Introduction and Guidance
Financial procedure rules
Financial Procedure Rules are those rules that the Council must have to govern all its financial affairs. These rules are required by law to ensure that large sums of public money are spent properly and wisely. Financial Procedure Rules apply to all parts of the Council, to Elected Members and employees. Together with Standing Orders, the Scheme of Delegation and roles of Committees they form an integral part of the Council’s Constitution. The Director of Finance, IT and Digital is responsible for issuing and reviewing Financial Procedure Rules and advising upon their implementation and interpretation.
1. Introduction and Guidance
1.1 Purpose
1.1.1 Hartlepool Borough Council spends millions of pounds of public money. By law it is required to ensure that it has sound financial management policies, practices and controls in place which are strictly monitored. Financial Procedure Rules are an essential part of this control process.
1.1.2 The Financial Procedure Rules clarify responsibilities, accountabilities and powers of individuals, named Officers and Elected Members of Policy Committees in relation to financial administration. The Financial Procedure Rules are part of and inextricably linked with the Council’s Constitution, e.g. Standing Orders, Delegation Scheme, and the Officer/ Elected Member Protocol.
1.1.3 All Elected Members and Officers have a general responsibility to protect the assets of the Council under their control and ensure the proper use of those assets. The Section 151 Officer (Director of Finance, IT and Digital) is responsible for the financial administration arrangements within the Council which includes a continuous review of Financial Procedure Rules and the issue of advice and guidelines to underpin those rules which Elected Members, Officers and others acting on the Council’s behalf are required to follow. Directors and Chief Officers are responsible for ensuring that all staff are aware of their responsibilities under Financial Procedure Rules and other internal regulatory controls.
1.1.4 Staff in schools should apply these rules in conjunction with LMS rules on financial administration and management.
1.1.5 Failure to comply with Financial Procedure Rules could give rise to disciplinary action and employees have a duty to report apparent breaches of Financial Procedure Rules to an appropriate senior manager and also to the Director of Finance, IT and Digital and the Council’s Monitoring Officer.
1.1.6 In any case of doubt about the appropriate application of Financial Procedure Rules or any action required, Officers should consult with their senior manager in the first instance. Advice can also be obtained from Internal Audit particularly if you require information on financial administration which is not included within these rules.
1.2 Format
1.2.1 The rules are in three parts. They cover the safeguarding of public money/assets, the Corporate Governance of the Council and the Financial Administration arrangements of the Council.
1.2.2 Under each section the key controls are outlined which are then followed by the responsibilities of the Director of Finance, IT and Digital and other Directors and Chief Officers.
1.2.3 Whilst these rules apply to all Officers and Elected Members of the Council, Directors and Chief Officers have an overall responsibility to ensure that all staff are aware of and comply with their responsibilities under these rules.