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Hi
As a new clerk with no handover from the previous clerk I am trying to make sure I don't breach any regulations. I've been reading through our Financial Regulations online and they are from 2019 so don't appear to have been reviewed. I also noticed though that other town council's financial regulations look exactly the same so I wondered what the scope was for making changes? Also, in relation to BACS payments it refers to requiring two councillors to authorise payments. I've noticed that the previous clerk was using their own personal debit card to purchase items of up to £300 in some instances then transferring the money back into their account but with no authorisation or extra signatures. What are the consequences for breaking financial regulations?

Do you have any advice as well for me? I'm very capable in terms of my ability but I'm worried about the important and legal aspects of this job that I just don't know yet!

Sorry, lots of questions! I've found this forum a great source of information so thank you in advance!
by (260 points)

2 Answers

0 votes
Have a look at the model financial regulations on the NALC website. There are a number of items in brackets over which the council may exercise choice, but in essence, you shouldn't change or delete anything that isn't marked as optional or discretionary. This will ensure that you are fully compliant with all legislation.

A council debit card is becoming more common these days and maybe something your council could consider. Expense claims should be ratified by the council and there is an NALC model expenses policy you may wish to adopt, again to ensure you are fully compliant.

The consequences of breaching fin regs are limited, unless you have an internal auditor who is particularly hot on this topic and will highlight it in the report.
by (52.9k points)
0 votes
As said use the template for most requirements. Some things require common sense too as one of the issues with the regs/model docs is they're out of date in places - for example somewhere there's something about not storing passwords on a computer, which these days is silly with secure digital lockers etc.

In my case, any expenses we have need to be approved/signed off then paid,  usually at the next meeting. As clerk, I couldn't pay myself as our bank account is setup so I can only schedule payments not approve them - two councillors always have to release them. That seems a strange gap that I'm surprised an auditor hasn't queried - ours certainly would.

My council also has two credit cards which is also quite unusual I think - one for me and one for a councillor. I use mine for some small regular subscriptions and things like stationery, the councillor is the main person for open spaces and allotments and makes lots of little purchases related to those - to do all that through expenses/waiting for approval each time would be very restrictive. We just amended the regs to include the cards as that was a sensible solution for us - they still get scrutinised and signed off as other payments but are just paid by DD.
by (660 points)

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