(6) Financial Procedure Rules

Scope

These rules, more commonly referred as the Council’s Financial Regulations and Standard Financial Procedures, provide a framework of control, responsibility and accountability for the administration of the Council’s financial affairs.

A.1 Introduction

A.1.1 Under s151 of the Local Government Act 1972 and Section 114 of the Local Government Finance Act 1988, the Director of Corporate Resources is responsible for the proper administration of the Council's financial affairs and is required to report where he/she believes the Council or an officer is likely to make a decision or take a course of action which:

(i) would lead to unlawful expenditure, or

(ii) is likely to cause a loss or deficiency, or

(iii) means the Council's expenditure may exceed significantly available resources.

A.1.2 The purpose of Financial Regulations is to provide a framework of control, responsibility and accountability for the proper administration of the Council's financial affairs, to enable the Chief Executive and Head of Paid Service, the Director of Corporate Resources and all Chief Officers to carry out their statutory duties.

A.1.3 In addition, Financial Regulations have an important role in establishing a sound system of corporate governance for the County Council and also in supporting the County Council's Anti-Fraud and Corruption Strategy. Chief Officers have individual and collective responsibility to ensure that the fundamental principles as established by the Cadbury Report on "the financial aspects of corporate governance", namely openness, integrity, and accountability, are established through compliance with Financial Regulations.

A.1.4 Financial Regulations are deemed to be part of the Constitution and Standing Orders in so far as they relate to the conduct of business in Council, Cabinet, Committees, Sub-Committees and Panels. Cabinet means a formal meeting of the Cabinet, meeting as a committee, convened in accordance with the access to information provisions of the Local Government Act 1972.

A.1.5 Financial Regulations endorse the formally published statements of the Chartered Institute of Public Finance and Accountancy concerning the role of the Chief Financial Officer and Finance Director in respect of the S151 role of the Director of Corporate Resources.

A.1.6 Financial Regulations outline the system of financial administration to be operated within the Council, and it shall be the responsibility of the Council and Chief Officers to ensure that they are observed. Where the Council has allocated powers to Members and Chief Officers, these shall be exercised in accordance with Financial Regulations.

A.1.7 Local management schemes have been approved for Adult Social Care, Children’s Services, and Adult Learning These shall have effect subject to the overall authority of these Financial Regulations. The Director of Corporate Resources may approve changes to any more-detailed financial regulations within approved local management schemes again subject to their compliance with these Financial Regulations.

A.1.8 These Financial Regulations are subject to Accounts and Audit Regulations issued from time to time by Government under S23 of the Local Government Finance Act 1982. Accounts and Audit Regulations establish statutory provisions for accounting arrangements, for audit arrangements and for financial control within the County Council.

A.2 General Financial Management

A.2.1 To enable the Director of Corporate Resources to carry out his/her statutory duties, each Chief Officer must provide such information as requested within any reasonable timescale set.

A.2.2 Copies of notifications from Government Departments including consents, approvals, regulations, circulars, letters, etc. in any way relating to finance shall be forwarded by Chief Officers immediately to the Director of Corporate Resources.

A.2.3 Notices of all meetings and copies of all agenda, reports and minutes of Cabinet, Committees, Sub-Committees and Panels shall be sent to the Director of Corporate Resources as soon as they are available.

A.2.4 The Director of Corporate Resources shall be the chief financial adviser to the Council and shall keep the Council informed of the financial implications of all new policies and changes of policy.

A.2.5 Each Chief Officer shall consult with the Director of Corporate Resources, or his/her nominated representative, in respect of any matter within his or her responsibilities which contains financial implications for either the revenue budget or capital programme or affects the finances of the Council before any provisional or other commitment is made and before reporting thereon to a Cabinet, Committee, Sub-Committee or Panel. Any report must include the Director of Corporate Resources's views as well as those of the appropriate Chief Officer.

A.2.6 The Director of Corporate Resources, with his/her statutory responsibilities and also with his/her Head of Profession role for Finance, may issue Standard Financial Procedures to establish sound practice and to assist him/her and other Chief Officers in their responsibilities. Standard Financial Procedures have the same authority as Financial Regulations. In particular:

• All payments shall be made and accounted for in accordance with Standard Financial Procedures or other arrangements formally approved by the Director of Corporate Resources.
  
• The payment of all salaries, wages, pensions, compensation and other emoluments to all employees or former employees shall be made in accordance with Standard Financial Procedures or other arrangements formally approved by the Director of Corporate Resources.
  
• The collection and accounting for of all income due to the Council shall be in accordance with Standard Financial Procedures or other arrangements formally approved by the Director of Corporate Resources.

A.2.7 Chief Officers shall consult the Director of Corporate Resources prior to the County Council entering any formal or legally binding Partnership arrangement including a joint venture or a pooled budget. Chief Officers shall ensure that an adequate technical and financial appraisal of all partners is undertaken and ensure that adequate accounting and governance arrangements are established including internal audit access under Regulation A.4.3. Financial appraisals shall be undertaken, and accounting arrangements established, in consultation with the Director of Corporate Resources. Formal Partnership arrangements must be in an appropriate legal form agreed by the Director of Law and Personnel.

A.2.8 Chief Officers are responsible for the revenue and capital budgets allocated for the services or activities that are part of their managerial responsibilities. For this purpose Chief Officers are responsible for establishing and maintaining an adequate system of internal control, both financial and otherwise, within their departments, in order to ensure resources are applied in an economic, efficient and effective manner, risks are appropriately managed and financial and other performance targets achieved.

A.2.9 For this purpose, Chief Officers may issue departmental guidance and Work Procedures in accordance with Standard Financial Procedures. The Director of Corporate Resources may vary Standard Financial Procedures in accordance with the needs of individual departments. Provided he/she is satisfied that all necessary controls are met, the Director of Corporate Resources may agree to variations proposed by Chief Officers. Agreed variations must be properly recorded.

A.2.10 The general regulatory hierarchy of the Council’s Constitution may therefore be described as follows:

1. Standing Orders are approved by the County Council
2. Financial Regulations are approved by the County Council
3. Standard Financial Procedures are approved by the Director of Corporate Resources
4. Departmental Guidance/Work Procedures are approved by Chief Officers

A.2.11 Where a Chief Officer delegates his/her powers to staff in accordance with a scheme of delegation, a record including appropriate authorisation of such delegation shall be maintained by the Chief Officer concerned and a copy provided to the Director of Corporate Resources. Schemes of Delegation shall be reviewed on an annual basis.

A.2.12 The Deputy Director of Corporate Resources shall perform the statutory and Head of Profession functions in the absence of the Director of Corporate Resources. Chief Officers, in consultation with the Director of Corporate Resources, shall ensure that there is a designated senior financial manager within their department (generally at Assistant Director level) accountable to them for financial and accounting matters. The designated manager shall be a member of the County Financial Management Team (FMT).

A.2.13 All finance staff in all departments shall be accountable to the Director of Corporate Resources as Head of Profession on financial matters and shall act in support of his/her Section 151 role.

A.3 Accounting Arrangements

A.3.1 Chief Officers are responsible for the operation of financial processes within their Department and, in consultation with the Director of Corporate Resources, shall ensure that adequate controls are in place.

A.3.2 Central accounting systems, accounting guidelines, financial accounts and supporting records shall be determined by the Director of Corporate Resources in accordance with the Accounts and Audit Regulations and other Accounting Codes and Standards. It shall be the responsibility of the Director of Corporate Resources, or his/her designated senior finance managers within departments (as per Regulation A.2.12), to ensure that such accounts and systems are kept up to date either through the staff under his/her control or other appointed agents.

A.3.3 Financial systems, as determined by the Director of Corporate Resources that record, monitor or control financial transactions, and that are developed locally within departments, shall be developed in consultation with the Director of Corporate Resources and managed in accordance with Standard Financial Procedures and with principles of reconciliation and other guidelines issued by the Director of Corporate Resources.

A.3.4 Chief Officers shall maintain full and accurate accounting and other records in order to supply the Director of Corporate Resources with such financial and statistical information as he/she shall require for him/her to report fully and accurately on the finances of the Council. Accounting records will be maintained in accordance with Standard Financial Procedures and Accounting Guidelines issued from time to time by Director of Corporate Resources.

A.3.5 Chief Officers shall ensure that the principles of internal control within all operations are maintained in accordance with Regulation A.2.8 and at least to a standard required by the Director of Corporate Resources, from whom advice may be sought. In particular, the following principles shall be observed in connection with accounting systems:

(a) the duties of providing information regarding sums due to or from the Council and of calculating, checking and recording those sums shall be separated as completely as possible from the duty of collecting or disbursing them;

(b) officers charged with the duty of examining and checking the accounts of financial transactions shall not themselves be engaged in any of these transactions.

A.3.6 Before claims for grant or reimbursement are submitted to any government department or other body they shall be sent to the Director of Corporate Resources for examination and certification.

A. 3.7 Each Chief Officer shall consult with the Director of Corporate Resources in respect of any pooled or joint activity funding arrangement proposed between the County Council and any other organisation.

A.3.8 Prior to the County Council becoming an "Accountable Body”, including as a result of a Partnership arrangement under Regulation A.2.7, agreement shall be sought from the appropriate Chief Officer, which will be subject to the approval of the Director of Corporate Resources in relation to financial and accounting matters.

A.4 Audit Arrangements

A.4.1 In accordance with delegated powers and Accounts and Audit Regulations, the Director of Corporate Resources shall maintain an adequate and effective system of internal audit of the Council’s accounting records and of its system of internal control in accordance with proper internal audit practices and in accordance with proper practices in relation to internal control.

A4.2 Financial Regulations endorse the Code of Practice for Internal Audit in Local Government (2003 and later) issued by the Chartered Institute of Public Finance and Accountancy in respect of proper internal audit practices.

A.4.3 Internal auditors appointed by the Director of Corporate Resources shall, in pursuance of their duties, have the authority under Accounts and Audit Regulations to:

(i) visit all County Council establishments and premises to carry out audits of their activities;

(ii) access, at all times, all property documents and records considered necessary to the audit by the Director of Corporate Resources;

(iii) require any employee of the County Council to produce cash, stores or any other property of the Council, or to produce the property of persons for whom the Council is responsible which is under his/her control.

All officers are required to co-operate with audit enquiries and to provide any information and explanation considered necessary for the audit.

A.4.4 Immediately an officer suspects an irregularity affecting income, expenditure, cash, stores or any other resources of the Council, it is the officer's duty to report the matter to the senior finance manager in the department, or if not appropriate, to the Chief Officer of the department who shall promptly inform the Director of Corporate Resources. The Director of Corporate Resources shall take such steps as are necessary by way of investigation and report, including advising the Council’s Chief Executive and Monitoring Officer, where appropriate.

A.4.5 Chief Officers are responsible for ensuring that all employees are informed of the County Council's Anti-Fraud and Corruption Strategy Policy Statement, the Code of Conduct for Employees and the Confidential Reporting ("Whistleblowing”) Policy and that copies of the documents are provided to all new employees.

A.4.6 The Director of Corporate Resources shall appoint a Money Laundering Reporting Officer. The Officer will be responsible for notifying the National Criminal Intelligence Service (NCIS) of any suspected cases of money laundering committed within the accounts of the County Council as soon as possible and fulfil other duties as defined by legislation or regulation related to the post. All officers have a duty to report suspected cases to the Money Laundering Reporting Officer.

A.5 Control of Financial Budgets

A5.1 Financial Planning

A.5.1.1 Each year and in consultation with Chief Officers, the Director of Corporate Resources shall consider the spending pressures facing the County Council for the following and future years. The Director of Corporate Resources shall also estimate the matching grant resources available to the County Council. In consultation with appropriate Cabinet members and Chief Officers, the Director of Corporate Resources shall provide technical guidelines for the preparations of budgets by Chief Officers for the coming and future financial years.

A.5.1.2 The Cabinet will determine planning allocations and totals for the purposes of revenue and capital budget preparation with advice from the Director of Corporate Resources on the financial outlook and financial risks.

A.5.1.3 Chief Officers and the Director of Corporate Resources shall jointly prepare departmental estimates for both revenue and capital expenditure for the coming and future financial years for presentation to the Cabinet.

A.5.1.4 The estimates shall be in a form agreed and notified by the Director of Corporate Resources and be in accordance with any criteria set by the Cabinet or the Council. Expenditure and income should be budgeted for in accordance with Accounting Guidance. They should not be netted off unless accounting Guidance allows.

A.5.1.5 Where a scheme of delegated financial management has been developed and approved by the Council, detailed estimates shall be prepared in accordance with the scheme.

A.5.2 Budget Setting Process

A.5.2.1 The Cabinet shall consider the revenue estimates and capital programme presented, and also the report of the Director of Corporate Resources presented, in accordance with Regulation A.5.1, and make such amendments as it deems necessary, and recommend the planning allocations as well as the final net revenue budget and level of the precept for the Council's approval.

A.5.2.2 In accordance with the Local Government Act 2003, the Director of Corporate Services shall make a report, which deals with the robustness of the estimates and the adequacy (or otherwise) of the Council’s reserves, to the Cabinet and County Council, when they consider the budget and setting the council tax.

A.5.3 Revenue Budget Management

A.5.3.1 Chief Officers shall be responsible for managing and directing resources to achieve the performance and objectives of the budget. Where budgets are delegated to local financial managers ("budget managers"), the budget managers are charged with the same responsibility.

A.5.3.2 Budget transfers for each policy area may be made in consultation with the Director of Corporate Resources subject to Regulation A.13 (Financial Limits).

A.5.3.3 During each financial year, Chief Officers shall monitor the revenue budget and capital programme and provide monitoring information and commentary to the Director of Corporate Resources in a format and at such intervals as may be agreed to enable reports to Cabinet. Chief Officers will take any agreed remedial action due to potential overspends or shortfalls in income.

A.5.3.4 No expenditure shall be incurred which is not covered by an approved budget. If a Chief Officer is of the opinion that a budget will be or is likely to be overspent, he/she must inform the Director of Corporate Resources. The Chief Officer in consultation with the Director of Corporate Resources will agree any remedial actions required. Approval to commit additional expenditure, including for future years, must come from the Cabinet after considering advice from the Director of Corporate Resources,

A.5.3.5 Income and expenditure shall be fully and separately budgeted for, accounted for, and monitored in accordance with accounting guidelines determined by Regulation A.3.2 above.

A.5.3.6 The Director of Corporate Resources will report on the outturn of expenditure and income to the Cabinet as soon as practicable after the end of the financial year.

A.5.3.7 The Director of Corporate Resources will certify that the Statement of Accounts has been prepared in accordance with Accounts and Audit Regulations and that the Statement represents fairly the financial position of the County Council. The Director of Corporate Resources will submit the Statement of Accounts to the Governance Committee for approval not later than 30 June after the end of the financial year.

A.5.3.8 Earmarked revenue budget income, received for a specific purpose, may be spent for the purpose for which it was received so long as the expenditure will not cause additional commitments for future years. Where commitments do arise, the approval of the Cabinet must be obtained.

A.5.3.9 Unless otherwise determined by Cabinet, over- and under-spends on revenue budgets will be carried forward in accordance with Standard Financial Procedures issued by the Director of Corporate Resources.

5.4 Capital Programme Management

A.5.4.1 Capital expenditure, as defined in the Local Government Act 2003 amended by relevant Regulations, will be considered for inclusion within the approved capital programme. The Director of Corporate Resources will periodically review and issue a minimum threshold value below which schemes cannot be charged to capital.

A.5.4.2 Capital projects shall be incorporated in a capital programme having regard to the Prudential Code for Capital Finance issued by the Chartered Institute of Public Finance and Accountancy. The capital programme will be considered by the Council, in conjunction with the annual revenue budget process, detailing the phasing of expenditure on such projects and the full year revenue cost associated with each project, and having regard to the level of available resources and the Prudential Code. Projects due to start in the first two years of the capital programme will form the approved capital budget for the forthcoming financial years.

A.5.4.3 Prior to the approval by the Council of a capital programme each year, Chief Officers, jointly with the Director of Corporate Resources, shall prepare financial appraisals of all projects to be put forward for inclusion in his/her department’s capital programme.

A.5.4.4 Subject to Regulation A.5.4.5 and A.5.4.6, no expenditure shall be incurred on capital projects, which is not included in the approved capital programme and no contracts entered into or tender accepted unless any necessary Government project and financial approvals have been received, and resources approved in accordance with these Regulations.

A.5.4.5 The capital programme may be varied with the agreement of the Director of Corporate Resources, if no additional unfunded commitments for future years are incurred, in the following circumstances, where:

(a) budget provision is transferred to capital expenditure financed from revenue account (CERA).

(b) earmarked capital grants are spent for the purpose they were received.

(c) payments are part of an Invest to Save Project and in accordance with guidance issued by the Director of Corporate Resources .

(d) projects are funded by unsupported borrowing financed by existing departmental budgets.

For all other proposals that vary the capital programme, the approval of the Cabinet must be obtained.

A.5.4.6 Capital payments must be contained within the approved departmental capital programme. Where variations arise because of slippage (timing changes) and there is no effect on the availability of the project’s capital resources, equivalent adjustments will be made to the following year’s programme.

A.5.4.7 Transfers of provision into or out of any capital project which exceed 10% of the approved allocation for the project must be reported to Cabinet.

A.5.4.8 If a tender price exceeds the capital programme provision, then provision may be transferred from one approved project to another within the departmental programme and subject to Regulation A.5.4.7 above. If after such transfers, the price still exceeds the provision then advice of the Director of Corporate Resources must be obtained before the tender is accepted.

A.5.4.9 The Director of Corporate Resources will report on the outturn of capital expenditure to the Cabinet as soon as practicable after the end of the financial year and as part of the Statement of Accounts, in accordance with Regulations A.5.3.6 and A.5.3.7.

A.6 Control of Staffing Budget

A.6.1 Within the total financial estimate provision approved by the Council, Chief Officers shall be entitled to vary the numbers and composition of their workforce in order to meet service requirements provided such variations do not commit the Council to increased expenditure in future years.

A.6.2 Each year, Chief Officers in association with the Director of Law and Personnel shall prepare a staffing report containing information on the number and composition of the County's workforce, changes during the previous twelve months and a forecast of the staffing budget for the year ahead.

A.6.3 Chief Officers must adhere to the mandatory aspects of the Council's Personnel Policies and Practices including the proper use of appointment procedures; the proper use of job evaluation or other agreed system for determining remuneration; and the method used to make payments to staff and employees including those falling within locally determined and local management schemes.

A.6.4 Chief Officers shall monitor staff activity to ensure adequate financial control over sickness, overtime, training and temporary staffing.

A.6.5 Chief Officers shall ensure that personnel information is maintained in a form required by the Director of Law and Personnel and a form necessary to comply with the Council's Personnel Policies and Practices.

A.6.6 Chief Officers shall also ensure that any systems used to process personnel data or remuneration are properly maintained in accordance with these Financial Regulations.

A.6.7 Arrangements for the payment of all salaries, wages, pensions, compensation and other emoluments to all employees or former employees shall be made in accordance with Standard Financial Procedures issued by the Director of Corporate Resources.

A.7 Control of Systems including Financial, Information and Communication Systems

A.7.1 All Chief Officers will seek the advice of the Director of Corporate Resources on the introduction of information and communications systems. In particular, Chief Officers ensure that sufficient standards, internal controls, and procedures are in place and will also ensure the achievement of value for money in the introduction of new systems and equipment.

A.7.2 Chief Officers shall consult with the Director of Corporate Resources on the development of any financial or other systems whether computerised or manual at the earliest practicable stage and obtain the consent of the Director of Corporate Resources before implementing those systems.

A.7.3 Minimum standards of control must be agreed in advance with the Director of Corporate Resources, for any new system, or development of an existing system which involves a financial operation, or which produces output that may influence such an operation.

A.7.4 Chief Officers shall conform to the County Council's security and control of systems' standards for systems operated within their departments. They shall also be responsible for the security and privacy of data necessary to accord with the Data Protection Act 1998. When accessing central or other systems, Chief Officers will be responsible for ensuring that agreed procedures are followed.

A.7.5 Any proposal to purchase or develop a computer system (IT hardware, software or communications equipment) shall be the subject of a business case as directed by the Director of Corporate Resources.

A.7.6 Chief Officers shall ensure observance of the Council’s policies on usage of ICT equipment and services, including Internet access and usage, e-mail usage and information security.

A.7.7 Chief Officers shall make sound and sufficient contingency arrangements, in consultation with the Director of Corporate Resources, to ensure the security and continuity of services in the event of a disaster e.g. fire, flood etc and to enable the restitution of systems and data.

A.8 Control of Contracts

A.8.1 All contracts and agreements entered into shall conform to the Council's Rules of Procedure and Standing Orders for contracts and tenders and must be covered by an approved budget. When contracts have a duration for more than one financial year, Chief Officers must ensure that the charges stemming from such arrangements can be accommodated within the estimates for the current and future years.

A.8.2 Chief Officers shall comply with European Commission Directives and United Kingdom Regulations relating to public procurement. Where appropriate, contracts and agreements shall be on the standard form of the Council.

A.8.3 Chief Officers shall ensure that they adopt the scheme of competitive discipline for all contracts and procurement required by the Council’s Contract Standing Orders.

A.8.4 Chief Officers shall ensure that their members of staff observe the requirements of the Council’s Purchasing Manual and Tendering and Contracting Code. Prior to the letting of a contract Chief Officers shall ensure that an adequate technical and financial appraisal of the tenderers is undertaken. Financial appraisal of tenderers shall be undertaken in consultation with the Director of Corporate Resources.

A.8.5 The Director of Corporate Resources will advise on matters relating to the maintenance of buildings, the need for repairs etc. and other such works for which he/she has budget responsibility. Also, through Property Head of Profession, a general responsibility for advising sound procedures will be maintained.

A.8.6 A register of formal contracts entered into and a record of payments made thereunder shall be kept by each Chief Officer in a form approved by the Director of Corporate Resources for all contracts involving stage payments. Where appropriate, the record of payments will be supported by details of the final account and a certificate of completion.

A.8.7 Where the contract requires that interim and final payments shall be made on certificate, that certificate shall be:

• in a form approved by the Director of Corporate Resources;
• signed personally by an officer authorised by the Chief Officer;
• authorised and issued in sufficient time to enable payment to be made within the time specified.

A.8.8 Such documents as may be necessary shall be made available to the Director of Corporate Resources to enable him/her, or his/her appointed agents, to audit a contract. If contracts are supervised and managed by persons other than officers of the Council, the agreement with that person (or persons) shall provide that all documents relating to a contract shall be available for inspection by officers of the Council if required.

A.8.9 Any variation to a contract for building or civil engineering work will be authorised in writing by an employee or, where employed, consultant, whose name shall be in a list approved by the Chief Officer.

A.8.10 When the final certificate of completion of any contract is issued by the appropriate officer, private architect, engineer or consultant a copy shall be produced to the Director of Corporate Resources together, if required, with a detailed statement of account and other relevant documents.

A.8.11 Where expenditure on a contract exceeds the contract value, the Chief Officer will report if Regulation A.13 (Financial Limits) is exceeded. Where a contract period is likely to be exceeded, so as to significantly affect service provision, a report shall be submitted to the Cabinet by the Chief Officer giving reasons for the delay, and making any recommendations as to claims after consultation with the Director of Law and Personnel.

A.8.12 Operational leasing or contract hire arrangements for vehicles, plant or equipment may be undertaken by Chief Officers provided the Director of Corporate Resources is satisfied that the method of finance is appropriate for the asset concerned and that the best terms available have been secured.

A.8.13 Applications for bid grant (income), including for Private Finance Initiative (PFI) Schemes, shall be prepared in accordance with guidelines issued by, or in consultation with, the Director of Corporate Resources. Before applications are submitted to any government or other body, they shall be sent to the Director of Corporate Resources for examination and to confirm that financial and accounting implications have been fully assessed.

A.8.14 The award of a bid grant payments (expenditure) shall be made in accordance with the Corporate Funding Protocol and any guidelines issued by the Director of Corporate Resources.

A.9 Banking Arrangements

A.9.1 The Cabinet shall approve the County Council’s banking arrangements. Detailed arrangements (which accord with the approved arrangements) and detailed terms and conditions with the Council's bankers, shall be approved or managed by the Director of Corporate Resources who shall be authorised to operate such accounts, including Post Office accounts, as he/she deems necessary. Bank accounts for imprest holders and delegated financial management schemes and the provision of credit card facilities shall be subject to the same arrangements.

A.9.2 With the exception of imprest accounts or Local Management Schemes all cheques, including Post Office payment forms, shall be ordered on the authority of the Director of Corporate Resources who shall make proper arrangements for their safe custody.

A.9.3 Credit cards may only be issued to Chief Officers or other officers with delegated authority with the consent of the Director of Corporate Resources and only on terms approved by the Director of Corporate Resources. Chief Officers will ensure within their departments that credit cards are only held by approved staff and that they are used strictly in compliance with the guidance issued by the Director of Corporate Resources.

A.9.4 Cheques drawn on the Council's main banking accounts, including Post Office accounts, shall bear the facsimile signature of the Director of Corporate Resources or be signed by him/her or officers authorised by the Cabinet. The manual pre-signing of cheques is not permitted on any cheque drawn on a County Council bank account.

A.9.5 Where payments are to be transmitted either electronically or automatically, the Director of Corporate Resources shall approve the necessary arrangements made to safeguard the interests of the Council.

A.9.6 All County Council funds shall be banked to the corporate accounts of the County Council, appropriate subsidiary accounts or other accounts in the name of the County Council and approved by the Director of Corporate Resources. No other account shall be used for transacting or transferring County Council funds.

A.10 Treasury Management, Investments and Trust Funds

A.10.1 All monies in the hands of the Council shall be aggregated for the purposes of Treasury Management and shall be under the control of the Director of Corporate Resources as delegated by the County Council. The Director of Corporate Resources and his/her staff shall be required to act in accordance with the County Council’s approved Treasury Management Strategy.

A.10.2 The Director of Corporate Resources shall report to the County Council at the beginning of the financial year and make recommendations on the following:

a) the approved borrowing limit;

b) the short term borrowing limit;

c) the approved prudential indicators and limits.

Once approved by the County Council, these limits may only be varied by the County Council itself.

A.10.3 The Director of Corporate Resources is authorised to borrow and repay all monies and to arrange the temporary investment of funds within the approved borrowing limit and in accordance with the County Council’s Treasury Management Strategy. Borrowing or lending or investing of monies not within the Director of Corporate Resources's delegated powers will not be permitted without the approval of the County Council.

A,10.4 The Director of Corporate Resources will review all Treasury Management activities at least on a quarterly basis. He/she will report annually to the County Council on:

(i) Treasury Management activities for the preceding year

(ii) the proposed strategy for the forthcoming financial year

A.10.5 All loans and investments, other than those belonging to the East Sussex Pension Fund and bearer securities, shall be made in the name of the Council. Investments in the East Sussex Pension Fund, other than bearer securities, shall be held in the name of the Council or the Council's nominees.

A.10.6 All securities the property of or in the name of the Council or its nominees, and the title deeds of all property in its ownership shall be held in the custody of the Director of Law and Personnel, the Director of Corporate Resources, or the Council's bankers as appropriate or under such other arrangements as are approved by the Director of Corporate Resources.

A.10.7 The Director of Corporate Resources or the Council's bankers shall be the Council's registrar of stocks, bonds and mortgages as appropriate. The Director of Corporate Resources shall maintain records of all borrowing of money by the Council. Stocks, bonds and mortgages held by the East Sussex Pension Fund may be registered in the name of the Fund's nominees.

A.10.8 All trust funds shall, wherever possible, be in the name of the Council or approved nominees. All officers acting as trustees by virtue of their official position shall deposit all securities, etc. relating to the trust with the Director of Law and Personnel unless the deed otherwise provides.

A.11 Estates

A.11.1 The Director of Corporate Resources shall, in consultation with the Director of Law and Personnel, maintain a terrier of all properties owned by the Council, recording the holding department , location, extent, plan reference, purchase details, nature of the interest, tenancies granted, rents payable, and purpose for which the property is held.

A.11.2 The Director of Corporate Resources shall maintain an asset register in such a form to record sufficient details to meet the requirements of the Code of Practice on Local Authority Accounting in respect of capital accounting.

A.11.3 The Director of Law and Personnel shall have custody of all title deeds under secure arrangements agreed with the Director of Corporate Resources.

A.12 Insurance and Risk Management

A.12.1 The Director of Corporate Resources shall effect all necessary insurance cover and negotiate all claims, in consultation with other officers where necessary. In respect of direct service organisations, adequate insurance cover shall be maintained by each organisation for employers and third party liability, buildings and contents and such other risks as are deemed necessary.

A.12.2 Chief Officers shall comply with the Council’s approved risk management strategy and policy and notify the Director of Corporate Resources immediately of:

(a) all new risks and liabilities which may require to be insured;

(b) any alteration which may affect existing insurance;

(c) any loss, damage, claim or event which might give rise to a claim by or against the Council;

(d) any acquisition or disposal of interests in property which involves an amendment to insurance cover.

A.12.3 All appropriate employees of the Council shall be included in a suitable fidelity guarantee insurance.

A.12.4 The Director of Corporate Resources shall, at least annually, review all insurance in consultation with other Chief Officers.

A.12.5 Chief Officers shall consult with the Director of Corporate Resources and the Director of Law and Personnel in respect of the terms of any indemnity which the Council is requested to give.

A.12.6 The Director of Corporate Resources shall co-ordinate and facilitate risk management policies and procedures in consultation with Chief Officers.

A.12.7 Chief Officers shall be responsible for risk management procedures and conduct regular reviews of risk, as and when necessary. They shall notify the Director of Corporate Resources of significant changes of risk in a timely manner.

A.12.8 Chief Officers shall ensure that employees, and anyone covered by the County Council’s insurances, do not admit liability or make any offer to pay compensation that may prejudice the assessment of liability in respect of any insurance claim.

A.13 Financial Limits

A.13.1 Budget Limits

Revenue Budget Transfers

A.13.1.1 In accordance with Regulation A.5.3.2, revenue budget transfers are permitted which reflect accounting and approved organisational changes and do not affect expenditure on services and service policy areas.

A.13.1.2 Revenue budget transfers which do affect expenditure on services and service policy areas shall be reported in accordance with budget monitoring arrangements under Regulation A.5.3.3.

A.13.1.3 If the Council is committed to additional expenditure in future years, no transfer will be permitted unless approved by the Cabinet.

A.13.1.4 A significant change to an existing policy, or the development of a new policy framework will require the approval of the County Council.

A.13.1.5 If the budget is delegated to budget managers, transfers may be made from one head to another as approved by the appropriate scheme of delegation.

A.13.1.6 Local management schemes and schemes of delegation shall be permitted to carry forward under-spendings in accordance with their approved schemes.

A.13.2 Ex-Gratia Payments

A.13.2.1 Chief Officers may authorise ex-gratia payments up to £1,000. Ex-gratia payments in excess of £2,500 shall only be authorised by the Cabinet.

A.13.2.2 Ex -gratia payments falling between these limits may only be authorised by the Chief Officer after consultation with the Director of Corporate Resources and Director of Law and Personnel.

A.13.2.3 A complete record of ex-gratia payments made by Chief Officers shall be maintained and shall be available to the Director of Corporate Resources on request and retained in accordance with Standard Financial Procedures.

A.13.3 Write Off of Debts

A.13.3.1 The write-off of debts below £1,000 may be authorised by the Chief Officer. The write-off of debts in excess of £2,500 shall only be authorised by the Cabinet,.

A.13.3.2 Debts falling between these limits may only be written off by the Chief Officer after consultation with the Director of Corporate Resources and Director of Law and Personnel.

A.13.3.3 A complete record of debts written off shall be maintained by the appropriate Chief Officer and retained in accordance with Standard Financial Procedures.

A.13.4 Write Off of Stocks and Stores

A.13.4.1 No deficiency which occurs in excess of £2,500 shall be written off by a Chief Officer without the prior approval of the Cabinet.

A.13.4.2 Variations below this figure may be written off by the Chief Officer following consultation with the Director of Corporate Resources and Director of Law and Personnel.

A.13.4.3 A complete record of stocks and stores written off shall be maintained by the appropriate Chief Officer and retained in accordance with Standard Financial Procedures.

A.13.5 Payment of Accounts

A.13.5.1 No payment in advance of £500 or more shall be made without the prior approval of the Director of Corporate Resources. Payments in advance of less than £500 can only be made in circumstances prescribed by Standard Financial Procedures.

A.13.6 Money Laundering

A.13.6.1 No payment to the Council will be accepted in cash if it exceeds £5,000, and if attempted it should be reported under Regulation A.4.6.