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South Ayrshire Council Customer Services Opening Hours |
| Financial administration | |
Responsibility of Policy and Resources Committee |
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| Financial plan and capital estimates | |
Financial plan for capital expenditure |
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| Control of capital expenditure | |
Need for Committee consent |
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| Revenue estimates | |
Information |
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Need for Committee consent |
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| Legality of expenditure | |
| Control of income | |
| Determination of charges Accounting arrangements Notification of income to Head of Finance and ICT Write-offs Treatment of monies collected Controlled stationery Personal cheques Transfers of cash, cheques, etc Exchequer grants |
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| Borrowing and leasing | |
Borrowing arrangements |
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| Banking and control of cheques | |
Arrangements with bankers |
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| Investments and trust funds | |
Investments |
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| Stores, inventories and costing | |
Costing system and stores control |
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| Order books and payment of accounts | |
Method of payment |
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| Accounting | |
Accounting procedures and records |
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| Internal Audit | |
Responsibility for Internal Audit |
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| Cash imprests | |
Provision of imprests |
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| Arrangements for claims Regulations Employees' claims Certification of employees' claims Members' claims |
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| Salaries, wages and pensions | |
Information regarding appointments, etc |
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| Security | |
Responsibility for security |
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| Insurance | |
Responsibility for risk management and insurance |
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| Contracts for works, etc | |
Record of contracts |
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Responsibility of Directors and Heads of Service |
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| Review of financial regulations | |
| Variation and revocation | |
| Guidelines on the use of the contingency fund | |
| Financial Regulations |
Preamble
South Ayrshire Council is accountable for the stewardship of public funds. Stewardship is a function of management, and, therefore, a responsibility placed upon the elected members and officers of the Council. That responsibility is discharged by the establishment of sound arrangements and systems for the planning, appraisal, authorisation and control over the use of resources, and by the preparation, maintenance and reporting of accurate and informative accounts.
These financial regulations should be read in conjunction with other regulations of the Council, such as:
and with other regulations observed by the Council:
Elected members and officers have a duty to abide by the highest standards of probity in dealing with financial issues. This is facilitated by ensuring that everyone is clear about the standards to which they are working and the controls that are in place to ensure that these standards are met.
The key controls and control objectives for financial management standards are:
Responsibility of Policy and Resources Committee
Subject to the terms of reference of Committees, the Policy and Resources Committee shall be responsible for regulating and controlling the finances of the Council within the guidelines determined by the Council.
Responsibility of Head of Finance and ICT
The Head of Finance and ICT shall:
(a) be the proper officer of the Council for the purposes of Section 95 of the Local Government (Scotland) Act 1973 for the administration of the financial affairs of the authority; and
(b) act as financial adviser to the Council and all its ommittees.
Specific responsibilities include:
(i) to ensure the proper administration of the financial affairs of the authority;
ii) to set the financial management standards, and to ensure that compliance with them is monitored;
(iii) to ensure proper professional practices are adhered to, and to act as head of profession in relation to the standards, performance and development of finance staff throughout the authority;
(iv) to advise on the key strategic controls necessary to secure sound financial management; and
(v) to ensure that financial information is available to enable accurate and timely monitoring and reporting of financial performance.
Responsibility of Directors and Heads of Services
(i) Directors and Heads of Service should ensure at all times that they endeavour to secure the best value for expenditures incurred by them with the objective of achieving the policies of the Council at the minimum cost.
(ii) Each Director and Head of Service shall consult with the Head of Finance and ICT in respect of any matter affecting his/ her department which is liable to affect materially the finances of the Council before any provisional or other commitment is incurred, or before reporting thereon to a Committee, except in an emergency and/ or as authorised by any scheme of delegation. In such cases of emergency, a report must be submitted to the Head of Finance and ICT as soon as possible thereafter.
(iii) It is the responsibility of all Directors and Heads of Service to promote awareness of and adherence to these financial regulations.
| Financial plan and capital estimates |
Financial plan for capital expenditure
The procedure for the preparation annually of a 3 year financial plan for capital expenditure to conform with the instructions of the Policy and Resources Committee shall be determined by the Chief Executive.
Capital estimates
The annual capital estimates shall correspond to the first year of the financial plan, and detail the committed capital projects and new capital projects on which the Council intends to incur expenditure.
Form
The detailed form of the financial plan and capital estimates shall be determined by the Chief Executive in consultation with the Head of Finance and ICT and the Director of Environment and Infrastructure.
Preparation
All Directors and Heads of Service shall provide such information as may be required for the purpose of preparation of the financial plan and capital estimates.
Authorisation procedure
The financial plan and capital estimates, along with reports by the appropriate officials, shall be considered and approved by the Policy and Resources Committee.
| Effect of the authorisation |
The approval of the financial plan by the Council shall permit Directors and Heads of Service:
(i) to incur preliminary expenses and design costs in respect of projects included in years 2 and 3 of the plan; and
(ii) to take the steps necessary to acquire land associated with projects specified and included in years 2 and 3 of the plan.
Expenses to be incurred in terms of paragraph A (i) and A (ii) above must be included in the financial plan in year 1.
Capital estimates
The approval of the capital estimates by the Policy and Resources Committee shall permit Directors and Heads of Service to proceed with projects within the capital estimates unless:
(i) the actual tender cost of the project or the revised estimate of the project exceeds the provision in the capital estimates; or
(ii) the nature of the capital project has changed substantially from that envisaged when the capital estimates were approved.
In these cases, fresh approval shall be necessary from the Policy and Resources Committee before the project proceeds, which approval shall be given only if the capital expenditure can be contained within the total capital allocation for that year.
| Control of capital expenditure |
Limitation on expenditure
No capital expenditure shall be incurred unless:
(i) the expenditure is provided for in the capital estimates; or
(ii) arrangements are made, with the approval of the Policy and Resources Committee, to contain such expenditure within the total capital programme for that year.
The approval of the Policy and Resources Committee shall be required before:(i) a capital project contained within the financial plan in subsequent years is advanced into the capital estimates; or
(ii) a new capital project outwith the financial plan is introduced into the capital estimates.
Such approval shall be given only if the expenditure can be contained within the capital allocation for that year.
Variance during the life of a capital project
If it becomes apparent after the commencement of a capital project that it will be considerably under- or overspent, or if the phased expenditure for the current year is likely to vary significantly, it shall be the duty of the Director of Environment and Infrastructure to report immediately to the Policy and Resources Committee so that appropriate action may be taken with regard to that project or to other projects within the capital estimates.
Government approvals
It shall be the duty of the appropriate Head of Service to ensure that any required government approvals have been obtained before the commencement of a capital project.
Budgetary control
It shall be the duty of the Head of Finance and ICT and the Director of Environment and Infrastructure to furnish regularly and timeously to all Committees and Directors and Heads of Service budgetary control statements comparing actual financial performance with the respective capital estimates.
It shall be the duty of the Director or Head of Service concerned to ensure that the provision in the capital estimates is not exceeded, and that the expenditure conforms to the requirements of these regulations.
| Revenue estimates |
Guidelines
After consultation with the Chief Executive, the Head of Finance and ICT shall report to the Policy and Resources Committee on the strategy to be adopted prior to recommending to Council the resource levels to be allocated to each department for the purpose of preparation of the revenue estimates.
Preparation
The Chief Executive and each Director or Head of Service shall, in conjunction with the Head of Finance and ICT, prepare revenue estimates in respect of his/ her department in accordance with resource allocations laid down by the adopted strategy, and to a timetable set by the Head of Finance and ICT, with the approval of the Chief Executive.
Authorisation procedure
The revenue estimates for each financial year shall be submitted to the Council for approval, along with a recommendation as to the Council tax level to be set (in accordance with statutory requirements).
| Control of revenue expenditure |
Limitation on expenditure
No expenditure chargeable to revenue account shall be incurred unless it has been included in the revenue estimates, except:
(i) where a supplementary estimate has been approved by the Policy and Resources Committee; or
(ii) in emergency situations in terms of the scheme of delegated functions; and
(iii) as provided for in paragraph Virement
Budgetary control
It shall be the duty of the Head of Finance and ICT and Directors to furnish regularly and timeously to all Committees and Directors and Heads of Service budgetary control statements on revenue account comparing actual performance with the respective estimates.
It shall be the duty of the Director or Head of Service concerned to ensure that items of expenditure in the revenue estimates of his/ her department are not overspent, and that the income and expenditure of his/ her department conform to the requirements of these regulations.
The Chief Executive, Directors and Heads of Service shall also provide the Head of Finance and ICT with whatever assistance and information he/ she considers necessary in order to ensure the effectiveness of the budgetary control statement. This will include the phasing of budgets over accounting periods, the explanation of budgetary variances and the determination of probable out-turns.
| Virement |
(i) A deficit under a head of expenditure may be balanced by a transfer from another head of expenditure on which there is a surplus where the deficit has arisen due to circumstances which could not have been foreseen, and the transfer would not involve a change of policy of the Council.
Where the amount involved is £ 5,000 or under, the transfer shall be agreed between the Head of Finance and ICT and the Director or Head of Service concerned. Where the amount is over £ 5,000 and less than £ 25,000, the additional agreement of the Convener of the Spending Committee shall be required. Where the amount is £ 25,000 or over, the transfer shall be approved by the Spending Committee concerned and the Policy and Resources Committee.
(ii) Where a net saving could be achieved by overspending under one head of expenditure without changing the policy of the Council, a transfer may be made from a head of expenditure which is in surplus, provided approval as in paragraph (i) above has been obtained.
Variances
Where it appears that any head of income or expenditure may vary significantly from that appearing in the revenue estimates, it shall be the duty of the Director or Head of Service concerned, in conjunction with the Head of Finance and ICT, to report to the Spending Committee concerned as soon as possible after the variance has become apparent the details of the variance and any remedial action recommended.
Reports to Committees
All reports presented to Committee by Directors and Heads of Service must specifically identify the extent of any financial implications. Any such implications must be clearly stated in the reports to Committee, identifying cost and income in the current and future years, the impact on capital and revenue spending and whether or not, and exactly where, such resources are included in budget, or, if not, how and from where it is proposed that such financial resources be obtained.
| Legality of expenditure |
| Control of Income |
Determination of charges
The Chief Executive and each Director or Head of Service shall review not less than annually the charges for goods or services provided by his/ her department, and, except where the charge is fixed externally, shall submit proposals thereof for the consideration of the appropriate Committee unless otherwise provided for in the scheme of delegated functions or in the terms of reference of Committees.
In order to preserve the real value of such income, increases recommended to Committee should have regard to the current rate of inflation, and should reflect the impact of any change in the rate of value added tax.
Accounting arrangements
It shall be the duty of the Head of Finance and ICT to make adequate financial and accounting arrangements to ensure:
(a) the prompt and proper recording of all monies due to the Council; and
(b) the prompt and proper collection, custody, control and remittance of all cash in all departments of the Council.
Notification of income to Head of Finance and ICT Particulars of all charges made for work done, rendered or goods supplied by the various departments of the Council, and of all other amounts due to the Council shall be notified to the Head of Finance and ICT promptly in a form approved by him/ her. All accounts for income due to the Council shall be raised and issued timeously by or under arrangements approved by the Head of Finance and ICT
Write-offs
Sums due to the Council shall not be written off except with the approval of the Policy and Resources Committee, or except by the Director of Development, Safety and Regulation in exercise of delegated powers (up to a limit of £ 1,000).
Treatment of monies collected
All monies received on behalf of the Council in any department shall be recorded and deposited immediately with the Head of Finance and ICT or the Council's bankers in accordance with arrangements made with the Head of Finance and ICT. No deduction may be made from such money. Cash discount will not be offered to any debtor.
Controlled stationery
All official controlled stationery, such as cheques, debtor accounts and receipts for the disbursement and collection of monies, shall be in a form approved by the Head of Finance and ICT, and shall be ordered, controlled and issued to departments by him/ her or under arrangements agreed by him/ her.
Personal cheques
Personal cheques shall not be cashed out of the monies held on behalf of the Council except with the personal approval of the Chief Executive or the Head of Finance and ICT
Transfers of cash, cheques, etc
All transfers of cash, cheques (pre-signed and National Giro) and investment certificates, etc, from one member of staff to another shall be evidenced in the records of the departments concerned by the signature of the receiving officer.
Exchequer grants
The Head of Finance and ICT shall be advised timeously of all relevant information necessary for him/ her to submit or certify applications for exchequer grants due to the Council. All grants are to be paid direct to the Head of Finance and ICT.
| Borrowing and leasing |
Borrowing arrangements
All borrowing arrangements of the Council for the purpose of its functions shall be made by the Head of Finance and ICT, and the arrangements made shall be reported regularly to the Policy and Resources Committee (in line with the Council's treasury management policy).
Borrowings to be in name of Council
All borrowings on behalf of the Council shall, unless they are for the purposes of any trust under any deed of trust or other document, be secured on the rates and revenues, and shall be effected in the name of the Council. The Chief Executive , the Head of Finance and ICT or other employees authorised by the Chief Executive are authorised to sign all loan documents, unless:
(i) statute or other legal requirements provide that other signatures are required; or
(ii) alternative arrangements have been approved by the Policy and Resources Committee.
Registrar of stocks, bonds and mortgages
The Head of Finance and ICT shall be the registrar of stocks, bonds and mortgages, and shall maintain records of all borrowing of money by the Council, except where another registrar has been appointed by the Council, when the Head of Finance and ICT shall maintain records of the total sums borrowed.
Leasing
With the exception of heritable property, and subject to the standing orders relating to contracts and the scheme of delegated functions, no leasing of equipment or capital assets should be undertaken on behalf of the Council without the prior approval of the Head of Finance and ICT
Treasury management
(i) South Ayrshire Council will adopt CIPFA's 'Treasury Management in the Public Services: Code of Practice' (the Code) as described in Section 4 of that Code.
(ii) The Council will create and maintain as the corner stones of effective treasury management:
(a) an annual treasury management policy statement identifying policies with regard to treasury management and the objective of these; and
(b) suitable treasury management practices setting out the manner in which the organisation will seek to achieve treasury management policies and objectives, and prescribing how it will manage and control treasury management activities.
(iii) All money in the hands of the Council shall be aggregated for the purposes of treasury management, and shall be under the control of the Head of Finance and ICT
(iv) All executive decisions on borrowing, investment or financing shall be delegated to the Head of Finance and ICT, or, through him/ her, to his/ her staff, who shall all be required to act in accordance with the Code, the Treasury Policy Statement and the agreed Treasury Management Practices .
(v) The Head of Finance and ICT shall make an annual report to the Policy and Resources Committee not later than 30 September of the succeeding financial year on the activities of the treasury management operation, and on the exercise of treasury management powers delegated to him/ her.
| Banking and control of cheques |
Arrangements with bankers
All arrangements with the Council's bankers concerning the Council's bank accounts and the issue of cheques shall be made by the Head of Finance and ICT.
Opening and closing of bank accounts
Official bank accounts bearing the Council's name shall only be opened or closed by the Head of Finance and ICT
Payments into bank
All monies received shall be paid into the Council's bank accounts daily, or at such other intervals as may be approved by the Head of Finance and ICT.
Cheque control
All arrangements for the ordering, controlling and signing of cheques on behalf of the Council shall be made by the Head of Finance and ICT.
Tender for bank services
All services provided by the bank in relation to management of the Council's bank accounts and the issue of cheques shall be subject to open tendering procedures at least once every 5 years.
| Investments and trust funds |
Investments
(i) Council funds shall be invested in accordance with the policy of the Council, and shall be held in the name of the Council.
(ii) All trust funds shall, whenever possible, be held in the name of the Council.
(iii) The sale of investments, unless otherwise provided for in a trust deed or other document, shall be within the policy determined by the Policy and Resources Committee.
Deposit of trust securities
All officers acting as trustees by virtue of their official position shall deposit all securities, bank books and documents (other than title deeds to heritable property) and articles of value relating to any trust with the Head of Finance and ICT unless the relevant trust deed otherwise provides.
Control of charitable funds
The Head of Finance and ICT shall ensure the proper and safe custody and control of all charitable funds held by the Council, and that all expenditure is in accordance with the conditions of the fund.
| Stores, inventories and costing |
Costing system and stores control
Arrangements made by the Directors and Heads of Service for costing systems and stock and stores control shall be subject to the approval of the Head of Finance and ICT
Custody of stores and stocktaking
The care, custody and level of stores and equipment in any department shall be the responsibility of the appropriate Director or Head of Services, who will ensure that:
(i) stocktaking is carried out at regular intervals as agreed by the Head of Finance and ICT; and
(ii) all obsolete or excess stock or scrap material is identified and disposed of in accordance with the standing orders relating to contracts and the scheme of delegated functions.
Write-offs or surpluses of stores
Each Director or Head of Service shall report annually to the appropriate Spending Committee and the Policy and Resources Sub-Committee on Resource Management the total values of write-offs and surpluses of stock, the net effect of these adjustments on the book value of consumable stores under his/ her control and a brief explanation of the reasons for these differences.
Inventories
Every department of the Council shall maintain full and accurate inventory records in a form approved by the Head of Finance and ICT. The Head of Finance and ICT shall be responsible for issuing instructions on inventory procedures and record-keeping.
Use of equipment and stores
The Council's property shall not be removed other than in the course of the Council's normal business or used other than for the Council's purposes without the specific approval of the Director or Head of Service concerned.
| Order books and payment of accounts |
Official orders
Except for petty cash purchases, supplies of public utility services and periodic payments such as rent and rates, and subject to the provision of the standing orders relating to contracts and the scheme of delegated functions, all goods, materials or services supplied to or work executed for the Council shall be ordered or confirmed in writing by means of an official order, or by written acceptance of a tender or offer, and acceptances shall be signed only by officers authorised by the Director or Head of Service of the ordering department. A current list of officers so authorised, together with specimen signatures, shall be maintained by each department.
Authorisation of orders must be by an authorised signatory, either in manuscript or in accordance with the privileges set in the corporate financial management system.
Central purchasing and standardisation
Each order shall conform with the directions of the Council with respect to central purchasing and the standardisation of goods, materials and services.
Check on goods, materials and services received
It shall be the duty of the Director or Head of Service of each department which places an order to ensure that all goods, materials and services received following the placing of orders by him/ her are as ordered in respect of price, quantity and quality.
Certification by Head of Service
The Director or Head of Service of each department which incurs expenditure shall arrange for the certification by an officer of his/ her department that all payment vouchers comply with the following:
(i) the expenditure is on items or services which it is within the Council's legal powers to incur;
(ii) the goods, materials, services or work to which the account relates have been received or carried out as the case may be, and have been examined and approved, and are in accordance with the order;
(iii) the prices, extensions, calculations, trade discounts, other allowances, credits and tax are correct;
(iv) the relevant expenditure has been properly incurred, and is within the relevant estimate provision;
(v) appropriate entries have been made in inventories, stores records or stock records, as required; and
(vi) the expenditure is charged against the relevant account.
The certification must be by an authorised signatory, either in manuscript, or in accordance with the privileges set in the corporate financial management system.
The voucher having been so certified, the Director or Head of Service or other authorised officer intimated to the Head of Finance and ICT shall pass it expeditiously to the Head of Finance and ICT for payment to ensure that any offer of cash discount for early payment is received, and that creditors are timeously paid.
Authorised signatoriesDuplicate invoices, etc
Payment shall not be made on duplicate or photocopy invoices unless the Director or Head of Service or other authorised officer certifies in writing that the amounts have not been previously passed for payment.
Financial Services' checks
The Head of Finance and ICT shall supplement the departmental checks on payment of accounts as he/ she considers necessary.
Amendments to payment vouchers
Any amendments to payment vouchers shall be made in ink, and initialed by the officers making them, stating briefly the reasons where this is not self evident. Alterations must not be made using correcting fluids. Tax invoices must be returned to the creditor for alteration.
| Accounting |
Accounting procedures and records
All accounting procedures and records of the Council shall be determined by the Head of Finance and ICT, and all accounts and accounting records of the Council shall be compiled by the Head of Finance and ICT or under his/ her direction.
Internal check
The following principles shall be observed in the allocation of duties:
(ii) officers charged with the duty of examining and checking the accounts of cash transactions shall not themselves be engaged in any of these transactions.
(i) a copy of the certified stock list for his/ her department as at the end of the financial year (or date in lieu thereof as laid down by the Head of Finance and ICT) together with any reports referred to in paragraphs 11.2 and 11.3 above;
(ii) a certificate confirming that inventories of all moveable furniture, equipment, plant and other items are kept on a continuous basis in all locations under his/ her control; and
(iii) any other information necessary to close the Council's accounts.
| Internal Audit |
Responsibility for Internal Audit
Internal Audit, under the control and direction of the Chief Executive , shall be arranged for the purpose of carrying out an examination of financial and related systems of the Council to ensure that the interests of the Council are protected.
Internal Audit work within the terms of reference which are formally approved by the Policy and Resources Sub-Committee on Performance Appraisal and Audit. The terms of reference are available on The Wire. Internal Audit adhere to the CIPFA Code of Practice for Internal Audit in Local Government in the United Kingdom.
Reporting arrangements for Internal Audit
(i) Officers engaged in Internal Audit will report directly to the Chief Executive.
(ii) Internal Audit reports will be distributed as follows:
(a) client departments will receive a copy of the Internal Audit report at the conclusion of the audit assignment;
(b) the Chief Executive and the Council's Section 95 Officer will receive copies of all Internal Audit reports; and
(c) the Council's Monitoring Officer shall receive copies of Internal Audit reports where these contain issues which could potentially adversely affect the proper management of the Council.
(iii) The Annual Audit Plan will be submitted to the Policy and Resources Sub-Committee on Performance Appraisal and Audit at the beginning of the financial year. The purpose is to advise members of the programme of audit work for the forthcoming financial year. The plan will be compiled following consultation with the Chief Executive and all Service Executive Directors.
(iv) Audit reports showing the activity of the Internal Audit section, progress achieved against plan and a summary of significant audit findings will be presented to the Policy and Resources Sub-Committee on Performance Appraisal and Audit.
(v) The Chief Executive will report annually to the Policy and Resources Sub-Committee on Performance Appraisal and Audit on the performance of Internal Audit.
Authority of audit
The Chief Executive or his/ her authorised representatives shall have authority, on production of identification, to:
(i) enter at all reasonable times on any Council premises or land;
(ii) have access to all systems, records, documents and correspondence relating to financial and other transactions of the Council;
(iii) have access to all IT hardware/ software running systems on behalf of South Ayrshire Council, including hardware/ software owned by third party service providers;
(iv) require and receive such explanations as are necessary concerning any matter under examination; and
(v) require any employee of the Council to produce cash, stores or any other Council property under his/ her control.
Irregularities
Any evidence or reasonable suspicion of an irregularity relating to funds, stores or other property of the Council shall be reported immediately by the Director or Head of Service to the Chief Executive or his/ her nominated officer. Such irregularities shall be dealt with in accordance with the Council's defalcation procedures.
| Cash imprests |
Provision of imprests On the recommendation of the Director or Head of Service concerned, the Head of Finance and ICT shall provide such imprest accounts as he/ she considers appropriate for such officers of the Council as he/ she considers may require them for purposes of defraying petty and other minor expenses.
Bank accounts for imprest holders
The Head of Finance and ICT shall open bank accounts where it is considered appropriate, and in no circumstances shall the imprest holder overdraw the account. It shall be a standing instruction to the Council's bankers that an imprest holder's account shall not be overdrawn. Bank accounts will not be opened by any officer other than the Head of Finance and ICT or their Depute.
Exclusion of payments to the Council
No payments to the Council shall be paid into an imprest account, but shall be lodged in a bank as provided for in paragraph 9.3 hereof. Any bank interest earned on imprest accounts will be remitted separately and immediately to the Head of Finance and ICT, and will not be left in the imprest bank balance.
Limit on expenditure
Payments from imprest accounts shall be limited to minor items of expenditure, and to only such other items as the Head of Finance and ICT may approve. Payments shall be supported by a voucher. Imprests must not be used to pay major expenses claims or any suppliers' invoices. The Head of Finance and ICT may prescribe an upper limit to individual items of expenditure to be met out of imprest accounts.
Statement of account
An officer responsible for an imprest account shall, when requested, give to the Head of Finance and ICT a certificate as to the balance of his/ her imprest account.
Termination as imprest holder
On an officer leaving the employment of the Council, or otherwise ceasing to be entitled to hold an imprest advance, that officer shall account to the Head of Finance and ICT for the amount advanced to him/ her. A formal record of this accounting shall be prepared and retained in the department concerned for inspection.
Claims for expenses and allowances
Arrangements for claims
The Head of Finance and ICT shall be responsible for making arrangements for the administration, regulation and payment of claims for expenses and allowances to members and employees of the Council and its Committees and other approved bodies.
Regulations
The Head of Finance and ICT and/ or Head of Human Resources shall make available the current regulations on expenses and allowances to members and employees of the Council and of other approved bodies.
Employees' claims
All claims for payment of travelling allowances, subsistence allowances, car allowances and incidental expenses shall be submitted, duly certified in a form approved by the Head of Finance and ICT, to him/ her at such regular intervals as he/ she requires. Such payments will not be made out of imprest accounts without the express authority of the Head of Finance and ICT. All such expenses shall, as far as practicable, be paid via the payroll system. Cash advances can be provided in appropriate cases. The names of officers from time to time authorised to certify such claims shall be sent to the Head of Finance and ICT by Directors or Heads of Service, together with specimen signatures, and the names shall be amended on the occasion of any change.
In addition, an annual review of such authorisations should be carried out by each department to ensure that the list of names submitted to the Head of Finance and ICT is complete and up-to-date.
No officer authorised to certify such claims shall certify his/ her personal claim. Personal claims must be certified by a separate authorised signatory.
Certification of employees' claims
The certification by or on behalf of the Director or Head of Service shall be taken to mean that the certifying officer is satisfied that the journeys were authorised, the expenditure properly and necessarily incurred, and that any allowances are properly payable.
Members' claims
Payments to members, including co-opted members of the Council or its Committees, who are entitled to claim attendance and other allowances, shall be made by the Head of Finance and ICT upon receipt of the prescribed form duly completed and certified in manuscript. Claims shall be submitted promptly, and on a regular basis, and, in any case, claims applicable to a financial year shall be submitted within one month after 31 March in that year.
| Salaries, wages and pensions |
Information regarding appointments, etc
The Head of Human Resources, or, where appropriate, the Director or Head of Service concerned shall notify the Head of Finance and ICT timeously of all matters affecting the payment of emoluments, in particular:
(i) appointments, resignations, dismissals, suspensions, secondments and transfers;
(ii) changes in remuneration, other than normal increments and pay awards, and agreements of general application;
(iii) absences from duty for sickness or other reason apart from approved leave; and
(iv) information necessary to maintain records of service for superannuation, income tax and social security purposes.
Arrangements for payments
The payment of all salaries, wages, pensions, compensation and other emoluments to all employees, former employees or beneficiaries shall be made by the Head of Finance and ICT or under arrangements made by him/ her.
Form and certification of records
All pay documents shall be in a form prescribed or approved by the Head of Finance and ICT, and shall be certified by or on behalf of the appropriate Director or Head of Service. The names of officers from time to time authorised to certify such documents shall be sent to the Head of Finance and ICT by Directors or Heads of Service, together with specimen signatures, and the names shall be amended on the occasion of any change. No pay document shall be processed unless certified by an authorised signatory.
| Security |
Responsibility for security
Each Director or Head of Service shall be responsible for maintaining proper security, custody and control at all times of all plant, buildings, materials, stores, furniture, equipment, cash, etc, under his/ her control. He/ she shall also consult the Head of Finance and ICT , as appropriate, in any case where security is thought to be defective, or where it is considered that special security arrangements may be required.
Limits to cash holdings
The Head of Finance and ICT and/ or the Head of Public Protection and Safety shall agree with the appropriate Director or Head of Service the maximum amount of cash to be held in the premises under his/ her control, and the agreed amount shall not be exceeded except with the written agreement of the Head of Finance and ICT and/ or the Head of Public Protection and Safety. Cash boxes/ safes should only be used to hold funds belonging to South Ayrshire Council or school funds. Additional uplifts should be arranged with the Head of Finance and ICT where large amounts of cash are likely to be held.
Safe keys
Keys to safes and similar receptacles containing cash or valuable documents or articles shall be carried on the person of those responsible. The loss of any such keys shall be reported immediately to the Head of Finance and ICT, the Head of Public Protection and Safety and the appropriate Director. A register of all such keyholders will be kept in each department, and notified to the Head of Finance and ICT.
Pre-printed/ pre-signed cheques, etc
The Head of Finance and ICT shall be responsible for ensuring that secure arrangements are made for the preparation and holding of pre-printed/ pre signed cheques, stock certificates, bonds and other financial documents.
Security/ retention of documents
Each Director or Head of Service shall be responsible for maintaining proper security, custody and control of all documents within his/ her department. The retention period for all books, forms and records related to financial matters shall be determined by the Head of Finance and ICT.
Data Protection Act
Each Director or Head of Service shall be responsible for the use and security within his/ her department of all personal data output from Council computer systems. Personal data output from Council systems must not be used by any other person, department or organisation without the prior approval of the Chief Executive.
Asset register
The Depute Chief Executive and Director of Development, Safety and Regulation shall be responsible for the maintenance of the asset register of the Council. All Directors and Heads of Service shall give prompt notification to the Depute Chief Executive and Director of Development, Safety and Regulation of any amendments to be made to the registers.
| Insurance |
Responsibility for risk management and insurance
Subject to the standing orders relating to contracts, the scheme of delegated functions and the general supervision of the Policy and Resources Committee, and except as authorised by them, the Corporate Safety Manager shall make appropriate risk management and insurance arrangements for all aspects of the Council's activities.
Identification of risk
The Head of Public Protection and Safety shall be responsible for the introduction and co-ordination of an effective corporate risk register. All Directors and Heads of Service shall be responsible for ensuring that a suitable risk management reporting framework is incorporated within their department or service, and shall notify the Head of Public Protection and Safety of all significant risks facing their department or service.
All Directors or Heads of Service shall give prompt notification to the Head of Public Protection and Safety of all new areas of service provision that may increase the Council's overall exposure to risk, and which should be covered by insurance, or of any removal of service which no longer requires insurance arrangements.
Notification of claims
Directors or Heads of Service shall notify the Head of Public Protection and Safety immediately in writing of any loss, liability, injury or damage or any event likely to lead to a claim. Thereafter, the Head of Public Protection and Safety shall be responsible, where applicable, for advising the insurance company concerned. He/ she shall also arrange the negotiation of all insurance claims by the Council in consultation with any other Director or Head of Service concerned.
Fidelity guarantee insurance
All appropriate employees of the Council shall be covered by fidelity guarantee insurance.
Review of insurance cover
The Head of Public Protection and Safety shall review periodically all insurances in consultation, where appropriate, with other Directors or Heads of Service.
Tendering for insurance cover
All services provided by the Council's insurers shall be subject to open or negotiated tendering procedures at least once every 5 years.
| Contracts for works, etc |
Record of contracts
Technical and spending officers within departments shall maintain a record of all relevant contracts and payments made on contracts. The Head of Finance and ICT shall have access to such records, and use whatever information he/ she considers necessary.
Variations to contracts
All instructions to contractors on capital works and major revenue projects shall be issued by the responsible officer using the appropriate official variation order procedure.
The appropriate Director or Head of Service shall be responsible, in consultation with the Head of Finance and ICT, for providing reports to the appropriate Spending Committee on major variations to a contract prior to the variation being instructed. The financial effect of such variations shall be reported to the appropriate Spending Committee and the Policy and Resources Sub-Committee on Resource Management.
In emergency situations, the appropriate Director or Head of Service may vary the contract and update the next available Committee accordingly.
Claims from contractors
Claims from contractors in respect of matters not clearly within the terms of any existing contract shall be referred to the Depute Chief Executive and Director of Development, Safety and Regulation for consideration of the Council's liability, and, where necessary, to the Head of Finance and ICT for consideration before a settlement is reached.
Delay of contract
Where completion of a contract is delayed, it shall be the duty of the responsible officer to consult the Depute Chief Executive and Director of Development, Safety and Regulation prior to taking any action in respect of any claims to liquidate or other damages.
Interim payments
Interim payments to contractors shall be certified by the authorised officers responsible for the control and supervision of the work. The Head of Finance and ICT shall be provided with specimen signatures of the authorised signatories by the Director or Head of Service concerned.
Reports on final measurements
A report on all final measurements shall be made by the appropriate technical officer to the appropriate Director and the Head of Finance and ICT. A summary of these reports will be submitted to the appropriate Spending Committee.
| Economy, efficiency and effectiveness |
The Council has a duty under the Local Authority Etc (Scotland) Act 1994 and the Local Government in Scotland Act 2003 to invoke proper arrangements for securing economy, efficiency and effectiveness in the use of resources. There shall be a process of strategic planning which shall have full member involvement in order to establish the systematic identification of priorities and realization of economy, efficiency and effectiveness. It shall be the responsibility of the Chief Executive to deliver the arrangements put in place to secure value for money and to co-ordinate Council policy in regard to ensuring that the Council provides best value.
The Chief Executive and each Director/ Head of Service shall be responsible for ensuring implementation of both the corporate and departmental applications of the strategic planning process. All Directors/ Heads of Service must ensure that they can demonstrate that proper arrangements are in place to ensure economy, efficiency and effectiveness, and that there is the application of documented procedures, operational performance indicators and targets and a customer/ user focus in service planning.
Value for money should cover the areas of human resource and physical resource management, capital programme and contract management, financial management and policy, performance and service delivery process reviews. Where the Council has determined Trading Activities, the Director or Head of Service must ensure, in conjunction with the Head of Finance and ICT, complete compliance with the CIPFA Code on Best Value Trading Accounts, including regular monitoring of performance reporting to the Policy and Resources Committee.
| External funding |
The Chief Executive and each Director/ Head of Service shall be responsible for ensuring the implementation of and adherence to all Codes and Guidance issued on external funding arrangements.
Any agreements required shall include right of access of Internal Audit to the systems, records, documents and correspondence of that organisation.
| Partnerships |
a public or private organisation undertaking part funding or participating as a beneficiary in a project including PPP/ PFI; or
(ii) a body whose nature or status gives it a right or obligation to support a particular project.
In all instances, the Director of the lead department for the Council should be able to demonstrate that:
(i) appropriate financial regulations have been adopted for the partnership. There should be a presumption that the Council's financial regulations will prevail in all circumstances, unless alternative or additional guidance is considered appropriate. The approval of the Head of Finance and ICT will be required for any such departure;
(ii) the roles and responsibilities of each of the partners involved have been agreed and formally accepted before any project commences, and that individuals representing the partner organisations are aware of their personal responsibilities;
(iii) documented project management arrangements are in place;
(iv) responsibility for budgetary control for any project is vested in one officer;
(v) the limits of responsibility for all groups involved in decision-making for any partnership project are clear and agreed. This could include Project Teams, Project Boards, Council Committees and the Council itself;
(vi) a project exit strategy is in place for limited life projects; and
(vii) arrangements are in place for risk appraisal, monitoring, management and control.
| Devolved management of resources |
| Observance of financial regulations |
Responsibility of Directors and Heads of Service
It shall be the duty of each Director and Head of Service to ensure that these regulations are made known to the appropriate persons within the department, and to ensure that they are adhered to.
Breach of regulations
Any breach or non-compliance with these regulations must, on discovery, be reported immediately to the Chief Executive , who may discuss the matter with the Head of Finance and ICT and/ or such other Director or Head of Service as may be appropriate in order to determine the proper action to be taken.
| Review of financial regulations |
Variation and revocation
These regulations may be varied or revoked by the Council, and any motion to vary or revoke them shall conform to the requirements of Standing Order No 13 of the Standing Orders for regulating the meetings and proceedings of the Council.
| Guidelines on the use of the contingency fund |
Qualifying criteria
The purpose of the contingency fund is to finance unexpected items of expenditure which it is necessary to incur, and which are outwith the level of service provided for in the approved revenue budget.
Access to the fund
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