Summmary of Financial Regulations
CYNGOR CYMUNED LLANSANFFRAID GLAN CONWY COMMUNITY COUNCIL
Summmary of Financial Regulations
1. The Financial Regulations govern the conduct of financial management by the Council.
2. The Council is responsible in law for ensuring that its financial mangement is adequate and effective and that it has a sound system of internal control, including arrangements for the management of risk.
3. The Responsible Financial Officer administers the Council’s financial affairs in accordance with all Acts, Regulations and ‘proper practices’; the latter refers to the most recent version of ‘Governance and Accountability for Local Councils in Wales - A Practitioners Guide’
4. At least once a year, prior to approving the Annual Governance statement the Council must review these systems and ensure they remain in accordance with proper practices.
5. The accounts will be properly kept throughout the year. These will show and explain the Council’s transactions and provide the necessary financial management information to the Council. Regularly updated versions of the financial spreadsheets are retained by the Chairman at a separate location to that of the RFO.
6. Requests for payment are authorised by Council and paid by the RFO on receipt of invoices or receipts. When payment is by cheque three councillors will sign cheques immediately the payments have been approved in the council meeting. Online banking is more commonly used. In this case the Primary User will have transactions verified by a nominated Secondary User.
7. The monthly bank statements will be checked against income and expenditure by the RFO and a reconciliation presented to Council in the form of a Financial Report. This will include a list of all invoices requiring approval.
8. The annual precept request will be as the result of a proper budgetary process taking full consideration of council running costs, anticipated projects and agreed reserves. A Draft Budget for the following financial year will be presented to Council before the calendar year end.
9. To ensure no significant variances to the budget exist, a comparison of expenditure to budget will be presented to Council at least at the end of each quarter. Any significant differences will be highlighted and explained.
10. Adequate agreed reserves will be maintained at all times.
11. The Finance Committee will meet each month in the week prior to the fulll Council meeting. Their terms of reference are to oversee the financial management systems and make recommendations to Council for agreement.
12. The Council will appoint an ‘Internal Auditor’ to assist in the annual audit by reporting at least annually on the accuracy and adequacy of internal controls.
13. The investment strategy will include a regular review of interest rates and any charges on deposit and current accounts to achieve the best returns available, taking into consideration cash flow requirements and agreed level of risk.
14. The Risk Assessment policy will be reviewed annually. Adoption and review of the risk assessment policy will be included within the council’s Standing Orders. A copy of this Risk Assessment policy will be issued to all councillors.
15. The Council’s insurance policy will be reviewed regularly to ensure that the Council and its physical assets have appropriate levels of cover.
16. The end of year accounts will be presented to the council for approval at the annual general meeting immediately following the end of year. The Chairman will then confirm the accounts as being correct by signing.
17. The RFO will ensure that the Council complies with the reporting requirements and timetable of Audit Wales when submitting the Annual Return.
18. As an employer the Council will meet the statutory requirements for the payment of PAYE and National Insurance. Salary rates will be as agreed by Council after review by the Employmewnt Committee.
19. All work carried out for the Council will be on a ‘best value’ basis. Above £2,000 three quotes are required; where the value is below £2,000 but above £250 the applicant shall strive to obtain three estimates. Below £250 the Council will use its discretion regarding the nature of the request. The council will approve all works in advance. These limits apply equally to all grant and funding reqests.
20. All invoices shall be examined and certified by the RFO to confirm that the work, goods or services to which each invoice relates has been received, carried out, examined and represents expenditure previously approved by the Council.
21. Grant and/or funding requests shall be submitted on the approved Council Funding Request Form and considered in line with any relevant expenditure limits set by Council and in accordance with any policy statement approved by Council.
22. All council books are available for inspection by any person in the community upon reasonable notice of such a request.
Adopted: 14/05/2024
Amended (para 19) 11/06/2024