext. 6791
|
|
Prevention of
Fraud and Corruption
|
Tony Qayum
|
Ext. 4773
|
|
Security of
Assets
|
Tony Qayum
|
Ext. 4773
|
|
Inventories
|
Tony Qayum
|
Ext. 4773
|
|
Staffing
|
Human
Resources
|
|
|
Asset Disposal
|
Ann Sutcliffe
|
Ext. 4077
|
|
Treasury Management
|
Kevin Miles
|
Ext. 6791
|
|
Trust Funds
|
Kevin Miles
|
Ext. 6791
|
|
Banking
Arrangements
|
Kevin Miles
|
Ext. 6791
|
|
Imprest
Accounts
|
Kevin Miles
|
Ext. 6791
|
|
Financial
Administration
|
|
|
|
Systems
|
Laura Lewis
|
Ext. 4481
|
|
Income
|
Roger Jones
|
Ext. 4790
|
|
Ordering
& Paying for Goods/Services
|
Zamil Ahmed
|
Ext. 4385
|
|
Payments
to Members & Employees
|
Human
Resources
|
|
|
Taxation
|
Kevin Miles
|
Ext. 6791
|
|
Trading
Accounts
|
Kevin Miles
|
Ext. 6791
|
|
Internal
Recharges
|
Kevin Miles
|
Ext. 6791
|
|
Grants
|
Kevin Miles
|
Ext. 6791
|
|
Journals
|
Kevin Miles
|
Ext. 6791
|
|
Record of
Corporate Director Actions
|
Zamil Ahmed
|
Ext. 4385
|
|
External
Arrangments
|
|
|
|
Partnerships
|
Paul Leeson
|
Ext. 4995
|
Appendix B
Contents
P1
|
|
81
|
P2
|
|
82
|
P3
|
|
84
|
P4
|
|
86
|
P5
|
|
93
|
P6
|
|
96
|
P7
|
|
98
|
P8
|
|
99
|
P9
|
|
100
|
Appendix 1
|
|
102
|
Appendix 2
|
|
103
|
Appendix 3
|
|
104
|
Appendix 4
|
|
105
|
P1:
Hospitality
|
Main Users:
|
All officers
|
|
Financial Procedure:
|
CR6
|
General
Principles
1.
Any offer of any gift or hospitality must be
treated with caution. All staff represent the council and it is essential to
avoid any suggestion that the gift/hospitality might be perceived by anyone to
have influenced any decision made or any services provided.
2.
Gifts and hospitality should generally be
refused and always refused if there
is any suspicion that it may be an attempt to influence any decision or any
service provided.
3.
All gifts/hospitality offered must be properly
recorded. This is especially important if the offer was made by a supplier, any
potential employer or anyone else who could have a motive to influence you.
4.
Hospitality books should be periodically
reviewed by the Head of Service and the review evidenced by a signature.
5.
Hospitalities include drinks, meals and
entertainment, sporting events, overnight accommodation, travel and holidays.
Corporate or public organisations may offer this to employees. Hospitalities
can also include:
a)
gifts
– can be money, vouchers, travel, holidays, entertainment hospitality,
property
b)
benefits
– similar to gifts and can be a new job or promotion, preferential treatment or
access to confidential information
c)
bribes – gifts to win favours; undue reward
offered to someone in public office to influence their behaviour in that
office.
Detailed
Guidance
1.
Hospitality
books are held in the Head of Service’s office and on other Council premises as
appropriate (e.g. Schools).
2.
Books
must be hard backed and bound so that pages cannot be easily removed or lost.
3.
Hospitality
books should record: -
a)
officer’s name
b)
date
c)
donor’s name
d)
whether the offer was accepted
e)
sign off by senior manager
4.
Any
gift/hospitality offered must be reported to your line manager and entered into
a hospitality book even if the offer has
not been accepted.
5.
If
refusing a gift or hospitality is likely to offend (e.g. a gift from a foreign
delegation), consider accepting but donating the gift to a charity (e.g. the
Mayor’s charity) and inform the donor in
writing that you have done so. Any gift dealt with in this way must still
be recorded in the hospitality book.
P2: Cash Handling and
Security
|
Main Users:
|
All
officers handling official and unofficial funds, including residents’ cash
and valuables.
|
|
Financial Procedure:
|
CR7
|
General
Principles
1.
Cash is always attractive and vulnerable to
theft. Cash holdings must be kept to the
practical minimum and never in excess of the insurance limit for the particular
establishment. The Insurance Section can advise on the limit.
2.
Risk assessments must be carried out regularly
to check if risks have changed and always when procedures or staff have
changed.
3.
Where larger sums of money have to be held, a
safe may be essential. For smaller sums, a locked cash box in a locked drawer
or cupboard may be acceptable. The Insurance Section can advise on the need for
a safe or otherwise.
4.
Cash must always have a full management trail
– cash to be banked must be banked intact and never used to cash personal
cheques, provide a petty cash float or for any other purpose.
General
Principles – Care Homes Only
5.
Due to the vulnerability of certain clients
residing in care homes, special care must be taken with their cash and
property.
Detailed
Guidance
1.
Keys
and/or combinations must be strictly controlled and kept secure. Loss of any
keys must be reported to the Insurance Section immediately.
2.
Combinations
should be changed on a regular basis and immediately when a member of staff
leaves.
3.
Cash
changing hands should be counted carefully and signed for by both officers.
4.
The
amount of cash collected from any activity (e.g. library fines, adult education
enrolment, car boot sale, etc) must be counted carefully by at least two staff
and the amount recorded and signed for by all present.
Detailed
Guidance – Care Homes Only
5.
Staff
must not get involved in a client’s general financial affairs, except to the
extent which the Home Care Organiser or Social Services Manager may authorise.
If staff find that a client is not paying their bills for services, or is not
completing application forms for Housing Benefit etc., they must inform the
Home Care Organiser or Social Services Manager.
6.
Cheques
received from charities, third parties etc. must be made payable either to the
client, the London Borough of Tower Hamlets (LBTH), or to the hospital
concerned, never to an individual member of staff. Applications for assistance
should clearly note the name of the client and LBTH.
7.
Cheques
drawn on the Council’s account in favour of a client, such as a refund of
savings, should be made payable to that client and not to any other person or
organisation without the written consent of either the client, or the client’s
family if the client cannot provide the necessary authority. Staff must not
make cheques payable in their name unless there is clear authority from court
(appointee and receivership cases). Staff must not make loans to clients,
either from Council funds or their own money, unless specific authority and the
necessary prior approvals are obtained.
8.
Staff
should not leave their money or that of a client unattended. Staff must obtain
receipts whenever possible for items of shopping purchased for a client, and,
at the earliest possibility, should give these to the client with any change.
9.
Staff
should use some approved form of receipt book whenever receiving money from a
confused client. Two staff members should be present at any time property or
financial assets are obtained from the clients. Staff should never accept loans
or gratuities from clients.
10.
If
staff find any sum of money in a confused client’s home/room, they should contact
the Home Care Organiser or Social Services Manager immediately. If the client
does not have the necessary capacity to handle the money, it should be
considered to be deposited into the Council’s bank account and setting up a
special account for the client.
11.
Staff
must handle clients’ money with great care, and keep it separate from their own
money. Staff must not, under any
circumstances, use their own personal bank account to handle money or cheques
for a client.
12.
No
staff, unless specifically authorised to do so by the court of law, may act as
a Receiver or an Appointee, or be a signatory to a client’s bank account.
13.
Staff
should not cash cheques, giros or any form of money order for clients, unless
specifically authorised by the client in writing to do so. If the client is not capable of giving this
consent, a doctor’s letter should be obtained and the DSS approached and asked
to make payments direct to the Council.
14.
Staff
must not, under any circumstances, obtain money from a client’s bank, giro or building
society account by use of an automatic cash dispenser. When the Directorate
obtains pension direct from the DSS, the money should be banked intact and
credited to the client’s personal account. A small petty cash imprest can be
set up for the client’s personal needs, and the Council should pay all bills.
15.
Staff
receiving property from a client for safekeeping should have a witness present,
if possible, when the property is received. An inventory in triplicate should
be made of the property; the compiler, the witness and the client should sign
it, if capable. The top copy should be given to the client, the second copy
retained on the case file and the third retained by the compiler. As soon as
possible, the details of the property should be entered in the Directorate’s or
the Home’s property register and the property placed in a secure place, such as
a safe, or property cabinet.
16.
The
subsequent return of the property to the client or to a third party must be
evidenced in writing by the signature of the recipient and the date of the
transaction. If the transfer is made by
post, it should be evidenced by letters, including one acknowledging receipt of
the goods. Letters should be sent by
recorded delivery.
17.
Staff
who have custody of clients’ keys are reminded that keys must be carried on
their person or retained in a key cabinet or safe. Keys must not be left
unattended or in desk drawers.
18.
If
staff receive a client’s property from a third party e.g. Hospital or the
Police, they must always ensure that they fully check what they sign for. Staff
should never use terms such as gold or silver when describing items, they
should refer to them as yellow metal or white metal. Similarly, red stone should be used rather
than ruby and so on.
P3: Inventories
|
Main Users:
|
Managers responsible for
establishment and/or other LBTH property and assets.
|
|
Financial Procedure:
|
CR8
|
General
Principles
1.
The Corporate Director of Resources issues
blank inventory forms on which officers responsible for furniture, fittings,
equipment, plant and machinery must maintain records of each item which exceeds
£1000 in value, together with portable and attractive items of any value.
2.
All items should be checked at least annually
to verify existence, location and condition. The inventory should be updated at
each check.
3.
In addition to the entries in the inventory,
portable and attractive items should be security marked as belonging to the
council.
4.
Warranties, invoices and other paperwork
should be kept securely as confirmation of make, model, serial number and
guarantees.
5.
No claim under the council’s insurance
policies will be accepted unless the stolen /lost /damaged item was recorded in
an inventory if appropriate.
6.
Inventories need not include furniture,
fridges and microwaves at Mulberry Place, as these are the responsibility of
Facilities Management.
Detailed
Guidance
1.
Inventory
managers must compile inventories and keep them updated using the appropriate
form (Appendix 1). Items to be included
on the inventory list:-
a)
all council-owned and leased/hired portable
and attractive items with make, model and serial number
b)
all council-owned and leased/hired computer
hardware with make, model and serial number
c)
all other council-owned or leased/hired
property with a replacement value of over £1000
d)
all hired/leased property should be marked as
such on the Inventory form
2.
The details to be included on the inventory
are as follows:-
a)
Directorate/ Building/ Section/ Location/
Floor/ Room Number or Name
b)
name of person(s) carrying out the Inventory
and signature(s)
c)
description/make/model number and serial
number (if applicable)
3.
Inventory managers must carry out an annual
inventory check. It is also strongly
recommended that a full inventory check is made when an officer in charge
changes and the assets signed for by both the officer leaving and the officer
taking over. Inventories should show: -
a)
all movement of items when they occur, to
ensure that they are up to date
b)
annual checks (which must be complete
Inventories, not just a check that items on the initial Inventory are still
present)
c)
the person carrying out the Inventory check is
to date the appropriate column and sign for each item when checked
d)
any discrepancies must be investigated once
the form is completed, the officer is to sign it and send copies to relevant
officers
4.
The Officer in Charge is to arrange for all
council-owned items under his/her control to be suitably marked as Council
property. Leased/hired items are not to
be marked. Primary marking is to be made with indelible pens and/or inscription,
as a deterrent. Secondary marking is to
be made with ultra violet pens as a means of detection. Ultra violet pens and
lamps can be obtained from the Purchasing Section at Mulberry Place. Property
is to be marked “L.B.T.H.” followed by the postcode.
5.
Inventories should be updated promptly on
receipt or disposal of any relevant asset. All items transferred out are to be
entered on the Transfer/Disposal Form (Appendix 2). All receipts (new purchases
and transfers) are to be entered on the receipt form (Appendix 3).
6.
The process for the disposal of obsolete items
is explained in Note P4 of this Annex. These additional notes relate
specifically to the disposal of inventory items. Disposal should only take
place after exploring the possibility and cost of repair, alternative uses or
the transfer of the item elsewhere in the Council.
7.
Items should be listed on the
Transfer/Disposal Form and stored in a dry and accessible place for inspection
by a senior officer who should sign off the Form agreeing to the disposal.
8.
Condemned items must not be sold, given away
or destroyed until they have been inspected and the disposal formally approved.
9.
The Cleansing Section will collect and dispose
of condemned items if required and a charge will be made for the service. Where
condemned items may have a resale or scrap value, the Purchasing Section will
advise (see Note P4 of this Annex).
10.
Where stocks of materials are held,
stocktaking must be carried out on at least an annual basis in a format
approved by the Corporate Director of Resources (Appendix 4). Stocktaking must
also be carried out when responsibility for the stocks is transferred from one
officer to another and both officers should sign to confirm the actual stocks
in hand and any discrepancies.
P4:
Disposal of Property and Obsolete Assets
|
Main Users:
|
All budget managers with
responsibility for Property, equipment and other assets.
|
|
Financial Procedure:
|
CR10
|
General
Principles
1.
No property will be declared surplus until the
Council is satisfied there is no appropriate current or future operational use
for the building by the Council.
2.
There will be a general presumption that
disposal of land and buildings will be on a long leasehold basis, however, each
case needs to be considered on its merits with benefits and costs identified.
The Service Head, Corporate Property and Capital Delivery will make a clear
recommendation on the basis and method of sale as part of any Executive report.
3.
The overriding factor for all decisions in
relation to the disposal of properties will be securing best consideration
reasonable obtainable, as required by section 123 of the Local Government Act
1972.
4.
Disposal of other assets including equipment
and furniture will need to ensure best consideration is secured through
competitive tender, public auction or other suitable alternatives. This is
specifically covered in section 10 below.
Detailed
Guidance
1.
Authority
1.1
Declaring property surplus to operational
requirements is an executive function and, subject to any delegations the
Executive may agree, can only be exercised by the Executive. Any report to the
Executive will provide a recommendation from the Service Head, Corporate
Property and Capital Delivery, about the proposed method of sale and whether
the sale should be freehold or long leasehold.
1.2
The report will normally request that all
further matters relating to the sale be delegated to chief officers. In rare
cases, it may be considered appropriate that offers be reported back to the
Executive for final approval. This will be for the Executive to determine,
based on the advice of officers and the need to secure best consideration.
1.3
In all dealings with property matters it is
essential that the highest levels of probity and confidentiality are maintained
to ensure that best consideration is achieved under the Council’s statutory
duty.
1.4
Members have a both a fiduciary duty (see
definitions) and statutory duty under S.123 of the Local Government Act 1972 to
the residents of the borough to secure the best consideration that can
reasonably be obtained.
2.
Identification of
surplus property
2.1
Property will be identified as being
potentially surplus to the Council’s requirements by either a service
department no longer requiring it for operational use, through a process of
property review or as being identified as being under used or unused.
2.2
The fact that an individual service department
no longer needs a property does not in itself make the property surplus.
Departments must advise the Service Head, Corporate Property and Capital
Delivery about potentially surplus property who will then consult service
departments about whether the property could meet their current or future
service needs.
2.3
Before any recommendation is made to the
Executive, to declare property surplus to operational requirements, the issue
must be considered at the Asset Management and Capital Strategy Working Group
(AMCSWG) and the Asset Management and Capital Strategy Board (AMCSB).
2.4
It is ultimately for the Executive to declare
a property as being surplus to requirements, based on consideration of a report
containing the professional advice of officers. Any such decision will be
subject to the normal rules in relation to key decisions.
3.
Deciding on the method
of disposal
3.1
The Service Head, Corporate Property and
Capital Delivery, shall determine the most appropriate method of sale. This
will be a matter of professional judgement based on the type and location of
the property and the prevailing property market.
3.2
The general presumption is that the method of
sale will be via informal tender, requiring the open invitation of bids, unless
the Service Head, Corporate Property and Capital Delivery considers that an
alternative method of disposal would be appropriate. Exceptions to this method
of sale are where it involves a special purchaser [see definitions] and
examples are:
a)
Sale to a sitting tenant;
b)
Sale to an adjoining owner or sale of a
part-interest in a property where amalgamation of interests could enable
substantial “marriage value” to be realised;
c)
Sale to a public body (e.g. a Registered
Provider) at less than market value where other benefits are offered to the
Council, provided that such sale is within the General Disposal Consent
(England) 2003, or receives the Secretary of State’s consent. (see paragraph 7
below) and subject to European legislative requirements relating to State Aid.
These examples are given on the basis that the Service Head,
Corporate Property and Capital Delivery considers that sale to a special
purchaser would produce a higher figure or, alternatively, a service department
feels that non-financial considerations that promote well-being in accordance
with the Council’s objectives, justify a sale [see definition]. In all such
cases where the value of the property to be disposed of is over £50,000, a
valuation must be obtained for officers to consider. In general this will be
provided by external consultants.
3.3
The methods of disposal that may be used are:
a.
Sale in the open market by:
i. informal tender;
ii. formal tender; or
iii. auction.
b.
Sale to a special purchaser, via direct negotiation,
subject to statutory powers.
4.
Tenure – leasehold or
freehold sale
4.1
Whether to sell freehold or via long leasehold
(in excess of 25 years) needs to be considered on a case-by-case basis.
However, the council has considerable land interests across what is a dense
borough. There will therefore be a general preference to dispose of land via
long leasehold.
4.2
As part of the report to the Executive
recommending a property being declared surplus, the Service Head, Corporate
Property and Capital Delivery, will recommend whether the disposal should be on
a long leasehold or freehold basis. This will include an assessment of the
impact on value of the respective methods.
4.3
Examples where a freehold sale may be
considered appropriate are:
a.
Where the level of capital receipt, over and
above a long leasehold disposal, exceeds the perceived benefit of a long
leasehold disposal (i.e. so that a leasehold disposal could not be reasonably
justified).
b.
For commercial transactions, where a developer
or funder’s reasonable requirements require a freehold transfer to facilitate a
sale or regeneration.
c.
Where it is necessary to sell a freehold to
release additional value from a transaction (e.g. marriage value through
bringing sites into single ownership).
This list is not exhaustive
and other circumstances could apply.
4.4
Because of the potential effect on value the
Council needs to ensure that each case is considered on its merits.
4.5
The overriding factor in deciding whether a
site will be sold as a freehold or long leasehold will be the requirement to
secure best consideration
5.
Planning Briefs and
Advice Notes
5.1
Prior to sale, the Service Head, Corporate
Property and Capital Delivery will consider what level of certainty about
planning is required to maximise value. Greater planning certainty will both
crystallise value and will increase Council’s chances of achieving a quicker,
unconditional sale. Planning certainty can be achieved through obtaining
planning permission (outline or full), preparing a planning brief or a planning
advice note.
5.2
At a site specific level, Planning briefs
provide a valuable vehicle to establish clear principles for the future
development of a site, to shape both the form and nature of uses
5.3
A Planning Brief in particular for large sites
which ideally has been the subject of public consultation and adoption as
Council policy by the Executive provides a guide to a potential developer,
officers and the appropriate Development Committee, of the Council’s
expectations for the future use of a site.
5.4
For smaller sites a Planning Advice notice may
be appropriate. Save for transactions under £50,000 in value, or sales to a
special purchaser, no property will be valued or marketed without such an
Advice Note as minimum.
5.5
All marketing information relating to
disposals (except those under statutory powers) will include the relevant
Planning Advice Note.
5.6
It is acknowledged however that no such
documents can fetter the discretion of the development control process in
determining a subsequent planning application. Officers will ensure that clear
boundaries will be maintained to ensure that the Council exercising its
disposal powers as landowner does not fetter its duties as Local Planning
Authority.
6.
Sales process
6.1
When property is sold in the open market, the
Council will ensure that the property is widely and openly marketed. It will
also ensure the highest levels of probity and confidentiality during the sales
process. The Service Head, Corporate Property & Capital Delivery, or the
Head of Asset Management, will determine whether or not to appoint an agent to
carry out the marketing.
6.2
When a sale in the open market is undertaken
by informal or formal tender, the following process will be followed to ensure
the Council’s interests are protected.
a.
All offers are to be submitted in a prescribed
form as set out in the marketing particulars.
b.
Offers will be submitted by a fixed time and
date
c.
Failure to meet any of the precondition or
processes required by the Council may invalidate an offer.
d.
Offers will be returned to the Council’s Service
Head, Corporate Property and Capital Delivery who will ensure they are kept
securely.
e.
Offers will be opened by the Service Head,
Corporate Property and Capital Delivery, or a nominated deputy, in the presence
of at least two other officers, which shall include another senior manager
alongside legal representation. Offers will be recorded in a tender book,
signed by all parties at the tender opening and the tender book will be kept
securely by the responsible directorate. All tenders will be signed, dated and
timed with envelopes being retained.
f.
Evaluation of offers will be undertaken by
officers who will consider the financial standing of bidders, the level of
offer, the bidders’ track record and any other relevant information.
g.
Following evaluation, officers will rank the
offers in accordance of acceptability and produce a recommendation report.
h.
In most cases, following receipt and
evaluation of initial bids, it will be appropriate to ask bidders to submit a
‘best and final offer’ before officers produce the recommendation report.
i.
Subject to the relevant Executive decision and
delegation, it will be for the Corporate Director, Development & Renewal,
to determine how to proceed based on the recommendation report.
j.
Any discussions or negotiations with bidders
are to be formally written up and notes placed on the file. Any negotiations
for a land transaction above a capital sum of £250,000 would involve two
members of staff, one of whom should be the Service Head, Corporate Property
and Capital Delivery, or his/her named representative. Within three working
days of the meeting, a file note recording the discussions should be placed on
the relevant file.
k.
Generally, pre-contract enquiries and a
standard form of lease/transfer will be made available to bidders as part of
the marketing process. Bidders will be required to exchange contracts within a
prescribed number of days, which will be set out in the marketing particulars,
from the date of being provided with a contract. If exchange does not occur
within the prescribed timescale, the offer may be deemed to be withdrawn and
the Council may accept an offer from the second ranked bidder.
6.3
In some cases, it may be appropriate for a
Council-appointed agent to receive and/or assess the bids received, and offer a
view (recommendation report). It will be for the Service Head, Corporate
Property & Capital Delivery to determine whether or not to appoint agents
for those purposes.
7.
Transactions at less
than market value
7.1
The Council
needs to meet its obligations under S.123 of the Local Government Act 1972.
Scope exists for the Council to dispose of such land at less than market value
if it can bring itself within the provisions of
the General Disposal Consent (England) 2003 disposal of land for less
that the best consideration that can reasonably obtained (“the Consent”).
7.2
S.123 Local
Government Act provides a general obligation on Councils to sell land at “the
best price reasonably obtainable”. The 2003 Disposals Consent provides local
authorities with some discretion to sell at less than market value.
7.3
Under the
Consent a local authority has the discretion to sell at an “undervalue” of up
to £2,000,000 per transaction. Undervalue is defined as “the difference between the unrestricted value of the interest to be
disposed of and the consideration accepted”
7.4
Approval must be obtained from the Executive
to disposals which are proposed to be less than the unrestricted market value
as defined by the General Disposal Consent (England) 2003 and/or where State
Aid issues may arise. It will be for the Corporate Director, Development &
Renewal, to determine whether the Executive should be recommended to accept a
disposal at less than the unrestricted market value. The report shall make the
level of undervalue explicit and the report to the Executive will need to set
out the well-being benefits to be derived and provide a statement that the
wellbeing “value” matches or exceeds the value foregone.
7.5
The Council must be able to demonstrate that
it has acted reasonably in agreeing a sale at less than market value; that
there was an appropriate decision making process and that regard has been had
the Council’s statutory and fiduciary obligations. Decisions must be robust and
defensible and the monetary or benefit assessment of impacts will require
detailed individual assessment in every case.
7.6
For land held for Housing purposes a separate
statutory regime exists which governs the disposal of such land. Section 32
Housing Act 1985 states that a local authority has a power to dispose of land
held for housing purposes but such disposal requires the consent of the
Secretary of State.
7.7
The Secretary of State has issued what are
termed the General Housing Consents 2013. These are a series of consents issued pursuant to powers
contained in sections 32, 33 and 34 Housing Act 1985, 133 of the Housing Act
1988. The purposes of these consents are to allow certain disposals to occur
without the need to secure express consent.
7.8
Other consents may be required for land held
for specific purposes such as Education. Other statutory procedures may need to
be complied when disposing of special categories of land such as open space,
8.
Other offers
8.1
Any offer which, on the evidence available, is
considered to be incomplete, insubstantial or in any other way defective, mischievous
or frivolous shall be rejected by the Service Head, Corporate Property and
Capital Delivery after consultation with the Service Head – Legal Services.
8.2
Late Offers – Guidance from the Local
Government Ombudsman recognises the difficulties facing Councils if a higher
offer is received by the Council after the deadline for submission of bids or
after another offer has been accepted subject to contract. This is particularly
important in light of the obligation on officers to secure best consideration. To minimise such difficulties the Council’s
marketing material must make clear the deadline for bids and also the manner
and place for presenting bids. The
deadline should be expressed as a specific date and time and should allow
sufficient time for potential bidders to prepare and present their bids, taking
into the Council’s reasonable needs. The
marketing material should make clear that exchange of contracts is expected to
take place quickly after the decision has been made as to whom to sell the property
to.
8.3
The Service Head Corporate Property and
Capital Delivery or delegate may, in his or her discretion, extend the deadline
for bids if it is not possible for one or more bidders to present their bids by
the originally specified deadline due to circumstances beyond their
control. Any extension should be
promptly advertised.
8.4
The decision to accept a late offer will be
one for the Corporate Director, Development & Renewal, after consultation
the Service Head – Legal Services and upon receipt of advice from the Service
Head, Corporate Property & Capital Delivery. The overriding factor in deciding whether or
not to accept a late or otherwise non-compliant bid will be the requirement to
secure best consideration. However, the
following matters should also be taken into account late bid should generally
not be accepted after the other bids have been opened and the prior agreement
of the monitoring officer is required before accepting such a bid.
9.
Reporting of offers
9.1
In most cases, the Executive decision to
dispose of a site will delegate all matters relating to the sale to chief
officers. However, the Executive may also exercise their right to not delegate
authority. In such a case, when reporting back to the Executive on the offers
received, in order to maintain the highest levels of probity, offers shall be
anonymised. This is considered necessary until contracts are exchanged to
ensure that no spoiling bids are received at a later stage in the process which
could results in delaying the sale process. Anonymising offers also protects
Members and officers from accusations of collusion. When there is no longer
public interest in maintaining confidentiality, details may be disclosed. The
Monitoring Officer shall advise in such matters.
9.2
Property disposals will generally be reported
in the open part of the agenda to ensure transparency and openness for the
public, except where doing so may jeopardise the council’s ability to secure
best consideration.
10. Disposal of Equipment, Furniture
and other obsolete assets
10.1
Officers wishing to dispose of obsolete
Equipment, Furniture or other assets that are not classed as Land or Buildings
will need to seek written approval from the relevant service head.
10.2
The disposal method will need to ensure best
consideration is secured and can be through competitive tender, public auction
or other suitable means depending on the nature and condition of the asset in
question.
10.3
The disposal will need to be recorded and any
proceeds properly banked and coded.
Definitions
|
Auction
|
An auction quickly concludes completion and
identifies the successful bidder who will sign a binding contract at the
sale. It is particularly suitable for properties for which there is likely to
be keen competition from a wide market of potential cash purchasers, or for
properties of an unusual nature but for which there is likely to be a ready
market. However, it is often inappropriate for properties where the majority
of purchasers will prefer to submit offers subject to contract and to
minimise the risk of abortive costs, such as development land, housing sites,
etc.
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|
Fiduciary duty
|
Fiduciary duty has been described as a duty
to act in “a fairly business-like manner with reasonable skill and caution”
The relevant principles established from case law can be summarised as
follows:
a) Local authorities are under a special
duty in the exercise of all their powers to consider the financial
consequences for the rate and Council tax payers. This duty is analogous to
the fiduciary duty owed by a person in the position of trustee.
(b) In considering the financial
consequences of a decision, an authority is required to conduct a balancing
exercise between the interests of those who will benefit from the proposed
measure and the cost to rate and Council tax payers.
(c) Failure to have proper regard to their
fiduciary duty renders a local authority decision liable to challenge on the
grounds of illegality.
(d) The fact that an authority may have an
electoral mandate for their decision is irrelevant to the question of whether
the act is ultra vires.
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|
Formal Tender
|
This method of disposal is appropriate for
disposals in the open market particularly the disposal of development sites
and is in most cases both effective and workable. It would normally
necessitate the use of Standard Conditions of Sale together with Special
Conditions upon which the bid would be made, with special preaddressed
envelopes bearing the closing date for submission of bids. A formal tender
creates contractual certainty as, at the final stage, if an offer is accepted
it constitutes a binding contract.
|
|
Market Value
|
The estimated amount for which a property
should exchange on the date of valuation between a willing buyer and a
willing seller in an arm’s length transaction after proper marketing wherein
the parties had each acted knowledgeably, prudently and without compulsion.
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|
Informal Tender
|
This is a flexible method of securing offers
of interest in property since it does not bind either party until completion
of negotiations. Property is openly marketed and all offers have to be
submitted by a fixed closing date. It does not preclude the purchaser or
vendor from seeking to renegotiate more advantageous terms even when the sale
is at a fairly advanced stage to take account of any changes in circumstances.
Any risks inherent in this can be partly overcome by stipulating time limits
for exchanging contracts. This method allows the Council to view a number of
competing proposals on a site where the Council has no fixed policy as to
exactly what is required or wanted and where consideration can be given to
detail to a number of options without contractual obligations to the parties
involved.
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Special purchaser
|
A purchaser to whom a particular asset has
special value because of advantages arising from its ownership that would not
be available to general purchasers in the market.
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|
Well-being powers
|
The Council will need to meets its
obligations in relations to the disposal of assets under Local Government Act
1972 and the General Disposal Consent (England) 2003 disposal of land for
less that the best consideration that can reasonably obtained (“the
Consent”).
Under the Consent a local authority has to
discretion to sell at an “undervalue” of up to £2,000,000. Undervalue is
defined as “the difference between the unrestricted value of the interest to
be disposed of and the consideration accepted”
Where
an undervalue of less than £2,000,000 exists an authority can dispose at less
than market value in pursuance of its “well-being” powers. The full
definition from the Consent is:
(a)
the local authority considers that the purpose for which the land is to be
disposed is likely to contribute to the achievement of any one or more of the
following objects in respect of the whole or any part of its area, or of all
or any persons resident or present in its area
i) the
promotion or improvement of economic well-being;
ii) the promotion or
improvement of social well-being;
iii) the promotion or
improvement of environmental well-being; and
(b)
the difference between the unrestricted value of the land to be disposed of
and the consideration for the disposal does not exceed £2,000,000 (two
million pounds)”.
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P5:
Petty Cash Imprests
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Main Users:
|
All officers holding
imprest accounts (including temporary imprests).
|
|
Financial Procedure:
|
CR14
|
General
Principles
1.
Petty cash imprests are provided by the
Corporate Director of Resources to meet small items of day to day expenditure
where the use of a purchase card is inappropriate.
2.
Setting up an imprest
2.1
A petty cash imprest should only be set up
where authorised by the Corporate Director of Resources and where there is a
justified need for one.
2.2
Funds to set up the petty cash imprest should
only be issued to the authorised value.
2.3
Access to the imprest should be restricted to
a limited number of authorised employees.
2.4
The imprest holder should be an authorised
signatory and have the authority to replenish a petty cash float. The imprest
holder should have a designated deputy, who is also an authorised signatory.
2.5
Petty cash imprests should be held in
accordance with insurance requirements.
2.6
The imprest holder is responsible for the
total imprest, including the safe custody of cash, cheques, vouchers and debit
cards.
2.7
All new accounts, modifications to existing
accounts (e.g. an increase / reduction to the imprest amount or a change of
imprest holder) or the closure of an account must be notified to Corporate
Finance (Operational Accountancy Team).
2.8
When responsibility for an imprest account is
transferred from one officer to another a full reconciliation should be carried
out and a claim submitted. Both officers should sign to confirm the cash, bank
balance, any vouchers etc which have been transferred.
2.9
An imprest should always be repaid when it
ceases to be needed. When an imprest is repaid there should be sufficient
documentation (e.g. receipts, etc.) to confirm that the money has been repaid.
The bank account should be closed.
3.
Payments from the
imprest
3.1 Reimbursements
from the account are to be made in accordance with the following rules:-
a)
Reimbursement is only to be made out on
official vouchers signed by the officer incurring the expenditure and certified
by an officer authorised to certify payments from the account.
b)
Appropriate receipts, including VAT receipts
where applicable, must be attached to vouchers.
Vouchers will not be
reimbursed if the amounts have been amended in any way
c)
Reimbursement from petty cash should only be
made to the value of receipts provided and in accordance with the financial
limits set out below
d)
The limit of any one payment shall be £100 in
cash or by cheque. Any payments in
excess of this limit shall only be made with the prior approval of the relevant Business Finance Partner for each
directorate
e)
The encashment of personal cheques and the
advancing of personal loans from the account are strictly forbidden.
f)
No sub-floats shall be issued from the imprest
account without informing the Director of Resources (Payments Section).
g)
Reimbursement cheques are encashable only at
the bank branch where the Director of Resources has made a specific arrangement
for that purpose and the payee may be required to attend the Bank personally to
encash the cheque.
4.
Reimbursement of petty
cash imprests
4.1
The Imprest Holder will, at regular intervals
not exceeding one month, balance and submit claims for reimbursement. A full working week must be allowed for
reimbursement.
4.2
An electronic request (AP3 form) should be
submitted to the Central Payments Team to replenish the imprest, and be
appropriately authorised. The imprest holder should retain a copy of the AP3
form and attach the relevant vouchers for reconciliation and inspection
purposes.
4.3
Replenishment of the imprest should be equal
to the value of receipts reimbursed since the last replenishment.
4.4
Requests to replenish the imprest should be
processed promptly by the Central Payments Team.
5.
Reconciliation of the
petty cash account
5.1
The imprest holder shall ensure that the
account is not overdrawn and shall reconcile the bank balance on a regular
basis. This will normally be monthly but may be bi-monthly or quarterly with
the agreement of the Corporate Director of Resources.
5.2
Any discrepancies in the value of the imprest
must be reported to the Operational Accountancy Team and corrected immediately.
5.3
Details of the reconciliations of the imprest
should be formally recorded by the imprest holder, initialled and checked by an
independent employee and should be retained for audit purposes. Details of the
reconciliation should be forwarded to the Operational Accountancy Team each
month, or as required.
5.4
The Operational Accountancy Team shall
undertake random periodic checks to confirm that regular reconciliations are
being carried out, that the value of the float is correct and that the petty
cash account is used only for eligible expenditure.
5.5
The total value of the organisations’ petty
cash imprests should be reconciled annually to the organisation’s balance sheet
and central records.
Detailed
Guidance
1.
Petty
Cash imprests should only be used to reimburse approved minor expenditure.
2.
Setting up an imprest
2.1
The Operational Accountancy Team will keep a
record of all petty cash imprests showing the name and address of the imprest
account, the value of the imprest, the names of the imprest holders and bank
account details.
3.
Payments from the
imprest
3.1
A petty cash voucher and supporting receipts,
detailing the expenditure, should be completed to support any monies issued
from the imprest.
3.2
All petty cash receipts should be attached to
the petty cash voucher, and maintained and stored by the imprest holder.
Imprest limits should be adhered to and paperwork should be available for
inspection. All payment records should be retained for a period of seven years.
3.3
The following items of expenditure shall not
be paid from petty cash:
a) Car allowances
b) Taxable subsistence
c) Purchase of postage stamps
d) Stationery
e) Purchase of items of furniture or equipment
f) Staff travel & accommodation
There
are established procedures to deal with all of these.
3.4
The petty cash account should not be used to
circumvent normal procedures for procurement and payment of invoices.
4.
Reimbursement of petty
cash imprests
4.1
It is recommended that the imprest holder
keeps a record of petty cash payments as they are made with a “running total”.
This will prevent errors arising from mislaid vouchers and will ensure that
records are maintained up to date. These can then be transferred to form AP3
when a claim is due.
4.2
Claims for reimbursement should be submitted
to the Central Payments Team no later than one month after the expenditure has
been incurred.
4.3
Petty Cash expenditure is recorded and claimed
by Imprest Holders on form AP3 (Appendix A), which is divided into two payment
vouchers, each allowing for the details of separate
items of expenditure to be entered. Form AP3 is used for both manual
and on-line claims.
4.4
The AP3 should be completed as follows: -
a)
the balance brought forward is the sum in hand
from the previous period
b)
cash received into the account (i.e.
reimbursements received) is entered as a receipt
c)
payment dates are the actual dates that the
cash was paid out
d)
voucher numbers should be consecutive through
the financial year
e)
details should include the description of the
item plus the cheque number if appropriate
f)
the total amount is the gross amount including
VAT (the net amount and VAT are entered separately elsewhere on the AP3
4.5
Where a voucher is for more than one item, a separate line must be used for each item
in order that the correct expenditure code can be entered against it.
4.6
The imprest holder is responsible for
calculating the VAT element and entering it on the AP3 form.
4.7
The Central Payments Team will check the AP3
form has been certified by an authorised signatory and that the individual
amounts on the AP3 form reconcile to the amount claimed.
5.
Reconciliation of the
petty cash account
5.1
The imprest holder should ensure that bank
statements are received and reconciled on a regular basis which will usually be
monthly.
P6: Guidance for Cash
Collection Officers
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Main Users:
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Staff responsible for
collecting cash.
|
|
Financial Procedure:
|
FA2
|
General
Principles
1.
An official receipt or ticket must be issued
for all income, as and when received, and receipts must be dated with the date
of receipt.
2.
The receipt number and officer’s number must
be noted on the back of all cheques received.
3.
Third party cheques are not acceptable in payment of any charge or debt due to the Council (except that
cheques payable to residents of adult homes may be accepted, after endorsement,
in payment of maintenance contributions).
4.
There is no register for remittances received
by the general post. It is necessary, however, to have a full management trail
for postal remittances where post is registered or recorded. Collecting officers shall sign this register
and mark against each entry the receipt number issued. Receipts for all postal remittances must be
issued on the same day as the payment is received.
5.
Income must be banked at such intervals as
required by your Finance Manager. Income must be banked intact – cash collected
may not be used to cash personal cheques, to meet any item of expenditure or
withheld from banking to provide a change float.
6.
Large sums should not be kept overnight and
the Insurance Section can advise on insurance limits for different
establishments with varying security. If necessary, additional security
pick-ups can be arranged via the main Cash Office.
7.
Paying in books containing the pink copies
should be retained as proof of banking.
8.
Nil returns are required for any period in
which no collections have been made.
9.
Subsidiary income records may require
additional returns and, in such cases, separate instructions will be issued
10.
Financial stationery, including supplies of
C&D returns, paying in books, receipt books and tickets are available from
Facilities Management unless advised to the contrary.
11.
With the exception of Recovery Inspectors
(internal bailiffs), officers may not bank remittances at the main Cash Office.
This is because remittances have already been receipted and must not be
receipted for a second time. Officers, therefore, should arrange for security
pick-ups or to bank remittances themselves at a convenient bank.
Detailed
Guidance
1.
Receipts are to be issued in accordance with
the following: -
a)
receipts must be issued in numerical sequence
b)
carbon paper must be correctly placed before
writing the receipt
c)
receipts must be written black or blue ink and
never in pencil or red ink
d)
the method of payment must be indicated on the
receipt
e)
no alteration is permitted on the date or the
amount of receipts
f)
if a receipt is spoilt, the original and all
copies must be marked ‘cancelled’ and both the top and posting copy, where
applicable, attached to the relevant Cash and Disbursement (C&D) return
g)
cash must be banked promptly and intact
h)
receipt books must be held securely in a metal
cabinet or safe and access to them strictly controlled
i)
completed receipt books must be returned to
the Director of Resources, via Directorate Finance Sections.
2.
Distribution of the copies of receipts is as
follows:
a)
Top copy to payee (if cancelled, retained in the book)
b)
Counterfoil – retained in receipt
book
c) Posting copy – to Directorate Finance Section attached to the appropriate
C&D return (unless instructed otherwise)
3.
Banking:
a)
Paying in slips may be used at any bank,
although some banks may make a charge.
Contact the Cashiers Office to arrange for free banking at a convenient
bank
b)
Paying in slips must be completed in
triplicate, signed and dated
c)
Each cheque must be listed individually on the
reverse of the paying in slip, including receipt number, name of drawer and the
amount of the cheque. The total number
of cheques must be entered in the appropriate box on the front of the cheque
d)
The officer’s number must be entered on the
front of the paying in slip and on the reverse of the white copy
e)
The total of the banking shall be entered on
the paying in slip. No £ or p signs should be entered, no dots and dashes may
be used and two digits must be used for pence (e.g. 09 not 9)
f)
The bank will stamp all three copies and
retain the top copy. The yellow copy
should be attached to the appropriate C&D return and the pink copy retained
as proof of deposit
4.
Cash sent to the bank via security carrier
should be dealt with as follows:
a)
total collections, together with two copies of
the paying in slip (white and yellow) for each credit should be sealed in the
numbered security bags provided
b)
the cash etc. for each credit deposited
in a security bag must be bagged
separately with the paying in slip attached
c)
the address of the bank should be written in
the space provided on the bag – no reference
to amounts should appear on the bag
d)
the receipt for the sealed bag, issued by the
security carrier, must be retained and filed in date order
e)
the number of the security carrier receipt
must be written on the third copy of the paying in slip (or each third copy
when there is more than one credit in a sealed bag)
f) the yellow copy of the paying in slip will be returned via the
Operational Accountancy Team and should be attached to the relevant C&D
return.
5.
C&D returns must list receipts
consecutively but where receipts are pre-printed with the amount of the charge,
or where there is provision for costing the receipt counterfoils (i.e. where
there are several receipts to a page), then the first and last numbers and the
total amount collected is sufficient. The
date of issue must be entered for all receipts and tickets.
6.
The Cash and Disbursement spreadsheet must be
completed (including nil returns) and sent by e-mail to the Operational
Accountancy Team on a weekly or monthly basis, as required.
7.
At the same time as the e-mail submission a
hard copy of the Cash and Disbursement spreadsheet must be “signed-off” by the
cash officer and sent, with all supporting documentation (receipts,
voided/cancelled giros etc), to the Operational
Accountancy Team, 3rd Floor Mulberry Place.
8.
Each cash officer should maintain a record of
all cash and disbursement transactions locally
9.
The following records must accompany the
C&D returns to the Operational Accountancy Team:
a)
posting copies of all receipts issued
b)
top copy and posting copy of any cancelled
receipts
c)
first (yellow) counterfoil of the paying in
slip
d) any relevant subsidiary income records
10.
The Operational Accountancy Team will
reconcile the Cash and Disbursement spreadsheet with the supporting
documentation (receipts, voided/cancelled giros etc) before submitting to
Agresso. Discrepancies will be referred back to the relevant cash officer. The
Operational Accountancy Team will also carry out regular and end of year
reconciliations of banking’s and disbursements
P7: Credit and Debit Card Income
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Main Users:
|
Any officer dealing with
credit and debit card payments received in person, via telephone or post.
|
|
Financial Procedure:
|
FA2
|
General
Principles
1.
Credit and debit cards are an excellent source
of income. They allow payment for goods and services to be made before they are
supplied, which improves the Council’s cash flow. Although payments can ‘bounce’ (e.g. if card
details are given or keyed incorrectly), once authorised by the Payment Service
Provider, the payment is guaranteed.
Card payments also reduce costly and time-consuming cash handling,
banking and debt recovery, and the payments are almost impossible to steal.
2.
Credit and/or debit cards are now accepted for
most payments. When credit cards are
used to pay for invoiced services (e.g. Housing Rents, Council Tax or Business
Rates), the council adds a handling charge to reimburse charges made to the
council by the card issuer. No charge is made for any debit card
payment.
3.
Payment for certain services with a transferable
cash value (e.g. electricity cards and temporary street trading vouchers) must
be purchased by cash or debit card – cheques
and credit cards are not accepted for these items.
Detailed
Guidance
1.
Special care should be taken in getting the
entire card and cardholder details precisely correct as any error is likely to
prevent the payment being processed.
Where card payments are taken over the telephone, the details are to be
keyed into the terminal whilst the caller is on the telephone to enable checks
to be made on the information keyed should authorisation be refused.
2.
A specially designed receipt book is used to
provide receipts for card payments. These receipts are separate from the
Collection and Deposit process. Each receipt has three copies and these operate
on the same basis as receipts used for cash income.
3.
Any forms displaying the card details must be
locked away when not in use. Only officers who need it should have access to
the safe or storage area. All card details are to be kept secure for three
years and then shredded or disposed of as confidential waste.
P8: Delays in the Payment of
Invoices and Court Proceedings
|
Main Users:
|
Staff responsible for
purchasing and officers nominated to deal with Court proceedings.
|
|
Financial Procedure:
|
FA3
|
Detailed
Guidance
1.
Delays in making
payments
1.1
Staff responsible for monitoring performance
and payment to suppliers need to be aware of the terms of the contracts
relating to deliverables expected.
1.2
If a query is found when checking an invoice
or as a result of a post inspection and the problem will affect the payment of
the invoice, the matter must be raised formally, in writing, with the
contractor.
1.3
A weekly return, supported by the relevant
correspondence, should be passed to the appropriate Service Manager, detailing
incorrect charging by the contractor where an invoice will not be passed for
payment.
1.4
Details of all of the unresolved queries which
they have with the contractor and the reasons why invoices have not been paid
(e.g. faulty works, incorrect works, incorrect details, wrong priority code,
invoice not received, etc), need to be monitored, recorded, and attempts to
resolve the issues need to be progressed. (Legal advice on contract matters can
be obtained from Legal Services if required).
2.
Court Proceedings
2.1
If a Claim Form is received notifying that a
Claimant has issued Court Proceedings against the Council, the form and all
supporting papers must be emailed directly to Legal Services immediately. This
is to ensure that there is sufficient time to defend the proceedings as there
are strict court deadlines that must be adhered to.
2.2
The Claim Form must be accompanied by
supporting documents and information that include the details of the Officer
who will instruct Legal Services, (details of the Officer and their line
manager from whom instructions can be taken in their absence), details of the
contract in place, copies of relevant invoices, results of any post inspections
undertaken, issues raised and copies of correspondence and detailed notes of telephone
conversations held with the contractor.
2.3
Legal Services will deal with the claim with
ongoing input from the instructing officers.
P9: Financial Procedures
for Voluntary Organisations in Receipt of Grant Aid
|
Main Users:
|
Officers in relevant Directorates
responsible for grants
|
|
Financial Procedure:
|
None
|
General
Principles
1.
This guidance issued to Council officers
represents the minimum standard required from Voluntary Organisations receiving
Grant Aid.
2.
All organisations should have a bank account.
This must be in the full name of the organisation, as should any subsidiary
bank, building society or savings accounts.
The setting up of all such accounts must be authorised by the Management
Committee and this authorisation should be recorded in the organisation’s
minutes.
3.
All money should be banked as frequently as
the Management Committee considers necessary.
Any overdraft facility that is negotiated must be reported to the
Management Committee.
4.
A copy of all bank statements should be sent
directly by the Bank to the Chairperson or some other person who is independent
of the Treasurer. This is to ensure that more than one person has access to
bank account information.
5.
All direct debits, standing order authorities
and other agreements should be authorised by the Management Committee. Any agreements for the lease or hire of an
item or facility must have the prior authority of the Management Committee.
6.
The organisation should have adequate
insurance cover appropriate to the nature of its activities and its
assets. Fidelity Guarantee insurance
should be considered in appropriate cases.
7.
An inventory should be maintained, a copy of
which should be held by the Treasurer or the Chairperson.
8.
The Management Committee of each organisation
should set down in writing what it considers to be the necessary financial
controls for that organisation.
9.
Each organisation receiving funding from the
Council should produce an annual report of its activities. In addition it
should keep statistics on attendances, activities etc.
Detailed
Guidance
1.
All money received should be banked intact.
All such banking must indicate the respective amounts of cash and cheques,
which comprise the banking. The cheques should be detailed on the stub retained
in the paying-in book.
2.
All cheques drawn by the organisation should
require two signatures. These will usually be those of the Treasurer, plus the
Chairman or the Secretary. Cheques should never be pre-signed.
3.
The organisation must maintain adequate
accounting records. In smaller organisations,
a cashbook in which all receipts and payments are recorded is acceptable. In larger organisations, income and
expenditure records must be maintained (i.e. not just receipts and payments but
constant monitoring of debtors, creditors etc).
4.
All income should be recorded in a
sequentially numbered duplicate or counterfoil receipt book.
5.
There should be written evidence to support
all transactions. Paid invoices,
vouchers and copies or counterfoils of receipts should be kept for a period of
at least two years following the production of the audited accounts for the
year to which they relate.
6.
The cashbook and the other accounting records
of the organisation must be kept up to date.
The cash book should be reconciled with the bank account at frequent
intervals.
7.
All organisations must produce an annual set
of accounts detailing their income and expenditure for the year, and their
assets and liabilities at the year-end. These accounts should be audited by an
independent person, and should include a statement signed by that person
stating that they show a true and fair view.
Larger organisations that receive grants from the Council should have
their accounts audited by a suitably qualified person.
8.
Where an organisation employs staff, the
appropriate salary and wage records must be maintained, including those
required by the Inland Revenue. The appointment of staff, together with details
of the relevant salary and wage scales, should be recorded in the
organisation’s Management Committee Minutes.
All pay awards should be similarly recorded.
9.
The financial records and all other relevant
records of such organisations must be open to inspection upon request by the
Council’s officers. Officers and Members may visit all organisations that
receive funding.
7.1.
An appropriate specification must be prepared which
sets out a clear and comprehensive description of the Council's requirements
with regard to the works, goods or services to be supplied.
7.2.
All works, goods and services must be specified by
reference to European standards, or national standards if no European standards
are set. Named products or manufacturers
should not be specified.
7.3.
The specification should incorporate measurable
and, so far as is possible, objective quality and performance criteria to
enable the service director to see whether the Council’s requirements are being
met by the supplier. All necessary professional and technical advice and
assistance must be obtained in preparing the specification, to ensure a
comprehensive document that expresses the
Council's requirements and protects its interests.
7.4.
Officers must take careful consideration of the
requirements; in doing so they may undertake research, discussions or briefings
with several suppliers before the quotation or tender is issued. Any engagement
with supplier must be undertaken in a manner that does not restrict competition
or prejudice a fair and transparent procurement process.
7.5.
In the interests of fairness, non-discrimination
and equality of treatment, under no circumstances should an incumbent supplier
or contractor be involved in the preparation of a specification for the future
procurement of the same or similar contract which they are delivering, or which
they would reasonably have an interest in bidding for.
8.1.
The Council uses secure e-procurement systems and,
unless exceptional circumstances apply and a Waiver is granted, all quotations
and tenders must be managed
electronically through this system.
8.2.
The Head of Corporate Procurement must make arrangements
for the receipt, custody, opening and witnessing of all tenders over £100,000,
and must ensure that these arrangements are fully auditable.
8.3.
The administration and development of the
e-procurement system is the responsibility of Corporate Procurement including
any enhancements to reflect legislative and policy changes within public
procurement.
|
Rule 2
§ All quotation and tenders must
be managed electronically through the e-procurement system(s) whose
administration and development is the responsibility of Procurement.
§ Once a contract has been awarded a purchase order must be raised in R2P unless supplies, services or works fall
within the approved exceptions list.
|
9.1.
Late quotations through the RFQ system are not be
accepted by the system.
9.2.
Electronic tenders are automatically
marked as “Late” by the e-tender system. In any event they must not be considered if they arrive
after all the other bids have been opened, unless
exceptional circumstances apply and the Head of Corporate Procurement
(following consultation with the Divisional Director of Legal Services) agrees
to accept the late tender. Any unacceptable late bid must not be
opened unless it is purely to determine the sender’s details so that the bidder
can be advised of the reason for rejection by the Corporate Director or the
Head of Corporate Procurement
10.1.
All members of staff must avoid any conflict
between their own interests and the interests of the Council. This is a requirement of the Council's
Employee Code of Conduct, which all employees of the Council are bound by.
10.2.
All consultants engaged to act on behalf of the
Council must sign a Consultant’s Undertaking and declare that :
a. There is no conflict between their own interests or those of any of
their other clients and the interests of the Council; and
b. There is no conflict between their own interests or any links with (e.g.
a family member or close friend works for) an organisation or supplier who is
tendering or quoting for a contract with the Council or already has a contract
with the Council.
c. They will notify the appropriate director and Corporate Procurement if
any conflict of interest arises within the bidding process.
|
Rule 3
§ Conflict of interest in a procurement exercise and subsequent
contractual arrangement must be promptly disclosed through the HR Self
Service system or, in the case of external consultants, through the
completion of a Declaration of Interest document from corporate procurement.
|
11.1.
New supplier registration and
approval is managed through the council’s procurement system. Supplier approval
process is carried out in two stages:
a) Stage one - registration: suppliers
wanting to trade with council are required to complete the basic online
supplier registration.
b) Stage two – approval: To receive
Purchase Orders and payments, a supplier will need to be fully adopted, that
is, registered in the Finance system (Agresso) and made visible in the
requisition to pay system (R2P). Procurement will issue the supplier adoption
form through the electronic procurement portal and verify key registration
information provided before the supplier can be approved.
11.2.
Officers engaging with any organisation where the
contract of engagement may fall
within the scope of IR35 regulations, that is, individual(s)
that will be providing the services under the contract could be considered
'disguised employees' must undertake
the HMRC employee’s status assessment (IR35 assessment) before engaging in or
awarding a contract. Guidance and process map on how to undertake the
assessment will be on the Council’s intranet.
Failure to undertake the assessment and follow the agreed process may
lead to disciplinary procedure.
12.1.
Once a contract has been awarded an
official purchase order must be
placed through the Purchase to Pay (R2P) system quoting the contract reference.
12.2.
Contracts should only commence once an official purchase order has been issued.
Purchase orders can only be issued to suppliers that have gone through the
supplier adoption process.
12.3.
There are exceptional exclusions to this process
and information on these will be available within the Corporate Procurement area of
the Council’s intranet. The exclusions
list is a live document and it will be reviewed by
Financial Compliance and Procurement when required. Cases which do not fall
within the exclusions listed will be rejected.
In the case of procurement of ICT related supplies and services, the
Corporate ICT partner may need to be engaged and officers must consult with the ICT Client Team and/or their ICT Business
Partner.
14.1.
Recognised consortium or collaborative procurement
arrangements which have been properly tendered may be used, provided that the
relevant Corporate Director:
§ is satisfied that such an approach represents best value;
§ is satisfied – having due regard to advice from Corporate Procurement
and Legal Services as appropriate – that use of the arrangements are consistent
with all UK and European legislation;
§ is satisfied that the terms and conditions of the arrangement do not
place undue restrictions or liabilities upon the Council;
§ is satisfied that the parties to the arrangement are recognised public
bodies or providers from the private sector operating appropriate procurement
arrangements on behalf of the public sector;
§ ensures that a full, open and proper competition in respect of the
creation of the contract has taken place or will take place in accordance with
the Relevant UK and European legislation and these Procurement Procedures.
14.2.
A list of approved Frameworks Agreements will be
managed by Corporate Procurement and published on the Council’s intranet.
14.3.
Where the relevant Corporate Director so decides,
the Central Government Catalogues operated by the Crown Commercial Services at http://ccs.cabinetoffice.gov.uk/ or any other appropriate
framework may be used on the condition that the process set out in these
Procedures are followed.
14.4.
The award of call off contracts must comply with
the procedure set out within the Framework Agreement. This can be either by
Direct Award or Mini-competition. Where there is a choice of options,
preference should be given to carrying out a mini-competition in order to
demonstrate value for money. Where price is not set out in the framework
agreement, a mini-competition must always be undertaken.
14.5.
Legal Services and Corporate Procurement must be
involved before joining or buying from a framework agreement not let by the
Council where the value of the contract will exceed the £100,000 procurement
threshold. The process in Part 4 of these Procedures will be applicable to the
procurement exercise.
15.1.
All quotations must be invited using the approved templates published on the Council’s
intranet. Procurement documentation for the selection, invitation, receipt,
evaluation, award and management of contracts are regularly updated to ensure
compliance with procurement regulations as well as Council procurement
policies.
15.2.
All tenders must
be invited using approved standard documentation available from Corporate
Procurement.
Within each Directorate, arrangements should be made to ensure that there is adequate separation of
duties and checking procedures to ensure probity and compliance with these
procedures and financial regulations.
To be classified as local, a supplier must be based
in one of the following post codes:
§ E1, E2, E3 and E14
Certain postcodes in E15, E16 and EC are also part
of the geographical limits of Tower Hamlets.
18.1.
The Council has adopted a Supply Chain Ethical Code
of Conduct which must be included in all quotation and tender documentation,
and with which all suppliers must comply. The full details of this Code are
available on the Procurement intranet site, but in summary, the code set out
the principles and standards of delivery for our suppliers and contractors:
§ Maintaining integrity in business relationships.
§ Rejecting improper business practice.
§ Declaring any potential personal or business
conflicts of interest.
§ Acquiring and maintaining latest standards of
technical knowledge and ethical behavior.
§ Optimising the use of resources.
§ Compliance with UK law, industry guidelines and
contractual obligations.
§ Fair, honest and respectable treatment of
suppliers.
§ Common courtesy at all times.
§ Incorporating sustainable procurement aspects into
procurement processes including human and employee rights and the environment.
18.2.
Whilst it will not be possible to check
that every single supplier to the Council complies with the Code, officers
should draw suppliers’ attention to the Code. Subscription to the code will be
mandatory for those suppliers participating in a quotation or tender process.
|
Rule 5
§ The Council is
committed to maintaining the highest standards of ethical conduct. The Supply
Chain Ethical Code of Conduct is essential to the operation and reputation of
the Council. Suppliers are required to sign acceptance of the code when
dealing with the Council.
§ Quotations and
tenders must be undertaken using
approved procurement templates which will be updated by Procurement.
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18.3.
Corporate Directors must report to
Corporate Procurement any issues or breaches arising under the Supply Chain
Ethical Code of Conduct. Corporate Procurement may refer the report to
Strategic Competition Board, if considered necessary.
This Act deals only with
bribery – no other forms of white collar crime. The Council may be liable for
failing to prevent a person from bribing on its behalf. The Council’s policy
regarding the Bribery Act is set out on its website at www.towerhamlets.gov.uk and must be adhered to in
the contracting process.
20.1.
The Council is committed to sustainable economic
business development which minimises any adverse impact on the environment and
supports social cohesion.
20.2.
Sustainable criteria must be included as part of
the award criteria in all contracts where appropriate. Sustainability will be
assessed taken into consideration the following areas:
a) Environmental sustainability - purchasing supplies, works and services
in a way that minimises, where practically possible, the carbon footprint and
encourage a positive impact on the local environment and utilises whole-life
analysis.
b) Economic sustainability – recognises the importance of Small and Medium
Enterprises (SME) to the local community and ensures every opportunity is made
not to discriminate against SME’s during the tender process.
c) Social Sustainability – ensures that community well-being is considered
and that supply chain partners operate under ethical working practices.
The council has an
obligation to publish specific information in the public domain. However, the Freedom of Information Act
enables certain confidential information and commercially sensitive material to
be withheld. Officers must therefore ensure that bid information is kept
confidential at all stages, especially during the bid evaluation process and
after the contract is awarded. Suppliers must also be given the opportunity to
highlight in their bid any information that they would not wish disclosed under
freedom of
information request.
22.1 Contracts
let through a quotation process, that is, with a value at or below £100,000,
will be published on the Councils website. Contracts let through a tender
process, that is with a value in excess of £100,000 will be published through
the London Contract Register website: http://www.londoncontractsregister.co.uk/
22.2 Corporate Directors must ensure that all contracts over
£100,000 are registered with Corporate Procurement and tendered through Corporate
Procurement.
23.1.
All contracts must be monitored to ensure they
achieve the objectives and outcomes set out in the specifications. The Contract
Management Framework sets out the principles and general guidance for the
management of contracts. The Service, under its Director’s supervision, will be
responsible for the day-to-day operational delivery of contract management.
23.2.
Corporate Procurement shall agree with Strategic
Competition Board critical contracts (based upon value, business and reputation
risk) that will be subject to performance monitoring and scrutiny by the
Strategic Competition Board.
23.3.
Corporate Procurement and Legal Services will
provide second line support where performance failure is demonstrated.
|
Rule 6
§ All contracts awarded through the quotation and tender processes must
be published on the London Contract Register and the Council’s website.
§ All contracts should be managed in line with the Council’s agreed
Contract Management Framework
§ Tender and quotation documentation and contract management records must
be kept in accordance with the Retention Schedule published on the Council’s
intranet.
|
24.1.
Subject to any statutory restrictions and
compliance with the Constitution and Financial Regulations, a Corporate
Director may authorise the following extensions and variations to an existing
contract, following consultation with Legal Services and Corporate Procurement:
24.2.
Extensions
(i)
Extension(s) for a particular period provided for
within the terms of the original contract (but subject to satisfactory outcomes
of contract monitoring);
(ii)
Extension(s) beyond the original contract are
considered a new contract and therefore subject to Procurement Procedures and,
where applicable, EU Regulations.
Any extensions that fall outside the original terms
of the contract must be justified on the grounds provided by the waiver of the
procurement procedures outlined in section 50.1.
A copy of the extension
documentation must be provided to Corporate Procurement in order to update the
Contract file and Contract Register accordingly.
24.3.
Variations
The following variations/modifications to a
contract are permitted with Corporate Director approval (following advice from
Corporate Procurement and Legal Services):
(i)
Variations provided for in the original contract in
‘clear, precise and unequivocal’ terms; or
(ii)
Variations outside the original contract terms that
fall within any of the following four situations:
a. where the change in value is relatively small - under 10%
(services & supplies) or under 15% (works) and where the revised
total contract value is under the applicable EU financial threshold (this is
cumulative where there is a series of changes); or
b. where there are unforeseen circumstances, provided that change
does not alter the overall nature of contract and the price increase is
not greater than 50%; or
c. Where additional works, services or supplies necessary and a change
in contractor cannot be made for economic or technical reasons e.g.:
interoperability with existing kit; or
d. Where to change suppliers would cause significant inconvenience or
duplication of costs. In any case, the price increase must not exceed 50% of
the value of the original contract.
(iii)
There has been a replacement of the supplier following a corporate restructuring,
insolvency or merger, and the new supplier still meets the original
selection criteria.
24.4.
In any case, a substantial modification not
originally provided for in the contract will trigger a new procurement process.
This will arise where the modification materially changes the nature of
the contract.
24.5.
Any Variations that fall outside the original terms
of the contract and do not fall under the exceptions listed in section 49.1
must be justified on the grounds provided by the Waiver of the Procurement
Procedures outlined in section 50.1.
24.6.
A copy of the variation documentation must be
provided to Corporate Procurement in order to update the Contract file and
Contract Register accordingly.
|
Rule 7
(a)
Subject to compliance with UK and EU law, a Corporate Director
may authorise an extension to a
Contract which was provided for in the original contract terms.
(b)
A Corporate Director may authorise variations, including price variations, determined in accordance
with the original contract terms, or other variations which do not materially change the contract, and which fall within the scenarios listed in 50.1.
(c)
All extensions and variations outside of the term of the
contract that amount to a contract value in excess of £250,000 (for services
or supplies) or £5m (for works) must be referred to Cabinet for approval.
|
.
25.1.
Contracts that fall within the level one, two and
three that is equal to or below £100,000 in value, the Request for Quotation
(RFQ) process must be followed and
all quotations must be invited
through the electronic RFQ system.
25.2.
Officers undertaking the quotation process are
responsible for the selection of suppliers. Suppliers selected for quotation should be located in the Tower Hamlets
area unless a good business reason exists for selecting suppliers who are not
based locally.
25.3.
The Procurement Threshold table in section 6.2 of
the Procedures sets out the required number of quotations for each level and
the process to be followed.
26.1.
Evaluation criteria for level one and two
quotations CAN be based on cost only
or cost and quality.
26.2.
Evaluation criteria for level three quotations
(£50,001 – £100,000) MUST be based
on cost and quality.
26.3.
In the case of nil response to a quotation exercise,
the project manager should investigate the reasons for the lack of responses
prior to commencing a new RFQ.
26.4.
In the event only one quotation is received for
level two and three quotation exercises, the evaluation must still be
undertaken in accordance with the evaluation criteria. Upon completion, the
project manager will need to assess whether the submission received satisfies
the requirements and is acceptable to proceed to award or if required commence
a new RFQ.
26.5.
All contracts up to £100,000 must be awarded through the RFQ system.
27.1
All
bidder queries relating to RFQ should be in writing and managed through the RFQ
system. In circumstances where a clarification response is assessed not be
commercially restricted to a single bidder then the question and response
should be released to all bidders without disclosing the identity of the
originating bidder.
27.2
Further clarifications regarding quotation(s)
received before contract award may be necessary. This might include areas of
ambiguity, assumptions or possible errors. In such circumstances, all
clarifications must be treated as commercial in confidence and managed through
the RFQ system.
28.1.
All requests for quotation include a default minimum
of seven working days for the return of responses. This time period can be
amended to allow a longer period where it is deemed necessary.
All Requests for Quotation are invited with the
Council’s standard terms and conditions, which must be issued to suppliers with
each RFQ. In the event that the standard terms and conditions are unsuitable,
any alternative terms must be agreed with Legal Services.
30.1.
Purchase Cards are to be used to order low value
supplies and services (e.g. hotels, business travel and tickets) that do not
require the additional risk management of terms and conditions encompassing
orders or contracts, and only where there is no existing contract or suitable
supplier available on the e-procurement system.
30.2.
Purchasing Cards are to be used in accordance with
the Visa Card User guide and associated documents available through the
Corporate Procurement area on the Council intranet. The transactions must be
reviewed and authorised in the Purchasing Card monitoring system. Any misuse
may result in the Purchasing Card being withdrawn and lead to disciplinary
action.
31.1.
All contracts with a value in excess of £100,000
must be procured through Corporate Procurement to
ensure compliance with the requirements of the Public Contracts Regulations
2015.
31.2.
The Public Contracts Regulations set out detailed
procedures for the award of contracts over specific thresholds. Details of the
current thresholds are given below and are net of VAT.
|
|
SUPPLIES
|
SERVICES
|
WORKS
|
LIGHT TOUCH REGIME
|
CONCESSION
|
|
Local Government
|
£164,176
|
£164,176
|
£4,104,394
|
£589,148
|
£4,104,394
|
32.1.
Corporate Directors must ensure that all contracts
to be tendered are entered onto the forward plan of contracts, administered by
Corporate Procurement at the earliest opportunity but with a minimum of six
months before commencement of the procurement unless circumstances of urgency
apply.
33.1.
In preparation for the Tendering
exercise the Procurement Initiation Form (PIF) must be completed. The PIF will
include:
(a) Identification
and definition of needs;
(b) Options
appraisal and business case development;
(c) A review of
market conditions;
(d) Assessment of
scope for collaboration; internally, externally with other organisations or the
voluntary sector;
(e) Review of the
implications for HR issues, sustainability, equalities, local businesses, etc;
(f) An analysis of
the potential for achieving financial savings;
(g) Project planning,
including definition of roles and responsibilities throughout the process;
(h) Risk analysis
and recording on risk registers as appropriate
(i)
Determining the process for contract management,
including the
arrangements for collating on a routine basis the financial and performance
information needed to evaluate the effectiveness of the procurement exercise;
(j) Where an external agent is
to be involved in the preparation of specifications, tender documentation,
tender evaluation or any other procurement activity in relation to a contract,
a declaration of interest and a confidentiality agreement must be completed;
(k) Service Heads or officers
with delegated power must assess any potential conflict of interest and seek
advice from Legal Services. The procurement should not proceed until such time
as the assessment is made;
(l)
Any disclosure of conflict of interest in a procurement process will be
assessed by the Corporate Procurement and Legal Services on a case-by case
basis. Individuals will be excluded on a case-by-case basis from the
procurement process where the identified conflict is material and/or cannot be
mitigated.
33.2.
Corporate Procurement must be contacted as early as possible and full support given to
enable the Procurement Instruction Form (PIF) to be fully completed.
33.3.
No commitment can be made, and the procurement
process must not commence, before
this has taken place, and procurement advice on how to proceed has been
received.
33.4.
Corporate Procurement in liaison with the project
manager and Legal Services will assess the procurement strategy, specification
requirements and market conditions to determine the most suitable procurement
procedure to employ and what internal governance measures are required.
33.5.
For tenders above the EU threshold, and
as part of the PIF process, Corporate Procurement will advise on current EU
Law. EU Law is frequently evolving , so you should not assume guidance previously given will be unchanged in the
future.
34.1.
Nothing in these rules obviates the requirement
within the Constitution that “The contracting strategy and/or award of any contract for goods
(supplies) or services with an estimated value exceeding £250,000, and any
contract for capital works with an estimated value exceeding £5,000,000, shall
be approved by the Cabinet in accordance with the Procurement Procedures.”
34.2.
In order to comply with this
requirement, the Head of Corporate Procurement will submit a quarterly report
to Cabinet, laying down a forward plan of contracting exercises across the
Council for the forthcoming 12 months. This report will identify all contracts
with a value exceeding £250,000 (for services and supplies) and £5m (for works)
during the period in question, and will seek Cabinet’s approval to the outline
contracting strategies.
34.3.
Cabinet will be invited to identify
those contracts they consider to be key decisions, and about which they wish to
receive further reports on prior to contract award. The Corporate Director must
ensure that the Head of Corporate Procurement is notified in good time in order
to ensure that contracts are included in this report.
34.4.
Prior to review by Cabinet, the
Strategic Competition Board must have reviewed the strategy and/or award
proposal.
35.1.
If in the view of the Head of Corporate
Procurement, either a contract strategy or contract award needs to be approved
by Cabinet, the project lead must submit the relevant report to the next
available Cabinet meeting, after it has been presented to the Strategic
Competition Board, and must not proceed with either the contracting process or
the contract award until Cabinet approval has been obtained.
36.1.
Contracts for supplies and services in excess of
£250,000 in value, or for capital works in excess of £5,000,000 in value, will
be subject to the Council’s Tollgate Review Process. This is a procurement
project appraisal methodology which assesses the health of the project, makes
recommendations for improved outcomes and, where appropriate, provides a
post-contract peer review. The Tollgate process is administered by Corporate
Procurement on behalf of the Strategic Competition Board. Contracting officers
must respond appropriately to recommendations in tollgate reports. In respect of contracts in excess of £250,000 (supplies
& services) or £5,000,000 (capital works), you must obtain the approval of
the Strategic Competition Board at two key points in the contracting cycle:
a.
To obtain agreement to the contracting strategy,
prior to inviting tenders; and
b.
To obtain agreement to award contract, prior to
issuing any award notification
36.2.
The
Procurement Cycle, including the Tollgate procedure, is set out in Appendix 1.
|
Rule
8
§ Where the Contract is subject to the tendering rules of the EU Public
Procurement Regulations, then those rules shall apply to the letting of the
Contract.
§ The contracting strategy for contracts for supplies and services in
excess of £250,000 in value, or for capital
works in excess of £5,000,000 in value, will be subject to Cabinet approval.
|
37.1.
The approval of the Strategic Competition Board
will normally be through the internal Tollgate process. In the case of urgency,
approval may be granted to the Contracting Strategy (but not the contract
award) by the Head of Corporate Procurement and the Divisional Director of
Legal Services with a subsequent report to the Strategic Competition Board.
38.1.
The Public Contract Regulations set out
specific timescales for the letting of contracts for supplies, services and
works above the EU threshold. It also sets outs specific procedures and
timescales to be followed. An appropriate timetable
must be drawn up in liaison with Corporate Procurement and Legal Services.
39.1.
In inviting Tenders from suppliers, the Tender
packs which are issued to suppliers must as a minimum include: Form of Tender, Valuing Diversity, Supply chain Ethical Code of
Conduct, Confidentiality Agreement, Bona Fide and Anti-Collusion Certificate,
Freedom of Information Disclosure, Conflict of Interest Declaration,
Subcontractor or Consortium Member, Specifications, Quality Statements, Cost
Schedule and Terms and Conditions
39.2.
Local Employment and Community Benefits are intended to improve the
economic, social or environmental wellbeing of the Council’s area in addition
to the main purpose of the contract. The Local Employment and Community Benefit
must be
considered in all relevant contracts above £100,000 and considered on appropriate contracts below £100,000.
40.1.
The Terms and Conditions of a contract will be
drafted by Legal Services and incorporated as part of the Tender pack. Where a bidder rejects acceptance of the Terms and Conditions
(expressly, or by qualifying, caveating or supplying their own terms and
conditions), the bid should be rejected as non-compliant.
40.2.
Variations to the Terms and Conditions proposed by
a bidder must only be accepted with
the approval of Legal Services.
Pre-tender clarification
41.1.
All queries from the bidders relating to the
invitation to tender should be in writing through the e-procurement system.
Where questions are considered of relevance to the subject matter of the
contract and likely to affect some or all bidders’ response to the tender, the
clarification from the Council must be released to all bidders with the
questioner’s identity kept confidential.
41.2.
Where the question is specific to one of the bidders
(and therefore irrelevant to the submissions of the other bidders), it may be
kept confidential between the Council and that bidder.
Post-tender clarification and request for additional
information
41.3.
Tender clarifications may be necessary in order to
clarify areas of ambiguity, assumptions or possible errors in the cost and
delivery of specifications. Clarifications must be fairly undertaken against
the requirements specification released to all suppliers. In certain
circumstances, it may be necessary to issue a response to a clarification to
all bidders. Equally, competition must not be distorted by allowing any bidders
to improve their offer without giving the same opportunity to all other
bidders.
42.1.
Tender negotiations refer to the discussions that
take place between a Council’s officers and the bidders. Unless expressly
allowed for within the procedure, tender negotiations
must not be conducted as they distort competition and adversely affect trust in
the competitive bidding process and contravene procurement regulations. Under
no circumstances is it permissible to use the lowest bid to seek a reduction in
costs from the other bidders.
42.2.
Only under specific circumstances laid
down in the PCR 2015, and with the agreement of the Head of Corporate
Procurement and Head of Legal Services will it be acceptable to negotiate as
part of a procurement process. Prior to entering into negotiations, agreement
and advice must be obtained from Legal Services and Corporate Procurement, and
the process must be conducted in a fair manner that does not disadvantage or
show undue favour to any tenderers. All negotiations must be fully documented.
43.1.
Evaluation criteria must be decided in advance of
the advert and clearly stated in the tender documentation. All contracts must
be awarded on the basis of most economically advantageous tender. For contracts
over £100,000 a minimum of three officers must be involved in the evaluation of
tender responses.
44.1.
Selection Criteria (through the Standard Questionnaire – the SQ) are used
to assess a bidder’s ability to perform the proposed contract. Selection
Criteria can apply at pre-tender stage in order to short-list bidders or, as
part of the Open Procedure, to determine which bidders’ tender submissions can
be considered. Where a SQ evaluation is required, the statutory Selection
Questionnaire published by Crown Commercial Services must be used.
44.2.
There is statutory guidance on the use
of the SQ and Corporate Procurement and Legal advice must be sought before the SQ is used. There are very limited
criteria under which potential suppliers may be ruled out at the SQ stage.
44.3.
Where a SQ evaluation is required, the SQ will be
issued and returned electronically via the Council’s e-procurement systems with
appropriate access given to officers to evaluate online. The tender
documentation must clearly state the minimum requirements and how they will be
assessed.
45.1.
Award
Criteria are used to identify the tender that is the most
economically advantageous to the Council. This will be the optimum combination
of cost and quality benefits. Requirements must be related and proportionate to
the subject-matter of the contract, and be clearly set out in the Contract
Notice together with the means of proof, where appropriate.
45.2.
Where Local Employment and Community Benefits are
included as part of the award criteria, its weighting must not be more than 5%
of the overall quality assessment.
46.1
A full tender report should be prepared by the
Project Manager and kept on file. The report should include a complete review
of the bidding strategy, methods used, details of bids received, and any
justification for the opening of any late bids, the actual written approval for
opening late bids, detailed bid evaluation and recommendations for award.
47.1
For EU tenders supplier debriefs are a statutory
requirement and must be completed within 15 days of the date of the receipt of
a written request from the tenderer. Legislation requires a comparison between
the bid of the person being debriefed with the winning bid. This must be done
in such a way as to comply with the regulations without breaching the FOIA. If
you have any doubt as to how to proceed, guidance should be sought from
Corporate Procurement and Legal Services.
48.1
Corporate Directors or Divisional Directors are
responsible for signing contract award letters in respect of all contracts with
a value between £100,000 and £250,000 for supplies, services; and works below
£5,000,000.
48.2
Corporate Directors are responsible for signing
contracts award letters in respect of all contracts with a value equal or above
£250,000 for supplies, services; and works above £5,000,000.
48.3
When no bids are received in response to a tender
undertaken in accordance with these procurement procedures, the project manager
should investigate the reasons for the lack of responses.
48.4
Where only one bid is received, the evaluation may
still be undertaken in accordance with the tender evaluation criteria. Once
this is concluded, the Project Manager will need to assess whether the
submission received is sufficient (such assessment to include consideration of
best value and value for money) for the Council to proceed to award or whether
it would be in the Council’s best interest to re-tender.
48.5
Alternatively, but
only on the advice of Corporate Procurement and Legal Services, it may be
appropriate to invoke a negotiated process with the single supplier.
48.6
When a procurement
exercise is to be abandoned, the Divisional Directors or Corporate Directors
must authorise the decision. The Head of Procurement may request that the
tender report for the procurement exercise is presented to Strategic
Competition Board for approval.
49.1
All contracts must follow a quotation or tender
process in accordance with this procedures unless, either:
a. A waiver via the completion of a Record
of Directors Action (RCDA) is obtained from the relevant Corporate Director, in
accordance with the RCDA Guidance; or
b. An existing, recognised consortium contract or framework, which has gone
through an appropriate competitive tendering process, is being used in line
with section
15. The Framework requirements to award a Call-off contract must be
followed, either through a mini-competition or a direct call off process; or
c. An existing term contract, Framework or appropriate arrangement let by
the Council, which complies with these rules, is being used (see section 13)
; or
d. The contract is to be funded in full by another public or voluntary
organisation that has requested in writing that its own procedures are
followed, subject to compliance with European law..
Corporate Procurement and Legal services
must be involved in the award of such contracts where the value exceeds
£100,000 the completion of a PIF and a Contract Award Report may be required.
50.1
Procurement
Procedures may be waived by a Corporate Director in liaison with the Head of
Corporate Procurement and the Head of Legal Services, where the total value of
the contract does not exceed the value of £164,176 (this is cumulative where
there are a series of RCDAs in a period of 12 months), after considering a
written report (RCDA) by the appropriate officer, that the waiver is justified
because:
a.
The nature of the market for the works to be carried out or the supplies or
services to be provided has been investigated and has demonstrated that only a
single source of supply is available, or
b. On balancing the risk and circumstances, it is
clearly in the Council’s interest to do so; or
c. The contract is for works, supplies or
services that are required in circumstances of extreme urgency that could not
reasonably have been foreseen – e.g. to protect life or property when no
existing contractual arrangement is in place, or if the purchase is needed to
urgently comply with an order of Civil or Criminal Court; or
d. The purchase is from a supplier where
there is an existing obligation to the Council (e.g. under a warranty to
contribute to the cost).
e. Variations of contracts that do not fall within
the exceptions listed in section 24.3
50.2
Corporate
Director’s Actions must be used only in the circumstances listed above, and not
to compensate for poor planning or a desire to retain incumbent suppliers
through avoidance of competition.
50.3
A record of the decision approving a waiver and the
reasons for it must be published on the Council’s website once the decision has
been taken and kept in a departmental Register of Corporate Directors’ Actions.
50.4
Corporate Director’s Actions in respect of
contracts over £100,000 must be reported to Corporate Finance for submission to
the next available meeting of the Cabinet.
50.5
Corporate Directors’ Actions must be completed on
the appropriate form.
50.6
Waivers of the Procurement Procedures relating to
contracts in excess of the OJEU threshold can only be made by a decision of the
Mayor, either in Cabinet or through an Individual Mayoral Decision. In such circumstances, consideration must be given to the requirements
set out within the Public Contracts Regulations 2015.
|
Rule 10
§ Where the Procurement Procedures apply to a Contract a Corporate
Director’s Action may be taken to waive any provision, so long as it is
justified in accordance with section 50 and this will not lead to a breach of
UK or EU legislation.
§ Waivers granted by the relevant Corporate Director must be agreed by
the Head of Corporate Procurement and the Legal Monitoring Officer.
§ Waivers are an exception and must not be sought unless absolutely
necessary.
§ Corporate Director Waivers in respect of contracts over £100,000 must
be reported to the next available meeting of the Cabinet.
§ Where there is any doubt about an action breaching UK or EU
Legislation advice from Legal Services must be sought.
§ A record of the decision approving a waiver and the reasons for it
must be kept in a Departmental Register of Corporate Directors’ Actions.
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Purchases of goods and services in excess of £250k in value, or for
capital works in excess of £5m in value are subject to the Councils Tollgate
Process.
The Tollgate Process examines projects at key decision points in their
lifecycle to determine the likelihood of successful delivery of the project,
adherence to the Council Strategy and Community Plan and compliance with
existing Policies and Procedures.
Project Initiation Form (PIF)
The Procurement
Instruction Form acts as the initiation of a procurement project and must be completed to instruct Corporate
Procurement and Legal Services to support the identified project. This will
involve a joint assessment between stakeholders and the procurement category
manager.
Assessment will
include:
o
Identification of project resource to complete the
procurement.
o
Background and Strategic fit: summary of supplies
and works being procured; justification for contract; key changes to current
arrangements; link with Council’s strategy and objectives.
o
Market Assessment: market conditions; possible
collaboration; procurement options.
o
Financials - Cost and benefit realisation: initial
contract value; funding streams; efficiencies.
o
Approach to risk management; controls, mitigation
and monitoring.
o
Agreed procurement timetable
Tollgates 1, 2 and 3
Tollgate reviews
will take place for contracts for supplies and services in excess of £250,000 or capital works in excess of £5,000,000.
The review is
undertaken in a two stage process by: Competition Planning Forum and Strategic
Competition Board.
a)
Tollgate 1
Tollgate 1 is
completed in liaison with the procurement category manager and MUST be signed off by the Project
Sponsor (Service Head) and presented to Competition Planning Forum, who will
review and make recommendation to Strategic Competition Board for approval with
any specific recommendations prior to any advert being placed. Tollgate 1 will
examine:
o
The outcomes and objectives for the programme
o
Confirm that the programme’s potential to succeed
has been considered in the wider context of Council’s policy and procurement
imperatives
o
Programme takes account of joining up with other
programmes, internal (consolidation) and external (collaboration)
o
Arrangements for identifying and managing risks
o
Provision for financial and other resources has
been identified, including a minimum of 10% savings.
o
Local Employment and Community Benefits are
included and appropriate.
o
Sustainability strategy has been outlined.
o
LLW has been factored in the cost.
o
Procurement is supported by key stakeholders and
has been appropriately communicated to Lead Member and to Cabinet.
b) Tollgate
2
Tollgate 2 is completed in liaison with the procurement category manager
and MUST be signed off by the
Project Sponsor (Service Head) and presented to Competition Planning Forum who
will review and make recommendation to Strategic Competition Board for approval
with any specific recommendations prior to contract award.
Tollgate 2 objectives are to ensure:
o
The Business Case is still valid and unaffected by
internal and external events or changes.
o
The original projected business benefit are to be
achieved
o
There are feasible and tested business contingency,
continuity and/or reversion arrangements in place.
o
All on-going risks and issues are being managed
effectively and do not threaten implementation.
o
Contract management arrangements are in place.
o
Lessons for future projects are identified and
recorded
o
Recommendations from TG1 have been actioned.
o
Compliance with all internal governance and
reporting procedures
Tollgate 1 and 2 combined
In exceptional
circumstances, where it is agreed for a TG1 and TG2 may be combined (5.23), a
detailed contract award report (TG2-Report) must be completed in liaison with the procurement category manager
and must be signed off by
appropriate Project Sponsor (Service Head).
c) Tollgate 3
High risk contracts or contracts with a value in excess of £1,000,000
will be selected by Strategic Competition Board to present a review report
after initial 12 months into the life of the contracts.
Tollgate 3 report will be completed by the contract managers.
Procurement Category Managers will provide guidance on report requirements.
The report will be presented by the Contract Manager to Strategic
Competition Board which may provide specific recommendations.
The purpose of the Tollgate 3 is to assess:
o
There is still a business need for the investment.
o
Financial and efficiency benefits are being
realised.
o
Funding issues and risks
o
Variations are being recorded and reported in
accordance with the Council’s Procurement Procedures.
o
Contract Monitoring and Management arrangements in
place
o
Where applicable, confirm the validity of exit
strategy and arrangements for re-competition.
o
Local Employment and Community Benefits
achievement.
o
Compliance with policies and procedures and
corrective measures where non-compliance has occurred.
PART 6.3 – OFFICER
EMPLOYMENT PROCEDURE RULES
CONTENTS
|
Rule
|
Subject
|
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1
|
General
|
|
2
|
Recruitment and Appointment
|
|
3
|
Recruitment of Head of Paid
Service and Chief Officers
|
|
4
|
Appointment of Head of Paid
Service
|
|
5
|
Appointment of Chief Officers
and Deputy Chief Officers
|
|
6
|
Procedure for the Appointment of
Chief Officers and Deputy Chief Officers
|
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7
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Other Appointments
|
|
8
|
Disciplinary Action
|
|
9
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Dismissal
|
|
10
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Appeals
|
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11
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Designation as Statutory Officer
|
1. GENERAL
1.1 Subject to Rule 1.2 and Rule 10 below,
the function of appointment and dismissal of, and taking disciplinary action
against, a Member of staff of the authority must be discharged, on behalf of
the authority by the Head of the Paid Service or by an officer nominated by
her/him.
1.2 Rule 1.1 shall not apply to the
appointment or dismissal of, or disciplinary action against:
(a) The Head of the Paid Service;
(b) A statutory chief officer within the meaning of
section 2(6) of the Local Government and Housing Act 1989;
(c) A non-statutory chief officer within the meaning
of section 2(7) of the Local Government and Housing Act 1989;
(d) A deputy chief officer within the meaning of
section 2(8) of the Local Government and Housing Act 1989 (subject to Rule 5.6
below);
(e) A political assistant appointed in pursuance of
section 9 of the Local Government and Housing Act 1989; or
(f) A Mayor’s assistant appointed in pursuance of
regulations under paragraph 6 of Schedule 1 to the Local Government Act 2000.
2. RECRUITMENT AND APPOINTMENT
2.1 Declarations
(a) The Council will draw up a statement requiring
any candidate for appointment as an officer to state in writing whether they
are the parent, grandparent, partner, child, stepchild, adopted child,
grandchild, brother, sister, uncle, aunt, nephew or niece of the Mayor or an
existing Councillor or officer of the Council; or of the partner of such
persons.
(b) No candidate so related to the Mayor or a
Councillor or an officer will be appointed without the authority of the
relevant chief officer or an officer nominated by her/him.
2.2 Seeking support for Appointment
(a) The Council will disqualify any applicant who
directly or indirectly seeks the support of the Mayor or any Councillor for any
appointment with the Council. The content of this Rule will be included in any
recruitment information.
(b) Neither the Mayor nor any Councillor will seek
support for any person for any appointment with the Council.
(c) Neither the Mayor nor any Councillor shall give a
reference (oral or written) for a candidate for employment by the Council.
3. RECRUITMENT OF HEAD OF PAID SERVICE AND
CHIEF OFFICERS
3.1 Where the Council proposes to appoint a
chief officer and it is not proposed that the appointment be made exclusively
from among their existing officers, the Council will:
(a) draw up a statement specifying:
(i) the duties of the officer concerned; and
(ii) any qualifications or qualities to be sought in
the person to be appointed.
(b) make arrangements for the post to be advertised
in such a way as is likely to bring it to the attention of persons who are
qualified to apply for it; and
(c) make arrangements for a copy of the statement
mentioned in Rule 3.1(a) to be sent to any person on request.
4. APPOINTMENT OF HEAD OF PAID SERVICE
4.1 Where a Committee, Sub-Committee or
officer is discharging, on behalf of the authority, the function of the
appointment of an officer designated as the head of the authority’s paid
service, the authority must approve that appointment before an offer of
appointment is made to that person.
4.2 The full Council will approve the appointment of the Head of Paid
Service following the recommendation of such an appointment by an Appointments
Sub-Committee established in accordance with Rule 5.1 below. That Sub-Committee
must include at least one Member of the Executive.
4.3 The full Council may only make or approve
the appointment of the Head of Paid Service where no well-founded objection has
been made by any Member of the Executive.
4.4 The appointment of the Head of Paid
Service may not occur unless the prior written agreement of the DCLG
Commissioners has been obtained for such an action.
5. APPOINTMENT OF CHIEF OFFICERS AND
DEPUTY CHIEF OFFICERS
5.1 The Chief Executive will establish Appointments Sub-Committees upon
criteria approved by the Human Resources Committee comprising relevant Members
to make appointment to Chief Officer and Deputy Chief Officer posts. Any
Appointments Sub-Committee established in accordance with this rule must
include at least one (1) Member of the Executive.
5.2 Engagement of Chief Officers, to permanent
positions or interim positions of over three (3) months, will be through the
normal recruitment process overseen by the HR Committee.
5.3 An offer of employment as a chief officer
or deputy chief officer shall only be made where no well-founded objection from
any Member of the Executive has been received. Subject to Rule 5.5 below, in
these Rules, chief officers are defined as:
(a) the Chief Executive (as Head of Paid Service)
(b) the statutory Chief Officers, (including the
Chief Financial Officer, Corporate Director, Children’s Services, Corporate
Director, Adults’ Services, and the Monitoring Officer)
(c) the non-statutory chief officers which are:
(i) Officers for whom the Chief Executive is
responsible (other directors);
(ii) Officers who report to or who are directly
accountable to the Chief Executive by virtue of the nature of their duties; and
(iii) Officers who report to or who are directly accountable
to the Council itself or any committee of the Council by virtue of the nature
of their duties.
5.4 Subject to Rule 5.5 below, in these Rules,
deputy chief officers are defined as officers in departments who, by virtue of
the nature of their duties, either report to or are directly accountable to the
statutory or non-statutory chief officer responsible for that department.
5.5 Rules 5.3 and 5.4 do not apply to:
(a) officers whose duties are solely secretarial and
clerical or are in the nature of support services; or
(b) Head Teacher and Deputy Head Teacher posts in
schools with delegated budgets.
5.6 The procedure in this section for
appointing chief officers and deputy chief officers shall only apply to the
following post within the Governance Directorate:
·
Corporate
Director, Governance
Appointments to
all other posts shall be the responsibility of the Head of the Paid Service or
a person nominated by her/him.
5.7 The appointment of a statutory chief
officer may not occur unless the prior written agreement of the DCLG
Commissioners has been obtained for such an action.
6. PROCEDURE FOR THE APPOINTMENT OF CHIEF
OFFICERS AND DEPUTY CHIEF OFFICERS
6.1 Appointments
Sub-Committee Membership. The Chief Executive, will set up an Appointments
Sub Committee upon criteria approved by the General Purposes Committee
comprising relevant Members to make appointments to chief officer and deputy
chief officer posts.
6.2 Appointment
Process. The following process will apply after an Appointments Sub Committee
has interviewed all shortlisted candidates:
(a) If the Sub Committee agree on a candidate
suitable for the post, they will indicate their ‘provisional intention to make
an offer’ to the Chief Executive.
(b) The Sub Committee will inform the Chief Executive
of the name of the candidate to whom they wish to make an offer together with
any other particulars which the Sub Committee considers relevant in making the
appointment.
(c) The Chief Executive will notify the Mayor and
each other Member of the Executive within twenty-four (24) hours of:
(i)
The name of the
person the Sub-Committee wish to make an offer to.
(ii)
Any other
particulars relevant to the appointment notified by the Sub-Committee.
(iii)
The period within
which any objection to the making of the offer is to be made by the Mayor on
behalf of the Executive to the Chief Executive.
(iv)
The period of
objection will normally be two (2) working days. If the period of objection is
to be shortened, then notification will be by telephone and e-mail.
(v)
If:
(1)
The Mayor, within
the period of objection, notifies the Sub-Committee that neither s/he or any
other Member of the Executive has any objection to the making of the offer; or
(2)
The Chief Executive notifies the Sub-Committee
that no objection has been received by him/her within the objection period from
the Mayor,
the ‘provisional intention to make an
offer’ will become a firm offer and the offer of appointment may be made
without the need for the Sub-Committee to re-convene.
(vi)
If an objection
is received within the objection period from the Mayor on behalf of the
Executive, the Sub-Committee will reconvene to consider the objection. If the
Sub-Committee is satisfied that any objection received from the Mayor is not
material or is not well founded, they may confirm their decision and a formal
offer will be made.
7. OTHER APPOINTMENTS
7.1 Officers below Deputy Chief Officer.
Appointment of officers below deputy chief officer (other than any assistants
to the political groups and any Mayor’s assistant as defined at (e) and (f)
respectively of Rule 1.2 above) is the responsibility of the Head of Paid
Service or her/his nominee, and may not be made by the Mayor or Councillors.
7.2 Assistants to Political Groups.
Appointment of an assistant to a political group shall be made in accordance with
the wishes of that political group.
7.3 Mayor’s Assistant. Appointment of a
Mayor’s Assistant shall be made in accordance with the wishes of the Mayor.
8. DISCIPLINARY ACTION
8.1 In this Rule 8:
·
“the 2011 Act”
means the Localism Act 2011;
·
“independent
person” means a person appointed under section 28(7) of the 2011 Act;
·
“local government
elector” means a person registered as a local government elector in the
council’s area
·
“The Panel” means
a committee appointed by the Council for the purposes of advising the Council
on matters relating to the dismissal of the Head of Paid Service, the
Monitoring Officer or the Chief Financial Officer;
·
“relevant
meeting” means a meeting of the Full Council to consider whether or not to
approve a proposal to dismiss the Head of Paid Service, Monitoring Officer or
Chief Financial Officer
8.2 Suspension.
Subject to the obtaining of the prior written agreement of the DCLG
Commissioners to such action, the Head of the Paid Service, the Monitoring
Officer or the Chief Financial Officer may be suspended whilst an investigation
takes place into alleged misconduct.
That suspension will be on full pay and may last no longer than two (2)
months.
8.3 The Head of Paid Service, Monitoring
Officer or Chief Financial Officer may not be dismissed unless the procedure
set out in the following Rule 8.3 (a) to (g) is complied with:
(a)
The Council must
invite relevant Independent Persons to be considered for appointment to the
Panel, with a view to appointing at least two (2) such persons to the Panel.
(b)
In paragraph (a)
above “relevant Independent Persons” means any Independent Person who has been
appointed by the Council, or where there are fewer than two such persons, such
Independent Persons as have been appointed by another authority or authorities
as the Council considers appropriate
(c)
Subject to
paragraph (d), the Council must appoint to the Panel such relevant Independent
Persons who have accepted an invitation issued in accordance with paragraph (a)
in accordance with the following priority order –
(i)
a relevant
Independent Person who has been appointed by the Council and is a local
government elector;
(ii)
any other
relevant Independent Person who has been appointed by the Council;
(iii)
a relevant
Independent Person who has been appointed by another authority or authorities
(d)
the Council is
not required to appoint more than two (2) relevant Independent Persons in
accordance with paragraph (c) but may do so
(e)
the Council must
appoint any Panel at least twenty (20) working days before the relevant meeting
(f)
before the taking
of the vote at the relevant meeting on whether or not to approve such a
dismissal, the Council must take into account, in particular –
(i)
any advice, views
or recommendations of the Panel;
(ii)
the conclusions
of any investigation into the proposed dismissal; and
(iii)
any
representations of the officer whose dismissal is being considered at the
meeting
(g)
any remuneration,
allowances or fees paid by the Council to an Independent Person appointed to
the Panel must not exceed the level of remuneration, allowances or fees payable
to that Independent Person in respect of that person’s role as Independent
Person under the 2011 Act.
8.4 Involvement
of Members in Disciplinary Action. Neither the Mayor nor any Member of the
Council will be involved in disciplinary action against any officer below
deputy chief officer except where such involvement is necessary for any
investigation or inquiry into alleged misconduct, through the Council’s
disciplinary, capability and related procedures, as adopted from time to time
which may allow a right of appeal to Members in respect of disciplinary action.
8.5 A Disciplinary Policy and Procedure for
the Head of Paid Service, the Monitoring Officer and the Chief Financial
Officer shall from time to time be issued or updated. That document does not
form part of the Council’s Constitution but should be read alongside these
Officer Employment Procedure Rules.
9. DISMISSAL
9.1 Neither the Mayor nor any Member of the
Council will be involved in the dismissal of any officer below deputy chief
officer except where such involvement is necessary for any investigation or
inquiry into alleged misconduct, through the Council’s disciplinary, capability
and related procedures, as adopted from time to time which may allow a right of
appeal to Members in respect of dismissals.
9.2 Where a committee, sub-committee or
officer is discharging, on behalf of the authority, the function of the
dismissal of an officer designated as the head of the authority’s paid service,
as the authority’s chief finance officer, or as the authority’s monitoring
officer, the authority must approve that dismissal before notice is given to
that person.
9.3 Where a committee or a sub-committee of
the authority is discharging, on behalf of the authority, the function of the
dismissal of any officer referred to at (a) to (d) of Rule 1.2 above, at least
one member of the Executive must be a member of that committee or
sub-committee.
9.4 Where the authority or a Committee,
Sub-Committee or officer (“the dismissor”) proposes to dismiss:
The Head of the Paid Service;
A statutory chief officer;
A non-statutory chief officer; or
A deputy chief officer,
notice of
dismissal must not be given until the dismissor has notified the Head of the
Paid Service (or where the officer to be dismissed is the Head of the Paid
Service, the Monitoring Officer) of the name of the person whom the dismissor
wishes to dismiss and any other particulars which the dismissor considers are
relevant to the dismissal; and
(a)
The Head of the
Paid Service, or as the case may be, the Monitoring Officer, has notified the
Mayor and every other member of the Executive of:
(i)
The name of the
person whom the dismissor wishes to dismiss;
(ii)
Any other
particulars relevant to the dismissal which the dismissor has notified; and
(iii)
The period within
which any objection to the dismissal is to be made by the Mayor on behalf of
the Executive to the Head of the Paid Service/ Monitoring Officer; and
(b)
Either:
(i)
The Mayor has,
within the period specified in the notice under 9.4(b) above, notified the
dismissor that neither s/he nor any other Member of the Executive has any
objection to the dismissal; or
(ii)
The Head of the
Paid Service/Monitoring Officer has notified the dismissor that no objection
was received by her/him within that period from the Mayor; or
(iii)
The dismissor is
satisfied that any objection received from the Mayor within that period is not
material or is not well founded.
9.5 If a valid objection is made by the Mayor
to a dismissal proposed by a Committee or Sub Committee that body shall
re-convene to consider the objection. If the Committee or Sub Committee is
satisfied that the objection is not well founded they will confirm their
decision.
9.5 The dismissal of a statutory chief officer
may not occur unless the prior written agreement of the DCLG Commissioners has
been obtained for such an action.
10. APPEALS
10.1 Nothing in Rule 1.1 above shall prevent a
person from serving as a member of any committee or sub-committee established
by the authority to consider an appeal by:-
(a)
another person
against any decision relating to the appointment of that other person as a
member of staff of the authority; or
(b)
a member of staff
of the authority against any decision relating to the dismissal of, or taking
disciplinary action against, that member of staff.
