Introduction

 

D.1 Sound systems and procedures are essential to an effective framework of accountability and control.

 

 

D.2 The Head of Resources is responsible for the operation of the authority's accounting systems, the form of accounts and the supporting financial records. Any changes made by the Managing Director and Directors to the existing financial systems or the establishment of new systems must be approved by the Head of Resources. However, the Managing Director and Directors are responsible for the proper operation of financial processes in their own Groups.

 

D.3 Any changes to agreed procedures by the Managing Director and Directors to meet their own specific service needs must be agreed with the Head of Resources.

 

D.4 The Managing Director and Directors should ensure that their staff receive relevant financial training that has been approved by the Head of Resources.

 

D.5 The Managing Director and Directors must ensure that, where appropriate, computer and other systems are registered in accordance with data protection legislation. The Managing Director and Directors must ensure that staff are aware of their responsibilities under freedom of information legislation and have due regard to the issue of intellectual property rights when developing systems.

 

D.6 The following principles shall be observed in the allocation of accounting duties:-

 

• Wherever possible there should be adequate segregation of duties so that employees with the duty of checking transactions are not themselves engaged in any of those transactions.
• The duty of providing information, calculating, checking and recording sums due to or from the Council shall wherever possible be separated from the duty of collecting and disbursing them.
• Wherever possible accounting transactions and control functions (such as reviews and reconciliations) should be evidenced, providing a full audit trail.
• Employees shall not certify claims for reimbursement of expenses or other payments to themselves.

 

 

D.7 It is the responsibility of the Managing Director and Directors to ensure that a proper scheme of delegation has been established within their area and is operating effectively. The scheme of delegation should identify staff authorised to act in respect of payments, income collection and placing orders, together with the limits of their authority.

 

 

D.8 The collection of all money due to the Council shall be in accordance with arrangements approved by the Head of Resources. Unless otherwise agreed by the Head of Resources [Audit Manager] no money received by Council employees in the course of their duties shall be paid into any other bank account other than the Havant Borough Council bank account.

 

D.9 The Managing Director or appropriate Director shall be responsible, in accordance with the current policies of the Council, for the review of fees and charges.

 

D.10 The Managing Director and Directors shall ensure that accounts are rendered promptly in connection with income due in respect of work done, goods supplied, services rendered or other amounts payable to the Council. They shall also ensure that any Group computer systems recording income are reconciled monthly to the cash received in the Council's main financial system, and that this is taken into account when purchasing such computer systems.

 

D.11 The Head of Resources shall be notified promptly of contracts, leases and other agreements and arrangements entered into which involve the receipt of money by the Council.

 

D.12 Arrangements for the control of all receipt forms, receipt books, tickets and other such items shall be approved by the Head of Resources [Audit Manager].

 

D.13 Each employee who banks money shall comply with any instructions thereon prescribed by the Head of Resources [Audit Manager]. All money received on behalf of the Council shall be paid to the Council's cashier or to the Council's banking or National Giro Account without delay and always within three days of collection unless otherwise agreed by the Head of Resources [Audit Manager]. Payments received in "full and final settlement" shall only be accepted and paid in if they are sufficient to fully clear the appropriate debt. No deduction may be made from such money unless specifically authorised by the Head of Resources [Audit Manager].

 

D.14 Personal cheques shall not be cashed out of the money held on behalf of the Council.

 

D.15 Every transfer of money held by or for the Council from one member of staff to another will be evidenced by the signature of the receiving officer.

 

D.16 The Head of Resources shall be the only officer authorised to write off uncollectable debts, after taking the advice of the Managing Director or Director(s) as appropriate, except that the Head of Service responsible for the Parking service shall have authority to waive standard car park charge notices.

 

Expenditure

 

 

D.17 Purchase Requisitions and official orders shall be in a form determined by the Head of Resources [Audit Manager]. They are to be signed only by officers authorised by the Head of Resources, Managing Director or appropriate Director who shall be responsible for purchase requisitions and official orders issued from his/her Group. Approval of the Head of Resources [Audit Manager] to the appointment of signatories is required. Signatories to purchase requisitions and orders must ensure that goods and services are appropriate and needed, that there is adequate budget provision, that contract standing orders have been complied with and that best value/value for money principles have been followed.

 

D.18 Official orders shall be issued for all work, goods or services to be supplied to the Council except for supplies of services by public utilities, for periodical payments such as rent or rates, for petty cash payments, for contracts in writing signed in accordance with Standing Orders or such other exceptions as the Head of Resources may approve.

 

D.19 Each order shall conform with the directions of the Council, Standing Orders related to contracts and any policies or directions of the Council related to purchasing. The Council's computerised commitment accounting system shall be used unless otherwise agreed by the Head of Resources and outstanding orders shall be checked by service units periodically, and at least annually, to ensure management accounting information is accurate.

 

D.20 Where an official order is not issued, under regulation D.18, a contracts register or other record shall be kept by the Managing Director or Director as appropriate to monitor payments and prevent duplicate payments.

Payment of Accounts

 

D.21 The Head of Resources shall promptly pay all accounts properly due and payable by the Council in accordance with the Prompt Payment Code in Appendix 3. The Managing Director and Directors may refer any particular account for consideration to the Executive before payment.

 

D.22 The Managing Director or Director issuing an order is responsible, as required by the Head of Resources, for examining, verifying and certifying the related invoice(s) and similarly for any other payment voucher or account arising from sources in his/her Group. The names of officers authorised to sign such records shall be sent to the Head of Resources by the Managing Director and each Director together with specimen signatures and shall be amended on the occasion of any change therein. Every invoice authorised must be signed (in the three authorisation boxes) by at least two different employees, and where practical these employees shall not have signed or placed the order for the works, goods or services.

 

D.23 When checking an account, the checking officer shall, save to the extent that the Head of Resources may otherwise determine, before passing the invoice for final authorisation have satisfied himself/herself that:

 

(a) the works, goods or services to which the account relates have been received, carried out, examined and approved;

 

(b) the prices, extensions, calculations, trade discounts, other allowances, credits and tax have been compared to the order and are correct;

 

(c) the relevant expenditure has been properly incurred;

 

(d) the relevant expenditure is within the relevant budget provision as properly varied under these regulations; or is otherwise in pursuance of a Council instruction; or in case of agency or contract work, by the County Council or another principal authority; or is specifically required by law;

 

(e) appropriate entries have been made in inventories and stores records as required;

 

(f) the account has not been previously passed for payment and is a proper liability of the Council;

 

(g) the account (including any Value Added Tax) has been correctly coded.

 

D.24 Duly certified accounts shall be passed without delay to the Head of Resources who shall examine them to the extent that he/she considers necessary for which purpose he/she shall be entitled to make such enquiries and to receive such information and explanations as he/she may require.

 

D.25 Any amendment to an account shall be make in ink and initialled by the officer making it, stating briefly the reasons where they are not self-evident. Amendments to accounts (other than taking discounts offered for prompt payment) shall not be made without the agreement of the Head of Resources or his/her nominee.

 

D.26 The Managing Director and Directors shall by not later than a date determined by the Head of Resources in each year notify him/her of all outstanding expenditure relating to the previous financial year.

 

D.27 Use of Council corporate payment cards shall be in accordance with instructions issued by the Head of Resources and a signed undertaking. Only the Head of Resources shall have authority to obtain corporate payment cards and such cards shall only be obtained for such members of staff as shall be agreed by the Management Team.

Imprest Accounts

 

D.28 The Head of Resources [Audit Manager] shall authorise such imprest accounts as he/she considers appropriate for such officers of the Council as may need them for the purpose of defraying petty cash and other expenses.

 

D.29 No income received on behalf of the Council may be paid into an imprest account but must be banked or paid to the Authority as provided for in Regulation D.8.

 

D.30 Petty cash payments shall be limited to minor items of expenditure and to such other items as the Head of Resources may approve and shall be supported by receipted vouchers and proper VAT receipts where appropriate. In no case shall the amount of an individual payment exceed £100 except with the agreement of the Head of Resources. Reimbursements to imprest accounts shall be made at periods not exceeding one month.

 

D.31 An officer responsible for an imprest account shall, if so requested, give to the Head of Resources [Audit Manager or Accountancy Manager] a certificate as to the state of his/her account.

 

D.32 On leaving the employment of the Council or otherwise ceasing to be entitled to hold an imprest account the officer concerned shall account to the Head of Resources [Finance Manager] for the amount advanced to him/her.

 

D.33 The Head of Resources [Audit Manager] may authorise change floats as required and these shall be subject to the foregoing regulations as appropriate.

 

 

D.34 The Personnel and Development Manager is responsible for all payments of salaries and wages to all staff, including payments for overtime, and for payment of allowances to members.

 

D.35 The payment of all salaries, wages, compensation and other emoluments to all employees or former employees of the Council shall be made by the Personnel and Development Manager.

 

D.36 The Managing Director and Directors or person authorised by him/her shall notify the Personnel and Development Manager promptly within the time limits and in the form prescribed by him/her, of all matters affecting the payment of such emoluments, and in particular:

 

(a) appointments, resignations, dismissals, suspensions, secondments and transfers;

 

(b) absences from duty for sickness or other reasons, apart from approved leave;

 

(c) changes in remuneration, other than normal increments and pay awards and agreements of general application;

 

(d) information necessary to maintain records of service for superannuation, income tax, national insurances and the like.

 

All notifications must be signed by the appropriate manager or nominated officer.

 

D.37 Appointments of all employees shall be made in accordance with the regulations of the Council and the established grades and rates of pay.

 

D.38 All time records or other pay documents shall be in a form prescribed by the Head of Resources and shall be certified by authorised officers. The names of officers authorised to sign such records shall be sent to the Head of Resources and Personnel and Development Manager by the Managing Director and each Director together with specimen signatures and shall be amended on the occasion of any change.

 

D.39 The Personnel and Development Manager shall issue to the Managing Director and each Director a list of payments in order that any discrepancies can be identified. The Managing Director and Directors shall at least annually provide the Personnel and Development Manager with a certificate of the correct remuneration of each employee.

 

D.40 All claims for payment of car allowances, subsistence allowances, travelling and incidental expenses shall be submitted, duly certified to Personnel and Development Manager in a form approved by the Head of Resources. The names of officers authorised to sign such records shall be sent to the Head of Resources and the Personnel and Development Manager by the Managing Director and each Director together with specimen signatures and shall be amended on the occasion of any change.

 

D.41 The certification by or on behalf of the Managing Director or a Director shall be taken to mean that the certifying officer is satisfied that the journeys were authorised, the expenses properly and necessarily incurred and that the allowances are correctly calculated and properly payable by the Council.

 

D.42 Payments to Members, including co-opted Members of the Council who are entitled to claim travelling or other allowances will be made by the Personnel and Development Manager upon receipt of the prescribed form duly completed. The Personnel and Development Manager shall be empowered to require periodically from Members claiming financial loss allowance a certified statement as to their income. The Personnel and Development Manager in liaison with the Head of Resources shall prepare annually an updated Members' Allowances Scheme.

 

 

D.43 The Head of Resources is responsible for advising Management Team, in the light of guidance issued by appropriate bodies and relevant legislation as it applies, on all taxation issues that affect the authority.

 

D.44 The Head of Resources, with assistance from the Personnel and Development Manager, is responsible for maintaining the authority's tax records, making all tax payments, receiving tax credits and submitting tax returns by their due date.

 

D.45 The Managing Director and Directors are responsible for ensuring that transactions within their responsibility comply with the law relating to general taxation and V.A.T. The Head of Resources will provide guidance and advice on the administration of V.A.T.

 

D.46 All matters of both principle and practice, including any errors or discrepancies, shall be immediately referred to the Head of Resources.

 

D.47 Contacts with HM Customs and Excise concerning matters of V.A.T must be through the Head of Resources.

 

 

D.48 It is the responsibility of the Head of Resources to advise on the establishment and operation of trading accounts and business units.

 

 

D.49 The Managing Director and Directors, subject to the agreement of the Head of Resources and the Solicitor to the Council, shall have discretion to make ex gratia payments not exceeding £5,000 when he/she considers them justified by reason of the particular circumstances. Ex gratia payments to staff shall not be made in respect of salary arrangements covered by established Council practice. Ex gratia payments shall be met from appropriate service unit or service budgets and the Head of Resources shall be notified of such payments.

 

 

D.50 The Head of Resources shall determine the requirements that the Managing Director and Directors shall observe in relation to the retention of financial records. These are currently the following number of complete financial years:-

 

Final Ledgers and Annual Accounts	Indefinitely
Grant Claims	10 years
Paid invoices, Income Receipt Stubs, VAT records, cash books, banks statements, paying- in slips, debtor records, expenditure data, final account working papers and RO/CO forms	6 years
PAYE, National Insurance and CIS records	3 years
Estimate Working Papers and strategic reports	2 years