Issue - meetings

The Audit Committee is asked to consider the update to the Financial Regulations and recommend them to the Council, in compliance with the Audit Committee Terms of Reference under Article 8 of the Constitution.  Specifically, the Audit Committee is required to maintain an overview of the Council’s Constitution in respect of financial regulations.

Recommendation

It is recommended that the Committee recommends the update to the Financial Regulations and any consequential changes to the scheme of delegation to the Council for adoption.

Peter Vickers, the Head of Finance and Property, advised the Committee that the Audit Committee was required to maintain an overview of the Council’s Constitution in respect of financial regulations. Members noted that the regulations were last updated in September 2018 and in line with the commitment of continual review within the Annual Governance Statement the Financial Regulations had been reviewed and three changes were proposed, in relation to:

·         FR 4.30 Carry forwards of budget

·         FR 7.2  Approval of fees and charges

·         Glossary - Definition of key financial system

It was proposed that the Section 151 Officer, rather than the Executive, would approve all budget carry forwards, and these would then be reported to the Executive as part of the end of year out-turn reporting. The Committee noted that monitoring of the capital programme had improved following the work of the Value for Money O&S Committee, and capital budgets were rescheduled as necessary in-year. The budget carry-forwards requiring approval were revenue budgets of relatively low value. Members were satisfied with this amendment.

It was proposed that the Section 151 Officer be able to approve changes to fees and charges, including car park fees, to speed up the process and give more flexibility to change charges during the year to respond to market demand. Officers assured the Committee that changes to fees would be considered in consultation with the relevant Portfolio Holders, and it was recognised that there was a political element to certain fees and charges. The Committee felt that the case for flexibility was stronger for services where the council was in competition with other providers; also, that Licensing fees and charges should remain within the remit of the Licensing Committee. It was agreed that the approval of the S151 Officer to amend fees and charges should be in consultation with the relevant Portfolio Holders, and with the complete Schedule of Fees and Charges being reported to Council annually for information as part of the budget report.

The Committee was content with the addition to the Glossary of a definition of Financial Systems to the Financial Regulations. 

The Committee RESOLVED to RECOMMEND the update to the Financial Regulations to Council, as amended in relation to the S151 Officer’s approval of fees and charges; along with any consequential changes to the scheme of delegation.