Status of Financial Regulations
To conduct its business efficiently, the authority needs to ensure that it has sound financial management policies in place and that they are adhered to. Financial regulations set out the financial policies of the authority and 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 members and Panel members, the Chief Executive, the Monitoring Officer, the Section 151 officer and other Directors and Heads of Service. Executive members and Directors/Heads of Service should maintain a written record where decision making has been delegated to members of their staff. Where decisions have been delegated or devolved to other responsible officers, references to the Director or Head of Service in the regulations should be read as referring to them.
All members and staff 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.
The Head of Finance is responsible for maintaining a continuous review of the financial regulations and submitting any additions or changes necessary to the full Council for approval. The Head of Finance is also responsible for reporting, where appropriate, breaches of the financial regulations to the Council and/or to the Cabinet members.
The authority's detailed financial procedures, setting out how the regulations will be implemented, are contained in the appendices to the financial regulations.
Corporate Directors and 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 and other internal regulatory documents and that they comply with them. They must also ensure that an adequate number of copies are available for reference within their section(s) (the rules can also be accessed via the Council's web site).
The Head of Finance is responsible for issuing advice and guidance to underpin the financial regulations that members, officers and others acting on behalf of the authority are required to follow.
The Head of Finance can allow exceptions to these regulations if he/she believes that the interests of the Council would be best served if the regulations were not applied. The Head of Finance must keep a written record of any exceptions and submit an annual report to Full Council summarising his or her decisions. Officers authorised to act on behalf of the Head of Finance in agreeing exceptions are the Chief Accountant and Chief Internal Auditor.
A: Financial Management
Introduction
A.1 Financial management covers all financial accountabilities in relation to the running of the authority, including the Budget and Policy Framework Procedure Rules set out in Part 4 of this constitution.
The Full Council
A.2 The full Council is responsible for adopting the authority's constitution and members' code of conduct and for approving the policy framework and budget within which the Cabinet operates. It is also responsible for approving and monitoring compliance with the authority's overall framework of accountability and control. The framework is set out in its constitution. The full Council is also responsible for monitoring compliance with the agreed policy and related executive decisions.
A.3 The full Council is responsible for approving procedures for recording and reporting decisions taken. This includes those key decisions delegated by and decisions taken by the Council and its committees. These delegations and details of who has responsibility for which decisions are set out in the constitution.
The Accounts and Audit Regulations 2003 introduced a new regulation in relation to bodies' responsibility for financial management, effective from 1 April 2003.
1.2 Regulation 4 (1) states that "The relevant body shall be responsible for ensuring that the financial management and accounting control systems of the body are adequate and effective, that the body has a sound system of internal control which facilitates the effective exercise of that body's functions and which includes risk management arrangements.
1.3 Regulation 4(2) adds that "The relevant body shall conduct a review at least once a year of the effectiveness of its system of internal control and shall publish a statement on the adequacy of internal control with any statement of accounts it is obliged to publish"
1.4 Auditing of the Council's accounts is undertaken in accordance with professional rules known as the Statement of Accounting Standards. Compliance with the standard is the responsibility of the Head of Finance, with the exception of "Communications of Audit Matters with those Charged with Governance". In such cases, the Council's Auditors, the Audit Commission, report relevant matters to a working party of five councillors.
The Cabinet
A.4 The Cabinet is responsible for proposing the budget and policy framework to the full Council, and for discharging executive functions in accordance with the budget and policy framework.
A.5 Executive decisions can be delegated to a committee of the Cabinet, an individual Cabinet member, an officer or a joint committee.
A.6 The Cabinet is responsible for establishing protocols to ensure that individual Cabinet members consult with relevant officers before taking a decision within his or her delegated authority. In doing so, the individual member must take account of legal and financial liabilities and risk management issues that may arise from the decision.
Committees of the Council
Policy Development and Performance Monitoring Panels (Overview and Scrutiny)
A.7 The Policy Development and Performance Monitoring Panels are responsible for monitoring Cabinet decisions before or after they have been implemented and for holding the Cabinet to account. The Panels are responsible for making recommendations on future policy options and for reviewing the general policy and service delivery of the authority.
Standards Committee
A.8 The Standards Committee is established by the full Council and is responsible for promoting and maintaining high standards of conduct amongst councillors. In particular, it is responsible for advising the council on the adoption and revision of the Members' Code of Conduct, making provision for the training of members in connection with the Members' Code of Conduct, and for monitoring the operation of the code.
Other Regulatory Committees
A.9 Development Control and Licensing are not Cabinet functions but are exercised through the multi-party Development Control and Licensing committees under powers delegated by the full Council.
The Statutory Officers
Head of Paid Service (Chief Executive)
A.10 The Head of Paid Service is responsible for the corporate and overall strategic management of the authority as a whole. He or she must report and provide information for the Cabinet, the full Council, the Policy Development and Performance Review Panels and other committees. He or she is responsible for establishing a framework for management direction, style and standards and for monitoring the performance of the organisation. The Head of Paid Service is also responsible, together with the Monitoring Officer, for the system of record keeping in relation to all the full Council's decisions (see below).
Monitoring Officer (Head of Customer, Legal and Member Services)
A.11 The Monitoring Officer is responsible for promoting and maintaining high standards of financial conduct and therefore provides support to the Standards Committee. The Monitoring Officer, in conjunction with the Head of Customer, Legal and Member Services where those roles are separate, is also responsible for reporting any actual or potential breaches of the law or maladministration to the full Council and/or to the Cabinet, and for ensuring that procedures for recording and reporting key decisions are operating effectively.
A.12 The Head of Customer, Legal and Member Services must ensure that Cabinet decisions and the reasons for them are made public. He or she must also ensure that council members are aware of decisions made by the Cabinet and of those made by officers who have delegated executive responsibility.
A.13 The Head of Customer, Legal and Member Services is responsible for advising all councillors and officers about who has authority to take a particular decision.
A.14 The Monitoring Officer is responsible for advising the Cabinet or full Council about whether a decision is likely to be considered contrary or not wholly in accordance with the policy framework.
A.15 The Monitoring Officer (together with the Head of Finance) is responsible for advising the Cabinet or full council about whether a decision is likely to be considered contrary or not wholly in accordance with the budget. Actions that may be 'contrary to the budget' include:
- initiating a new policy
- committing expenditure in future years to above the budget level
- incurring interdepartmental transfers above virement limits
- incurring additional expenditure above the set limits
- causing the total expenditure financed from council tax, grants and corporately held reserves to increase, or to increase by more than a specified amount.
A.16 The Head of Customer, Legal and Member Services is responsible for maintaining an up-to-date constitution.
Chief Financial Officer (Head of Finance)
A.17 The Head of Finance has statutory duties in relation to the financial administration and stewardship of the authority. This statutory responsibility cannot be overridden. The statutory duties arise from:
- Section 151 of the Local Government Act 1972
- The Local Government Finance Act 1988
- The Local Government and Housing Act 1989
- The Accounts and Audit Regulations 2003
- The Local Government Act 2003
A.18 The Head of Finance is responsible for:
- the proper administration of the authority's financial affairs
- setting and monitoring compliance with financial management standards
- advising on the corporate financial position and on the key financial controls necessary to secure sound financial management
- providing financial information
- preparing the revenue budget and capital programme
A.19 Section 114 of the Local Government Finance Act 1988 requires the Head of Finance to report to the full council, Cabinet and external auditor if the authority or one of its officers:
- has made, or is about to make, a decision which involves incurring unlawful expenditure
- has taken, or is about to take, an unlawful action which has resulted or would result in a loss or deficiency to the authority
- is about to make an unlawful entry in the authority's accounts.
The Head of Finance must also make a report under this section if it appears that the expenditure of the authority (including expenditure it is proposing to incur) in a financial year is likely to exceed the resources (including sums borrowed) available to meet that expenditure.
Section 114 of the 1988 Act also requires:
- the Head of Finance to nominate a properly qualified member of staff to deputise should he or she be unable to perform the duties under section 114 personally
- the authority to provide the Head of Finance with sufficient staff, accommodation and other resources - including legal advice where this is necessary - to carry out the duties under section 114.
Part 11 of the Local Government Act 2003 introduces a requirement for the Chief Financial Officer to report upon the robustness of the estimates made for the purposes of the budget and tax setting calculations and the adequacy of proposed reserves.
Chief Internal Auditor
A key standard of this CIPFA Code of Practice for Internal Audit in Local Government 2003 is the requirement for the Head of Internal Audit to report annually to the authority an opinion on the overall adequacy and effectiveness of the authority's internal control environment, providing details of any weaknesses that qualify this opinion and bringing to the attention of the authority any issues particularly relevant to the preparation of the Statement of Internal Control.
Directors and Service Heads
A.20 Directors and Heads of Service are responsible for ensuring that Cabinet members are advised of the financial implications of all proposals and that the financial implications have been agreed by the Head of Finance.
A.21 It is the responsibility of Directors and Heads of Service to consult with the Head of Finance and seek approval on any matter liable to affect the authority's finances materially, before any commitments are incurred.
Other Financial Responsibilities
Virement and Additional Expenditure
A.22 The full Council is responsible for agreeing procedures for virement of expenditure between budget headings and procedures for incurring additional expenditure above the set budget.
A.23 The officers identified in the relevant delegation within the Schedule of Delegation are responsible for agreeing in-year virements within delegated limits, in consultation with the Head of Finance. They must notify the Head of Finance of all virements over £15,000 (this limit to be increased annually in line with RPI-x (the retail prices index excluding mortgage interest payments).
Treatment of year-end balances
A.24 The full Council is responsible for agreeing procedures for carrying forward under- and overspendings on budget headings.
Accounting policies
A.25 The Head of Finance is responsible for selecting accounting policies and ensuring that they are applied consistently.
Accounting records and returns
A.26 The Head of Finance is responsible for determining the accounting procedures and records for the authority (the Accounts and Audit Regulations 2003, Section 5). Where such procedures are maintained in a service unit other than that of the Head of Finance, she will consult with the Director or Head of that service unit).
A.27 All service units must use the Council's corporate accounting system for their financial management requirements. The Head of Finance shall be consulted on any proposal to develop alternative systems.
The annual statement of accounts
A.28 The Head of Finance is responsible for ensuring that the annual statement of accounts is prepared in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom: A Statement of Recommended Practice (CIPFA/LASAAC). The full Council is responsible for approving the annual statement of accounts.
A: Financial Management
Appendix 1 - Virement Rules (including additional revenue or capital expenditure commitments)
The scheme of virement is intended to enable the Cabinet, directors, heads of service and their staff to manage budgets with a degree of flexibility within the overall budget and policy framework determined by Full Council.
Key controls
Key controls for the scheme of virement are:
- It is administered by the Head of Finance in accordance with the Budget and Policy Framework Procedure Rules. Any variation from this scheme requires the approval of the full Council.
- The overall revenue budget is drawn up by the Cabinet and approved by the full Council. Heads of Service and budget managers are therefore authorised to incur expenditure in accordance with the estimates that make up the budget. The rules below cover virement (that is, switching resources between approved budget headings), and the approval of additional revenue or capital expenditure.
- Virement does not create additional overall budget liability. Heads of Service are expected to exercise their discretion in managing their budgets responsibly and prudently. For example, they should not support recurring revenue expenditure from one-off sources of savings or additional income, or creating future commitments, including full-year effects of decisions made part way through a year, for which they have not identified future resources. Heads of Service must plan to fund such commitments from within their own budgets.
- The capital programme is drawn up by the Cabinet and approved by the full Council and contains details of approved expenditure on capital schemes.
Rules for Virements
Employees
- Virements from employee budgets shall only be allowed if all staff targets have been met and with the approval of the Head of Finance.
- Employee related costs connected to recruitment such as advertising, relocation, consultants etc., need to be financed from within salary budgets.
Capital
Unless otherwise authorised by these Rules no virements can be made between the revenue and the capital programme without Full Council approval.
- Where the total cost of a capital scheme exceeds the amount included in the Capital Programme for that scheme, the Cabinet, or a Committee of the Cabinet, may commit the scheme if at the same time it agrees to reduce the estimated capital expenditure for other schemes included in the programme to cover the additional estimated cost. Any such amendment to the Capital Programme must be reported to the next available meeting of the Council.
- Virements will be signed by the Head of Finance or the Head of Property.
Income
- Virements between income headings, and virements that increase or decrease both income and expenditure can be allowed subject to the approval of the Head of Finance. The Head of Finance will have to consider the nature of any additional income e.g. is it windfall or generated by managerial actions, together with the current financial position of the Authority.
Commitment of additional revenue or capital expenditure above set budget
- The Cabinet, or a Committee of the Cabinet, may, in respect of any scheme, commit additional:
- revenue expenditure up to an amount equivalent to that defined as a "key decision" for revenue; or
- capital expenditure up to an amount equivalent to that defined as a "key decision" for capital
subject to identifying, before such additional expenditure is committed, an appropriate method of financing the additional expenditure
General
- No virement relating to a specific financial year will be made after 31 March in that year.
- All virements over £15,000 (or such other figure calculated in accordance with A.23 above) will be notified to the Head of Finance and reported to the relevant portfolio holder(s) on a quarterly basis.
- There can be no virements actioned between the General Fund and HRA revenue accounts.
- Virements should be actioned before the orders are raised for goods and services, if a potential overspend has been identified.
- Virements can be authorised by the Director, Head of Service, or budget manager and need to be checked by accounting services. Virements can be raised on behalf of the above by accountancy staff but will require authorisation by one of the above.
- The maximum virement value is £57,000 (this limit to be increased annually in line with RPI-x (the retail prices index excluding mortgage interest payments). Virements in excess of this figure will require the approval of the Council. Serial Virements are not permitted.
- All expenditure directly controlled elsewhere (e.g. insurance, banking charges, support services). Virements can be allowed both into and from these budgets but need to be actioned through the direct budget manager.
Responsibilities of the Head of Finance
- To approve virements between service units.
- Unless otherwise authorised by these Rules, to seek Council approval for virements between the revenue and the capital programme or within the capital programme. The Head of Finance or the Head of Property will sign Virements.
- To report on all virements over £15,000 to the relevant portfolio holder(s) on a quarterly basis.
- To report and seek Cabinet approval for the use of reserves over and above that already planned in year.
- Unless otherwise authorised by these Rules, to seek Full Council approval for increasing capital expenditure.
Responsibilities of Chief Executive, Assistant Chief Executive, Directors, Heads of Service and Budget Managers
- To report fortuitous savings or additional income exceeding £5,000 which cannot be used for revenue virement purposes. These must be reported to the Cabinet.
- In conjunction with the Head of Finance to report and seek approval for revenue virements in excess of £57,000.
- To exercise virement on revenue budgets under his or her control up to £57,000 (this limit to be increased annually in line with the retail prices index).
- To ensure the Head of Finance sees all virements in excess of £15,000 (this limit to be increased annually in line with the retail prices index).
B: Financial Planning
Introduction
B.1 The full Council is responsible for agreeing the authority's policy framework and budget, which will be proposed by the Cabinet. In terms of financial planning, the key elements are:
- the Best Value Performance Plan
Policy framework
B.2 The full Council is responsible for approving the policy framework and budget. The policy framework comprises the following statutory plans and strategies:
- corporate plan - tenant participation compact
- best value performance plan
- capital programme - local transport plan
- treasury management policy statement
- treasury strategy and prudential indicators
- approved investment strategy - plans and strategies comprising
the development plan
- community strategy - food law enforcement plan
- crime and disorder reduction strategy - housing strategy and business plan and
- local agenda 21 strategy any other plan or strategy which
comprise the Housing Investment programme
- supporting people strategy - cultural strategy
- recycling strategy
- financial strategy
- asset management plan
B.3 The full Council is also responsible for approving procedures for agreeing variations to approved budgets, plans and strategies forming the policy framework and for determining the circumstances in which a decision will be deemed to be contrary to the budget or policy framework. Decisions should be referred to the full council by the Monitoring Officer.
B.4 The full Council is responsible for setting the level at which the Cabinet may reallocate budget funds from one service to another. The Cabinet is responsible for taking in-year decisions on resources and priorities in order to deliver the budget policy framework within the financial limits set by the council.
Preparation of the corporate plan
B.5 The Head of Paid Service is responsible for proposing the corporate plan to the Cabinet for consideration before its submission to the full Council for approval.
Preparation of the best value performance plan
B.6 The Assistant Chief Executive is responsible for proposing the best value performance plan (BVPP) to the Cabinet for consideration before its submission to the full Council for approval.
Budgeting
Budget format
B.7 The general format of the budget will be approved by the full Council and proposed by the Cabinet on the advice of the Head of Finance. The draft budget should include allocation to different services and projects, proposed taxation levels and contingency funds.
Budget preparation
B.8 The Head of Finance is responsible for ensuring that a revenue budget is prepared on an annual basis and a general revenue plan on a five-yearly basis for consideration by the Cabinet, before submission to the full Council. The full Council may amend the draft budget before approving it, but it must first give the Cabinet an opportunity to reconsider the budget and suggest any amendments, or make any submissions that it sees fit.
B.9 The Cabinet is responsible for issuing guidance on the general content of the budget in consultation with the Head of Finance as soon as possible following approval by the full Council.
B.10 It is the responsibility of Directors and Heads of Service to ensure that budget estimates reflecting agreed service plans are submitted to the Cabinet and that these estimates are prepared in line with guidance issued by the Cabinet.
Budget monitoring and control
B.11 The Head of Finance is responsible for providing appropriate financial information to enable budgets to be monitored effectively. He or she must monitor and control expenditure against budget allocations and report to the Cabinet on the overall position on a regular basis.
B.12 It is the responsibility of Directors and Heads of Service to control income and expenditure within their area and to monitor performance, taking account of financial information provided by the Head of Finance. They should report on variances within their own areas. They should also take any action necessary to avoid exceeding their budget allocation and alert the Head of Finance to any problems.
Resource allocation
B.13 The Head of Finance is responsible for developing and maintaining a resource allocation process that ensures due consideration of the full Council's policy framework.
Preparation of the capital programme
B.14 The Head of Finance is responsible for ensuring that a capital programme is prepared on an annual basis for consideration by the Cabinet before submission to the full Council, this will be a five year programme.
Guidelines
B.15 Guidelines on budget preparation are issued to members, directors and Heads of Service by the Cabinet following agreement with the Head of Finance. The guidelines will take account of:
- medium-term planning prospects
- best value and other relevant government guidelines
- other internal policy documents
- cross-cutting issues (where relevant)
Maintenance of reserves
B.16 It is the responsibility of the Head of Finance to advise the Cabinet and/or the full Council on prudent levels of reserves for the authority.
C: Risk Management and Control of Resources
Introduction
C.1 It is essential that robust, integrated systems are developed and maintained for identifying and evaluating all significant operational risks to the authority. This should include the proactive participation of all those associated with planning and delivering services.
Risk management
C.2 The Cabinet is responsible for approving the authority's risk management policy statement and strategy and for reviewing the effectiveness of risk management. The Cabinet is responsible for ensuring that proper insurance exists where appropriate.
C.3 The Head of Property and the Head of Finance are jointly responsible for preparing the authority's risk management policy statement, for promoting it throughout the authority and for advising the Cabinet on proper insurance cover where appropriate.
Internal control
C.4 Internal control refers to the systems of control devised by management to help ensure the authority's objectives are achieved in a manner that promotes economical, efficient and effective use of resources and that the authority's assets and interests are safeguarded.
C.5 The Head of Finance 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.
C.6 It is the responsibility of directors and Heads of Service 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 their financial performance targets.
Audit requirements
C.7 The Accounts and Audit Regulations 2003 require every local authority to maintain an adequate and effective internal audit.
C.8 The Audit Commission is responsible for appointing external auditors to each local authority. The basic duties of the external auditor are governed by section 15 of the Local Government Finance Act 1982, as amended by section 5 of the Audit Commission Act 1998.
C.9 The authority may, from time to time, be subject to audit, inspection or investigation by external bodies such as HM Customs and Excise and the Inland Revenue, who have statutory rights of access.
Preventing fraud and corruption
C.10 The Head of Finance is responsible for the development and maintenance of an anti-fraud and anti-corruption policy.
Assets
C.11 Directors and Heads of Service should ensure that records and assets are properly maintained and securely held. They should also ensure that contingency plans for the security of assets and continuity of service in the event of disaster or system failure are in place.
Treasury Management
C.12 The authority has adopted CIPFA's Code of Practice for Treasury Management in Local Authorities.
C.13 The full Council is responsible for approving the treasury management policy statement setting out the matters detailed in paragraph 15 of CIPFA's Code of Practice for Treasury Management in Local Authorities. The policy statement is proposed to the full Council by the Cabinet. The Head of Finance has delegated responsibility for implementing and monitoring the statement.
C.14 All money in the hands of the authority is controlled by the officer designated for the purposes of section 151 of the Local Government Act 1972, referred to in the code as the Head of Finance.
C.15 The Head of Finance is responsible for reporting to the Cabinet a proposed treasury management strategy for the coming financial year at or before the start of each financial year.
C.16 All Cabinet decisions on borrowing, investment or financing shall be delegated to the Head of Finance, who is required to act in accordance with CIPFA's Code of Practice for Treasury Management in Local Authorities.
C.17 The Head of Finance is responsible for reporting to the Cabinet not less than four times in each financial year on the activities of the treasury management operation including the prudential indicators and on the exercise of his or her delegated treasury management powers. One such report will comprise an annual report on treasury management for presentation by 30 September of the succeeding financial year.
The Council is responsible for approving the investment strategy.
Staffing
C.18 The full Council is responsible for determining how officer support for executive and non-executive roles within the authority will be organised.
C.19 The Head of Paid Service is responsible for providing overall management to staff. He or she is also responsible for ensuring that there is proper use of the evaluation or other agreed systems for determining the remuneration of a job.
C.20 Directors and Heads of Service are responsible for controlling total staff numbers by:
- advising the Cabinet on the budget necessary in any given year to cover estimated staffing levels
- adjusting the staffing to a level that can be funded within approved budget provision, varying the provision as necessary within that constraint in order to meet changing operational needs
- the proper use of appointment procedures.
D: Systems and Procedures
Introduction
D.1 Sound systems and procedures are essential to an effective framework of accountability and control.
General
D.2 The Head of Finance is responsible for the operation of the authority's accounting systems, the form of accounts and the supporting financial records. Any changes made by directors to the existing financial systems or the establishment of new systems must be approved by the Head of Finance. However, Directors and Heads of Service are responsible for the proper operation of financial processes in their own departments and service units.
D.3 Any changes to agreed procedures by directors and Heads of Service to meet their own specific service needs should be agreed with the Head of Finance.
D.4 Directors and Heads of Service should ensure that their staff receive relevant financial training that has been approved by the Head of Finance.
D.5 Directors and Heads of Service must ensure that, where appropriate, computer and other systems are registered in accordance with data protection legislation. Directors and Heads of Service must ensure that staff are aware of their responsibilities under freedom of information legislation.
Income and expenditure
D.6 It is the responsibility of directors and Heads of Service 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 on behalf of the director or Heads of Service, or on behalf of the Cabinet, in respect of payments, income collection and placing orders, together with the limits of their authority. The Cabinet is responsible for approving procedures for writing off debts as part of the overall control framework of accountability and control.
Payments to employees and members
D.7 The Head of Organisational Development is responsible for all payments of salaries and wages to all staff, including payments for overtime, and for payment of allowances to members.
Taxation
D.8 The Head of Finance and the Head of Customer, Legal and Member Services are jointly responsible for advising directors and Heads of Service, in the light of guidance issued by appropriate bodies and relevant legislation as it applies, on all taxation issues that affect the authority.
D.9 The Head of Finance and the Head of Customer, Legal and Member Services are jointly responsible for maintaining the authority's tax records, making all tax payments, receiving tax credits and submitting tax returns by their due date as appropriate.
Trading accounts/service units
D.10 It is the responsibility of the Head of Finance to advise on the establishment and operation of trading accounts and service units.
E: External Arrangements
Introduction
E.1 The local authority provides a distinctive leadership role for the community and brings together the contributions of the various stakeholders. It must also act to achieve the promotion or improvement of the economic, social or environmental well-being of its area.
Partnerships
E.2 The Cabinet is responsible for approving delegations, including frameworks for partnerships. The Cabinet is the focus for forming partnerships with other local public, private, voluntary and community sector organisations to address local needs.
E.3 The Cabinet can delegate functions - including those relating to partnerships - to officers. These are set out in the scheme of delegation that forms part of the council's constitution. Where functions are delegated, the Cabinet remains accountable for them to the full Council.
E.4 The Head of Paid Service represents the authority on partnership and external bodies, in accordance with the scheme of delegation.
E.5 The Monitoring Officer is responsible for promoting and maintaining the same high standards of conduct with regard to financial administration in partnerships that apply throughout the authority.
E.6 The Head of Finance must ensure that the accounting arrangements to be adopted relating to partnerships and joint ventures are satisfactory. He or she must also consider the overall corporate governance arrangements and legal issues when arranging contracts with external bodies. He or she must ensure that the risks have been fully appraised before agreements are entered into with external bodies.
E.7 Directors and Heads of Service are responsible for ensuring that appropriate approvals are obtained before any negotiations are concluded in relation to work with external bodies.
External funding
E.8 The Head of Finance is responsible for ensuring that all funding notified by external bodies is received and properly recorded in the authority's accounts.
Work for third parties
E.9 The Cabinet is responsible for approving the contractual arrangements for any work for third parties or external bodies.
