Agenda item

Financial Regulations and Audit Committee's Terms of Reference

Report of Chief Officer (Resources)

Minutes:

The Committee received the report of the Chief Officer (Resources) to advise of a proposed change in approach regarding responsibility for the Council’s Financial Regulations to reflect the Accounts and Audit (England) Regulations 2011, and to seek authority for proposed revised Terms of Reference for the Committee to be referred to full Council for approval.

 

It was reported that the Contract Procedure Rules (CPRs) had been approved by the Committee on 23rd January 2013, and the Financial Regulations were in need of review and update.  Many references were outdated and there was a need to update them and tie them in with other ongoing reviews of the Constitution, in particular, the Scheme of Delegation.

 

Members were informed that the Council had adopted an associated set of Financial Procedures in support of the Financial Regulations and CPRs, which formed part of the Constitution.  In addition, there was a wide range of separate financial policies and guides, and it was important that these were drawn together.

 

The proposed structure was as follows:

 

Level

Document(s)

Status

Ownership and Approval

1

Financial Regulations

Organisational rules.

High level statement of responsibilities for financial administration.

Part of the Council’s Constitution

Chief Officer (Resources) responsible for reviewing, updating and promoting the Regulations.

Changes to be reported to Audit Committee for endorsement.

2

Standing Financial Instructions & Guidance

More detailed rules, procedural instructions and guidance in support of the Regulations

Responsibility for maintenance, approval and promotion rests with the Chief Officer (Resources)

 

It was reported that the proposed structure reflected the requirements of the Accounts and Audit Regulations (England) 2011, which, in essence, established responsibility for the financial regulations with the Chief Officer (Resources), as Section 151 Officer, and recognised that the Council might choose to instruct that officer on particular matters, so long as any such instruction was consistent with the Accounts and Audit Regulations.

 

Members’ support was sought to the proposal and the drafting of a new set of Financial Regulations to be implemented on this basis.  A target date of 30th September 2014 was proposed, and that the new draft Financial Regulations be submitted for the Committee to consider at its meeting on 17th September 2014.  Alongside this, all documents and information contributing to the Level 2 Standing Financial Instructions and Guidance would be reviewed with a view to having a complete framework in place by 31st March 2015.

 

In regard to the Regulations, it was reported that Members’ responsibilities needed to be reflected in revised wording of the Committee’s Terms of Reference.  A number of proposed changes reflected the requirements of the Public Services Internal Audit Standards (PSIAS), which had come into effect on 1st April 2013.

 

Members were informed that, following the Local Audit and Accountability Act 2014 and the abolition of the Audit Commission, local authorities would have more direct responsibility for appointing their internal auditor.  These changes would come into effect within the next two years.  As the Audit Committee was the Council’s delegated body to audit matters, this would entail further changes to its Terms of Reference.

 

Resolved unanimously:

 

(1)        That the proposals for the future responsibility for drafting, maintaining and approving of Financial Regulations and associated instructions and guidance be approved in principle.

 

(2)        That the proposed revised Terms of Reference for the Audit Committee be referred to full Council for approval.

Supporting documents: