Section 2 – Financial Procedure Rules

Budgeting

General

2.1 The budget can be defined as ‘a representation in financial terms of an organisation’s plans for a given period of time at a given price base’. It is therefore essential that the budget is constructed to reflect policies and strategies approved by Council in the Policy Framework.

2.2 The Council Strategy and Service Plans will be key parts of the resource allocation process.

Resource Allocation

2.3 The Chief Financial Officer is responsible for developing and maintaining a resource allocation process which ensures due consideration of the Council’s policy framework and reflects agreed service priorities in the Council Strategy.

Budget Preparation

2.4 The Chief Financial Officer in conjunction with the Chief Executive, Corporate Directors and Heads of Service are responsible for ensuring that a Medium-Term Financial Strategy is prepared for consideration by Cabinet before submission to Council.

2.5 Strategic planning and budgeting shall be owned by Directorates. It is the responsibility of the Chief Executive and Corporate Directors to ensure that budget estimates are submitted to Cabinet and:

• a. Represent and are consistent with the Council’s Policy Framework, Council Strategy and Service Plans;
• b. Total to the Council’s budget; and
• c. Are prepared in line with the guidance issued by the Chief Financial Officer. The guidance will include (but not limited to):
• i. The methods of calculation to be adopted and any other relevant information to ensure the Council’s budget is prepared on a common basis;
• ii. Cabinet spending priorities and policy directions to be used in preparing the budget;
• iii. The form that information is to be presented;
• iv. Be prepared to reflect both the statutory requirements and the strategic budget responsibilities of the Chief Financial Officer; and
• v The timetable for budget preparation, to enable the Cabinet and Council to comply with statutory requirements.

2.6 The Chief Executive and each Corporate Director and Head of Service shall sign off their acceptance of the budget delegated to them. They are responsible for controlling and monitoring the budget delegated to them to ensure that expenditure and income remain within the budget provision.

2.7 The Chief Executive, Corporate Directors and Heads of Service may, after consultation with the Chief Financial Officer, nominate a Budget Manager or Managers to perform the day to day work to support this duty but responsibility remains with the Chief Executive, Corporate Director and Head of Service.

2.8 The Chief Financial Officer shall submit an overall budgetary report to Cabinet to consider:

• a. The revenue and capital budgets (including financing arrangements) that are proposed for the Council’s services;
• b. The results of the consultation with the public and appropriate Committees; and
• c. Precepts and levies, the need for reserves and contingencies, the level of balances, and the grants available from Government.

2.9 The report will include comments from the Chief Financial Officer on how robust the budget is and whether the level of reserves are in line with legislation (section 25 of the Local Government Act 2003).

2.10 Cabinet shall recommend to Council the proposed revenue and capital budget and the Council tax to be levied for the forthcoming financial year. The Council shall set the budget and Council Tax before 11 March preceding the forthcoming financial year to which that budget and Council Tax applies (in accordance with Section 30(6) of the Local Government Finance Act 1992). Following approval the budgets will be recorded in the Council’s financial systems.

2.11 Council may approve the budget previously considered by Cabinet or ask Cabinet to reconsider it before approving it (Budget and Policy Framework Procedure Rules, Part 3.1). Any proposed amendment to Cabinet’s recommended budget must be prepared with the advice of the Chief Financial Officer.

Preparation of the Capital Programme

2.12 The Chief Executive, Corporate Directors and Heads of Service are responsible for developing the capital programme. The Chief Financial Officer is responsible for ensuring that the capital programme is affordable and reflected in the Council’s Treasury Management and Capital Strategy. The Chief Financial Officer is responsible for ensuring that the capital programme is prepared at least on an annual basis for consideration by Cabinet, before submission to Council for approval.

2.13 The Chief Executive, Corporate Directors and Heads of Service in consultation with the Chief Financial Officer shall prepare annually a proposed five year forward capital programme in accordance with the criteria, format, timetable and targets determined by the Chief Financial Officer.  This programme will have regard to the Council’s priorities as set out in the Council Strategy and Service Plans, and the availability of resources.

2.14 The Chief Executive, Corporate Directors and Heads of Service shall sign off their acceptance of the budget delegated to them. They are responsible for controlling and monitoring the budget delegated to them to ensure that expenditure and income remain within the budget provision. After consultation with the Chief Financial Officer, they may nominate a Budget Manager or Managers to perform the day to day work to support this duty but responsibility remains with them.

2.15 In preparing items for the capital programme, the Chief Executive, Corporate Directors and Heads of Service shall prepare (with support provided by the Finance team) for each scheme:

• a. An estimate of the cost of the scheme;
• b. An estimate of any consequential expenditure or income, whether capital or revenue; and
• c. A robust financial appraisal of proposed new schemes using a format determined by the Chief Financial Officer.

2.16 Where contracts relating to capital expenditure are being procured, the budget for which has been approved in the capital programme, the minimum procurement process and rules must be applied in accordance with the Procurement and Contracting Procedure Rules (Part 3.2).

Leasing and other credit arrangements

2.17 With the exception of leases agreements for vehicles which is delegated to the Head of People and Organisational Development or the Head of Assets, all lease agreements and other credit arrangements must only be entered into with the explicit approval of the Chief Financial Officer. This excludes the short-term hiring of equipment for periods of less than 12 months.

Budget Monitoring and Control

3.1 The following should be read in conjunction with the Budget and Policy Framework Procedure Rules (Part 3.1).

Revenue and Capital

3.2 It is the responsibility of the Chief Executive, Corporate Directors, Head of Service and Budget managers, advised by the Finance team, to control income and expenditure within their area of responsibility and control, and to monitor performance using financial information derived from corporate financial systems maintained by the Chief Financial Officer.

3.3 Budget monitoring data should be maintained at a level which enables effective monitoring of financial trends to be carried out, and to provide action plans to ensure adverse budget problems can be managed.

3.4 Cabinet shall ensure that the budget approved by Council is implemented and shall receive reports from the Chief Financial Officer and Corporate Directors / Heads of Service to enable it to discharge this responsibility.

3.5 The Chief Financial Officer in consultation with the Chief Executive, Corporate Directors and Heads of Service shall establish an appropriate format and frequency for monitoring the Council’s financial performance in compliance with regulations and best practice.

3.6 The Chief Executive, Corporate Directors, Heads of Service and budget managers, with advice from the Finance team, shall control and manage capital and revenue spending and income to ensure that each is contained within their approved budget. They shall investigate any variations and take appropriate action to deal with them.

3.7 The Chief Financial Officer shall support and advise the Chief Executive, Corporate Directors, Heads of Service and budget managers in ensuring that financial management information is adequate for management purposes and that they have appropriate access to financial information via the corporate financial systems to enable budgets to be monitored effectively.

3.8 Every quarter the Chief Financial Officer shall require Corporate Directors and Heads of Service to produce a full year forecast of income and expenditure (including the 4^th quarter full year provisional outturn). This forecast shall be prepared in the form required by the Chief Financial Officer and submitted in accordance with the budget monitoring timetable. Following consultation with Corporate Management Team, the Chief Financial Officer shall present budget monitoring reports to the Cabinet.

3.9 The financial information submitted by each Corporate Director for reporting to the Corporate Management Team, Cabinet and relevant Committees, shall be supported by non-financial performance relating to those aspects of services regarded as the major drivers of expenditure impacting on future levels of service activity. 

3.10 The Chief Executive, Corporate Directors and Heads of Service shall provide the Chief Financial Officer with any information required to enable effective monitoring and reporting to the Corporate Management Team, Cabinet and relevant Committees of expenditure and income against approved budgets, and shall report on variances within their own areas of responsibility.  They shall take any action necessary to ensure that expenditure does not exceed their budget allocations and income does not fall below the budget allocations and shall inform the Chief Financial Officer where they are unable to take action to keep expenditure and income within their budget allocations, as soon as these are identified. The Chief Executive, Corporate Directors and Heads of Service shall document decisions and actions adequately.

Capital

3.11 The Chief Executive, Corporate Directors and Heads of Service shall keep under review the Council’s agreed capital programme for services under their control covering schemes and projects in progress, schemes and projects commencing in the current and forthcoming financial years and the revenue implications of those schemes and projects.

3.12 Excess expenditure on individual capital schemes may be permitted within any limits specified in writing by the Chief Financial Officer provided alternative savings are identified and no substantial increased revenue consequences arise. No expenditure or commitment on a capital scheme or capital grant shall take place unless:

• a. Provision exists in the approved capital programme;
• b. Council has approved the expenditure;
• c. All necessary consents and/or approvals, if any, under the arrangements currently in force for the control of capital expenditure in local authorities have been received; and
• d. The appropriate procedures for acceptance of tenders have been followed as set out in the Procurement and Contracting Procedure Rules (Part 3.1).

3.13 Annex A, section i. provides a summary of the variation order approval levels.

3.14 The Chief Executive, Corporate Directors and Heads of Service shall certify capital payments to contractors in a form approved by the Chief Financial Officer.

3.15 When a contractor submits a final account, the Chief Executive, Corporate Directors and Heads of Service shall supply all the relevant documentation to the Chief Financial Officer for scrutiny and in conjunction with the Chief Financial Officer shall promptly report the out-turn expenditure to the Cabinet.

Amendments of Approved Budgets (Supplementary Estimates)

General

3.16 Any request for a Supplementary Estimate (for example, any proposal that involves a change to the Budget and Policy Framework such that this would have a financial effect on the Council’s forward planning of resources or significantly limit the discretion of Council in the future allocation of its resources) must be approved by the Chief Financial Officer and have the support of the Chief Executive, relevant Corporate Director or the Cabinet Portfolio Holder with responsibility for Finance (as outlined below).

3.17 Supplementary Estimate requests must specify the source of funding. Supplementary Estimates approvals outlined below include expenditure fully funded by specific grant/income (i.e. match funding).

3.18 Supplementary Estimates approved by the Chief Financial Officer and the Cabinet Portfolio Holder with responsibility for Finance, and Cabinet are subject to “call in” and therefore authority to spend against a Supplementary Estimate is not conferred until after the “Call-in” period has expired.

3.19 Where a Supplementary Estimate approved by the Chief Financial Officer and the Cabinet Portfolio Holder with responsibility for Finance, and by Cabinet is subject to “call in” then no authority to spend against the Supplementary Estimate is conferred. The authority to spend is only conferred as per the Council’s Scrutiny Procedure Rules.

Revenue Budget and Capital Programme

3.20 Subject to paragraph 3.21 below, the approved revenue budget may be amended by those limits set out in Annex A.

3.21 In making amendments to the approved revenue budget, Council, Cabinet, the Chief Financial Officer, Cabinet Portfolio Holder with responsibility for Finance, Chief Executive and Corporate Directors shall:

• a. Have regard to the Budget and Policy Framework approved by Council, and resolutions of Council; and
• b. Be satisfied that an amendment to the revenue budget can be offset by additional income, grant, and/or general fund reserves within the revenue budget and Medium-Term Financial Strategy.

3.22 Annex A, section ii. provides a summary of the amendment of approved budget approval levels in respect of revenue.

3.23 Following approval the amendment of revenue budgets will be recorded in the corporate financial systems.

Capital Budget (New Schemes)

3.24 Heads of Service have no power to approve new capital schemes to the capital programme. All new capital schemes need Chief Financial Officer, Chief Executive, Corporate Director, Cabinet Portfolio Holder with responsibility for Finance, Cabinet or Council approval as indicated in Annex A.

3.25 Inclusion of scheme specific capital feasibility work within the capital programme also requires approval in accordance with Annex A.  

3.26 If subsequently the capital scheme for which the capital feasibility work was undertaken is not approved the capital expenditure incurred will be charged to revenue.

3.27 In making amendments to the approved capital programme, Council, Cabinet, Chief Financial Officer, Cabinet Portfolio Holder with responsibility for Finance, Chief Executive and Corporate Directors shall:

• a. Have regard to the Budget and Policy Framework approved by Council, and resolutions of Council;
• b. Be satisfied that an amendment to the approved capital programme can be financed; and
• c. Be satisfied that any revenue budget consequences of the amendment can be offset by additional income, grant, and/or general fund reserves, within the revenue budget.

3.28 Annex A, section ii. provides a summary of the amendment of approved budget approval levels in respect of capital.

3.29 Following approval the amendment of capital budgets will be recorded in the corporate financial systems.

Spending of Revenue and Capital Budgets

3.30 The following should be read in conjunction with the Officer Scheme of Delegation (Part 2.13).

Revenue

3.31 Unless otherwise indicated, approval of the Council’s revenue budget shall confer the authority to incur revenue expenditure up to the level of the approved estimate.

3.32 No power is delegated to the Chief Executive, any Corporate Director and Head of Service to spend above the approved budget for their area of responsibility unless or until the relevant rules contained in these Financial Procedure Rules for amendment of approved budgets have been followed, or unless paragraph 3.33 below applies.

3.33 Nothing in these Financial Procedure Rules shall prevent the Chief Executive, Chief Financial Officer and any Corporate Director from incurring revenue expenditure which is essential to meet any immediate needs created by a sudden emergency providing that their actions are reported as soon as practicable to the Cabinet and Council.

Capital

3.34 Unless otherwise indicated, the approval of the capital programme shall be regarded as authorising a scheme to proceed.

3.35 No power is delegated to the Chief Executive, any Corporate Director and Head of Service to incur expenditure on any scheme not included in the capital programme or to spend above the approved capital budget unless or until the relevant rules contained in these Financial Procedure Rules for amendment of approved budgets have been followed, or unless paragraph 3.36 below applies.

3.36 Nothing in these Financial Procedure Rules shall prevent the Chief Executive, Chief Financial Officer and any Corporate Director from incurring capital expenditure which is essential to meet any immediate needs created by a sudden emergency providing that their actions are reported as soon as practicable to the Cabinet and Council.

Revenue and Capital Approval Levels

3.37 The authority to incur and/or commit expenditure, is subject to the approval levels in Annex A, section ii.

3.38 When approving expenditure, Officers shall follow the internal controls for separation of duties.

3.39 Annex A, section ii. provides the approval levels for grants, housing works compensation and housing lease schemes

Budget Transfers (virements)

3.40 The following should be read in conjunction with (Part 3.1) Budget and Policy Framework Procedure Rules.

3.41 The Chief Financial Officer shall be consulted on (and approve) all budget transfers.

Revenue

• Subject to paragraphs 3.49-3.51 below, revenue budget transfers may be amended by the levels set out in Annex A and
• a. the Chief Executive, Corporate Directors or Heads of Service (or budget managers with the appropriate Corporate Director(s) approval) approving a revenue budget transfer within their delegated budget for any lawful purpose relating to the Directorate for which they are responsible providing that:
• i. The budget transfer is within the estimate approved by Council for the relevant Directorate(s);
• ii. The reason for the transfer is within the Budget and Policy Framework;
• iii. The budget head from which the virement is to be transferred shall not then be overspent;
• iv. No commitment to a higher overall level of expenditure in future financial years is entered into;
• v. No other Directorate is affected, subject to where a budget transfer between budgets is controlled by more than one Corporate Director, the transfer is agreed by all the Corporate Directors concerned.
• b. Cabinet approving a revenue budget transfer within its control for any lawful purpose for which they are responsible providing that:
• i. The transfer is within the estimate approved by Council for the relevant Directorate;
• ii. The reason for the transfer is within the Budget and Policy Framework;
• iii. No commitment to a higher overall level of expenditure in future financial years is entered into; and
• c. Any revenue budget transfer in excess of the above (i.e. not falling within the criteria detailed in a) and b) as set out above) shall be approved by Council.

3.43 Annex A, section iv. provides a summary of the approval levels for the transfer of budgets (virement) – revenue

3.44 Following approval, revenue budget transfers will be recorded in the corporate financial systems.

Capital

3.45 Subject to paragraphs 3.49-3.51 below, capital budget transfers may be amended within the limits set out in Annex A:

3.46 approving a budget transfer between capital schemes for any lawful purpose for which they are responsible providing that:

• The transfer is within the capital programme approved by Council;
• The reason for the budget transfer is within the Budget and Policy Framework;
• Be satisfied that any revenue budget consequences of the budget transfer can be offset by the reallocation of existing capital financing, or savings elsewhere within the capital programme;
• The amount in question does not exceed the limits in annex A at any one occasion;
• No other capital scheme is affected outside the Chief Executive, Corporate Director or Head of Service responsibility, subject to where a budget transfer between capital schemes is controlled by more than one Corporate Director, the transfer is agreed by all the Corporate Directors concerned.

3.47 Annex A, section iv. provides a summary of the approval levels for the transfer of budgets (virement) – capital.

3.48 Following approval, capital budget transfers will be recorded in the corporate financial systems.

Revenue and Capital

3.49 Budget transfers relating to a financial year may not be made after the end of that financial year.

3.50 Re-allocation of approved budgets, system errors, technical corrections and coding changes, within overall spending limits, and for any value, may be approved by the Chief Financial Officer.

3.51 Where an approved budget is a lump-sum budget or contingency intended for allocation during the year, its allocation shall not be treated as a budget transfer provided that the amount is used in accordance with the purposes for which it was established. Its allocation is delegated to the Chief Financial Officer.

Treatment of Underspend and Overspend Revenue Budgets

General

3.52 The Chief Financial Officer following consultation with the Chief Executive, Corporate Directors and Heads of Service shall determine the treatment of all unspent (or overspent) revenue budgets at the financial year end to be taken to (from) general and/ or earmarked reserves, subject to Cabinet consideration and Council approval (see paragraphs 3.56-3.62 below).

Treatment of Underspend and Overspend Capital Budgets/ Reprofiling

General

3.53 Where there is a requirement for reprofiling between financial years (including accelerated spend or slippage) this will be reported and approved by the Cabinet. The profiles for the future years will be set at budget setting and the budget adjusted for any outturn variances (approved by Cabinet)

3.54 Underspent Capital budgets at year-end will be carried forward in the Capital Programme, if required, at the discretion of the Chief Financial Officer in consultation with the Portfolio Holder (or Cabinet). These will be reported as part of the financial monitoring for quarter one of the next financial year.

3.56 Annex A, section vi. provides a summary of the approval levels for the Treatment of Underspend and Overspend Capital Budgets/ Reprofiling.

Reserves

General

3.56 The Chief Financial Officer has a duty to report to Council about whether the proposed reserves will be enough for the Council’s purposes and support the budget (Section 25 of the Local Government Act 2003). This includes general fund reserves and reserves earmarked for specified purposes.

3.57 Cabinet has the authority to create new earmarked reserves.

3.58 Expenditure from earmarked reserves can be agreed by the Chief Financial Officer providing the transfer is for the purpose which earmarking was agreed by Executive.

3.59 The Chief Financial Officer can agree transfers between reserves, in conjunction with the Corporate Management Team.

3.60 Requests for earmarked reserves will be submitted by Corporate Directors to the Chief Financial Officer for consideration before recommending to Cabinet.

3.61 The Chief Financial Officer will allocate funds to reserves as part of the yearend financial closedown process and report their decisions to Cabinet

3.62 The Financial Services Team will keep a record of reserves which will be shared with the Chief Executive, Corporate Directors and Heads of Service, when requested and in any event, always at the financial year end, and budget setting. The Chief Financial Officer shall consider the continuing relevance and adequacy of reserves (earmarked reserves and general fund reserve), and report to the Cabinet and Council as part of the budget and monitoring process.

Assets

4.1 The following should be read in conjunction with the Officer Scheme of Delegation (Part 2.13).

General

4.2 The Chief Executive, Corporate Directors and Heads of Service shall be responsible for the safe custody of all Council assets under their responsibility and control.

4.3 With the exception of paragraph 4.4 below, assets shall not be purchased using loans, leases or hire purchase agreements except with the agreement of the Chief Financial Officer.

4.4 The Head of People and Organisational Development has delegated authority enter into leasing and/or purchase of vehicles and their repair and maintenance; and all other fleet management.

4.5 The Chief Executive, Corporate Directors and Heads of Service shall ensure that contingency plans for the security of assets and continuity of service in the event of disaster or system failure are in place and are regularly tested.

Acquisition and Disposal of Property and Land

4.6 The Chief Financial Officer shall be informed of all disposals so that the capital receipts may be properly accounted for and the Council’s asset records adjusted.

4.7 Annex A, section vii. provides a summary of the approval levels for the acquisition and disposal of land and property.

Disposal of Assets other than Land and Property

4.8 The Chief Executive, Corporate Directors and Heads of Service shall be responsible for disposing of stores held by their Directorate which are surplus to requirements or no longer serviceable for the purposes for which they are held in accordance with guidelines set by the Chief Financial Officer.

4.9 The Chief Executive, Corporate Directors and Heads of Service shall be responsible for the disposal of furniture and equipment held in their Directorate, other than leased items, which are surplus to requirements or no longer serviceable for the purposes for which it was held in accordance with guidelines set by the Chief Financial Officer.

4.10 Annex A, section vii. provides a summary of the approval levels for the disposal of assets other than land and property.

Review of Capital Assets

4.11 Having regard to the Council’s Asset Management Strategy, the Director of Governance & Corporate Services shall regularly review the use of capital assets to determine whether they continue to provide value for money and remain essential to service provision. Property assets identified as surplus to Directorate requirements will be promptly declared as such to the Director of Governance and Corporate Services who shall review alternative uses of surplus assets and recommend the future use or disposal of such assets to the relevant Portfolio Holder and Leader of the Council.

4.12 The Council’s Asset Management Strategy sets out how the Council identifies capital assets for disposal and appropriate disposal routes. The approval levels are set out in Annex A.

4.13 The Chief Financial Officer shall be consulted on the intention to dispose of any item which might be regarded as capital, for example, land and buildings or capital assets obtained via a leasing agreement.

Asset Register

4.14 The Chief Financial Officer shall maintain an asset register for purposes of financial accounting which will record all capital assets valued in excess of £10,000 when acquired by the Council and ensure the register is kept up to date, in consultation with the Chief Executive, Corporate Directors and Heads of Service (see Annex A, section viii.).

Inventories

General

4.15 The Chief Executive, Corporate Directors and Heads of Service shall be responsible for ensuring the safe custody and control of all stocks held by their Directorate and for maintaining records thereof in a form agreed with the Chief Financial Officer.

4.16 The Chief Executive, Corporate Directors and Heads of Service shall maintain a continuous stocktaking and arrange for an annual physical stocktaking to be undertaken with a view to identifying discrepancies and unnecessarily high levels of stock. The Chief Executive, Corporate Directors and Heads of Service shall report significant discrepancies disclosed in annual checks to the Chief Financial Officer.  After investigation, the Chief Financial Officer shall report to the Cabinet including reporting action taken to avoid recurrences.

4.17 The Director of Governance and Corporate Services shall maintain an inventory of all Council property in operational buildings, in a form agreed with the Chief Financial Officer and shall arrange for physical checks of assets held on inventories at least once a year.

4.18 The Director of Governance and Corporate Services shall report on significant discrepancies disclosed in annual inventory checks to the Chief Financial Officer. After investigation, the Chief Financial Officer shall report to the Cabinet including reporting action taken to avoid recurrences.

4.19 Procedures for withdrawal, replenishment etc. of stores, equipment etc, shall be as set out in procedures issued by the Chief Financial Officer.

4.20 The rules for inventory write-offs are included in section 10 of these Financial Procedure Rules.

Security of Assets

General

4.21 Except as agreed by Council, no Officer shall raise money by securing any legal charge or claim upon the buildings, land or any other asset or interest of the Council. Any contract or legal agreement involving a charge upon assets (of the Council or a contractor) shall be forwarded to the Chief Legal and Governance Officer and the Chief Financial Officer for approval and signature on behalf of the Council.

Banking and Cash Handling

General

4.22 The Chief Financial Officer shall make all arrangements relating to the Council’s bank accounts. Any proposals for a change in the supplier of banking services will be decided by the Cabinet, on the recommendation of the Chief Financial Officer.

4.23 All bank accounts shall have an official title that shall include the name of the Council. In no circumstances shall an account be opened in the name of an individual.

4.24 All instruments directing payment from the Council’s bank account shall be signed/authorised by at least two signatories whom shall be approved by the Chief Financial Officer. The Chief Financial Officer shall maintain a record of the Officers approved to sign/authorise instruments directing payment from the Council’s bank account.

4.25 The Chief Executive, Corporate Directors and Heads of Service shall ensure that the collection and banking of monies is undertaken in accordance with any instructions issued by the Chief Financial Officer.

4.26 Officers shall not accept cash (including notes, coins or travellers cheques in any other currency including crypto currencies).

Risk Management

General

6.1 Cabinet shall be responsible for approving the Council’s [Risk Management Policy and Framework].

6.2 The Audit and Governance Committee shall be responsible for monitoring the effective development and operation of the Risk Management Policy and Framework.

6.3 In consultation with the Corporate Management Team, the Chief Financial Officer and Chief Legal and Governance Officer shall prepare, promote and monitor the Council’s Risk Management Policy and Framework and Corporate Risk Register. Corporate Directors and Heads of Service shall implement and comply with the requirements of the Risk Management Policy and Framework.

6.4 The Chief Financial Officer and Chief Legal and Governance Officer shall require Corporate Directors and Heads of Service to produce and update a risk register for areas under their control, together with an action plan to show how the risks are owned, monitored, and mitigated, in accordance with the monitoring timetable.

6.5 The Chief Financial Officer shall submit reports to Audit and Governance Committee and Cabinet, on risk management at least quarterly. The format and frequency of reporting will be set out in the Council’s [Risk Management Policy and Framework].

Insurance

General

6.6 Cabinet is responsible for ensuring that proper insurance exists where appropriate.

6.7 The Chief Financial Officer shall exercise all the Council’s statutory powers duties and functions relating to effecting insurance including authority to undertake the renewal of insurance policies, the implementation of new policies, revision of limits, and representing the Council at meetings of members of Insurance Companies.

6.8 The Chief Financial Officer shall ensure periodic risk management studies are undertaken to assess the need for insurance cover and to identify action that needs to be taken.

6.9 The Chief Financial Officer shall ensure there is appropriate insurance cover taking account of the results of risk management studies and the risks falling within the framework of insurable risks agreed by Cabinet, and shall report the level of cover and risk to the Cabinet.

6.10 Risks may be covered by insurance or carried by the Directorate(s) involved at the discretion of the relevant Corporate Director and Heads of Services having regard to advice from the Chief Financial Officer.

6.11 Corporate Directors and Heads of Services shall be responsible for taking effective preventive measures against all risks.

6.12 Corporate Directors and Heads of Service shall immediately notify the Chief Financial Officer of the acquisition or disposal of assets requiring insurance cover and of items that, in their view may require the Council’s insurable risks to be amended.

6.13 Corporate Directors and Heads of Service shall immediately notify the Chief Financial Officer of any incident or occurrence which:

• a. Adversely affects the Council’s assets and is likely to give rise to a claim upon the Council’s insurers;
• b. Might give rise to a claim against the Council; and/or
• c. Might give rise to a claim being made by the Council on its insurance policies, e.g. thefts, accidents.

6.14 The Chief Financial Officer, in consultation with the Chief Legal and Governance Officer, shall negotiate material* claims with the Council’s insurers.

6.15 * Material being all claims which either:

• Are above a monetary value determined by the Chief Financial Officer; and/or
• Have potentially significant reputational implications for the Council.

Indemnity

General

6.16 Corporate Directors and Heads of Service shall consult the Chief Financial Officer and the Chief Legal and Governance Officer in respect of any terms of any indemnity which the Council is requested to give.

6.17 Before entering into any arrangement involving a legal relationship, Corporate Directors and Heads of Service involved shall ensure that the Council has adequate legal powers and where appropriate that there is adequate professional indemnity insurance to cover and minimise any risk to the Council and to those individuals involved. Advice should be obtained from the Chief Financial Officer and the Chief Legal and Governance Officer where necessary before proceeding.

Legal Documents and Contracts

General

6.18 The Chief Legal and Governance Officer shall have custody of the original documents for all contracts, leases, deeds and agreements, and similar legal documents. Part 3.1 Section 2 Procurement and Contracting Procedures Rules, of this Constitution provides more detailed rules that must be followed in relation to contract formalities (including when contracts must be completed under seal).

Confidentiality, Security and Protection of Information

General

6.19 The Director of Governance and Corporate Services as Senior Information Risk Owner shall ensure the Council has an effective information management strategy, infrastructure and capability in place to meet the General Data Protection Regulations (GDPR). All Officers’ of the Council have a personal responsibility with regard to the protection and confidentiality of information, whether held in manual or computerised records, including on portable storage devices.

6.20 Corporate Directors and Heads of Service shall ensure that all Officers are familiar with the Council’s information governance policies and that adequate and effective controls and security routines are operated to protect data and facilities against the unauthorised access, loss or abuse.

6.21 Corporate Directors and Heads of Services are responsible for ensuring that all computerised and manual systems and records within their responsibility are operated in accordance with the requirements of GDPR, freedom of information, and other legislation, and that they are operating within Council’s policies and procedures in this respect.

Retention of Records and Documents

6.22 Corporate Directors and Heads of Service shall ensure that financial records, vouchers and documents will be preserved in accordance with the Council’s data retention policy prescribed by the Council’s arrangements under relevant legislation and/or regulations. In addition, Corporate Directors and Heads of Service shall ensure that document retention requirements specified by bodies providing external funding are met to ensure that funding is not jeopardised. Financial records will not be disposed of other than in accordance with arrangements approved by the Director of Governance and Corporate Services.

Internal Audit

General

7.1 The Chief Financial Officer is responsible for ensuring an adequate and effective internal audit function is undertaken, the operation and management of which has been delegated to the Audit Manager. The Audit Manager has also the delegated responsibility for reporting to the Audit and Governance Committee should the possibility arise of a failure to maintain an adequate and effective internal audit function.

7.2 The Audit Manager shall submit an annual report on Internal Audit’s plan and performance to the Audit and Governance Committee. The Committee will monitor performance against the annual audit plan.  An annual report on Counter Fraud/Investigations shall also be submitted to the Audit and Governance Committee.

7.3 Internal Audit shall have access at any reasonable time to any Officer of the Council, its premises and to any records, cash, stock, computer systems or any other relevant sources of information as may be deemed necessary. Corporate Directors and Heads of Services are responsible for ensuring Internal Audit is provided with such explanations as are requested for the performance of their function.

Fraud and Financial Irregularities

7.4 The Investigations Manager shall maintain an Anti-Fraud and Anti-Corruption Policy and a Fraud and Corruption Response Plan which shall detail the Authority’s approach to the prevention, detection and investigation of fraud and corruption. The Anti-Fraud & Anti-Corruption Policy and Fraud and Corruption Response Plan shall be approved by the Cabinet.

7.5 If any instance of theft, fraud, bribery, corruption or other financial irregularity is discovered or is suspected the Corporate Director and/or the relevant Head of Service and/or an individual Officer shall notify the Investigations Manager immediately, who will then consult with the Chief Financial Officer. The Investigations Manager (in consultation with the Chief Financial Officer) is empowered to make arrangements for such special investigations and reports as they consider necessary to be undertaken.

7.6 Should the Investigations Manager (in consultation with the Chief Financial Officer) consider it necessary they shall notify the police after first advising the Chief Executive and the Monitoring Officer.

Internal Control

7.7 It is the responsibility of Corporate Directors and Heads of Service to ensure that risks are appropriately managed and that internal controls and governance arrangements are adequate and effective, and to take all necessary action to secure this on an ongoing basis.

7.8 Corporate Directors and Heads of Service shall consult the Chief Financial Officer about any proposed changes or developments to financial procedures, records, systems and accounts, and any changes are subject to the Chief Financial Officer’s agreement.

7.9 Corporate Directors and Heads of Service shall consider and respond to recommendations in audit reports, setting out what action is proposed. Audit recommendations shall be implemented within the agreed timeframe. Corporate Directors and Heads of Service are responsible for monitoring and tracking the implementation of internal audit recommendations within their service area and reporting on these in line with the Council’s performance reporting framework.

7.10 Internal Audit shall undertake a follow up of agreed actions. The purpose of this follow up is to provide independent assurance that management actions have been implemented within agreed timescales and that controls are working effectively.  This follow up process does not in any way remove management’s responsibilities for monitoring and reporting on the implementation of their agreed actions.  Corporate Directors and Heads of Service shall respond promptly to requests for information on the progress made in implementing actions agreed in relation to internal audit recommendations. Corporate Governance/ Annual Governance Statement

7.11 The Director of Governance and Corporate Services and Chief Legal and Governance Officer Services are responsible for advising on effective corporate governance across the Council.

7.12 At least annually as part of the Governance Statement, Corporate Directors and Heads of Service shall undertake a review of internal control and governance arrangements. The Head of Paid Service and Leader of the Council are responsible for ensuring that an Annual Governance Statement is produced in accordance with the Council’s local code of corporate governance and regulation(s). The Monitoring Officer is responsible for ensuring that information on governance is accurate and reflects the position at the time of the statement.

7.13 Where it appears that internal control or governance arrangements are not operating effectively Corporate Directors and Heads of Services shall notify the Chief Financial Officer and Chief Legal and Governance Officer immediately.

7.14 The Audit and Governance Committee shall oversee the production of and approve the Council’s annual governance statement and obtain assurances about performance systems and data quality.

Closure of Accounts

General

8.1 The Chief Financial Officer shall issue closure of accounts guidance, which shall include the timetable and process for achieving closure of the Council’s accounts for each financial year, and the Chief Executive and each Corporate Director and Head of Service shall ensure that any information which is required by the Chief Financial Officer is supplied accurately in accordance with accounting conventions and any deadlines which are prescribed.

8.2 The Chief Financial Officer shall ensure that accounting entries are processed according to the specified timetable and deadlines.

The Annual Statement of Accounts

8.3 The Chief Financial Officer is responsible for ensuring that the annual statement of accounts prepared in accordance with proper practices as set out in the Code of Practice on Local Authority Accounting in the United Kingdom, and regulations The Chief Financial Officer shall sign and date the statement of accounts, stating that it is gives a ‘true and fair’ view of the financial position and transactions of the Council, including group financial statements where the Council has material interests in subsidiaries, associates or joint ventures.

8.4 The Audit and Governance Committee is responsible for approving the annual statement of accounts by the statutory deadline, and to receive reports from the external auditor relating to any material issues relating to the Accounts.

Accounting Systems and Records

General

8.5 The Chief Financial Officer is responsible for determining the accounting systems, procedures and records for the Council, and providing guidance and advice on all accounting matters.

8.6 The Chief Financial Officer shall ensure that the financial data held within the Council’s corporate financial systems are maintained accurately and reliably and updated in accordance with agreed timescales and deadlines; and that the Chief Executive, Corporate Directors and Heads of Service are provided with appropriate access to systems/ information or reports as may be agreed.

8.7 The Chief Executive, Corporate Directors and Heads of Service shall adhere to accounting systems, procedures and adopt the form of financial records and statements as determined by the Chief Financial Officer.

Taxation

General

9.1 The Chief Financial Officer is responsible for ensuring that appropriate advice is available to the Chief Executive, Corporate Directors and Heads of Service on all taxation issues (excluding payroll) that affect the Council, having regard to guidance issued by appropriate bodies and relevant/applicable legislation.

9.2 The Head of People and Organisational Development is responsible for ensuring that appropriate advice is available to the Chief Executive, Corporate Directors and Heads of Service on all payroll taxation issues that affect the Council, having regard to guidance issued by appropriate bodies and relevant/ applicable legislation.

9.3 The Chief Financial Officer is responsible for ensuring that the Council’s tax records are maintained and that all tax payments are made, tax credits received, and tax returns submitted by their due date as appropriate, and tax transactions are properly accounted for.

9.4 Tax related documentation will be stored and be readily accessible for examination in accordance with the Council’s data retention policies.

Income Control

General

10.1 The Chief Financial Officer is responsible to make safe and efficient arrangements for the receipt and collection of monies paid or due to the Council

10.2 The Chief Financial Officer shall make arrangements for the:

• a. Proper recording of all sums due to the Council; and
• b. Prompt and proper accounting for all cash including its collection, custody, control and deposit.

10.3 The Chief Executive, Corporate Directors and Heads of Service shall ensure that, where applicable, VAT is charged in calculating any income due in accordance withFPR8 Taxation. The Chief Executive, Corporate Directors and Heads of Service shall seek advice on VAT from the Chief Financial Officer when required. The Chief Financial Officer is responsible for ensuring income is recorded in the Council’s corporate financial systems. The Chief Executive, Corporate Directors and Heads of Service shall ensure that all income is accurately recorded against the correct budget.

10.4 All controlled stationery associated with income collection shall be held in a controlled environment.

Income Collection

General

10.5 The Chief Financial Officer is responsible for maintaining records of debts raised and notified by the Chief Executive, Corporate Directors and Heads of Service for collection, and is also responsible (together with Corporate Directors and / or Heads of Service where such tasks may have been delegated), for subsequent recovery of debts.

10.6 All arrangements relating to the collection of monies due to the Council is subject to approval by the Chief Financial Officer. The Chief Executive, Corporate Directors and Heads of Service shall seek advice from the Chief Financial Officer on proposals to amend any records or income collection systems.

10.7 The Chief Executive, Corporate Directors and Heads of Service shall provide the Chief Financial Officer and/ or the Chief Legal and Governance Officer with all information required for the collection of debts. The Chief Legal and Governance Officer in consultation with the Chief Executive, relevant Corporate Director and/ or Head of Service, shall institute, defend, settle or compromise on behalf of the Council, any legal proceedings.

10.8 The Chief Executive, Corporate Directors and Heads of Service shall provide the Chief Financial Officer with information required to report on the collection of income and debt, in the format and timescales agreed by the Chief Financial Officer.

10.9 All sums received by Officers are to be paid over intact to the Chief Financial Officer or by arrangement with them to the Council’s bankers at such intervals as the Chief Financial Officer may agree.

10.10 The Chief Financial Officer shall be notified immediately the relevant documents are signed, of all money due to the Council under contracts, leases and other agreements, and shall have access to all related documents and particulars. The Chief Financial Officer shall be informed immediately of any changes or cessation of such arrangements that affect the monies due.

Write-offs

General

10.11 Provided appropriate steps have been taken to recover monies due to the Council, Debts can be written off in line with the limits set out in Annex A.

10.12 All sums written off shall be recorded in a central register maintained by the Chief Financial Officer. A summary of the sums written off and details of individual write-offs that exceeded £100,000, will form part of the Provisional Outturn report

10.13 Write offs of income and redundant stocks and equipment may be written off in line with the limits in Annex A.

Sales, Fees and Charges

General

10.14 Scales of charges for sales, fees and charges for Council services shall be reviewed and amended (if required) at regular intervals (minimum annually) by the appropriate Corporate Director and Head of Service in consultation with the Chief Financial Officer and in accordance with any policy from Council, and in line with relevant legislation, seeking advice where necessary from the Chief Legal and Governance Officer.

10.15 Trading accounts will normally operate within a full trading account approach and will not receive any allocation of resources directly as part of the revenue budget. These Financial Procedure Rules which refer to amendment of approved budgets and budget transfers (virement) at FPR2 Control of Resources, shall therefore not be applicable to trading accounts.

10.16 It is the responsibility of the relevant Corporate Director and Heads of Service to seek advice from Chief Financial Officer on the establishment and operation of trading accounts.

Funding, Sponsorship and Donations

General

10.17 Before any bid submissions for competitive funding, sponsorship or donations are made by Officers to third parties, they must seek the approval of the Chief Financial Officer.

Ordering Goods and Services and Payment of Invoices

10.18 The following section should be read in conjunction with the Procurement and Contract Procedure Rules (Part 3.2).

Order Goods and Services

10.19 The ordering of goods and services shall be undertaken using the correct procedures and the appropriate stationery/systems, and in accordance with procedures and guidance issued by the Chief Financial Officer.

10.20 The Chief Executive, Corporate Directors and Heads of Service shall provide a list of Officers authorised to approve orders, for approval by the Chief Financial Officer. The Chief Financial Officer shall maintain a record of the Officers approved to authorise orders. The approval levels for orders, are detailed in Annex A, section iii.

10.21 Official orders, which shall clearly indicate the nature and quantity of the goods, work or services required and contain an estimate of the sum involved, shall be issued for all goods, work and services except in circumstances summarised in paragraph 10.22 below. Oral orders, which shall only be issued in exceptional circumstances where an electronic order cannot be issued at the time, must be confirmed within 3-Working Days with an order marked “Confirmation Order”.

10.22 Official orders need not be completed for regular payments for utility services or regular periodical payments relating to such items as external audit fees, rents, annual subscriptions, non-domestic rates, service charges, electricity, gas, water, telephones, licences for software maintenance and payments under service contracts awarded competitively.

10.23 Corporate Directors and Heads of Service shall immediately inform the Chief Financial Officer of any variation or cessation of regular periodic payments and orders that need cancelling/ amending, which relate to their area of responsibility.

10.24 The Officer authorising an order shall ensure that the estimated cost of the order is covered by a budget provision, the goods are appropriate and represent value for money.

Payment of Invoices

10.25 Payment will only be made on a proper VAT invoice (not a photocopy or statement). The Chief Financial Officer is responsible for ensuring expenditure is recorded in the Council’s corporate financial systems. Corporate Directors and Heads of Service shall ensure that all expenditure is accurately recorded against the correct budget.

10.26 In respect of goods and services supplied, the Chief Executive, Corporate Directors and Heads of Service are responsible for the expenditure coding and submission of invoices to the Chief Financial Officer for payment and approval for payment, within the supplier’s payment terms, in accordance with procedures and guidance issued by the Chief Financial Officer.

10.27 The Chief Financial Officer is responsible for paying all properly approved invoices submitted for payment.

10.28 The Chief Executive, Corporate Directors and Heads of Service shall provide a list of Officers authorised to approve invoices for payment, for approval by the Chief Financial Officer. The Chief Financial Officer shall maintain a record of the Officers approved to authorise payments. The approval levels for payments, are detailed in Annex A, section iii.

10.29 The Chief Executive, Corporate Directors and Heads of Service may request in writing the Chief Financial Officer to make payment where prices have increased beyond the control of the contractor/supplier. The Chief Financial Officer may make payment provided they are satisfied the increases are reasonable, are in accordance with a decision of the Cabinet or Council, and are within overall budget provision (provided by budget transfer (virement), if necessary).

Credit Card Payments

10.30 The Chief Financial Officer shall approve the issue of a Council credit card for use by a nominated Officer. The nominated Officer shall use the credit card in accordance with procedures and guidance issued by the Chief Financial Officer. The Chief Financial Officer shall maintain a record of the nominated Officers approved to use a credit card.

10.31 The approval levels for raising an order as detailed in Annex A, section iii, shall be followed for notifying/ authorising the nominated Officer to use a credit card to purchase goods and services.

Faster Payments

10.32 Officers shall use faster payments as an alternative method of payment in accordance with procedures and guidance issued by the Chief Financial Officer.

10.33 The approval levels for payments as detailed in Annex A, section iii, shall be followed for faster payments. In addition the Chief Financial Officer or their deputy shall approve faster payments.

Staffing

10.34 The following section should be read in conjunction with the Management Structure and Officer Scheme of Delegation (Part 2.13).

General

10.35 The Chief Executive (Head of Paid Service) is responsible for the Officer structure including the number and grades of staff required to discharge the Council’s functions, the organisation of staff and the appointment and proper management of the Council’s staff.

10.36 Corporate Directors and Heads of Service are responsible for controlling total staff numbers within their areas of responsibility and control in line with issued guidance.

Payments to Officers and Members

General

10.37 The Head of People and Organisational Development is responsible for paying Officers and Members securely, accurately and timely, to maintain appropriate systems and records, and to ensure that a proper allocation of those costs, deductions and related employer’s contributions and payments is provided (as required by the Chief Financial Officer) for updating the Council’s corporate financial systems.

10.38 The Head of People and Organisational Development shall be provided with such information and in such form, as may be prescribed by the Head of People and Organisational Development to permit the calculation and payment of salaries, wages, allowances and superannuation benefits, and to maintain the appropriate financial records. In particular, but not exclusively, the Head of People and Organisational Development is to be informed of all:

• a. Appointments, resignations, dismissals, suspensions, secondments and transfers;
• b. Absences from duty for sickness or other reason, apart from approved leave;
• c. Changes in remuneration other than normal pay awards and agreements of general application; and
• d. Information necessary to maintain records of service.

10.39 Corporate Directors and Heads of Service shall ensure that all payroll transactions are submitted accurately, in the form required, and according to established deadlines. Officers and Members of the Council shall only be paid through the official payroll system.

10.40 Corporate Directors and Heads of Service shall ensure that all payroll costs are accurately recorded against the correct budget, within their area of responsibility.

10.41 The payment of allowances, travelling and incidental expenses for Officers shall be determined by the relevant Portfolio Holder.

10.42 The Head of People and Organisational Development shall issue a Pay Policy containing the determinations in paragraph 10.41 above and shall keep the policy under review.

10.43 The approval levels for authorising expenses are detailed in Annex A, section iii.

Appointment of Agency and / or temporary staff (including Consultants)

10.44 Agency/ temporary staff should only be appointed to cover for extended staff absence, vacant posts, where they have specialist skills or knowledge not available from within the Council’s establishment or to assist with clearing large amounts of work that cannot be covered by a temporary redeployment of resources within a Directorate.

10.45 Unless specifically approved by the Head of People and Organisational Development agency temporary staff may not be continuously employed for longer than six months.

10.46 Where temporary staff members are self-employed the contract of appointment must be reviewed by the Head of People and Organisational Development before any offer of appointment is made to the consultant.

10.47 Where temporary staff members are self-employed they must have their taxation employment status assessed by the Head of People and Organisational Development, and the relevant legislation followed, before any offer of appointment is made to them.

Partnerships/ Joint Working/External Funding

General

11.1 The Chief Executive, Corporate Directors and Heads of Service shall inform the Chief Financial Officer and Chief Legal and Governance Officer of all partnership projects as soon as they are proposed, in accordance with procedures and guidance issued by the Chief Financial Officer and Chief Legal and Governance Officer.

11.2 The Chief Financial Officer must be consulted on all partnership projects prior to the completion of negotiations, who shall provide advice on (but not limited to):

• a. Scheme appraisal for financial viability both in current and future years;
• b. Risk appraisal and management;
• c. Resourcing, including taxation issues; and
• d. Audit, security and control requirements.

External Funding

11.3 Where the Council bids for revenue or capital external funding (either directly or as the accountable body) the decision to apply/bid for the funding is the responsibility of the Corporate Director and/ or Head of Service in consultation with the Chief Financial Officer.

11.4 Where the Council is providing match funding to support projects/funding applications by other organisations, and these organisations request the Council’s support for a project which they are pursuing, the responsibility for approving the Council’s support is the relevant Corporate Director or Head of Service in consultation with the Chief Financial Officer. The match funding shall be subject to the approvals required for revenue and capital grant funding detailed in paragraph 3.17 in Section 3 FPR2 Control of Resources.

11.5 In respect of any external funding arrangements, whether the Council is the accountable body or not, it is the responsibility of the relevant Corporate Director and/ or Head of Service, in consultation with the Chief Financial Officer to ensure that adequate financial management arrangements are in place prior to entering the Council into an external funding arrangement. The processes to ensure adequate financial management arrangements will be determined by the Chief Financial Officer and must be consistent with the terms and conditions of the funding agreement.

11.6 The Chief Financial Officer is responsible for ensuring that all funding notified by external bodies is received and properly recorded in the Council’s corporate financial systems, and Corporate Directors and Heads of Service are responsible for providing the Chief Financial Officer with all necessary information to enable this to be achieved.

Returns/ Grant Claims

General

11.7 Subject to the approvals required for revenue and capital grant funding detailed in paragraphs 3.17 in Section 3 FPR2 Control of Resources, the Chief Financial Officer shall co-ordinate the preparation of/ be consulted on and shall submit in the name of the Council all grant and other claims, and other periodic financial returns/ reports required on the Council. Corporate Directors and Heads of Service are required to supply such information as the Chief Financial Officer requires to complete such claims and returns/ reports.

11.8 Where the Council receives grants (revenue or capital) or external funding from outside bodies (usually but not restricted to government departments) in the absence of a bidding process, the requirements of paragraph 11.3 do not apply. This grant income/external funding is usually subject to clear grant notifications and directions. Corporate Directors and Heads of Service shall notify the Chief Financial Officer of such a grant and shall be included in the annual Budget Report to Council or reported in year to Cabinet through the regular budget monitoring reports as applicable.

Work for Third Parties

11.9 Corporate Directors and Heads of Service shall inform the Chief Financial Officer and Chief Legal and Governance Officer of all work for third parties as soon as it is proposed.

11.10 The Chief Financial Officer must be consulted on all proposed work for third parties prior to the completion of negotiations, who shall provide advice on (but not limited to):

• a. Scheme appraisal for financial viability both in current and future years;
• b. Risk appraisal and management including insurance arrangements;
• c. Resourcing, including taxation issues;
• d. That the Council is not subsidising contracts;
• e. That there is no adverse impact on service delivery; and
• f. That payment arrangements are in accordance with these Financial Procedure Rules

12.1 Amendments to any of the limits set out in annex A is delegated to the Section 151 Officer in consultation with the Portfolio Holder for Finance, Human Resources and Customer Services.

i Budget Monitoring and Control

12.2 (see Section 3 FPR 2 Control of Resources)

12.3 Revenue and Capital

12.4 Capital

*Provided alternative savings are identified and no substantial increased revenue consequences arise.

Note: Where increased costs on a scheme or schemes would mean the total of the scheme’s capital budget would be likely to be exceeded the Chief Financial Officer shall immediately report this fact to the Cabinet and, in consultation with the Chief Executive, Corporate Directors and Heads of Service, shall seek to identify savings in other schemes that would bring expenditure back within budget.

ii New Capital Schemes, Amendment of Approved Capital or Revenue Budgets (supplementary estimates)/ Budget Transfers (virements)

12.5 (see Section 3 FPR2 Control of Resources) (see FPR2 Control of Resources) Note: Any request for a Supplementary Estimate must be approved by the Chief Financial Officer and have the support of the Cabinet Portfolio Holder with responsibility for Finance.

12.6 Revenue and capital expenditure

iii Spending of Revenue and Capital Approved Budgets

12.7 (see Section 3 FPR2 Control of Resources)

Note: When approving expenditure, providing there is an approved budget, Officers shall follow the internal controls for separation of duties.

12.8 Revenue and Capital Approval Levels

Category 1:   Authority to place orders (includes using the Council’s credit card), make commitments and make payments.

Category 2:   Authority to pay expenses.

Category 3:   Authority to make payments relating to pay, benefits, redundancy and early retirement.

Category 4:   Authority to make payments relating to Council tax, business rates and housing benefit.

iv Assets

12.9 (see Section 4 FPR3 Asset Management)

12.10 Acquisition and Disposal of Property and Land

Note: includes Council house right to buy sales and the acquisition and disposal of shared ownership properties.

12.11 Disposal of Assets other than Land and Property

v Banking and Cash Handling

12.12 (see Section 4 FPR3 Asset Management)

vi Write-offs

12.13 (see Section 10 FPR9 Systems and Procedures)

* Where a business has been liquidated