These financial regulations govern the conduct of financial management by the Council and may only be amended or varied by resolution of the Council. The Council is responsible in law for ensuring that its financial management is adequate and effective and that the Council has a sound system of financial control which facilitates the effective exercise of the Council’s functions, including arrangements for the management of risk and for the prevention and detection of fraud and corruption. These financial regulations are designed to demonstrate how the Council meets these responsibilities.

The Responsible Financial Officer (RFO) is a statutory office and shall be appointed by the Council. The Town Clerk has been appointed as RFO for this Council and these regulations will apply accordingly. The RFO, acting under the policy direction of the Council, shall administer the Council’s financial affairs in accordance with proper practices. The RFO shall determine on behalf of the Council its accounting records, and accounting control systems are observed and that the accounting records of the Council are maintained and kept up to date in accordance with proper practices.

The RFO shall produce financial management information as required by the Council.

In February, prior to approving end of year accounts, the Finance Management Panel (FMP) shall conduct a review of the effectiveness of its system of internal control which shall be in accordance with proper practices.

In these financial reguklations, references to the Accounts and Audit Regulations shall mean the Regulations issued under the provisions of Section 27 of the Audit Commission Act 1998 and then in force.

In these financial regulations the term ‘proper practice’ or ‘proper practices’ shall refer to guidance issued in Governance and Accountability in local Councils in England and Wales – a Practitioners’ Guide which is published jointly by National Association of Larger Councils (NALC) and Society of Local Councils (SLCC) and updated from time to time.

Each committee shall identify projects for the following year; these will be costed and submitted for consideration by teh FMP in December.

The overall revenue budgets for all Committees and the Council will be prepared by the RFO and the Finance Officer (FO) for submission to the FMP in December.

The panel shall meet with Committee Chairman to finalise the precept report to be submitted to the Council in January for setting the overall precept. The RFO shall issue the precept to the billing authority and shall supply each member with a copy of the approved budget.

Detailed estimates of all income and expenditure including the use of reserves and all sources of funding for the year shall be prepared each year for the use by the Panel in preparation of the budgets.

The annual budget shall form the basis of the financial control for the ensuing year.

The Council shall consider the need for and shall have regard to a three year forecast of Revenue and  Capital Receipts and Payments which may be prepared at the same time as the annual budget.

Expenditure on revenue items may be incurred up to the amounts included for that class of expenditure in the approved budget.

Committees can make decisions at their meeting s and the RFO can carry out identified expenditure without reference again to the Council.

Expenditure may arise that will exceed the amount provided in the revenue budget for that class of expenditure. During the budget year the FMP will review the situation and with the approval of Council having considered fully the implications for public services, unspent and available amounts may be moved to other budgets headings or to an earmarked reserve as appropriate.

The RFO shall ensure that the FMP is provided with a monthly statement of receipts and payments to date under each head of the budgets, comparing actual expenditure to the appropriate date against that planned as shown in the budget, the FMP shall then give a written report to the Council.

The ROF may incur expenditure on behalf of the Council which is necessary to carry out any repair, replacement  or other work which is of such extreme urgency that it must be done at once., whether or not there is any budgetary provision for the expenditure, subject to a limit of [£25,000]. The Town Clerk shall report the action to the FMP as soon as practicable thereafter.

Unspent provisions in the revenue budget shall not be carried forward to a subsequent year unless placed in an earmarked reserve by resolution of the Council.

No expenditure shall be incurred in relation to any capital project and no contract entered into or tender accepted involving capital expenditure unless the FMP is satisfied that the necessary fund are available, or the requsite borrowing approval has been obtained.

All capital works shall be administered in accordance with the Councils standing orders bad financial regulations relating to contracts.