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South Ayrshire Community Council Scheme and Handbook
FINANCIAL MANAGEMENT
E1 |
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E2 |
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E3 |
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E4 |
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E5 |
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E6 |
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E7 |
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E8 |
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E9 |
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E10 |
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E11 |
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E12 |
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Appendix E1 |
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E.1.1 The Treasurer will be responsible for ensuring that the Community Council’s accounts are kept up-to-date. The Treasurer must also ensure that monthly accounts, book of account, bank books and statements, together with a list of all assets are available for inspection at each meeting of the Community Council. The Treasurer will report on any concerns which he/she may reasonably have about the accounts/property to the first available meeting of the Community Council.
E1.2 At each 31 March the Treasurer shall prepare a set of Accounts comprising of a Balance Sheet and Income and Expenditure Account. These accounts should represent a true record of the Community Council’s financial transactions for the previous twelve months. In cases where the Community Council receives a grant from South Ayrshire Council, the grant received and how it was spent shall be disclosed in the Accounts.
E1.3 The Treasurer shall then arrange for these accounts to be checked and properly vouched for by an auditor. The financial year for all Community Councils shall commence on 1 April, and end on 31 March of the following year. Preferably, Annual Accounts should be audited by a qualified accountant (CCAB), but may be persons approved by South Ayrshire Council who have a minimum of an HNC in Accountancy or its equivalent. Proof of qualification will be required, prior to approval. Alternatively, the Annual Accounts may be submitted to the Head of Financial Services of South Ayrshire Council for auditing. Audited accounts must then be submitted to the Director of Development, Safety and Regulation, South Ayrshire Council.
E1.4 Once the audited accounts are received by the Secretary from the Treasurer they shall be distributed to the members of the Community Council and at the next meeting of the Community Council they shall be discussed and, if appropriate, accepted by the Community Council. Thereafter a date for the Annual General Meeting shall be set by the Community Council and the agenda, copies of papers referred to in the agenda and copies of the previous minutes shall be attached to the agenda. Copies of the agenda, papers, minutes and the audited accounts shall be made available to the members of the public at the Annual General Meeting but shall also be made available for inspection at a place specified in the public notice giving intimation of the date and time of the Annual General Meeting. Provided the correct public notification is given it will be possible for Community Councils to make arrangements to ensure that the Annual General Meeting follows immediately after the meeting of the Community Council at which the audited accounts are accepted.
E1.5 The Treasurer is required to present the accounts to the Annual General Meeting and to reply to any questions which may be raised. If there are no questions concerning the accounts then a resolution accepting them shall be proposed, seconded and put to a vote of all qualified electors present at the Annual General Meeting.
E1.6 The Community Council shall send a copy of the audited accounts to the Director of Development, Safety and Regulation as soon as possible once they have been approved by the Annual General Meeting.
E2.1 The Treasurer is also responsible for maintaining an up-to-date inventory of all Community Council assets. The list should include all equipment, furnishings and property and should also indicate the normal location where the items are used and stored. The list must be given to the auditor for inclusion in each annual audit and maybe made available to any designated officer of South Ayrshire Council if requested. The list must specify the date of acquisition of the property and must specify the source from whom the property was obtained or the source from whom the funds were received to acquire the property.
E2.2 The Treasurer is also responsible for the safety and security of all the Community Council’s assets unless another person or persons have been specifically appointed, by the constitution or by a minuted resolution of the Community Council, to be responsible.
E2.3 It is recommended that the Treasurer should seek competent advice appropriate to the value of the assets to ensure their safety and security. The Community Council is also recommended to consider the matter of insuring its assets and it should be the Treasurer’s responsibility to provide information to allow a considered decision to be made (see Section J2.5).
E2.4 If any person wishes to use any asset of the Community Council they must make an application in writing to the Secretary for this. Any decision to allow any other person to use an asset or property of the Community Council must be taken at a meeting of the full Community Council. If the Community Council agrees to such person making use of any asset or property the Secretary will write to the person confirming the asset which may be used and the period during which it may be used and any other conditions which may be imposed by the Community Council. The person making the request must acknowledge the Secretary’s letter in writing and must acknowledge that they have full responsibility for the asset during the period which they make use of it.
On dissolution of the Community Council the Treasurer will co-operate fully with South Ayrshire Council to ensure the proper application of funds and property on dissolution as specified in the Scheme (see paragraph E10).
E4 Community Council’s Administration Grant
E4.1 South Ayrshire Council will make an initial grant for administration, to each Community Council within its area, based on the electorate of each Community Council on the following basis. The initial grant will be awarded triennially following the Community Council elections.
Electorate |
Initial Grant |
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up to 2,000 |
£600 |
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between 2,001 and 3,500 |
£650 |
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greater than 3,501 |
£800 |
E4.3 In the second and subsequent years of operation of this Scheme, a basic grant reimbursing Community Councils for expenditure on approved items (as per the ‘Guidelines for Treasurers’ below) for the previous year will be made.
E4.4 The Director, Development, Safety and Regulation must have received copies of all Community Council minutes and sederunts. At least six of the Community Council meetings must have been quorate. Administration grants will not be issued unless copies of Community Council minutes are held on file by the Director of Development, Safety and Regulation.
E4.6 South Ayrshire Council may review the level of basic grant awarded to Community Councils at any time.
In addition to the basic grant as outlined in E4 above, South Ayrshire Council may make available additional funds for specific projects. Application forms for additional funds for specific projects can be obtained from the Grants Officer, Development, Safety and Regulation, South Ayrshire Council, County Buildings, Wellington Square, Ayr (01292 612463).
E6.1 South Ayrshire Council shall establish a Forum for Community Councils which shall offer the opportunity for Community Councils to be involved in the Council’s policy development processes.
E6.2 The South Ayrshire Council Forum for Community Councils will endeavour to provide further assistance and training on subjects and issues as identified by the Forum.
E6.3 South Ayrshire Council will provide each Community Council with a minimum of 13 “lets of premises” per year for the purpose of conducting their meetings. These “lets” will be provided in South Ayrshire Council properties wherever practicable, within the boundary of the Community Council area. Where South Ayrshire Council does not own suitable properties in a Community Council area reasonable expenses for the hiring of a hall or other meeting place will be re-imbursed to Community Councils by South Ayrshire Council.
E6.4 South Ayrshire Council will make their in-house printing and photocopying facilities available at Council departmental internal rates to all Community Councils, subject to local negotiation.
E7.1 The Treasurer must ensure there is an audit trail for all entries of income and expenditure. This entails having evidence of income and expenditure; this usually takes the form of receipts, but could be the number of tickets sold at a certain price, so as to reconcile with the income being quoted. Enter gross income and gross expenditure amounts in the books not the net amount i.e. do not deduct the expenditure from the income before entering into the books.
E7.2 A note should be kept of any cash advances, and this should be signed by the person receiving the cash advance. Only once the expenditure has been accounted for and receipts provided should the cash book be written up, otherwise double accounting can occur.
E7.3 The Treasurer must reconcile the bank statement to the books every month/quarter by checking off the items in the bank statement to the Bank Book and agreeing the balance.
E7.4 The Treasurer must reconcile cash held with the balance in the cash book at the same time as the bank book.
E8 Approved Expenditure for Community Council business
E8.1 The following list is approved items of expenditure for Community Council business.
All expenditure must be accompanied by receipts. All expenditure must relate to Community Council business.
E8.2 Should a Community Council have any queries on approved items of expenditure please contact the Senior Administration Officer, Office Services (01292 612462) or the Community Council’s Link Officer prior to any expenditure being incurred.
E8.3 In addition to the above areas of expenditure not more than 10% of the total of the initial grant as detailed in E4 can be used for honorariums. Honorariums may be awarded at the end of each financial year when the financial surplus is known to each Community Council.E8.4 Up to 20% of the total administration grant can be used for donations to local voluntary organisations within the Community Council area, up to a maximum of £50 per organisation. Community Councils should not build up reserves of money. The Community Council administration grant is public money and any surplus funds should be suitably gifted to projects, activities within the Community Council areas, as described above.
E8.5 Revenue raised from events organised by the Community Council will be disbursed by them in whichever way they decide at their meetings, but again should be targeted at projects within the Community Council area.
E8.6 Should a Community Council require funds for a capital item (eg a computer) or for other community projects, then they should apply to the Community Council Challenge Fund. A copy of a grant form is enclosed within the Handbook. Further copies can be obtained by contacting the Grants Officer, Development, Safety and Regulation, County Buildings, Wellington Square, Ayr (01292) 612463.
E9 Expenditure Outwith the scope of the Community Council Administration Grant:-
E9.1 The following items of expenditure are not permitted.
E9.2 Any expenditure, other than that listed under ‘approved items’, must be explained when accounting for the Community Council’s administration grant. Failure to do so will delay payment to allow an investigation to take place.
E9.3 South Ayrshire Council’s Internal Audit does audit the administration grant process. It is important, therefore, to forward copies of all minutes and detail all items of expenditure. Compliance with the above will expedite the process.
E10 Dissolution of a Community Council
E10.1 A Community Council will be dissolved if it has
E10.1.1 failed to hold any meetings or quorate meetings for a period of six months or
E10.1.2 failed to submit minutes of any meetings for a period of one year.
E10.1.3 insufficient number of Members.
E10.2 No Community Council shall be declared to have ceased to function unless South Ayrshire Council has made attempts to contact the last known members of the Council and has placed an advertisement in the local press to ascertain the extent of any public interest or need for a Community Council in that area.E10.3 Where a Community Council has been declared to have ceased to function South Ayrshire Council shall cease to send information to that Community Council.
E11 Assets of Dissolved Community Councils
Where a Community Council has ceased to function, the last Treasurer shall
E11.1 submit to the Director of Development, Safety and Regulation of South Ayrshire Council, the accounts and all bank books, etc, in his/her possession. Any remaining funds should be disbursed in accordance with the Constitution of that particular Community Council and a statement to that effect given to South Ayrshire Council. If no provision exists in the Constitution then the funds shall be held in trust for a maximum period of three years by South Ayrshire Council until a new Community Council is formed.
E11.2 Before any funds are transferred or gifted, the Community Council shall return to South Ayrshire Council the balance of any grant unexpended for that financial year.
E11.3 Should a Community Council fail to return their accounts to be audited when they have wound up voluntarily, or have ceased to function, South Ayrshire Council shall have the right to take legal action to have the balance of any funds returned to it.
Enclosed is a sample Cashbook which a Community Council may wish to consider using. The Cashbook is available in electronic format, please contact Senior Administration Officer, Development, Safety and Regulation, South Ayrshire Council at 01292 612462.
