To consider a report by the Accountancy Manager and the Procurement Manager, to approve the Code of Financial Management and the Code of Procurement.
Contact:C Mason 388157 R Maxwell 388117 N Arkle 388104
Minutes:
Consideration was given to a joint report by the Accountancy Manager and Procurement Manager (a copy of which is appended in the Minute Book) which presented to the Panel the Code of Financial Management and the Code of Procurement.
The documents were reviewed on an annual basis to ensure that they reflected current legislation and the changing needs of the Council, as the policies underpin financial governance in the Council and are Annexes to the Council’s Constitution.
Tabled at the meeting were amended pages 5 and 6 of the Code of Financial Management which the Panel considered.
The Panel were referred to paragraph 3 of the report which explained the proposed changes to the Code of Procurement and paragraph 4 of the report which detailed the main changes to the Code of Financial Management.
At 7.40pm Councillor Baker left the room and did not return to the meeting.
In discussing the documents it was suggested that risk management should be more prominent within the Code of Financial Management as it was unclear where the responsibly for risk management was within the authority. It was noted that the Code of Financial Management incorporated that the Corporate Governance Panel would ensure that the Council had a sound system of internal control including arrangements for the management of risk.
An amendment was made to paragraph 5.7 of the Code of Financial Management regarding insurance as it was considered by the Panel that any decision not to insure should be reported to the Executive Councillor for Resources and not be a decision taken solely by the Internal Audit and Risk Manager. The Internal Audit and Risk Manager noted that in some instances the law dictated what required insurance and that a full review of insurances was conducted and presented to the Cabinet.
Regarding paragraph 1.4 of the Code of Financial Management, the Internal Audit and Risk Manager requested that approval of the Risk Management Strategy be included as a separate bullet point, which was agreed by the Panel.
At 8pm Councillor Gray left the room and did not return to the meeting.
In conclusion the Panel agreed a further amendment to the eighth bullet point of paragraph 1.12 of the Code of Financial Management, to include the wording ‘in accordance with the Risk Management Strategy’. Whereupon, the Panel
RECOMMEND
(a) That the Code of Financial Management, as attached as Annex A to the report now submitted, with the inclusion of the amended pages as tabled at the meeting (page 5 and 6) be adopted, including the following amendments (as highlighted in italics):
- Paragraph 1.4 be varied to read – The Cabinet:
Will:
· Propose To The Council:
o The Medium Term Financial Strategy
o The Annual Budget And Council Tax Level
o A Combined Annual Report Including The Treasury Management Strategy, Treasury Management Policy And Prudential Indicators
after Considering The Views Of The Appropriate Overview And Scrutiny Panel And Representatives Of The Business Community.
· Set Financial Priorities, Allocate And Re-Allocate Resources In Accordance With The Limits In This Code, Monitor And Review Financial Performance.
· Approve the Risk Management Strategy
- Paragraph 1.12 be varied to read - Budget Managers (Service Managers, Heads of Service, Corporate Directors and Managing Director) – Eighth bullet point:
· Will, in accordance with the Risk Management Strategy, determine the inherent risks, within their services, to the achievement of the Council’s priorities and establish, maintain and document adequate systems of risk management and internal control, in consultation with the Internal Audit Service and ensure that relevant employees or Members are familiar with such systems.
- Paragraph 5.7 be varied to read - Insurance
The Internal Audit and Risk Manager shall obtain insurance to protect the Council or minimise its potential losses from risks including those to employees, property, equipment and cash. Any decision not to insure significant risks must be based on a detailed risk assessment and reported to the Executive Councillor for Resources.
(b) That the Code of Procurement, as attached as Annex B to the report now submitted, be adopted.
Supporting documents: