F1 – General Financial Administration
The need for this Regulation.
This Regulation is required to set the overall parameters in which the financial affairs of the Authority are to be managed.
The extent of the Regulations.
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| F1.1. |
The Chief Constable, in consultation with the Treasurer shall jointly prepare a Finance Manual which sets out in greater detail than these Financial Regulations the procedures for carrying out particular financial transactions.
The Manual shall emphasize the need for effective systems of Internal Check.
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| F1.2. |
All accounts and records relating to the finances of the Authority shall be open to inspection by the Treasurer, or any officer authorised by the Treasurer.
The Treasurer shall have authority to apply any test or check to those accounts and records and to require such explanations as he/she considers necessary to satisfy himself/herself as to the correctness of any matters under consideration.
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| F1.3. |
Where in these Regulations specific financial limits apply, the Treasurer shall review those limits triennially in the light of inflation and shall be authorised to vary them from time to time in the light of changes in their real value.
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| F1.4. |
In cases of urgency, the Chief Constable, Clerk and Treasurer jointly may, in consultation with the Chairman of the Authority, authorise on behalf of the Authority the incurring of any lawful expenditure which would otherwise be contrary to these Regulations.
The exercise of this authority shall in every case be reported to the next meeting of the Authority.
Consideration should be given to calling an urgent meeting of the Authority or appropriate Committee where the agreement of all parties is not available.
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| F1.5. |
A relevant committee of the Authority may in any particular case(s) suspend the application of these Regulations, provided that such a suspension shall be reported to the next meeting of the Authority.
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| F1.6. |
The Clerk and Treasurer shall notify the Chief Constable, in writing, of all staff who have been specifically authorised to exercise any or all of the powers delegated to them.
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| F1.7. |
The Chief Constable shall maintain a list, in writing, of all police officers and civilian staff who have been specifically authorised to exercise any or all delegated powers.
The list shall include the staff of the Clerk and Treasurer who have been authorised to act on their behalf and must include details of the powers delegated to the individual member of staff.
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F2 – Annual Budgets
The need for this Regulation.
The Authority is responsible for spending a large sum of public money providing a range of policing services across a large geographical area.
It needs to plan effectively and to develop systems to ensure that scarce resources are allocated to priorities.
The extent of the Regulations.
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| F2.1. |
The Chief Constable should have a written statement of the Authority's aims and objectives to provide the basis for constructing budget plans.
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| F2.2. |
In accordance with Section 8 of the Police Act 1996, the Chief Constable shall prepare a draft annual Policing Plan which shall include the proposed allocation of resources.
Before issuing the Plan, which must be prior to 31st March each year, which differs from the draft, the Authority shall consult with the Chief Constable on the changes.
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| F2.3. |
The Authority shall approve annual revenue and capital programmes based on Home Office and Department of the Environment grant settlements and guidelines for capital expenditure.
The Authority shall determine priorities base on the advice of the Chief Constable, Clerk and Treasurer.
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| F2.4. |
The Treasurer shall agree with the Chief Constable the detailed timetable for the preparation of the annual Capital and Revenue budgets and the format of those budgets for presentation to the Authority.
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| F2.5. |
The annual capital programme shall be implemented by the Chief Constable in accordance with the approved programme, these Financial Regulations, the Scheme of Delegation and Contract Regulations.
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F3 – Virement
The need for this Regulation.
To make best use of the available resources and manage changing spending priorities, there is a need to be able to transfer resources from one budget head to another.
The Regulations set parameters for the transfer of resources which will not materially affect the potential for meeting the Authority's aims and objectives.
The extent of the Regulations.
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| F3.1. |
The approval of the Authority is required for any virement which:
is likely to result in a failure to achieve objectives and targets set out in the Authority's annual policing plan.
is intended to initiate new policies other than those that have been approved by the Authority.
increases committed expenditure in future years by more than £25,000, excluding annual pay awards.
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| F3.2. |
The Chief Constable may approve all other virement proposals in respect of budgets under his direct control subject to the prior agreement of the Treasurer where the amount of an individual item exceeds £100,000.
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| F3.3. |
All virement approvals will be included in the next report to the Authority at either the quarterly budget monitoring report, the revised estimates or the outturn of accounts whichever is the earliest.
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| F3.4. |
Proposals for additional expenditure, to be financed from the Authority's balances, may only be approved by the Authority.
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| F3.5. |
The Treasurer may approve requests for additional expenditure to be financed from the Contingency Fund or the Authority's balances, in consultation with the Chairman of the Authority.
Approval of the proposal shall only be given where the action is necessary for the proper discharge of the Authority's functions or for the preservation of its property or finances, and the matter is so urgent that normal approval of the Authority cannot be obtained in time.
The Treasurer shall provide a written report on the subject for the Chairman of the Authority which will be submitted to the next meeting of the Authority.
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F4 – Financial Appraisals
The need for this Regulation.
Financial appraisals are required to ensure that the Authority's aims and objectives are being met and that the available resources are utilised in an efficient, effective and economic manner to achieve best value for money.
The extent of the Regulations.
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| F4.1. |
All capital and revenue schemes and other new service developments which:
in the opinion of the Chief Constable involve new policy; or
are defined as capital expenditure;
shall be subject a financial appraisal by the Chief Constable in a format agreed with the Treasurer which will include a statement of the need for the scheme, an evaluation of the costs and benefits of alternative solutions and a financial assessment, incorporating the requirements of the Code of Practice on Financial Management as applied by the Treasurer.
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| F4.2. |
Appraisals on schemes estimated to cost £100,000 and above shall be submitted jointly by the Chief Constable and Treasurer to the Planning and Finance Committee in the agreed format.
In exceptional circumstances, where the matter is considered to be urgent for the preservation of the Authority's interests, property and/or finances, the appraisal may be submitted direct to the Authority where no meeting of the Planning and Finance Committee is scheduled for the interim period.
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| F4.3. |
In circumstances where a scheme is initially estimated to cost less than £100,000 but prior to commencement of work it becomes clear that the scheme will cost more than £100,000 an appraisal must be submitted, retrospectively if necessary, to the Planning and Finance Committee.
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| F4.4. |
In case of emergency work it may be necessary for schemes costing £100,000 and above to commence prior to the approval of the Planning and Finance Committee and/or the Authority.
In these cases, the Chief Constable and Treasurer shall consult with the Chairman of the Authority and the Chairman of Planning and Finance Committee with a view to proceeding with the expenditure on the basis that a full appraisal will be presented retrospectively to the next meeting of the Planning and Finance Committee or the Authority.
In such cases, the Chief Constable and Treasurer shall have the power to incur the necessary expenditure.
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| F4.5. |
All schemes which have been appraised under Regulations F4.1 to F4.5 above will be subject to a reappraisal by the Chief Constable if:
the cost of the originally approved scheme is estimated to be exceeded by more than 5% on schemes up to an estimated cost of £500,000 or an increase of more than £50,000 on schemes above an estimated value of £1,000,000.
In the professional opinion of the Chief Constable the nature of the scheme or its benefits have changed materially since the original approval.
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| F4.6. |
All reappraisals for schemes estimated to cost £100,000 and above shall be referred to the Planning and Finance Committee or direct to the Authority in cases of urgency.
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F5 – Budgetary Control
The need for this Regulation.
The annual revenue budget represents a statement of the Policing Plan in financial terms Budgetary control is a continuous process in which the Authority reviews and adjusts budgetary targets as the financial year progresses.
This represents changes in the financial statement of existing aims and objectives or a change in the aims and objectives themselves.
The extent of the Regulations.
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| F5.1. |
The Chief Constable may authorise lawful expenditure included in that part of the approved annual estimates that is under his/her direct control, subject to compliance with these Financial Regulations, the Scheme of Delegation and Contract Regulations.
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| F5.2. |
The Clerk and Treasurer may authorise lawful expenditure included in that part of the approved annual estimates that is under the direct control of the Authority, excluding the Contingency Fund, subject to virement proposals Regulation F3 and compliance with these Financial Regulations, the Scheme of Delegation and Contract Regulations.
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| F5.3. |
Control of expenditure and income shall be against the appropriate budget head.
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| F5.4. |
A report shall be presented on a quarterly basis to the Planning and Finance Committee comparing revenue expenditure in the year to date with a profile of the approved budget for the equivalent period.
The report shall be in a format approved by the Treasurer.
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| F5.5. |
A capital programme implementation report shall be submitted on a quarterly basis to the Planning and Finance Committee which sets out the progress made with individual schemes and a comparison of expenditure to date against the total scheme cost.
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| F5.6. |
The Chief Constable, Treasurer and Clerk shall ensure, as far as practicable, that expenditure in excess of the approved budget is not incurred without the prior approval of the Authority.
Where an estimated or actual overspend is identified, the details shall be included within the next budget monitoring report (Regulation F5.4) to the Planning and Finance Committee and shall include an explanation for the overspend and details of the action taken or proposals made to deal with it.
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| F5.7. |
For the purposes of these Financial Regulations, expected or actual shortfalls or losses of income shall be treated as if they are increases in expenditure.
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| F5.8. |
The Chief Constable shall carry forward from one financial year to the next any under/overspends to make optimum use of the available resources.
Carry forward shall be in accordance with a scheme to be agreed between the Chief Constable and the Treasurer which shall be subject to the following specific exclusions from the carry forward facility:
Direct salaries, wages and overheads
Police Pensions
Other employee expenses
Contributions to Regional Squads
Capital financing charges
Major incident costs
Overtime costs are to be included within the carry-forward rules.
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| F5.9. |
The Chief Constable shall make arrangements for the carry-forward rules to be extended to Devolved Budget Managers.
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| F5.10. |
The Chief Constable shall make every effort to maintain major incident costs within the overall budget without prejudice to meeting the objectives set out in the Authority's Policing Plan.
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| F5.10. |
The Chief Constable shall consult the Treasurer when it is apparent that major incident costs will not be maintained within the overall budget and they shall jointly report the matter to the Authority.
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F6 - ACCOUNTING AND INTERNAL AUDIT
The need for this Regulation.
The Treasurer has a statutory obligation for the overall financial administration of the Authority's affairs and for maintain an adequate and effective internal audit of the accounts.
In addition, the requirements of the Accounts and Audit Regulations must be conformed to.
The extent of the Regulations.
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| F6.1. |
The Treasurer shall be responsible for supervising the maintenance of all the accounting records of the Authority.
He shall ensure, insofar as is practicable, that the Authority's accounting records and statements comply with proper accounting practices (statutory and non-statutory) and that sound principles of internal check are in operation.
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| F6.2. |
The Treasurer shall publish an Annual Statement of Accounts for the Authority by 31st August of the year in which the accounting period ends and shall issue a copy to each member of the Authority.
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| F6.3. |
The Treasurer shall arrange for a continuous internal audit to be carried out which will include an examination of accounting, financial and other operations of the Authority, in accordance with nationally prescribed auditing standards.
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| F6.4. |
The Treasurer shall prepare an annual internal audit plan which shall be discussed with the Chief Constable prior to its submission to the Audit Committee for approval.
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| F6.5. |
The Chief Constable, by agreement with the Treasurer, shall be able to request directly from Internal Audit, systems audits and value for money audits.
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| F6.6. |
All reports produced by Internal Audit shall be available to both the Treasurer and the Chief Constable.
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| F6.7. |
The Treasurer shall submit a report to the Audit Committee a report on all reports made by both Internal and External Audit as soon as practicable after the completion of each audit.
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| F6.8. |
Whenever any matter arises which involves, or is thought to involve, irregularities concerning cash, stores or other property of the Authority, the Chief Constable, Clerk and Treasurer shall be notified forthwith and the appropriate action, by way of investigation and report shall be taken.
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F7 - Goods, Work And Services
The need for this Regulation.
The Authority should seek to achieve best value for money from all of its purchases.
In this context, value for money means getting what is needed in the correct quality and quantity, at the right time and at the best possible price.
The extent of the Regulations.
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| F7.1. |
The Chief Constable should seek to ensure that the Authority obtains best value for money from any purchase by testing the market, where appropriate, before the Authority is committed to any expenditure.
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| F7.2. |
The Chief Constable should agree with the Treasurer procedures for obtaining quotes and tenders and where and how exemptions may be allowed.
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| F7.3. |
Orders, in writing, in a form approved by the Treasurer, shall be issued for all goods, work and services required, except for supplies of public utility services, rent, rates and petty cash disbursements.
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| F7.4. |
The originator shall indicate on the order, by use of codes approved by the Treasurer, the expenditure headings to which the expenditure shall be charged.
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| F7.5. |
The Treasurer shall agree with the Chief Constable the systems to be operated for the payment out of the accounts of the Authority so far as to ensure that proper systems of control are in place and that VAT is properly accounted for.
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F8 - Banking Arrangements
The need for this Regulation.
Bank accounts are strictly controlled in order to maximise the cash flow benefits and minimise the risk to the Authority of theft or misappropriation.
Imprest accounts are a special type of bank account usually used by front line staff to defray minor items of expense of a non-routine nature.
The extent of the Regulations.
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| F8.1. |
All arrangements concerning the Authority's banking accounts, the issue of cheques and bank transfer instructions shall be approved by the Treasurer.
Bank accounts shall stand in the name of "Lincolnshire Police Authority" and not in the name of any officer by name or designation.
All cheques generated and printed from the computerised financial systems and drawn on the Authority's Payments Account shall bear the printed facsimile of the signature of the Treasurer.
Manual cheques and bank instructions shall be authorised and signed by either the Treasurer, Chief Constable, Deputy Chief Constable, Assistant Chief Constable, Director of Finance or Force Accountant.
Bank transfers of any sort may be authorised only under arrangements made by the Treasurer.
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| F8.2. |
The Treasurer and, subject to his/her supervision, every person operating a bank account on behalf of the Authority shall make safe and efficient arrangements for the control of access to bank cheques, the preparation, signing and dispatch of cheques, the prompt examination of paid cheques and an independent reconciliation of cash books with bank statements.
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| F8.3. |
Every officer who receives money on behalf of the Authority shall promptly pay over such monies without deduction to the Authority's bankers or the Director of Finance, in accordance with such arrangements, as the Treasurer shall prescribe.
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| F8.4. |
The Chief Constable shall be empowered to establish such imprest accounts as he/she considers appropriate for the purpose of defraying petty cash and other expenses.
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| F8.5. |
Payments from the imprest accounts shall be limited to minor items of expenditure, normally not exceeding £50 per item, and to such other items as may be agreed from time to time by the Chief Constable and Treasurer.
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| F8.6. |
Officers responsible for imprest accounts shall produce a certificate as to the state of the imprest advanced as provided for on the reimbursement form and at other times if requested by the Chief Constable and/or the Treasurer.
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| F8.7. |
The Treasurer shall be responsible for borrowing, temporary investments and the repayment of monies, subject to any constraints imposed by statute or nationally agreed Codes of Practice and, subject to the general directions and within any limits prescribed from time to time by the Authority.
The Treasurer shall report to the Planning and Finance Committee not less than twice a year on these activities.
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| F8.8. |
The Treasurer may, with the agreement of the Chief Constable, make arrangements for the Director of Finance to undertake or procure, in a manner acceptable to the Treasurer, the daily management of cash, loans and investment work.
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| F8.9. |
No officer shall enter into either a Finance Lease, an Operating Lease or agreement which may be a lease without the prior approval of the Treasurer.
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| F8.10. |
No officer shall borrow money on behalf of the Authority, without the prior approval of the Treasurer.
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F9 - Salaries, Wages And Pensions
The need for this Regulation.
The largest item of expenditure in the Authority is the cost of staffing.
It is therefore important to have controls in place to ensure that payments are only made to bona-fide employees, are in accordance with individuals' conditions of employment, are only made in respect of services provided to the Authority, and that all amendments to the payroll are properly authorised.
The extent of the Regulations.
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| F9.1. |
The payment of all salaries, wages, pensions, compensation and other emoluments to all employees and pensioners of the Authority shall be made by the Chief Constable under arrangements agreed with the Treasurer.
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| F9.2. |
Appointments of police officers shall be made in accordance with Police Regulations and civilian staff with the terms and conditions agreed by the Police Support Staff Council.
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| F9.3. |
Authorised officers shall notify the Chief Constable, or his/her nominated representative, in writing using a prescribed format, as soon as possible of all matters affecting the payment of emoluments and in particular:
appointments, resignations, dismissals, suspensions, transfers and secondments.
absences from duty for sickness or other reason other than approved annual leave.
Changes in remuneration, other than normal increments and pay awards and agreements of general application.
Information necessary to maintain records of service for superannuation, income tax, national insurance etc.
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F10 - Income
The need for this Regulation.
Income is a vulnerable asset and effective income collection systems are therefore necessary to ensure that all income due is identified, all collections are receipted and banked promptly and completely, and that the Authority's accounting records are properly and promptly updated.
The extent of the Regulations.
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| F10.1. |
The Treasurer shall in conjunction with the Chief Constable, make and maintain arrangements for the financial organisation and accounting necessary to ensure the prompt recording of all sums due to the Authority and for the collection, custody, control and banking of all income.
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| F10.2. |
All official receipt forms or books or other documentation representing receipts for money's due to the Authority shall be in a form agreed with the Treasurer.
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| F10.3. |
Each officer who receives money on behalf of the Authority shall give such acknowledgement thereof and keep such records as may from time to time be approved by the Treasurer, including an accurate and chronological account of all receipts and deposits.
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| F10.4. |
The Director of Finance or his authorised representative shall be notified as early as possible of all monies due to the Authority under contracts, leases, tenancy agreements, agreements for the sale of property and any other arrangements involving the receipt of money by the Authority.
Any such sums due to be paid directly into the Authority's bank account by third parties should be notified to the Director of Finance in advance of receipt.
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| F10.5. |
Where appropriate VAT must be charged by the Authority on goods and services provided.
Officers must charge and account for VAT in accordance with detailed rules separately issued by the Treasurer.
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| F10.6. |
Personal or third party cheques shall not be cashed out of money held on behalf of the Authority.
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| F10.7. |
No debt in respect of an amount due to the Authority once established shall be discharged otherwise than by payment, by the issue of an official credit note or as provided for under Regulation F10.8.
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| F10.8. |
Sums due to the Authority shall not be written off without the direct approval of the Authority except on:
the authority of the Chief Constable in respect of any individual sum not exceeding £5,000.
the joint authorisation of the Treasurer and Chief Constable in respect of any individual sum between the values of £5,000 and £10,000 inclusive.
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| F10.9. |
A brief summary of all sums due to the Authority that have been written off and the amount involved is more than £1,000 shall be reported half yearly to the Planning and Finance Committee.
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| F10.10. |
The Treasurer may prescribe that, generally or particularly, specified goods or services shall not be supplied on credit terms or shall be supplied only on prepayment or concurrent terms.
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| F10.11. |
The Chief Constable shall ensure that charges for special police services, made under Section 25 of the Police Act 1996, are calculated on the basis of full cost recovery using a formula agreed with the Treasurer.
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| F10.12. |
The Chief Constable shall ensure that all discretionary charges are reviewed annually in consultation with the Treasurer.
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F11 - Insurance and Risk Management
The need for this Regulation.
The Authority has risks which should be protected by insurance.
They include third party liability, employers liability, theft or accidental damage to property, theft or loss of money, fire and other damage and motor policies.
It is important that the Authority regularly reviews its exposure to risks to ensure that appropriate insurance cover is maintained at all times.
The extent of the Regulations.
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| F11.1. |
The Treasurer shall advise the Authority on the appropriate arrangements for risk management and insurance cover.
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| F11.2. |
Within the overall policy determined by the Authority, the Chief Constable shall be responsible for effecting and administering the insurance arrangements and the risk management policies.
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| F11.3. |
Members of the Authority, police officers and civilian employees shall promptly notify the Chief Constable of:
all new risks, or whatever nature, which require to be insured, indicating the scope and amount of cover required, together with variations in existing risks.
any loss, liability or damage, or of any event likely to lead to a claim, either against the Authority or in favour of it.
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| F11.4. |
No police officer, civilian employee or member shall admit liability to a claimant, or make any statement which could be construed as such, concerning a matter which is to be dealt with by insurers.
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| F11.5. |
Outside of the Force's insurance liability arrangements, the Chief Constable shall be empowered to award ex-gratia payments in respect of personal injury, compensation, damage to and loss of property, up to a maximum sum of £5,000 in any one case.
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| F11.6. |
Payments in excess of £5,000 but not more than £10,000 shall only be made with the joint approval of the Chief Constable and Treasurer.
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| F11.7. |
Payments in excess of £10,000 shall only be made with the approval of the Authority, or, if urgent payment is required, with the agreement of the Clerk and Treasurer in consultation with the Chairman.
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| F11.8. |
A brief summary of all ex-gratia payments in excess of £1,000 per item shall be reported half yearly to the Planning and Finance Committee.
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F12 - Contracts
The need for this Regulation.
The Authority should seek to achieve best value for money from all of its purchases.
In this context, value for money means getting what is needed in the correct quality and quantity, at the right time and at the best possible price.
The extent of the Regulations.
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| F12.1. |
All contracts entered into by the Authority and its officer shall be subject to the provisions of the Authority's Standing Orders in relation to Contracts.
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| F12.2. |
Where competitive tendering has taken place, any contract that is not awarded to the lowest bidder shall be reported to, and approved by, the Authority.
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| F12.3. |
Any transaction that exceeds financial thresholds set out in the Standing Orders in relation to Contracts, or which does not fall under the strategy outlined for the year in the policing plan, shall be subject to the prior approval of the Authority.
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| F12.4. |
The Chief Constable shall keep a register of contracts and payment made thereunder in a form agreed with the Treasurer.
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| F12.5. |
The Chief Constable shall ensure that, where necessary, insurance and bonds are entered into by the contractor.
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| F12.6. |
The Chief Constable may at his discretion withhold payment of any sums purporting to be due on a contract until the terms of the contract have been complied with and may set off any sums due from a contractor to the Authority against any sum due from the Authority to the contractor.
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| F12.7. |
Payments on account to contractors shall be authorised only on a certificate signed by an officer authorised for such purpose by the Chief Constable and shall be in a format agreed by the Treasurer.
Except with the prior written approval of the Treasurer or his nominated representative no certificate shall be issued certifying a total value of work to date in excess of the contract figure.
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| F12.8. |
Every variation to a contract shall be specifically authorised in writing by the officer having charge of the work and shall be notified in writing to the contractor.
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| F12.9. |
The final certificate for payment in respect of any contract shall not be issued until the Treasurer or his nominated representative has been issued with a detailed statement of account and all relevant documents for his examination.
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| F12.10. |
Claims from contractors in respect of matters not clearly within the terms of any existing contract shall be referred to the Clerk for consideration of the Authority's legal liability and to the Treasurer for financial consideration before a settlement is reached.
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| F12.11. |
Where completion of a contract is delayed, it shall be the duty of the supervising officers concerned to initiate appropriate action in respect of any claim by the Authority for liquidated damages and he shall report the matter to the Clerk and the Treasurer.
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| F12.12. |
At the conclusion of each contract for building, constructional or engineering work a report shall, after agreement of the final account, be submitted to the Authority, where the final account exceeds the approved contract sum by more than 5%; this report shall detail the reasons for any variance from the contract price.
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F13 - Stocks And Stores
The need for this Regulation.
Stock and stores can tie up resources that could otherwise be used to maximise the benefits available from cash flow.
In addition, large holdings of stocks and stores can become outdated which could result in the loss of significant sums.
The extent of the Regulations.
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| F13.1. |
The Chief Constable in conjunction with the Treasurer shall prepare a Code of Practice relating to the detailed way in which stocks and stores are to be administered.
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| F13.2. |
The Chief Constable shall be responsible for the custody and management of stocks and stores and shall maintain records of their acquisition, holding and disposal in a form approved by the Treasurer.
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| F13.3. |
Stocks shall not be held in excess of normal operational requirements except in special circumstances with the approval of the Treasurer.
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| F13.4. |
The identification of any material surplus or deficiency shall be reported to the Chief Constable and may only be written off with his approval subject to a limit of 1% of the total value of stocks and stores at that location.
Amounts in excess of that limit shall require the approval of the Treasurer.
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| F13.5. |
A report is to be submitted annually to the Authority within six months of the end of the financial year on the full extent of stocks and stores written off during the year.
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