Policies

A. Annual Estimates & Forward Planning

B. Budgetary Control & Authority To Spend

The Council is responsible in law for ensuring that its financial management is adequate and effective and that there is a sound system of control which facilitates the effective exercise of the Council’s functions, including arrangements for the management of risk.

This policy is created to support the above and also relates to MDTC Financial Regulations (adopted February 2017).

A. The process for Annual Estimates is:

1. For each committee to review a three year forecast based on revenue and capital receipts.

2. The forecast will form the basis of proposals for the following financial year for that committee.

3. Each committee must submit the forecast proposals by November of each year.

4. The RFO must each year, no later than October, prepare detailed estimates for all receipts and payments, including the use of reserves, as well as all sources of funding (precept, field rent, room hire and burials – some assumptions will be required) which will be required in the following financial year and be prepared in the form of a budget to be considered by each committee, and then to Full Council.

5. The Council shall fix the Precept (council tax requirement) and relevant basic amount of council tax to be levied for the ensuring financial year, for all information to be ready to be ratified at January’s meeting of Full Council.

6. The RFO shall issue the precept to the billing authority by completing an income and expenditure document which includes recording predictive assumptions for the financial year end.

7. Copies of the approved annual budget.

B. Budgetary Control & Authority To Spend:

1. Expenditure on revenue items may be authorised up to the amounts included for that class of expenditure in the approved budget. This authority is to be determined by:

2. This Council for all items over £5,000.

3. A duly delegated committee of the Council for items over £500, or

4. The Clerk, in consultation with the Chairman of Council or Chairman of the appropriate committee, for any items below £500.

All the above to be evidenced by a Minute or by an authorisation slip duly signed by the Clerk and signatories, or Chairman.

5. Contracts may not be disaggregated to avoid controls imposed by these regulations.

6. No expenditure may be authorised that will exceed the amount provided in the revenue budget for that class, other than by resolution of the Council, or duly delegated committee.

7. Unspent and available amounts may be moved to another budget heading or to an Ear Marked Reserve, as appropriate (‘virement’).

8. Unspent provisions in the revenue or capital budgets for completed projects shall not be carried forward to a subsequent year.

9. Salary budgets to be reviewed annually (October) in readiness for the following year.

10. In cases of extreme risk to the delivery of council services, the Clerk may authorise revenue expenditure on behalf of the Council, which in the Clerks judgement was necessary to carry out. Such expenditure includes; repair, replacement or other work and whether or not there is a budgetary provision for the expenditure, subject to a limit of £500. The Clerk shall report such action to the Chairman as soon as possible.

11. No expenditure shall be authorised in relation to any capital project and no contract entered into or tender accepted involving capital expenditure unless the Council is satisfied that the necessary funds are available and the requisite borrowing approval has been obtained ( A separate policy will cover the process for borrowing approval).

12. All capital works shall be administered in accordance with the Council’s Standing Orders and Financial Regulations relating to contracts.

13. The RFO will regular provide the Council with a statement of receipts and payments, to date, this is presented at meetings of Full Council. At the end of each financial quarter budgets to expenditure to be produced by the Clerk and reviewed by the relevant committee or by council.

14. Changes in Ear Marked Reserves shall be approved by Council as part of the budgetary control process and will be reviewed annual after Year End Closedown.

End.