Agenda item

That the updated Financial Procedure Rules be approved

The Corporate Finance Manager introduced a report to provide the updated Financial Procedure rules as detailed in  appendix A of the report.  He provided background information and advised that the draft FPRs had been submitted to the Audit Committee and the Constitution and Democratic Services Committee and both Committees had resolved that the draft FPRs be referred to Council for approval.   He reported that a summary of the changes to the FPRs were detailed in paragraph 1.04 of the report. 

Councillor Richard Jones expressed concern around the change in the virement amount which had been increased from £75K to £100K.  He explained the reasons why he felt the increase to £100K was not appropriate and said budgets had not been increased.  Councillor Jones moved a motion that the FPRs be approved subject to the current virement of £75K being lowered to £50K to exercise greater control.  This was duly seconded.

The Corporate Finance Manager explained that a £100K virement was still a low percentage in context of the overall budget of £255M and advised that all virements were reported to the Corporate Resources Overview & Scrutiny Committee when actioned and centrally co-ordinated control was actioned by the accountancy team.  It was agreed that the word ‘cumulative’ would be added to the final version of the FPRs.

Councillor Mike Peers suggested that the date and year that the FPRs applied  from should be recorded in full on the front page of the rules.  He referred to page 83, paragraph 3.3.1, of the report and the information that the resources allocated were used for their intended purposes and were properly accounted for, and asked if detail on where the  resources were allocated and the ongoing expenditure could be provided.  On  page 86, paragraph 3.3.2,  the first key principle referred to where budget transfers related to a change of use or policy they should be authorised, and said that the report did not advise who undertook the authorisation of the transfers and suggested that this information should be included. 

The Corporate Finance Manager explained that authorisation depended on whether the transfer was an accounting adjustment or form of virement and explained the process and purpose in each case.  The Corporate Finance Manager also responded to the query on the allocation of resources and explained that resources were allocated to service areas in line with approved budgets  and was reported in the monthly budget  monitoring report where the totals were shown by portfolio.

                        Members were asked to vote on the motion put forward by Councillor Richard Jones that the FPRs  be approved subject to an amendment in the virement amount from £75K to £50K.  When put to the vote the motion was lost. 

                        The substantive motion was put forward by Councillor Bernie Attridge and seconded by Councillor Derek Butler that Members  vote on the recommendation as detailed in  the report.  On being put to the vote the recommendation was carried. 

RESOLVED

That the updated Financial Procedure Rules be approved