Agenda item

(a)       That the updated Financial Procedure Rules be approved and recommended for submission to Council; and

(b)       That the budget monitoring report to be submitted to Cabinet and Corporate Resources Overview & Scrutiny Committee in September 2013 include reference to the strengthened controls and links to Financial Procedure Rules.

The Corporate Finance Manager introduced the report on the proposed updated Financial Procedure Rules (FPRs) for approval and sought a recommendation to the next available County Council meeting on 25 September 2013.  He outlined the responsibility of the Head of Finance on FPRs and gave an overview of the changes to the existing rules arising from the fifth review undertaken.

Councillor P.G. Heesom asked if Rule 2: Financial Planning and Rule 3: Budget Management (Revenue and Capital) had been recently amended to take account of any concerns on medium term financial planning.

The Chief Executive confirmed that recent amendments had been made to show transparency in arrangements.  He felt that the update had been a useful process and had more fully reflected roles and responsibilities, for example accountability at Heads of Service level in the monitoring and controlling of income and expenditure against the budget heads approved in the annual budget.  The Corporate Finance Manager added that the review of the outturn 2012/13 position had identified a need to clarify detail on roles and responsibilities and this had been addressed as part of the update.  The Head of Finance said that a great deal of work was ongoing on financial strategy and planning in different services and that the FPRs required continual review to ensure that they were current and accurately reflected this.

Mr. P. Williams welcomed the report and asked about any impact on training and resources as a result of implementing the changes.  The Corporate Finance Manager explained that briefing sessions were planned to raise awareness.  Mr. Williams asked if the report was to be considered by Overview & Scrutiny as he felt it would be useful to note the accountability of officers.

The Chair noted that the report was to be received by the Constitution Committee later in the day and queried the resolution if the two Committees held differing views.

In response to both questions, the Democracy & Governance Manager explained that the Audit Committee, rather than the Constitution Committee, was the lead on considering detail on FPRs and that he would report this verbally at Constitution Committee.  He said that the update would tie-in with the three year programme to review and update the Constitution.  In agreeing with the suggestion made by Mr. Williams, the Chief Executive said that the next budget monitoring report was due to be received by Cabinet and Corporate Resources Overview & Scrutiny Committee in September 2013 and that the latter report could include information on the strengthened controls and be cross-referenced with the updated FPRs.

Councillor Heesom spoke of the benefits of a joined-up approach between Audit Committee and Overview & Scrutiny and said that the former would have a crucial role in reviewing the latter.  The Democracy & Governance Manager confirmed that regular briefing meetings would be arranged between the Audit Committee and Overview & Scrutiny Chairs and Vice-Chairs.  The second of these briefings had been cancelled due to the cancellation of the special County Council meeting in July 2013 and would be re-arranged to follow the next available Council meeting.

RESOLVED:

(a)       That the updated Financial Procedure Rules be approved and recommended for submission to Council; and

(b)       That the budget monitoring report to be submitted to Cabinet and Corporate Resources Overview & Scrutiny Committee in September 2013 include reference to the strengthened controls and links to Financial Procedure Rules.