Agenda item

Consideration was given to a report presented by the Director of Internal Audit and Asset Management concerning the review of the Council’s Financial Regulations. The Committee noted that these Regulations are periodically reviewed to ensure that they are fit for purpose and meet current best practice.

The proposed revisions to the Financial Regulations (appended to the submitted report) were being recommended to reflect recent changes in the Council’s structures, revised legislation and regulatory frameworks and to provide further guidance in various areas where common issues have arisen during the last couple of years.

The Committee was informed that the Council’s Cabinet and Scrutiny Members will also be consulted on the proposed revisions and the revised Financial Regulations will be adopted as part of the Council’s constitution.

In summary, the main changes proposed to the Financial Regulations are:-

(a) The introduction has been augmented to explain the layout of the Financial Regulations, which is based on a format endorsed by CIPFA in its recent publication; ‘Financial Regulations – A Good Practice Guide for an English Modern Council’;

(b) A general update to take account of changes to the structure of the Council including, in particular:-

: the vacancy of the post of Strategic Director of Resources;

: the vacancy of the Director of Commissioning, Policy and Performance post;

: the movement of the procurement function to become the responsibility of the Strategic Director of Neighbourhoods and Adult Services;

(c) The removal of all references to RBT;

(d) The removal of residual references to 2010 Rotherham Ltd.;

(e) Changes in the statutory requirements for monitoring and reporting on performance, such as the production of a Corporate Performance Plan and Best Value Performance Indicators; Financial Regulations now include the CIPFA recommended ‘Policy Framework’ wording;

(f) Recognition of changes relating to the appointment of external auditors and the scope of external audit, being introduced by the Local Audit and Accountability Bill 2013-2014;

(g) The inclusion of new guidance notes on Money Laundering, Contracts for Building, Construction and Engineering Works, and Ex-gratia payments;

(h) Removal of the former Guidance Note relating to the Sundry Accounts Collection Policy;  a new Sundry Accounts Policy has recently been produced which replaces the Guidance Note;

(i) General updates where new or amended legislation or regulations have been introduced, including:-

: new accounting and disclosure requirements for entities preparing financial statements under International Financial Reporting Standards;

: the CIPFA Service Reporting Code of Practice (SeRCOP) replaced the previous Best Value Accounting Code of Practice; SeRCOP applies to all local authority services throughout the UK from 1st April 2013 for the preparation of 2013/14 Budgets, Performance Indicators and Statements of Accounts;

: the requirement, under the Accounts and Audit Regulations 2011, to produce an Annual Governance Statement which gives an outline of the Council’s  governance controls and the procedures that are in place; this Statement has replaced the Statement of Internal Control;

(j) Changes in the requirements of Internal Audit have occurred:-

: the Accounts and Audit Regulations 2011 now require ‘local authorities to undertake an adequate and effective internal audit of its accounting records and of its system of internal control in accordance with the proper practices in relation to internal control’. 

: the introduction of new Internal Auditing standards known as the Public Sector Internal Audit Standards.

It was proposed that further revisions be made in order to streamline the document and delete any duplications.

Resolved:- (1)  That the revisions to the Financial Regulations be supported.

(2)  That a further review of the structure of the Regulations be undertaken.