Appendix 1

Shropshire Council
Financial rules

Revision date: July 2017

Summary of Revisions

• Introduction of principles for each financial rule
• Streamlining of narrative throughout and removal of repetition
• Updating and applying consistency to role names used throughout
• Updates to Asset register and Land Terrier guidance (C3.3, C3.4)
• Additional guidance with regard to the payment for electronically procured goods and services (D4.15)
• Exemptions to the requirements for official orders, requisitions and T&Cs requirements (D4.7)
• Removal of references to Debit and Credit Card Uses for Council purchasing (D4.8)
• Further clarity regarding advance payments (D4.18, D4.26)
• Additional external funding sign off arrangements (E2)
• Introduction of Exemption Request Guidelines (Appendix H)

Part 4 – Financial Rules

Introduction
Status of financial rules

Financial rules

Financial management and control
Financial planning
Risk management and control of resources 
Systems and procedures
External arrangements 

Appendices

Appendix A - Financial Management and Control

A.1 Financial Management Standards
A.2 Managing and Controlling Spending and Income:

• Revenue Budget
• Scheme of Virement
• Treatment of Year End Balances

A.3 Accounting Policies
A.4 Accounting Records and Returns
A.5 Format of the Accounts

Appendix B - Financial Planning

B.1 Strategic Plans
B.2 Budgeting:

• Format of the Budget
• Revenue Budget Preparation, Monitoring and Control
• Resource Allocation
• Capital Programmes
• Preparing Revenue Budgets and Medium Term Planning

B.3 Use of Reserves

Appendix C - Risk Management and Control of Resources

C.1 Internal Controls
C.2 Audit Requirements:

• Internal Audit
• External Audit
• Preventing Financial Irregularities

C.3 Resources: Land, Buildings, ICT, Fixed Plant and Machinery:

• Security
• Inventories
• Stocks and Stores
• Intellectual Property

C.4 Asset Disposal
C.5 Risk Management and Insurance
C.6 Treasury Management and Banking
C.7 Investments and Borrowing
C.8 Unofficial and Voluntary Funds and Funds held for Third Parties:

• General
• Court of Protection and Guardian Ad Litem Administration
• Imprest Accounts

C.9 Staffing, including Gifts and Hospitality

Appendix D - Systems and Procedures

D.1 General
D.2 Income
D.3 Payments to Employees, former Employees and Members
D.4 Ordering and Paying for Work, Goods and Services
D.5 Taxation
D.6 Trading Accounts and Business Units

Appendix E - External Arrangements

E.1 Partnerships
E.2 External Funding
E.3 Work for Third Parties
E.4 Accountable Bodies
E.5 Payments to Voluntary Organisations

Appendix F - Table of Financial Limits

Appendix G - Scheme of Virement Flowcharts Revenue and Capital

Appendix H - Exemption Request Guidelines

ACKNOWLEDGEMENTS This document is based on the CIPFA document ‘Financial Regulations. A Good Practice Guide for an English Modern Council.