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Financial Regulations - Introduction
Download: a print version of the Financial Regulations 
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Why do we have Financial Regulations?
The County Council is responsible for many millions of pounds of public money and has a number of statutory responsibilities in relation to its financial affairs.
The Local Government Act 1972Local Government Act 1972 directs that Authorities shall make arrangements for the proper administration of their financial affairs and that one of their officers be responsible for the administration of those affairs. The Constitution Standing Ordersof the County Council designates the County Treasurer the Chief Finance Officer and hence the section 151 officer.
Under powers contained in the Local Government Finance Act 1982Local Government Finance Act 1982 (s23 and 35) the Secretary of State also makes regulations as to the accounts themselves and requires them to be audited by the Audit Commission. The "Accounts and Audit Regulations" require that the "Responsible Financial Officer" must determine and be responsible for the accountingaccounting systems and the form of both the accounts and all supporting records of the authorityauthority. He/she must further ensure (by maintaining an effective and adequate internal audit) that rules so made are observed and that all records are maintained in a satisfactory manner. To conduct its business efficiently, a local authority needs to ensure that it has sound financial management policies in place and that they are adhered to. Part of this process is the establishment of financial regulations that set out the financial policies of the Authority.
Status of Financial Regulations
Financial regulations provide the framework for managing the authority’s financial affairs. They apply to every Member and Officer of the Authority and anyone acting on its behalf.
- The regulations identify the financial responsibilities of the full Council, Cabinet and Scrutiny Members, the Head of Paid Service, Strategic Directors, the Monitoring Officer, the Chief Finance Officer and other Heads of Service.
All members and officers have a responsibility for taking reasonable action to provide for the security of the assets under their control, and for ensuring that the use of these resources is legal, properly authorised, provides value for money and achieves best value.
The Chief Finance Officer is responsible for maintaining a continuous review of the financial regulations and submitting any additions or changes necessary to the full Council for approval. He/she is also responsible for reporting, where appropriate, breaches of these Financial Regulations to the Council and/or to the members of the Cabinet.
The authority’s detailed financial procedures, setting out how these Regulations will be implemented, are contained in the Financial Standards manual.
Heads of Service are responsible for ensuring that all staff in their departments are aware of the existence and content of the authority’s financial regulations.
The Chief Finance Officer is responsible for issuing advice and guidance to underpin the financial regulations.
Where Financial Regulations fit in
Financial Regulations are linked to other internal regulatory documents forming part of the Council’s Constitution. The following illustration shows where Financial Regulations fit in the hierarchy of the County Council’s Codes and StandardsCodes and Standards and their relationship to other documents.
What areas are covered in Financial Regulations?
MembersFinancial Regulations are set out under a number of broad sections. Each section contains an explanation of the importance of the area, a set of regulations and, where necessary, supporting detailed standards. Where appropriate, reference is made to other appropriate guidance throughout. A glossary is provided at the back of the document.
Statement of Principles
The Council expects high standards of conduct from its members and officersMembers and those with whom it has dealings and this expectation is set out in the Council’s policy statement on the Proper Conduct of Business - The Good Practice Guide.
Further to this, the Council expects honesty, openness and integrity to be the values which underpin its financial affairs and all those involved with the Council’s finances should work with these values in mind. An extension of this is the Statement of PrinciplesStatement of Principles below which provide the basis for the detailed guidance in Financial Regulations.
The Principles
The Council is responsible for the stewardship of public money and will make arrangements to safeguard the interests of taxpayers and other stakeholders.
The Council expects its members and officersMembers to exercise high standards in financial management and administration and aims to stimulate openness and a climate of frankness that it will support through policies and regulations, such as the “whistleblowing” policy.
The importance of planning, monitoring and controlling the use of resources is of vital importance to the Council and it will make arrangements for these activities to be undertaken effectively.
Issues of probity will be dealt with effectively and the Council will work to meet its duty to maintain proper accounts and related records.
Value for money is at the core of the Council’s financial activity and the way in which it administers its financial affairs.
Compliance with statutory requirements, accountingaccounting standards and appropriate codes of practice will be inherent in the Council’s arrangements for financial matters.
Allocation of responsibility and authorityauthority in relation to financial matters will be clearly identified.
The Council is a large organisation and is mindful of the need for consistent standards in financial administration and management across all its operations and will set in place guidance to be adhered to by all its directorates. In particular, it expects staff to consult with and use all of the expertise in financial matters that it has available and act on advice from such sources.
The assets and resources of the Council must be protected from loss, damage and theft.
Identifying and quantifying risks to the Council is of key importance and arrangements must be made to reduce, eliminate or insure against them as appropriate.
The accurate, appropriate and timely paymentpayment and collection of monies forms much of the routine financial business of the Council and arrangements will be made for its proper administration.
Links related to the Financial Regulations:
For further information relaing to financial regulations such as:
- Code of business conduct
- Good Practice
- Whistleblowing
- Standards for tenders and contracts
Please see the Council's Constitution.
Other useful links: