Fin Regs Nov 2025 Agreed

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North Petherton Town Council
Financial Regulations
Approved and adopted by The Town Council 25 November 2024
Reviewed & Amended by Council: 19 May 2025
Reviewed 24 November 2025
The Financial Regulations govern the conduct of financial management
by the Town Council.
These Financial Regulations are based upon the 2024 model financial regulations
from the National Association of Local Town Councils

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FINANCIAL REGULATIONS

Contents
Section

Page No

1. General
2. Risk management and internal control
3. Accounts and audit
4. Budget and precept
5. Procurement
6. Banking and payments
7. Electronic payments
8. Cheque payments
9. Payment cards
10. Petty Cash
11. Payment of salaries and allowances
12. Loans and investments
13. Income
14. Payments under contracts for building or other construction works
15. Stores and Equipment
16. Assets, properties and estates
17. Insurance
18. Charities
19. Suspension and revision of Financial Regulations

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Appendix 1
Appendix 2

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18

Tender process
Spending Limits

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1. General
1.1. These Financial Regulations govern the financial management of the Town Council
and may only be amended or varied by resolution of the Town Council. They are
one of the Town Council’s governing documents and shall be observed in
conjunction with the Town Council’s Standing Orders.
1.2. Town Councillors are expected to follow these regulations and not to entice
employees to breach them. Failure to follow these regulations brings the office of
Town Councillor into disrepute.
1.3. Wilful breach of these regulations by an employee may result in disciplinary
proceedings.
1.4. In these Financial Regulations:
• ‘Accounts and Audit Regulations’ means the regulations issued under Sections
32, 43(2) and 46 of the Local Audit and Accountability Act 2014, or any
superseding legislation, and then in force, unless otherwise specified.
• “Approve” refers to an online action, allowing an electronic transaction to take
place.
• “Authorise” refers to a decision by the Town Council, or a committee or an
officer, to allow something to happen.
• ‘Proper practices’ means those set out in The Practitioners’ Guide
• Practitioners’ Guide refers to the guide issued by the Joint Panel on
Accountability and Governance (JPAG) and published by NALC in England or
Governance and Accountability for Local Town Councils in Wales – A
Practitioners Guide jointly published by One Voice Wales and the Society of
Local Town Council Town Clerks in Wales.
• ‘Must’ and bold text refer to a statutory obligation the Town Council cannot
change.
• ‘Shall’ refers to a non-statutory instruction by the Town Council to its members
and staff.
1.5. The Responsible Financial Officer (RFO) holds a statutory office, appointed by the
Town Council. The Town Clerk has been appointed as RFO and these regulations
apply accordingly. The RFO:
• acts under the policy direction of the Town Council;
• administers the Town Council's financial affairs in accordance with all Acts,
Regulations and proper practices;
• determines on behalf of the Town Council its accounting records and control
systems;
• ensures the accounting control systems are observed;
• ensures the accounting records are kept up to date;
• seeks economy, efficiency and effectiveness in the use of Town Council
resources; and
• produces financial management information as required by the Town Council.

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1.6. The Town Council must not delegate any decision regarding:
• setting the final budget or the precept (Town Council tax requirement);
• the outcome of a review of the effectiveness of its internal controls;
• approving accounting statements;
• approving an annual governance statement;
• borrowing;
• declaring eligibility for the General Power of Competence; and
• addressing recommendations from the internal or external auditors
1.7. In addition, the Town Council shall:
• determine and regularly review the bank mandate for all Town Council bank
accounts;
• authorise any grant or single commitment in excess of £5,000.
2.

Risk Management and Internal Control
2.1

The Town Council must ensure that it has a sound system of internal control,
which delivers effective financial, operational and risk management.

2.2

The Town Clerk shall prepare, for approval by the Town Council, a risk
management policy covering all activities of the Town Council. This policy and
consequential risk management arrangements shall be reviewed by the Town
Council at least annually.

2.3

When considering any new activity, the Town Clerk shall prepare a draft risk
assessment including risk management proposals for consideration by the Town
Council.

2.4

At least once a year, the Town Council must review the effectiveness of its
system of internal control, before approving the Annual Governance
Statement.

2.5

The accounting control systems determined by the RFO must include
measures to:
•
•
•
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ensure that risk is appropriately managed;
ensure the prompt, accurate recording of financial transactions;
prevent and detect inaccuracy or fraud;
allow the reconstitution of any lost records;
identify the duties of officers dealing with transactions and
ensure division of responsibilities.

2.6

At least once in each quarter, and at each financial year end, a member other than
the Chair or a cheque signatory shall be appointed to verify bank reconciliations (for
all accounts) produced by the RFO. The member shall sign and date the
reconciliations and the original bank statements (or similar document) as evidence
of this. This activity, including any exceptions, shall be reported to and noted by the
Town Council or the Finance Committee.

2.7

Regular back-up copies shall be made of the records on any Town Council
computer and stored either online or in a separate location from the computer. The
Town Council shall put measures in place to ensure that the ability to access any
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Town Council computer is not lost if an employee leaves or is incapacitated for any
reason.
3.

Accounts and Audit
3.1

All accounting procedures and financial records of the Town Council shall be
determined by the RFO in accordance with the Accounts and Audit Regulations.

3.2

The accounting records determined by the RFO must be sufficient to explain
the Town Council’s transactions and to disclose its financial position with
reasonably accuracy at any time. In particular, they must contain:
• day-to-day entries of all sums of money received and expended by the
Town Council and the matters to which they relate;
• a record of the assets and liabilities of the Town Council;

3.3

The accounting records shall be designed to facilitate the efficient preparation of the
accounting statements in the Annual Governance and Accountability Return.

3.4

The RFO shall complete and certify the annual Accounting Statements of the Town
Council contained in the Annual Governance and Accountability Return in
accordance with proper practices, as soon as practicable after the end of the
financial year. Having certified the Accounting Statements, the RFO shall submit
them (with any related documents) to the Town Council, within the timescales
required by the Accounts and Audit Regulations.

3.5

The Town Council must ensure that there is an adequate and effective system
of internal audit of its accounting records and internal control system in
accordance with proper practices.

3.6

Any officer or member of the Town Council must make available such
documents and records as the internal or external auditor consider necessary
for the purpose of the audit and shall, as directed by the Town Council, supply
the RFO, internal auditor, or external auditor with such information and explanation
as the Town Council considers necessary.

3.7

The internal auditor shall be appointed by the Town Council and shall carry out their
work to evaluate the effectiveness of the Town Council’s risk management, control
and governance processes in accordance with proper practices specified in the
Practitioners’ Guide.

3.8

The Town Council shall ensure that the internal auditor:
• is competent and independent of the financial operations of the Town Council;
• reports to Town Council in writing, or in person, on a regular basis with a
minimum of one written report during each financial year;
• can demonstrate competence, objectivity and independence, free from any
actual or perceived conflicts of interest, including those arising from family
relationships; and
• has no involvement in the management or control of the Town Council

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3.9

Internal or external auditors may not under any circumstances:
• perform any operational duties for the Town Council;
• initiate or approve accounting transactions;
• provide financial, legal or other advice including in relation to any future
transactions; or
• direct the activities of any Town Council employee, except to the extent that
such employees have been appropriately assigned to assist the internal
auditor.

3.10 For the avoidance of doubt, in relation to internal audit the terms ‘independent’ and
‘independence’ shall have the same meaning as described in The Practitioners
Guide.
3.11 The RFO shall make arrangements for the exercise of electors’ rights in relation to
the accounts, including the opportunity to inspect the accounts, books, and
vouchers and display or publish any notices and documents required by the Local
Audit and Accountability Act 2014, or any superseding legislation, and the Accounts
and Audit Regulations.
3.12 The RFO shall, without undue delay, bring to the attention of all Town Councillors
any correspondence or report from internal or external auditors.
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Budget and Precept
4.1 Before setting a precept, the Town Council must calculate its Town Council tax
requirement for each financial year by preparing and approving a budget, in
accordance with The Local Government Finance Act 1992 or succeeding
legislation.
4.2

Budgets for salaries and wages, including employer contributions shall be reviewed
by the Town Council at least annually for the following financial year and the final
version shall be evidenced by a hard copy schedule signed by the Town Clerk and
the Chair of the Town Council or relevant committee.

4.3

No later than December each year, the RFO shall prepare a draft budget with
detailed estimates of all income and expenditure for the following financial year
along with a forecast for the following three financial years, taking account of the
lifespan of assets and cost implications of repair or replacement.

4.4

Unspent budgets for completed projects shall not be carried forward to a
subsequent year. Unspent funds for partially completed projects may only be
carried forward (by placing them in an earmarked reserve) with the formal approval
of the full Town Council.

4.5

Each committee (if any) shall review its draft budget and submit any proposed
amendments to the Town Council not later than the end of November each year.

4.6

The draft budget with any committee proposals and Four-year forecast, including
any recommendations for the use or accumulation of reserves, shall be considered
by the finance committee and a recommendation made to the Town Council.

4.7

Having considered the proposed budget and four-year forecast, the Town Council
shall determine its Town Council tax requirement by setting a budget. The Town
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Council shall set a precept for this amount no later than the end of January for the
ensuing financial year.
4.8

Any member with Town Council tax unpaid for more than two months is prohibited
from voting on the budget or precept by Section 106 of the Local Government
Finance Act 1992 and must disclose at the start of the meeting that Section 106
applies to them.

4.9

The RFO shall issue the precept to the billing authority no later than the end of
February and supply each member with a copy of the agreed annual budget.

4.10 The agreed budget provides a basis for monitoring progress during the year by
comparing actual spending and income against what was planned.
4.11 Any addition to, or withdrawal from, any earmarked reserve shall be agreed by the
Town Council.
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Procurement
5.1 Members and officers are responsible for obtaining value for money at all
times. Any officer procuring goods, services or works should ensure, as far as
practicable, that the best available terms are obtained, usually by obtaining prices
from several suppliers.
5.2

The RFO should verify the lawful nature of any proposed purchase before it is made
and in the case of new or infrequent purchases, should ensure that the legal power
being used is reported to the meeting at which the order is authorised and also
recorded in the minutes.

5.3

Every contract shall comply with the Town Council’s Standing Orders and these
Financial Regulations and no exceptions shall be made, except in an emergency.

5.4

For a contract for the supply of goods, services or works where the estimated
value will exceed the thresholds set by Parliament, the full requirements of
The Public Contracts Regulations 2015 or any superseding legislation (“the
Legislation”), must be followed in respect of the tendering, award and
notification of that contract.

5.5

Where the estimated value is below the Government threshold, the Town Council
shall (with the exception of items listed in paragraph 6.12) obtain prices as follows:

5.6

For contracts estimated to exceed 15% of the precept including VAT, the Town
Clerk shall seek formal tenders from at least three suppliers agreed by the Town
Council OR advertise an open invitation for tenders in compliance with any relevant
provisions of the Legislation. Tenders shall be invited in accordance with Appendix
1.

5.7

For contracts estimated to be over £30,000 including VAT, the Town Council
must comply with any requirements of the Legislation1 regarding the
advertising of contract opportunities and the publication of notices about the
award of contracts.

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The Regulations require Town Councils to use the Contracts Finder website if they advertise contract opportunities and also to publicise
the award of contracts over £30,000 including VAT, regardless of whether they were advertised.

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5.8

For contracts greater than 0.75% of the precept excluding VAT the Town Clerk shall
seek at least 3 fixed-price quotes;

5.9

where the value is between 0.1% and 0.75% of the precept excluding VAT, the
Town Clerk shall try to obtain 3 estimates which might include evidence of online
prices, or recent prices from regular suppliers.

5.10 For smaller purchases, the Town Clerk shall seek to achieve value for money.
5.11 Contracts must not be split into smaller lots to avoid compliance with these
rules.
5.12 The requirement to obtain competitive prices in these regulations need not apply to
contracts that relate to items (i) to (iv) below:
i.

specialist services, such as legal professionals acting in disputes;

ii.

repairs to, or parts for, existing machinery or equipment;

iii.

works, goods or services that constitute an extension of an existing contract;

iv. goods or services that are only available from one supplier or are sold at a
fixed price.
5.13 When applications are made to waive this financial regulation to enable a price to
be negotiated without competition, the reason should be set out in a
recommendation to the Town Council or relevant committee. Avoidance of
competition is not a valid reason.
5.14 The Town Council shall not be obliged to accept the lowest or any tender, quote or
estimate.
5.15 Individual purchases within an agreed budget for that type of expenditure may be
authorised by:
• the Town Clerk, under delegated authority, for any items below 0.5% of the
precept excluding VAT (see appendix 2)
• the Town Clerk, in consultation with the Chair of the Town Council or Chair of
the appropriate committee, for any items below 0.75% of the precept excluding
VAT. (see appendix 2)
• a duly delegated committee of the Town Council for all items of expenditure
within their delegated budgets for items under 1.25% of the precept excluding
VAT (see appendix 2)
• in respect of grants, a duly authorised committee within any limits set by Town
Council and in accordance with any policy statement agreed by the Town
Council.
• the Town Council for all items over 1.25% of the precept (see appendix 2)
Such authorisation must be supported by a minute (in the case of Town Council or
committee decisions) or other auditable evidence trail.
5.16 No individual Member, or informal group of Members may issue an official order
unless instructed to do so in advance by a resolution of the Town Council or make
any contract on behalf of the Town Council.
5.17 No expenditure may be authorised that will exceed the budget for that type of
expenditure other than by resolution of the Town Council except in an emergency.

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5.18 In cases of serious risk to the delivery of Town Council services or to public safety
on Town Council premises, the Town Clerk may authorise expenditure of up to
0.75% of the precept excluding VAT on repair, replacement or other work that in
their judgement is necessary, whether or not there is any budget for such
expenditure. (see appendix 2) The Town Clerk shall report such action to the Chair
as soon as possible and to the Town Council as soon as practicable thereafter.
5.19 No expenditure shall be authorised, no contract entered into or tender accepted in
relation to any major project, unless the Town Council is satisfied that the
necessary funds are available and that where a loan is required, Government
borrowing approval has been obtained first.
5.20 An official order or letter shall be issued for all work, goods and services above
£500 excluding VAT unless a formal contract is to be prepared or an official order
would be inappropriate. Copies of orders shall be retained, along with evidence of
receipt of goods.
5.21 Any ordering system can be misused and access to them shall be controlled by the
RFO.
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Banking and Payments
6.1 The Town Council's banking arrangements, including the bank mandate, shall be
made by the RFO and authorised by the Town Council; banking arrangements shall
not be delegated to a committee. The Town Council has resolved to bank with Unity
Trust Bank. The arrangements shall be reviewed annually for security and
efficiency.
6.2 The Town Council must have safe and efficient arrangements for making payments,
to safeguard against the possibility of fraud or error. Wherever possible, more than
one person should be involved in any payment, for example by dual online
authorisation or dual cheque signing. Even where a purchase has been authorised,
the payment must also be authorised and only authorised payments shall be
approved or signed to allow the funds to leave the Town Council’s bank.
6.3 All invoices for payment should be examined for arithmetical accuracy, analysed to
the appropriate expenditure heading and verified to confirm that the work, goods or
services were received, checked and represent expenditure previously authorised
by the Town Council before being certified by the RFO. Where the certification of
invoices is done as a batch, this shall include a statement by the RFO that all
invoices listed have been ‘examined, verified and certified’ by the RFO.
6.4 Personal payments (including salaries, wages, expenses and any payment made in
relation to the termination of employment) may be summarised to avoid disclosing
any personal information.
6.5 All payments shall be made by online banking/cheque, in accordance with a
resolution of the Town Council or duly delegated committee or a delegated decision
by an officer, unless the Town Council resolves to use a different payment method.
6.6 For each financial year the RFO may draw up a schedule of regular payments due
in relation to a continuing contract or obligation (such as Salaries, PAYE, National
Insurance, pension contributions, rent, rates, regular maintenance contracts and

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similar items), which the Town Council or a duly delegated committee may
authorise in advance for the year.
6.7 A list of such payments shall be reported to the next appropriate meeting of the
Town Council or Committee for information only.
6.8 The Town Clerk and RFO shall have delegated authority to authorise payments
only in the following circumstances:
i.

any payments of up to £2000 excluding VAT, within an agreed budget.

ii.

payments of up to £2,000 excluding VAT in cases of serious risk to the
delivery of Town Council services or to public safety on Town Council
premises.

iii.

any payment necessary to avoid a charge under the Late Payment of
Commercial Debts (Interest) Act 1998 or to comply with contractual terms,
where the due date for payment is before the next scheduled meeting of the
Town Council, where the Town Clerk certifies that there is no dispute or other
reason to delay payment, provided that a list of such payments shall be
submitted to the next appropriate meeting of Town Council or a committee.

iv.

Fund transfers within the Town Council’s banking arrangements up to the sum
of £50,000, provided that a list of such payments shall be submitted to the
next appropriate meeting of Town Council or a committee.

6.9 The RFO shall present a schedule of payments requiring authorisation, forming part
of the agenda for the meeting, together with the relevant invoices, to the Town
Council or a committee. The Town Council or a committee shall review the
schedule for compliance and, having satisfied itself, shall authorise payment by
resolution. The authorised schedule shall be initialled immediately below the last
item by the person chairing the meeting. A detailed list of all payments shall be
disclosed within or as an attachment to the minutes of that meeting.
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Electronic Payments
7.1 Where internet banking arrangements are made with any bank, the RFO shall be
appointed as the Service Administrator. The bank mandate agreed by the Town
Council shall identify a minimum of 3 Town Councillors who will be authorised to
approve transactions on those accounts and a minimum of two people will be
involved in any online approval process. The Town Clerk may be an authorised
signatory, but no signatory should be involved in approving any payment to
themselves.
7.2 All authorised signatories shall have access to view the Town Council’s bank
accounts online.
7.3 No employee or Town Councillor shall disclose any PIN or password, relevant to
the Town Council or its banking, to anyone not authorised in writing by the Town
Council or a duly delegated committee.
7.4 The Service Administrator shall set up all items due for payment online. A list of
payments for approval, together with copies of the relevant invoices, shall be sent
by email to two authorised signatories.

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7.5 In the prolonged absence of the Service Administrator an authorised signatory shall
set up any payments due before the return of the Service Administrator.
7.6 Two Town Councillors who are authorised signatories shall check the payment
details against the invoices before approving each payment using the online
banking system.
7.7 Evidence shall be retained showing which members approved the payment online
7.8 A full list of all payments made in a month shall be provided to the next Town
Council meeting and appended to the minutes.
7.9 With the approval of the Town Council in each case, regular payments (such as
gas, electricity, telephone, broadband, water, National Non-Domestic Rates, refuse
collection, pension contributions and HMRC payments) may be made by variable
direct debit, provided that the instructions are signed/approved online by [two
authorised members. The approval of the use of each variable direct debit shall be
reviewed by the Town Council at least every two years.
7.10 Payment may be made by BACS or CHAPS by resolution of the Town Council or a
committee provided that each payment is approved online by two authorised bank
signatories, evidence is retained and any payments are reported to the Town
Council or a committee at the next meeting. The approval of the use of BACS or
CHAPS shall be renewed by resolution of the Town Council at least every two
years.
7.11 If thought appropriate by the Town Council, regular payments of fixed sums may be
made by banker’s standing order, provided that the instructions are signed or
approved online by two members, evidence of this is retained and any payments
are reported to Town Council when made. The approval of the use of a banker’s
standing order shall be reviewed by the Town Council at least every two years.
7.12 Account details for suppliers may only be changed upon written notification by the
supplier verified by two of the Town Clerk and a member. This is a potential area
for fraud and the individuals involved should ensure that any change is genuine.
Data held should be checked with suppliers every two years.
7.13 Members and officers shall ensure that any computer used for the Town Council’s
financial business has adequate security, with anti-virus, anti-spyware and firewall
software installed and regularly updated.
7.14 Remembered password facilities should not be used on any computer used for
Town Council banking.
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Cheque Payments
8.1 Cheques or orders for payment in accordance with a resolution or delegated
decision shall be signed by two members.
8.2 A signatory having a family or business relationship with the beneficiary of a
payment shall not, under normal circumstances, be a signatory to that payment.
8.3 To indicate agreement of the details on the cheque with the counterfoil and the
invoice or similar documentation, the signatories shall also initial the cheque
counterfoil and invoice.
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8.4 Any signatures obtained away from Town Council meetings shall be reported to the
Town Council or a Committee at the next convenient meeting.
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Payment Cards
9.1 Any Debit Card issued for use will be specifically restricted to the Town Clerk and
will also be restricted to a single transaction maximum value of £1,000 unless
authorised by Town Council or finance committee in writing before any order is
placed.
9.2 A pre-paid debit card may be issued to employees with varying limits. These limits
will be set by the Town Council. Transactions and purchases made will be reported
to the Town Council or a committee and authority for topping-up shall be at the
discretion of the Town Council or a committee.
9.3 Any corporate credit card or trade card account opened by the Town Council will be
specifically restricted to use by the Town Clerk and any balance shall be paid in full
each month.
9.4 Personal credit or debit cards of members or staff shall not be used except for
expenses of up to £250 including VAT, incurred in accordance with Town Council
policy.

10 Petty Cash
10.1 The Town Council will not maintain any form of cash float. All cash received must
be banked intact. Any payments made in cash by the Town Clerk (for example for
postage or minor stationery items) shall be refunded on a regular basis, at least
quarterly.
a) Vouchers for payments made from petty cash shall be kept, along with receipts,
to substantiate every payment.
b) Cash income received must not be paid into the petty cash float but must be
separately banked, as provided elsewhere in these regulations.
c) Payments to maintain the petty cash float shall be shown separately on any
schedule of payments presented for approval.
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Payment of Salaries and Allowances
11.1 As an employer, the Town Council must make arrangements to comply with
the statutory requirements of PAYE legislation.
11.2 Town Councillors allowances (where paid) are also liable to deduction of tax
under PAYE rules and must be taxed correctly before payment.
11.3 Salary rates shall be agreed by the Town Council, or a duly delegated committee.
No changes shall be made to any employee’s gross pay, emoluments, or terms and
conditions of employment without the prior consent of the Town Council.
11.4 Payment of salaries shall be made, after deduction of tax, national insurance,
pension contributions and any similar statutory or discretionary deductions, on the
dates stipulated in employment contracts.

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11.5 Deductions from salary shall be paid to the relevant bodies within the required
timescales, provided that each payment is reported, as set out in these regulations
above.
11.6 Each payment to employees of net salary and to the appropriate creditor of the
statutory and discretionary deductions shall be recorded in a payroll control account
or other separate confidential record, with the total of such payments each calendar
month reported in the cashbook. Payroll reports will be reviewed by the finance
committee to ensure that the correct payments have been made.
11.7 Any termination payments shall be supported by a report to the Town Council,
setting out a clear business case. Termination payments shall only be authorised by
the full Town Council.
11.8 Before employing interim staff, the Town Council must consider a full business
case.
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Loans and Investments
12.1 Any application for Government approval to borrow money and subsequent
arrangements for a loan must be authorised by the full Town Council and recorded
in the minutes. All borrowing shall be in the name of the Town Council, after
obtaining any necessary approval.
12.2 Any financial arrangement which does not require formal borrowing approval from
the Secretary of State (such as Hire Purchase, Leasing of tangible assets or loans
to be repaid within the financial year) must be authorised by the full Town Council,
following a written report on the value for money of the proposed transaction.
12.3 The Town Council shall consider the requirement for an Investment Strategy and
Policy in accordance with Statutory Guidance on Local Government Investments,
which must be written in accordance with relevant regulations, proper practices and
guidance. Any Strategy and Policy shall be reviewed by the Town Council at least
annually.
12.4 All investment of money under the control of the Town Council shall be in the name
of the Town Council.
12.5 All investment certificates and other documents relating thereto shall be retained in
the custody of the RFO.
12.6 Payments in respect of short-term or long-term investments, including transfers
between bank accounts held in the same bank, shall be made in accordance with
these regulations.

13 Income
13.1 The collection of all sums due to the Town Council shall be the responsibility of and
under the supervision of the RFO.
13.2 The Town Council will review all fees and charges for work done, services provided,
or goods sold at least annually as part of the budget-setting process, following a

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report of the Town Clerk. The RFO shall be responsible for the collection of all
amounts due to the Town Council.
13.3 Any sums found to be irrecoverable and any bad debts shall be reported to the
Town Council by the RFO and shall be written off in the year. The Town Council’s
approval shall be shown in the accounting records.
13.4 All sums received on behalf of the Town Council shall be deposited intact with the
Town Council's bankers, with such frequency as the RFO considers necessary.
The origin of each receipt shall clearly be recorded on the paying-in slip or other
record.
13.5 Personal cheques shall not be cashed out of money held on behalf of the Town
Council.
13.6 The RFO shall ensure that VAT is correctly recorded in the Town Council’s
accounting software and that any VAT Return required is submitted from the
software by the due date.
13.7 Any income that is the property of a charitable trust shall be paid into a charitable
bank account. Instructions for the payment of funds due from the charitable trust to
the Town Council (to meet expenditure already incurred by the authority) will be
given by the Managing Trustees of the charity meeting separately from any Town
Council meeting.
14 Payments Under Contracts For Building Or Other Construction Works
14.1 Where contracts provide for payment by instalments the RFO shall maintain a
record of all such payments, which shall be made within the time specified in the
contract based on signed certificates from the architect or other consultant engaged
to supervise the works.
14.2 Any variation of, addition to or omission from a contract must be authorised by the
Town Clerk to the contractor in writing, with the Town Council being informed where
the final cost is likely to exceed the contract sum by 5% or more, or likely to exceed
the budget available.
15 Stores and Equipment
15.1 Delivery notes shall be obtained in respect of all goods received into store or
otherwise delivered and goods must be checked as to order and quality at the time
delivery is made.
16 Assets, Properties and Estates
16.1 The Town Clerk shall make arrangements for the safe custody of all title deeds and
Land Registry Certificates of properties held by the Town Council.
16.2 The RFO shall ensure that an appropriate and accurate Register of Assets and
Investments is kept up to date, with a record of all properties held by the Town
Council, their location, extent, plan, reference, purchase details, nature of the
interest, tenancies granted, rents payable and purpose for which held, in
accordance with Accounts and Audit Regulations.
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16.3 The continued existence of tangible assets shown in the Register shall be verified at
least annually, possibly in conjunction with a health and safety inspection of assets.
16.4 No interest in land shall be purchased or otherwise acquired, sold, leased or
otherwise disposed of without the authority of the Town Council, together with any
other consents required by law. In each case a written report shall be provided to
Town Council in respect of valuation and surveyed condition of the property
(including matters such as planning permissions and covenants) together with a
proper business case (including an adequate level of consultation with the
electorate where required by law).
No tangible moveable property shall be purchased or otherwise acquired, sold,
leased or otherwise disposed of, without the authority of the Town Council, together
with any other consents required by law, except where the estimated value of any
one item does not exceed £500. In each case a written report shall be provided to
Town Council with a full business case.
17 Insurance
17.1 The RFO shall keep a record of all insurances effected by the Town Council and the
property and risks covered, reviewing these annually before the renewal date in
conjunction with the Town Council’s review of risk management.
17.2 The Town Clerk shall give prompt notification of all new risks, properties or vehicles
which require to be insured and of any alterations affecting existing insurances.
17.3 The RFO shall be notified of any loss, liability, damage or event likely to lead to a
claim, and shall report these to the Town Council at the next available meeting. The
RFO shall negotiate all claims on the Town Council's insurers.
17.4 All appropriate members and employees of the Town Council shall be included in a
suitable form of security or fidelity guarantee insurance which shall cover the
maximum risk exposure as determined annually by the Town Council, or duly
delegated committee.
18 Charities
18.1 Where the Town Council is sole managing trustee of a charitable body the Town
Clerk and RFO shall ensure that separate accounts are kept of the funds held on
charitable trusts and separate financial reports made in such form as shall be
appropriate, in accordance with Charity Law and legislation, or as determined by
the Charity Commission. The Town Clerk and RFO shall arrange for any audit or
independent examination as may be required by Charity Law or any Governing
Document.

19 Suspension and Revision of Financial Regulations
19.1 The Town Council shall review these Financial Regulations annually and following
any change of Town Clerk or RFO. The Town Clerk shall monitor changes in
legislation or proper practices and advise the Town Council of any need to amend
these Financial Regulations.
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19.2 The Town Council may, by resolution duly notified prior to the relevant meeting of
Town Council, suspend any part of these Financial Regulations, provided that
reasons for the suspension are recorded and that an assessment of the risks
arising has been presented to all members. Suspension does not disapply any
legislation or permit the Town Council to act unlawfully.
19.3 The Town Council may temporarily amend these Financial Regulations by a duly
notified resolution, to cope with periods of absence, local government
reorganisation, national restrictions or other exceptional circumstances.

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Appendix 1 - Tender process
1) Any invitation to tender shall state the general nature of the intended contract and the
Town Clerk shall obtain the necessary technical assistance to prepare a specification
in appropriate cases.
2) The invitation shall in addition state that tenders must be addressed to the Town
Clerk in the ordinary course of post, unless an electronic tendering process has been
agreed by the Town Council.
3) Where a postal process is used, each tendering firm shall be supplied with a
specifically marked envelope in which the tender is to be sealed and remain sealed
until the prescribed date for opening tenders for that contract. All sealed tenders
shall be opened at the same time on the prescribed date by the Town Clerk in the
presence of at least one member of Town Council.
4) Where an electronic tendering process is used, the Town Council shall use a specific
email address that will be monitored to ensure that nobody accesses any tender
before the expiry of the deadline for submission.
5) Any invitation to tender issued under this regulation shall be subject to Standing 18
and shall refer to the terms of the Bribery Act 2010.
6) Where the Town Council, or duly delegated committee, does not accept any tender,
quote or estimate, the work is not allocated and the Town Council requires further
pricing, no person shall be permitted to submit a later tender, estimate or quote who
was present when the original decision-making process was being undertaken.

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Appendix 2 – Spending Limits (reference to section 5
procurement)
The precept for 2025/2026 is £480,000
Financial Regulation
Reference & detail
5.6 Threshold for seeking
formal tenders (incl VAT)

% of precept

2025/2026 Amount in £

15%

£72,000

5.8 Threshold for seeking 3
fixed price quotations (excl
VAT)

0.75%

£3,600

5.9 Threshold for seeking 3
estimates (excl VAT)

0.1% - 0.75%

£480 - £3,600

5.15 limit of delegated
authority to the Town Clerk for
individual purchases within an
agreed budget (excl VAT)

0.5%

£2,400

5.15 limit of delegated
authority to the Town Clerk in
consultation with the Chair of
the Town Council or Chair of
the appropriate committee for
individual purchases within an
agreed budget (excl VAT)

0.75%

£3,600

5.15 limit of expenditure to a
duly delegated committee for
individual purchases within an
agreed budget (Excl VAT)

1.25%

£6,000

5.18 limit of delegated
authority to the Town Clerk for
emergency expenditure (excl
VAT)

0.75%

£3,600

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