Question

Is there any legal reason why a Council should not be able to pay its suppliers by BACS or similar transfer?

Answer 1

No. It's all set out in the model financial regulations.

Comments

Section 6, especially 6.9 and 6.10

Answer 2

Some banks do not have the check facility between placing payments onto the system and authorising these payments. A council may need to change banks first to meet your financial regulations

Comments

The two-person authorisation offered by some banks is helpful, but the financial regulations do not require it. Two signatories may sign documentation to authorise a payment before the payment is made.

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I think it may be down to whether this has been approved in the Financial regulations as these documents are all slightly different.

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This is one of many reasons why councils should adopt the latest model standing orders and financial regulations and check each year to see if they have been updated. It ensures that the council complies with all new legislation from day one and in another context can serve as a useful tool to rein in an over-zealous chair!