Argyll and Bute Council Constitution - Part D - Financial and Security Regulations

1. Status of Financial and Security Regulations

1. The Financial and Security regulations provide the framework for managing the Council’s financial affairs. Every Committee, Sub-Committee, Councillor, Officer and Agent of the Council to whom these Regulations apply will observe their provisions. It is the duty of each Director to ensure that all employees and agents of the Council are made aware of the Regulations and the requirement to comply with them.
    
2. All Councillors and officers have a general 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, is properly authorised, provides value for money and achieves best value.

2. Financial Management

1. Financial management covers all financial accountabilities in relation to the running of the Council, including the policy framework and budget.

Council 

2. The Council is responsible for adopting the Council’s Constitution and for approving the budget. It is also responsible for approving the Council’s code of corporate governance.
    
3. The Council is responsible for regulating and controlling the finances of the Council to comply with these Regulations.  The Council will keep under review the state of the Council’s finances generally.
    
4. The Council will be responsible for determining and monitoring the  corporate and service planning framework and may provide any Committee, Sub-Committee, Councillor, or Officer (whether individually or collectively) with such guidance as may be considered appropriate in relation to the preparation of corporate and service plans and the estimates of revenue and capital expenditure.

Audit and Scrutiny Committee 

5. The terms of reference of the Audit and Scrutiny Committee are set out in Part C of this Constitution. 

Chief Executive 

6. The Chief Executive is responsible for the corporate and overall strategic management of the Council.  He or she will report to and provide information to the Council relating to the Performance Improvement Framework of the organisation.

Chief Financial Officer

7. The Chief Financial Officer is the proper officer, for the purposes of Section 95 of the Local Government (Scotland) Act 1973, under the general direction of the Council and the Chief Executive.
    
8. The Chief Financial Officer has statutory duties in relation to the financial administration and stewardship of the Council. S/he is responsible for the proper administration of the Council’s financial affairs and setting and monitoring compliance with financial management standards.
    
9. In addition to what is set out in these Regulations, the Chief Financial Officer may issue financial instructions to amplify or clarify these Regulations. Other Executive Directors may also issue financial instructions relating to the functions and operation of their Services, following consultation with the Chief Financial Officer.

Executive Director with responsibility for Legal and Regulatory Support Services

10. The Executive Director with responsibility for Legal and Regulatory  Support Services is the Council’s Monitoring Officer in terms of Section  5 of the Local Government and Housing Act 1989. S/he is responsible for maintaining and monitoring compliance with the Council’s Corporate Governance, Ethical Standards and Strategic Risk Management frameworks, and for maintaining a system of record keeping in relation to all Council decisions 
     
11. The Chief Executive and all Executive Directors are responsible for  ensuring the Council is advised of the financial implications of all proposals and that the Chief Financial Officer has been consulted on all such proposals.

 3. Financial Planning

1. The Council is responsible for agreeing the Council’s strategic policy framework, revenue budget and capital programmes. 
    
2. The inclusion of items in approved revenue or capital budgets wil constitute authority to the relevant officer, in terms of the Scheme of Delegation or Contract Standing Orders, to incur that expenditure.

Service Planning and Revenue Budget

3. The Chief Financial Officer will report to the Council on the level of   financial resources likely to be available in each financial year and will keep the Policy and Resources Committee informed about the Council’s overall finances and financial performance, and other officers will provide such information as is required to the Chief Financial Officer.
    
4. In each financial year the Policy and Resources Committee will from time to time consider such frameworks and detailed procedural arrangements for the preparation of the arrangements for the preparation of the Revenue Budget.  The detailed form of revenue estimates and the programme for their preparation will be determined by the Chief Financial Officer. 
    
5. Each year draft estimates of expenditure and income will be  considered by the Council at a meeting to be held not later than the date prescribed by law. The Council will revise these plans and estimates as they consider appropriate, approve them on that basis, authorise the expenditure, determine the Council Tax, and pass any other resolutions which may be appropriate.

Capital Programme

6. The Chief Financial Officer will report to the Council on the level of financial resources likely to be available to support the capital programme in each financial year and will keep the Committee informed about the overall financial position on the capital budget.
    
7. The Council will have regard to the CIPFA Prudential Code for capital finance in local authorities. The key objectives are to ensure that capital investment plans are affordable, prudent and sustainable; that treasury management decisions are taken in accordance with good professional practice; that capital planning is supported by proper business case development and option appraisal. The Code sets out minimum prudential indicators which must be used and factors that      must be taken into account.
    
8. In each financial year the Policy and Resources Committee will from time to time consider procedural arrangement for the preparation of the capital programme. The detailed form of the capital programme and arrangements for its preparation will be determined by the Chief Financial Officer.
    
9. The draft Capital Programme will be considered by the Policy and Resources Committee which will advise the Council on any matter relating thereto. The Council will revise the programme as they consider appropriate, approve it on that basis, authorise the expenditure and pass any other resolutions that may be appropriate.

Budget Monitoring and Control

10. Each Executive Director will monitor and control expenditure within the financial allocation provided in the revenue and capital Budgets.
     
11. The Chief Financial Officer will provide Executive Directors with access to the Corporate Financial Information Systems and will provide statements of income and expenditure on a regular basis to Directors.
     
12. Where it is forecast that the total income or expenditure for a Service or a capital project is likely to vary significantly from the approved financial allocation, the relevant Executive Director, after consultation with the Chief Financial Officer, will inform the Council and take any action necessary to avoid exceeding the budget allocation for a service or a capital project.

Virement

13. Virement is the process of transferring budget between cost centres, services or departments or between capital projects.
       
14. Virement in the Revenue Budget arises at a number of levels: -
    1. between cost centres within a head of service;
    2. between heads of service within a department;
    3. between departments.
        
15. Virement may be exercised as outlined below, provided some or all of  the following apply as detailed below –
    1. the Chief Financial Officer has been notified in advance;
    2. the virement does not create an additional financial commitment into the following financial year;
    3. there has been advance consultation with the Leader and/or Depute Leader and the relevant Policy Lead.
        
16. Virement between cost centres can be approved by the Head of Service up to a level of £25,000.  Virement above this level requires approval of the relevant Executive Director and compliance with (a) and (b) immediately above.
     
17. Virement between services must be approved by the Executive  Director up to a level of £100,000 together with compliance with (a) and  (b) immediately above. 
     
18. Virement between services or Departments from £100,000 to a level of £200,000 must be approved by the Executive Director or Executive Directors together with compliance with paragraphs (a), (b) and (c) immediately above. 
     
19. Virement above £200,000 requires approval of the Council.
     
20. Virement in the Capital Budget arises at the following levels –
    1. Between projects within a service
    2. Between services within a department
    3. Between departments
        
21. Virement between projects within a service can be approved by the Director up to level of £200,000.
     
22. An Executive Director may exercise virement within the Departmental Capital Budget, provided -
    1. the Chief Financial Officer has been notified in advance;
    2. there has been advance consultation with the Leader and/or Depute Leader and the relevant Policy Lead;
    3. the virement arises from a need to ensure the continuation or completion of a project already begun within the capital programme or the virement is to, or in respect of, a project within the approved Departmental Capital Programme;
    4. the amount of any individual virement does not exceed £200,000, otherwise the proposed virement will be reported to the Council.
        
23. An Executive Director may exercise virement in either the Service Revenue or Capital Budget to meet any immediate need created by a sudden emergency subject to advising the Chief Executive and the Leader and/or Depute Leader and relevant Policy Lead of the action taken and to reporting to the Council as soon as possible in respect of items which otherwise need to be reported in terms of these Regulations.
     
24. Where there is a proposal to forego income or to incur revenue or capital expenditure for which there is no budgetary provision, and it is not proposed to meet that expenditure by virement, the proposal will be considered by the Policy and Resources Committee.

4. Risk Management

1. The Policy and Resources Committee is responsible for approving the Council’s risk management plan and the effectiveness of risk management. A strategic risk register and operational risk registers will  reflect the regular assessment of risks which will inform the development of the Council’s Corporate and Service plans, revenue budget and capital programme.
    
2. The detailed arrangements for preparation, maintenance and monitoring of the strategic and operational risk registers will be determined by the Chief Financial Officer.

Internal Control

3. Internal Control refers to the systems of control devised by management to help ensure the Council’s objectives are achieved in a manner that promotes economic, efficient and effective use of resources and that the Council’s assets and interests are safeguarded.
    
4. The Chief Financial Officer is responsible for advising on effective systems of internal control. These arrangements need to ensure compliance with all applicable statutes and regulations, and other relevant statements of best practice. They should ensure that public funds are properly safeguarded and used economically, efficiently and in accordance with the statutory and other authorities that govern their use.
    
5.  It is the responsibility of directors to establish sound arrangements for planning, appraising, authorising and controlling their operations in order to achieve continuous improvement, economy, efficiency and effectiveness and for achieving financial and other performance targets.

Audit 

6. The Chief Financial Officer will arrange to secure continuous and effective internal audit of the accounting, financial and other operations of the Council and, in doing so, those conducting that audit will not be subject to the control or direction of any person, and, in addition to reporting as otherwise required by the Council’s Codes of Practice to the Chief Executive, the Chief Financial Officer or the Executive Director with responsibility for Legal and Regulatory Support Services, a report may be submitted to the Audit and Scrutiny Committee, which Committee may give such advice and guidance as it may consider appropriate within its Terms of Reference.
7. The Chief Financial Officer will prepare, and the Audit and Scrutiny  Committee will endorse terms of reference for and programmes of internal audit.
8. The Chief Financial Officer or a person authorised by her/him has    authority on production of identification, to -
   1. (a) enter at all reasonable time any Council premises or land;
   2. (b) have access to all records, documents and correspondence including any data held on computer storage media, which relate to the operation, administration and financial transactions of the Council;
   3. (c) require and receive such explanations, from any Councillor, employee, agent or other person, which are considered necessary concerning any matter under examination;
   4. (d) require any Councillor, employee or agent of the Council to produce cash, stores or any other Council property under their control or to which they have access.
       
9. Executive Directors are required immediately to notify the Executive Director with responsibility for Legal and Regulatory Support Services, as Monitoring Officer, the Chief Financial Officer of all financial irregularities or of any circumstances that may suggest the possibility of irregularity, including those affecting cash, stores, contracts or property. The Executive Director with responsibility for Legal and Regulatory Support Services in consultation with the Chief Financial        Officer will take whatever steps she/he may consider necessary to investigate and will immediately inform the Chief Executive in all cases where it appears that there may be a crime or offence involved. The decision as to reporting any matter to the police will be made in accordance with the Council’s Anti-fraud Strategy, which is attached at appendix 2.

Insurance

10. The Executive Director with responsibility for Legal and Regulatory Support Services will effect all insurance cover, negotiate and settle all claims in consultation with the Chief Financial Officer and other Executive Directors as necessary.
     
11. Executive Director / Chief Officer will provide prompt notification to the Executive Director with responsibility for Legal and Regulatory Support  Services of all new or increased risks, property, vehicles, equipment and other assets which require to be insured and of any alterations affecting existing insurance.
     
12. Executive Directors will advise the Executive Director with responsibility for Legal and Regulatory Support Services of any activities within their Service remit which might result in any person or body having a claim against the Council, and where the risk of such an event could be covered by insurance.
     
13. Executive Directors will notify immediately the Executive Director with responsibility for Legal and Regulatory Support Services of any loss, liability or damage or any event likely to lead to a claim, and will inform the police where there is a legal liability to do so, or where, after consulting the Executive Director with responsibility for Legal and Regulatory Support Services, they have been advised to do so. In the case of incidents involving any vehicle the appropriate Director will also notify the Executive Director with responsibility for Road and Infrastructure Services.
     
14. All appropriate employees of the Council will be included in a suitable fidelity guarantee insurance.
     
15. The Executive Director with responsibility for Legal and Regulatory Support Services will review all insurances in consultation with other Directors as appropriate.
     
16. Executive Directors will consult the Executive Director with    responsibility for Legal and Regulatory Support Services regarding the terms of any indemnity which the Council is requested to give, or which the Council may require from any other party.

Preventing Fraud and Corruption 

17. The Executive Director with responsibility for Legal and Regulatory              Support Services is responsible for the development and maintenance          of an anti-fraud and anti-corruption policy.

5. Asset Management 

Council Resources 

1. The Policy and Resources Committee is responsible for approving the Council’s Capital Investment Strategy for reviewing the effectiveness of asset management. The Executive Director with responsibility for Commercial Services is responsible for the detailed development and  review of the corporate asset management strategy. 
    
2. Inventories will be maintained on a continuous basis by all Services and these will contain an accurate description of furniture, fittings and equipment, plant and machinery. The extent to which property of the Council will be recorded and the form in which inventories will be kept will be determined by the appropriate Executive Director in consultation  with the Chief Financial Officer.
    
3. The Council’s property will not be removed otherwise than in accordance with the ordinary course of the Council’s business or used  otherwise than for the Council’s purposes except in accordance with specific directions issued by the Executive Director concerned from time to time.
    
4. The care, custody and level of equipment and stock in any Service will be the responsibility of the Executive Director concerned who will ensure that -
   1. (a) Adequate arrangements have been made for the proper and secure storage of all equipment and stock;
   2. (b) Stock levels are maintained at the minimum level sufficient to meet the operational requirements of the Service;
   3. (c) All equipment and stock received, issued, or otherwise disposed of are accounted for;
   4. (d) All stocks are checked in accordance with arrangements approved by the Head of Financial Services.
       
5. Any significant deficiencies found on stock taking or at any other time must be investigated by the relevant Executive Director who consulting as necessary with the Chief Financial Officer or the Executive Director with responsibility for Commercial Services may take whatever action she/he considers appropriate, and may write off losses of stock where she/he considers there are good and sufficient reasons for doing so.
    
6. Redundant and surplus stocks and items of equipment will be disposed of by competitive tender under arrangements approved by the Chief Financial Officer, except where the Executive Director concerned is of the opinion that the income likely to accrue from the disposal is less than £10,000, in which case the Executive Director concerned may dispose of the surplus so as to ensure that any reasonable value which the stock may have may be realised.
    
7. The Executive Director with responsibility for Roads and Infrastructure Services will have overall responsibility for ensuring that all vehicles, plant and equipment are maintained in a satisfactory state of repair and will take whatever appropriate steps are necessary by way of action or advice to ensure that all legal and safety requirements in respect of their operation are complied with.
    
8. All vehicles and mobile plant and equipment will be used only for the purposes of the Council, and by such persons and under such arrangements as the appropriate Executive Director will approve from time to time.
    
9. No employee may take a vehicle home unless officially rostered for duty or stand-by and the vehicle is required in connection with that purpose, or the prior permission of the Executive Director concerned has been granted, which permission will only be given if the use of the vehicle is required for, or arising from, the conduct of Council business. The unofficial or unauthorised use of a vehicle, including the carrying of unauthorised passengers, is prohibited.
    
10. If any vehicle is involved in an accident, whether or not there is injury to any person or damage to any other vehicle or property, the person in charge of the vehicle at the time of the accident will, in addition to any other requirement of law, not later than the end of the current work period, or earlier if the nature of the accident so warrants, inform the Executive Director of Service concerned and will complete an accident report which will be forwarded immediately to the Executive Director with responsibility for Legal and Regulatory Support Services.
     
11. All use of vehicles will be recorded in such forms or log books as the Executive Director with responsibility for Road and Infrastructure Services in consultation with the appropriate Executive Director, may agree.
     
12. All vehicles surplus to the requirements of the Council will be disposed of by competitive tender under arrangements approved by the Executive Director with responsibility for Road and Infrastructure Services.
     
13. The corporate asset management strategy will provide for the maintenance of  an asset register of all heritable properties owned or leased by the Council recording the holding Service, purpose for which held, location, extent and plan reference, purchase details, valuation, particulars or nature of interest, rents payable and particulars of any tenancies granted.
     
14. The Executive Director with responsibility for Legal and Regulatory Support Services will have custody of all title deeds and other leases and agreements in respect of all heritable properties owned or leased  by the Council.
     
15. Each Executive Director is responsible for maintaining proper security at all times of all buildings, stocks, stores, furniture, equipment and cash under their control. The Executive Director with responsibility for Commercial Services will be consulted in any case where security is thought to be defective or inadequate, or that special security arrangements may be required.
     
16. Each Executive Director will advise the Chief Financial Officer of all circumstances within the Service where cash is held or is otherwise under the control of employees of the Council, and will ensure that all   amounts of cash so held or controlled do not exceed amounts which may be agreed with the Chief Financial Officer.
     
17. Keys to safes and similar receptacles containing cash or valuable documents or articles will be carried on the person of those responsible  or be kept secure otherwise. The Executive Director concerned will in each case determine the person responsible or approve the arrangements for keeping keys secure. A register of all key holders will be kept in each Service and the loss of any keys will be reported immediately to the Head of Service concerned.

Security and Protection of Private Property

18. All employees who may be required to receive or hold cash or property on behalf of the Council, or who may be required or likely in the course of their normal duties to enter private property or otherwise confirm their identity and such other employees as a Executive Director may direct, will be given an identity card bearing a photograph of the holder, and must produce the card to any person having reasonable grounds to know the identity of the holder.
     
19. Each Executive Director will be responsible for ensuring that proper privacy and security is maintained in respect of information held in any medium including on any computer storage medium, and the requirements of the Data Protection Act 2018 and the Freedom of Information (Scotland) Act 2002 and the General Data Protection Regulations 2016/679 and any other relevant legislation are complied with.
     
20.  Each Executive Director will ensure that the information held in any medium and the use to which that information is put is confined solely to the purposes of the Council and in compliance with Data Protection Act 1998 and the Freedom of Information (Scotland) Act 2002 and any other relevant legislation and no person will communicate any information so held to any other person except where the information is being communicated where the person receiving the information is entitled to receive it and the Council has an obligation to provide it.
     
21. In each case where it is known that the Council assumes a legal responsibility to prevent or mitigate loss of or damage to moveable private property, the Executive Director concerned will ensure that arrangements exist so that in each case an itemised inventory will be  prepared in the presence of two officers.
     
22. Any valuable such as jewellery, cash or documents will be deposited for safe custody in accordance with arrangements approved by the Chief Financial Officer.
     
23. Any person who, by virtue of employment with the Council, is responsible for the custody or management of cash or property belonging to a third party will, in so doing, employ standards of stewardship no less than those laid down in these Regulations and elsewhere for cash and property belonging to the Council.
     
24. Any employee will, if required by the Chief Financial Officer or the relevant Executive Director concerned provide immediately a full and  proper account of all cash and property received from, or on behalf of, a third party, and will, if so directed by the Executive Director transmit that cash or property to any other specified person.

6. Treasury Management, Investments and Trusts

1. The Policy and Resources Committee will have responsibility for the overall investment of money under the control of the Council.  All investments of money under the control of the Council will be made in the name of the Council or in the name of nominees approved by the Council; Bearer Securities will be excepted from this regulation but any purchase of such securities will be reported to the Council.
    
2. All heritable securities which are the property of, or in the name of the Council or its nominees and the title deeds of all property in the ownership of the Council will be held in the custody of the Executive Director with responsibility for Legal and Regulatory Support Services or an officer appointed by him/her.
    
3. The Council will comply with the CIPFA Code of Practice for Prudential Borrowing. The Council will approve on an annual basis a set of prudential code indicators. The Chief Financial Officer will keep these under review and report any exceptions in the first instance to the Council.
    
4. The Policy and Resources Committee will keep under review the level of borrowing.
    
5. All borrowing and lending will be effected in the name of the Council and will be in accordance with the CIPFA Code of Treasury Management. The Policy and Resources Committee will approve from time to time a Treasury Policy Statement.  The Policy and Resources Committee will approve, annually, a Treasury Management Strategy. Implementation and monitoring of its Treasury Management Policies and Practices will be the responsibility of the Policy and Resources Committee. The execution and administration of Treasury Management decisions will be the responsibility of the Chief Financial Officer, who will act in accordance with the Council’s Policy Statement and Treasury Management Practices and CIPFA’s Standard of Professional Practice on Treasury Management.
    
6. All funds in the hands of the Council will be aggregated for the purposes of Treasury management as defined in the CIPFA Code and will be under the control of the Chief Financial Officer.
    
7. All executive decisions on borrowing, investment or financing will be delegated to the Chief Financial Officer and/or other officers designated by her/him, who all will be required to act in accordance with the CIPFA Code of Treasury Management in Local Authorities.
    
8. A Treasury Policy Statement will be adopted by the Council, and Treasury Management Strategy will be the overall responsibility of the Council.
    
9. The Chief Financial Officer will present to the Council an Annual Report and such other reports on the Treasury Management Operation and on the exercise of delegated treasury management powers.
    
10. The Chief Financial Officer will be the Council’s registrar of stocks, bonds and mortgages granted by the Council and will maintain records of all borrowing of money by the Council.
     
11. All trust funds administered by Members and/or officers acting as trustees by virtue of their official position will wherever possible be in the name of the Council.  Except as provided in regulation 16.2 all office bearers acting as trustees by virtue of their official position will  deposit all securities etc. relating to the trust with the Chief Financial Officer unless the trust deed provides otherwise.

7. Systems and Procedures

1. The Council will ensure that there are in place sound systems and procedures and an effective framework of accountability and control.
    
2. Executive Directors will ensure that a proper scheme of delegation has been established within their department and is operating effectively. The scheme of delegation should identify staff authorised to act on the Executive Director’s behalf in respect of payments, income collection   and placing orders together with the limits of their authority.

Accounting Records

3. The Chief Financial Officer will consult other Executive Directors about the procedures and records to be maintained in each Service.  All accounting procedures and all accounting and related records of the Council will be decided by the Chief Financial Officer.
    
4. All accounts and accounting records of the Council will be compiled by or under the direction of the Chief Financial Officer.
    
5. Executive Directors should ensure that all accounting records and other documentation are held for the periods as required by statute or as advised by the Chief Financial Officer.
    
6. The following principles will be observed -
   1. (a) the duties of providing information about sums due to or by the Council and of calculating, checking and recording these, will be separated as completely as possible from the duty of collecting or disbursing them;
   2. (b) officers charged with the duty of examining and checking the accounts of transactions will not so far as possible themselves be involved in managing these accounts.
       
7. Executive Directors should ensure that their relevant staff receive relevant financial training that has been approved by the Chief Financial Officer.

Procurement

All procurement of works, goods, and services will be in terms of the Contract Standing Orders, the Council’s Procurement Strategy and guidance provided by the Executive Director with responsibility for Legal and Regulatory Support Services.

8. Official orders will be in a form approved by the Chief Financial Officer in consultation with the Head of Legal and Regulatory Support Services. Each Executive Director will ensure that proper procedures  exist for the custody, control and authorisation of official order forms.
    
9. Official orders will be issued for all work, goods or services to be supplied to the Council except -
   1. (a) work, goods or services which are covered by a prior written agreement or contract which prescribes that payment will be made at certain intervals or under certain conditions;
   2. (b) specified categories of goods or services which may be purchased in accordance with and subject to the terms of any scheme approved by the Council involving an agreement with any bank to extend credit to the Council for such purchases by way of corporate credit cards;
   3. (c) the metered element of utility services, but not the installation, alteration or repair of such services;
   4. (d) periodic payments such as rates or water and sewerage charges;
   5. (e) purchases in cash for which reimbursement is made through an imprest account;
   6. (f) where the specific approval of the Head of Legal and Regulatory Support Services has been obtained;
   7. (g) in an emergency, an oral order may be given under arrangements approved from time to time by each Executive Director but will be confirmed in writing immediately thereafter;
   8. (h) where training courses, seminars or conferences are being booked the order form supplied by the Company organising/running the event may be used.
       
10. All orders will, by way of authorisation, either -
    1. (a) be signed by the appropriate Executive Director or by a person designated by the Executive Director to do so, and the names and specimen signatures of such persons will be supplied to the Head of Legal and Regulatory Support Services and will be amended on the occasion of any change; or
    2. (b) be issued electronically through an eProcurement system by a person designated by the appropriate Executive Director, and where the names of such persons and authorisation limits have been notified to the Head of Legal and Regulatory Support Services; or
    3. (c) be issued utilising a corporate credit card to a person designated by the appropriate Executive Director;
    4. (d) under such other arrangements as may be approved by the Head of Legal and Regulatory Support Services.
        
11. The person authorising any order will ensure that the expenditure to be incurred is legal, that funds have been provided in the budget to cover the expenditure, and that the order indicates clearly the nature and quantity of goods or services to be supplied, and any contract or agreed price.
     
12. A copy of any order form will, if so required on any occasion, be supplied to the Head of Legal and Regulatory Support Services.

Payment of Accounts

13. All payments of money due from the Council (except interest payments under Regulation 8.30) will be by cheque or other instrument drawn on, or by the automated transfer of funds from, the Council’s main bank accounts.
14. An Executive Director issuing an order is responsible (except as otherwise specifically arranged with the Head of Legal and Regulatory Support Services) for examining, verifying and certifying the related invoice(s) and similarly for any other payments generated within the Service which may not be supported by an invoice or voucher from a third party.  Such certification will be a signature by or on behalf of the Executive Director. The names of the officers authorised to sign such records will be sent to the Head of Legal and Regulatory Support Services by each Executive Director together with specimen signatures and will be amended on the occasion of any change. 
    
    Where an order has been issued electronically through an eProcurement system and been authorised by a person nominated by the relevant Executive Director, invoices should be sent directly by the supplier to the Head of Legal and Regulatory Services.  Provided delivery of the order has been receipted and the invoice has been matched to the receipts order for price and quantity by a person nominated by the relevant Executive Director, no further certification is necessary prior to payment of that invoice by the Head of Legal and Regulatory Support Services.
     
15. Before certifying an invoice or other payment document, the certifying officer will (except to the extent that the Head of Legal and Regulatory Support Services may otherwise determine) be satisfied that -
    1. (a) the work, goods or services to which the invoice relates have been received, carried out, examined and approved;
    2. (b) the prices, extensions, calculations, discounts, other allowances, credits, and VAT and other taxes are correct;
    3. (c) the relevant expenditure has been properly incurred;
    4. (d) appropriate entries have been made in inventories, stores records or stock books as required;
    5. (e) the invoice has not previously been passed for payment;
    6. (f) the invoice is in the name of the Council or an integral part of it;
    7. (g) the charge is a proper liability of the Council;
    8. (h) any guidance issued by the Chief Financial Officer or the Head of Legal and Regulatory Support Services has been complied with.
        
16. Where contracts stipulate that payment must be made against a consolidated statement, certifying officers may approve such statements where they are not satisfied that all the provisions of paragraph 8.15 are fulfilled provided that they immediately invoke contract procedures for the rectification of those charges, such rectification to be included on a subsequent statement.
     
17. Duly certified invoices will be passed without delay to the Head of Legal and Regulatory Support Services for payment and may be examined to the extent that s/he considers necessary.  The Head of Legal and Regulatory Support Services will be entitled to make such enquiries and to receive such information and explanations as s/he may require.
     
18. Every Executive Director will as soon as possible after 31 March notify the Chief Financial Officer, by a date which may be specified each year, of all significant outstanding expenditure relating to the previous financial year.

Salaries and Wages

19. Each Executive Director will keep the records and information about salaries, wages and other emoluments as the Chief Financial Officer and the Head of Financial Services may require, and will be responsible for the accuracy and authenticity of that information.
     
20. The payment of all salaries, wages, pensions, compensations and other emoluments to all employees or former employees of the Council and all other payments made to employees as a consequence of their employment by the Council will be made under arrangements made by the Head of Financial Services and approved by the Chief Financial Officer.
     
21. Each Executive Director will notify the Head of Financial Services as soon as possible of all matters affecting the payment of emoluments, and in particular -
    1. (a) appointments, including temporary and casual appointments, resignations, dismissals, suspensions, secondments and transfers;
    2. (b) absences from duty for sickness or other reason, apart from approved annual and other leave which has no effect on wages or other emoluments;
    3. (c) changes in remuneration, other than normal increments and pay awards and agreements of general application;
    4. (d) information necessary to maintain records of service for pension, income tax, national insurance and the like purposes.
        
22. The Chief Executive, Chief Financial Officer and the Head of Financial Services, as appropriate, will keep all Executive Directors informed about changes in conditions of service, pension benefits and regulations and other similar matters.
     
23. All time sheets, expense claims and other documents which form the basis of a payment to an employee of the Council will be in a form agreed with Head of Financial Services and the Head of Customer Support Services. The names of officers authorised to sign these documents will be sent to the Head of Financial Services by each Executive Director together with specimen signatures and will be amended on the occasion of any change.

Travelling and Subsistence 

24. All claims for payment of car allowances, subsistence allowances, travelling and incidental expenses will be submitted to the Chief Financial Officer, certified in an approved form, and made up to a specified day each month.  The names of officers authorised to sign or approve these documents will be sent to the Chief Financial Officer by each Executive Director together with specimen signatures and will be amended on the occasion of any change. All claims by an Executive Director will be approved by the Chief Executive or the Chief Financial Officer. All claims by the Chief Executive will be approved by the Chief Internal Auditor. All claims by the Chief Financial Officer will be approved by the Chief Executive. 
     
25. Certification by or on behalf of an Executive Director will 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 properly payable by the Council.
     
26. Employees claims submitted more than six months after the expenses were incurred will be paid only with the express approval of the relevant Executive Director.
     
27. Employees and Councillors using their own cars for official journeys are responsible for ensuring that motor insurance is in place that is appropriate for the use of the vehicle on Council business.
     
28. Payments of remuneration and reimbursement of expenses to Councillors, will be made by according to the relevant statutory regulations under arrangements approved by the Chief Financial Officer.
     
29. Payments to Members of the Children’s Panel, the Children’s Panel Advisory Committee, to Safeguarders and to such other persons who from time to time are co-opted or required to attend as members of Committees, Sub-Committees, Panels or other  Groups established by the Council, who are entitled to claim travelling or other allowances or expenses will be made by the Chief Financial Officer, following submission of claims by those making the claim to the Executive Director with responsibility for Legal and Regulatory Support Services in the first instance.

Imprests

30. The Chief Financial Officer will provide such imprests as may be appropriate for Officers of the Council who may need them for the purposes of defraying petty cash and other expenses.
     
31. Where appropriate, the Chief Financial Officer will open a bank account for use by the imprest holder who will not overdraw that account. Bank accounts will be opened only by the Chief Financial Officer, or under arrangements approved by the Chief Financial Officer.
     
32. Subject to the approval of the Chief Financial Officer, other Executive Directors may make arrangements for minor items of expenditure to be paid from imprest accounts.  Payments will be supported by receipted vouchers whenever possible.
     
33. No income received on behalf of the Council may be paid into an imprest account but must be banked or paid to the Council as set out elsewhere in these regulations.
     
34. An Officer responsible for an imprest will, when requested, provide the Chief Financial Officer with a certificate as to the state of the imprest.
     
35. Officers will be personally responsible for imprests which they hold and on leaving the employment of the Council or otherwise ceasing to be entitled to hold an imprest, they will account to the Chief Financial Officer for the amount advanced. A formal record of this accounting will be retained in the Service concerned.
     
36. All imprest accounts will be maintained in accordance with guidance issued by the Chief Financial Officer.

Taxation

37. The Chief Financial Officer is responsible for advising, in the light of guidance issued by appropriate bodies and relevant legislation as it applies, on all taxation issues that affect the Council.
     
38. The Chief Financial Officer is responsible for ensuring arrangements are in place to maintain the Council’s tax records, make all tax payments, receive tax credits and submit tax returns by their due date as appropriate.

Income

39. As part of the process of developing service plans and budgets, charges relating to the provision of services will increase in line with inflation each year except where the charge is fixed by or under a statutory provision by a body other than the Council; or where on the recommendation of the relevant Executive Director the Council varies or rebates any charge. This process will include examining the means of increasing income and marketing the services.
     
40. Each Executive Director will notify the Chief Financial Officer of all money due to the Council and of contracts, leases and other agreements and arrangements which involve the receipt of money by the Council.
     
41.  Except as otherwise agreed with the Chief Financial Officer the appropriate Executive Director will, in respect of matters for which there is a legal or administrative responsibility, render accounts for all work done, goods supplied, services provided, and all other amounts due, such accounts to be rendered in terms of guidance which may be issued by the Chief Financial Officer.   
     
42. All receipt forms, books and other forms of accountable stationary used to record financial and related transactions will be in a form approved by the Chief Financial Officer and will be ordered, controlled and issued by, or under arrangements approved by, the Chief Financial Officer. 
     
43. No officer will give a receipt for money received on behalf of the Council on any form other than an official receipt approved in terms of the preceding paragraph. This regulation will not apply to the Executive Director with responsibility for Legal and Regulatory Support Services for money received and for which a receipt is contained in a document issued by the Executive Director with responsibility for Legal and Regulatory Support Services. The Executive Director with responsibility for Legal and Regulatory Support Services will, however, advise the Chief Financial Officer of the issue of the document and the sum of money received.
     
44. All money received by an officer on behalf of the Council will without unreasonable delay be paid to the Chief Financial Officer or, in accordance with arrangements made by the Chief Financial Officer, direct to the Council’s bank accounts. No deduction may be made from such money save to the extent that the Chief Financial Officer may specifically authorise.
     
45. Personal cheques will not be cashed out of money held on behalf of the Council, nor will personal cheques be substituted for cash collected on behalf of the Council.
     
46. Every transfer of money from one member of staff to another must be recorded in the appropriate departmental records by the signature of the receiving officer.
     
47. No debt in respect of an amount due to the Council, once correctly established, will be discharged otherwise than by payment in full. However, the Executive Director with responsibility for Legal and Regulatory Support Services, may delegate authority to the Chief Financial Officer, or the Head of Legal and Regulatory Support Services to exercise a discretion to write off in whole or in part the debt where -
    1. (a) as a result of the death, sequestration or liquidation of the debtor there are insufficient free funds to meet the Council’s claim; or
    2. (b) otherwise, there are good and sufficient reasons for doing so, having regard to the relative level of the debt and the prospects  and costs associated with securing payment.

Banking Arrangements and Cheques

48. All arrangements with the Council’s Bankers will be made by or under arrangements approved by the Chief Financial Officer and they shall operate such bank accounts as s/he may consider necessary.
     
49.  All cheques and other forms enabling payment to be made from any Council bank account, to include any corporate credit card, will be ordered only by the Chief Financial Officer, who will ensure that proper arrangements have been made for their safe custody and that adequate controls exist over the use and production of cheques.
     
50. Cheques and other instruments drawn on the Council’s bank accounts will bear the facsimile signature of or be signed by the Chief Financial Officer or such other Officer as may be from time to time authorised by the Chief Financial Officer. 
     
51. All arrangements for the receipt and payment of monies using the Clearing House Automated Payment System and the Bankers Automated Clearing Services will be made by or under arrangements approved by the Chief Financial Officer.

Significant Trading Operations

52. It is the responsibility of the Chief Financial Officer to advise on areas of the Council’s operations where the establishment of trading accounts in compliance with the Local Government in Scotland Act 2003 is required.
     
53. The relevant director responsible for each significant trading operation, in consultation with the Chief Financial Officer, will prepare three-yearly estimates of income and expenditure incorporating any statutory or Council financial targets. 
     
54. The Chief Financial Officer will prepare periodic trading statements for each significant trading operation.