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Financial Regulations

Selby Area IDB Financial Regulations

SELBY AREA INTERNAL DRAINAGE BOARD

Financial Regulations  May 2018

  1. GENERAL

 

1.1 These Regulations shall apply to all aspects of the Board financial matters.

 

1.2 The Clerk shall be responsible, under the direction of the Board or Finance sub-committee for

the proper administration of the Board’s financial affairs

 

1.3 Reference in these Regulations to the “responsible officer” are to any employee specifically nominated   by the Clerk or Board to carry out a prescribed function of the Board

 

1.4 The responsible officer shall be responsible for the keeping of all accounting and financial records

of the Board and for the production of such records to the Board and the Board’s Auditors.

 

1.5 Each responsible officer shall consult with the Clerk with respect to any matter within their area

of responsibility that may affect materially the finances of the Board.

 

  1. AUDIT

 

2.1 The responsible officer shall arrange for the internal audit of the Board’s financial management, accounting and all other financial matters. This audit shall be carried out by external personnel and in accordance with the IDB (Finance) Regulations 1992 and the Account and Audit (England) Regulations 2015.

 

2.2 The responsible officer shall prepare all the Board’s account for submission to the internal auditor and external auditor as required.

 

  1. BANK

 

3.1 All the Board’s accounts shall bear the name of the Board and no new accounts shall be opened or changes made to the Bank mandate without the express approval of the Board.

 

3.2 The following account shall be maintained as appropriate: –

 

General Account

Clerks Imprest Account

Call Account

 

3.3 The bank shall honour all cheques or instructions signed in accordance with the Bank mandate.

  1. CONTRACTS

 

4.1 The responsible officer shall keep details of all contracts entered into by the Board and

of payments made under such contracts.

 

4.2 On completion of a contract the responsible officer shall examine the final account

for arithmetical accuracy.

 

  1. DISPOSAL OF ASSETS

 

5.1 The responsible officer shall maintain a register of all the Board’s main assets

which   will be included within the Board’s Annual Accounts.

 

5.2 Items surplus to requirement or obsolete property shall be brought to the Board’s attention for

its approval for disposal by an approved method that may include but not exclusively part-exchange

and competitive tendering.

 

  1. ESTIMATES

 

6.1 The Clerk, together with the appropriate responsible officer shall prepare for the forthcoming

financial year an estimate of expenditure and income. Such estimates together with any necessary

supporting documentation shall be submitted to the Board and any sub-committee in order that the

rate and special levy for the year may be determined.

 

6.2 The determination of the rate and levy for the year shall be completed by 15th February of that year

as required under the Land Drainage Act 1991.

 

6.3 The Clerk shall be authorised to incur and approve all expenditure included in the approved annual

estimates without further reference to the Board or sub-committee unless there is a conflict of

interest with the goods or service provider. Refer to 11.2 where this is the case.

 

  1. INCOME

 

7.1 The Clerk shall be responsible for the supervision and the making and maintaining of adequate arrangements for:

 

 

  • The collection, custody, control, disposal and prompt proper accounting of all the Board’s income.
  • The financial organisation and accounting arrangements to ensure the proper recording of all sums due to the Board.

 

7.2 All money received on the Board’s behalf shall be deposited promptly with the responsible officer.

 

7.3 All official receipt forms, books, issue notes, order books and other documents representing moneys’

worth shall be ordered, controlled, and issued by the responsible officer.

 

7.4 The responsible officer shall ensure that all invoices are submitted promptly for the recovery of

income due.

 

7.5 The responsible officer shall maintain and promptly enter up in chronological order full and accurate

details of the total money received by them each day on behalf of the Board, and details of the date and

the extent to which that money has been deposited with the Board’s bankers. All money collected and

exceeding £1,000 in total shall be banked no later than the first working day following that on which it

was collected and, in any case not less frequently than once a week.

 

7.6 The responsible officer shall prepare receipts as requested by debtors.

 

7.7 Sums due to the Board shall not be written off in the books of account except by resolution of the

Board.

 

  1. INSURANCE

 

8.1 The responsible officer shall ensure that all the Board’s insurable risks are adequately covered,

maintain the necessary records and make all claims on behalf of the Board.

 

8.2 All employees of the Board shall immediately notify the responsible officer of any loss, liability or

damage which occur and which may be covered by the Board’s policies.

 

8.3 The provision of insurance cover shall be reviewed on a tri-annual basis unless a long-term agreement

has been entered into. In this instance the policies shall be reviewed before the end of the period and

before the next renewal date.

 

  1. IRREGULARITIES

 

9.1  In any case where irregularity is suspected in connection with financial or accounting transactions it

shall be the duty of the member or employee suspecting this irregularity to bring it to the Clerk’s

attention who will in turn inform the Chairman and the Board’s Auditors.

9.2  Any financial irregularity involving an employee of the Board will be considered as gross misconduct

and treated accordingly.

 

  1. PAYMENT OF ACCOUNTS

 

10.1 The responsible officer shall check, code, and certify all invoices, claims and accounts prior to

payment.

 

10.2 The responsible officer shall make all payments ensuring that all and any early payment discounts

are taken. A schedule of payments made shall be submitted to the Board for approval. A copy of each

schedule shall be kept by the responsible officer for audit purposes.

 

10.3 The responsible officer shall undertake an examination of all cheques, Direct Debits Standing Orders

and BACs payments cleared through the Board’s accounts and shall arrange for the reconciliation of

cash and bank accounts on a regular basis but at least at quarterly intervals

 

  1. PURCHASE OF GOODS

 

11.1 All orders for goods or works shall be issued in writing. Details of price and discount (if any) shall be

detailed. Verbal orders shall be confirmed by a written order.

 

11.2 The following procedures shall be employed in the procurement of goods and services unless the

goods or services are a single source supply:

 

Estimated Value of Goods

and Services

(per transaction)

                                                       Procedure
Up to £7,500 At the Clerk’s discretion unless the service or goods supplier is involved, in

which instance it will be at the Chairman’s discretion.
£ 7,500 to £20,000 Two quotations/estimates and agree with Chairman
£20,000 and over Obtain Board approval after obtaining three or more estimates/quotations

and comply with EU Procurement legislation where applicable.

 

The Board shall not be obliged to accept the lowest quotation or tender but shall consider all aspects

of the submitted documents to determine that best value for money is being obtained.

 

11.3 The Clerk shall have the authority to effect the purchase of goods and services each up to the value of

£7,500 not previously approved as part of the Board’s budgeted expenditure.

 

11.4 The Board’s or Chairman’s approval shall be sought for amounts in excess of the above figure unless

the goods or services have been approved as part of the Board’s annual expenditure and accounted

for within the approved estimates.

 

11.5 All tenders received by the Board shall be opened in the presence of the Chairman or Vice Chairman

and the Clerk. Tenders must be returned without any evidence of return Sender otherwise will be regarded as non compliant and void. Tenders must be returned on the correct format paperwork otherwise will be regarded as non compliant and void. Tenders should be returned with the correct return labels otherwise will be regarded as non compliant and void. If a single tender only is returned to the Board it will be subject to the same checks as if multiple tenders had been received. The Board will not automatically dismiss a single tender return but assess any tender return on its own merits. The Board will make a decision based upon the tender return assessment report.

  1. RETENTION OF DOCUMENTS

 

12.1 All documents relating to the accounts, salaries, pensions, insurances shall be kept for the relevant

statutory period following which they can be destroyed.

 

  1. REVIEW OF THE REGULATIONS

 

13.1 If the Clerk at any time considers that these Financial Regulations are inadequate and should be

reviewed the matter should be brought to the Board’s attention.

 

13.2 Notwithstanding the above these Regulations should be reviewed every five years following their

adoption.

 

 

 

 

These Regulations were approved by the Selby Area Internal Drainage Board at their meeting on 31st May 2018.