Agenda item

Report number CHFR77 by the Corporate Head of Finance & Resources.

                                                                                                            (Enclosure)

DECISION:

To approve the Financial Regulations and accompanying guidance notes in accordance with the recommendation by the Governance & Audit Committee and that delegated authority be granted to the statutory officers to make minor typographical amendments.

Members had before them a complete copy of the Council’s Financial regulations and the detailed guidance notes which accompanied them.   In presenting report number CHFR77, the Resources & Assets portfolio holder thanked the Governance & Audit Committee who had met on 21^st September 2007 for their efforts in deliberating these lengthy documents. In this report, the members were advised that the regulations were last approved on 27^th February 2003 and it had been appropriate to review and update them to ensure they remain fit for purpose.  A fundamental review had therefore been carried out in order to reflect the management structure and working practices that now existed within the Council.  There were a small number of typographical errors in the document before the Council and the portfolio holder sought delegated authority to be given to the statutory officers to amend these where necessary.  Subject to these corrections she moved that the regulations and guidance be adopted.  The motion was seconded by the Chairman of the Governance & Audit Committee.

The Monitoring Officer had commented that it was important for the Council to adopt both the Financial Regulations and the Guidance Notes as one could not be read in isolation from the other.  Members were further advised that the regulations formed an essential part of the corporate governance of the Council.  They set out the rules for the financial administration of the Council and the responsibilities of those carrying out duties with a financial implication.

A member commented on the size of these documents and the cost of circulating this to all members; he asked why the guidance had been included if this was for the Council’s officers.  The Corporate Head, Finance & Resources explained that it was to enable members to understand how officers would implement the regulations they approved.  As highlighted by the Monitoring Officer, the two needed to be read in conjunction; both documents provided the overall framework within which to understand fully the impact and implications for the whole Council.  The documents had been based on the CIPFA best practice model and were similar to those adopted by Council’s who had achieved a level four score under use of resources.  The member accepted this explanation.

Another member raised concern at the authorisation delegated to Cabinet to vire funds; he stated he would wish to see a limit on virement by Cabinet.  The Chief Executive explained that the law set the budgetary framework within which the Council and Cabinet operated; virement by the Cabinet was part of management within that framework.  Concern was also raised that such a complex and lengthy document had only just been put in the public arena and was to receive approval after a short debate.  The Corporate Head pointed out that the document had in fact been in the public arena for some six or seven weeks as it had been subject to detailed examination at the public meeting of the Governance & Audit Committee on 21^st September.  Representatives of both the Council’s internal and external auditors had been present at this meeting.  The same member also sought clarification on the nature of the amendments to be made.  The Chief Executive replied that they were simple typographical amendments and correction of pagination errors.  The member indicated he accepted the Chief Executive’s assurances on this matter.