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Financial management covers all financial accountabilities in relation to the running of the Service, including the policy framework and budget. All staff and members of the Authority are required to understand their responsibilities and comply with the Financial Regulations and the Scheme of Delegation.
The Fire and Rescue Authority Committee
The Members of the Fire and Rescue Authority are responsible for:
Adopting the budget framework within which the officers operate.
Approving the Corporate Strategy and budget (revenue and capital) within which all officers operate.
Approving the Treasury Strategy and Prudential Borrowing Limits.
Approval of the Financial Regulations
The Members of the Authority, advised by the Head of Finance and Treasurer, must be satisfied that the Chief Fire Officer exercises delegated financial responsibilities in a proper and effective manner. The Authority will:
Agree a budget requirement and set a precept prior to statutory deadlines.
Approve the budget as recommended to them by Finance and Resources Committee.
Monitor financial outcomes.
Identify and agree indicative longer term spending commitments.
Finance and Resource Committee
The responsibilities of the Finance and Resource Committee are:
To make recommendations to the Authority as to its revenue budget and Capital Programme.
To monitor NFRS’s performance against the approved revenue budget and Capital Programme.
To consider and advise the Authority on the financial effects of significant strategies, plans, major acquisitions, contracts etc.
To receive, consider and approve the NFRS’s statutory final accounts.
To consider and make recommendations for action plans arising from internal and external audit reports, including arrangements to ensure that processes which deliver value for money are maintained and developed.
To review fees and charges for services are kept under review.
To consider proposals for awards of contracts exceeding officer limits as set out in the Scheme of Delegation (Appendix 1)
To consider budget virements exceeding officer limits as set out in the Scheme of Delegation (Appendix 1)
To deal with other matters of financial significance that the Fire Authority or other committees may refer to it.
The Chief Fire Officer
The Chief Fire Officer is responsible for:
Promoting a positive culture of financial governance and control, ensuring the Authority has good financial discipline, with resources managed securely and in an efficient, effective and economic manner.
Establishing an effective monitoring and reporting framework to ensure the Strategic Leadership Team and Principal Officer are held accountable.
Understand the nature of reporting needed under section 151 and 114 of the Local Government Finance Act 1988 and delegation arrangements in place to ensure proper financial performance
Proposing the budget to the Fire Authority. Once the annual budget has been approved by the Fire Authority, the Chief Fire Officer is responsible for controlling expenditure within it and must have in place effective arrangements to monitor it on a monthly basis
Signing contracts or making other financial commitments on behalf of the Authority, within the limits of the delegated budget
Consulting with the Head of Finance and Treasurer seeking approval on any matter liable to affect materially the finances of the Fire Authority, before any commitments are incurred.
Ensuring necessary financial system is installed and maintained.
The Solicitor and Clerk to the Fire Authority
The Solicitor and Clerk has responsibility for reporting any actual or potential breaches of the law or maladministration to the Fire Authority, and for ensuring that procedures for recording and reporting decisions are operating effectively. Specifically, the role entails:
Advising all Members and Officers about who has authority to take a particular decision; and
Advising the Authority about whether a decision is likely to be considered contrary or not wholly in accordance with the policy framework.
The Solicitor and Clerk (together with the Head of Finance and Treasurer) is responsible for advising the Authority about whether a decision is likely to be considered contrary or not wholly in accordance with the approved budget. Actions that may be ‘contrary to the approved budget’ include:
Initiating a new policy.
Committing expenditure in future years to above the budget level.
Causing the total expenditure financed from the NFRS’s identified resources to increase above available resources
The Head of Finance and Treasurer
The Head of Finance and Treasurer, as proper financial officer, has statutory duties in relation to the financial administration and stewardship of the Authority. This statutory responsibility cannot be overridden and arises from:
The Local Government Act 1972
Sections 112 -114 Local Government Finance Act 1988
Local Government and Housing Act 1989
The Accounts and Audit Regulations 2015.
The Head of Finance and Treasurer is responsible for:
Positively promote culture of probity and sound financial discipline and control as requirements of the organisation.
The proper administration of the Authority’s financial affairs and advising officers on the issues and circumstances where reporting and/or formal approval is required.
Setting, monitoring and reporting compliance with financial management standards, ensuring that a robust monitoring and reporting framework is in place to ensure the proper discharge of the section 151 duties.
Advising and reporting on the corporate financial position and on the key financial controls necessary to secure sound financial management.
Ensuring the provision of financial information and collaborating with the Strategic Leadership Team and Principal Officer on reports required on a routine and/or exceptional basis.
Preparation of the revenue budget and Capital Programme and presenting monitoring reports as required.
Treasury management, including day-today actives and entering in arrangements that are necessary to comply with the Treasury Management Strategy and the Prudential Code.
Mange the Prudential Indicators in order to ensure that the financing of capital investments is affordable, prudent and sustainable.
Assessing and advising on the Authorities level of reserves and other balances
Introduction and maintenance of a structured scheme of financial training.
Enter into contracts on behalf of the Authority within the approved budgets.
Provide precept information to Council Tax collecting authorities in accordance with agreed timescales
Section 114 of the Local Government Finance Act 1988 requires the Head of Finance and Treasurer to report to the Authority:
If one of its committees or officers has made or is about to make a decision which involves incurring unlawful expenditure
If it appears that the Authority’s expenditure is likely to exceed available resources
If NFRS is about to make an unlawful entry in the financial accounts
Section 114 of the 1988 Act also requires:
The Head of Finance and Treasurer to nominate a properly qualified member of staff to deputise should they be unable to perform the duties under Section 114
NFRS is required to provide the Head of Finance and Treasurer with sufficient staff, accommodation and other resources – including legal advice where this is necessary – to carry out the duties under Section 114.
The Head of Finance and Treasurer has a responsibility for ensuring that adequate systems and procedures exist to account for all income due and expenditure disbursements made on behalf of the Authority and that controls operate to protect the Authority's assets from loss, waste, fraud or other impropriety.
The Head of Finance and Treasurer is responsible for advising the Authority on all financial matters. As such they should be consulted on all reports with financial implications and where appropriate the reports must include financial appraisals setting out the full financial implications of the decision. These financial implications are required to be agreed with the Head of Finance and Treasurer prior to the report being published.
Strategic Leadership Team (SLT)
The SLT comprises of the Principal Officers (Chief Fire Officer and Assistant Chief Fire Officers) and Area Managers who set the strategic direction of the organisation and provide the most senior officer-level of decision making on strategic planning and policy to deliver the organisations purpose and vision. The SLT are responsible for:
Consulted on all departmental finance matters before decisions are taken, excluding day to day management of budgets.
Promote strong financial governance and financial best practice.
Provide financial direction to Budget Holders.
Ensure departmental systems have the appropriate financial controls as required by the Head of Finance and Treasurer and are compatible with corporate financial systems.
Agree the draft four-year Medium Term Financial Plan prior to its consideration by the Fire Authority.
Principal Officers and Area Managers
The Principal Officers and Area Managers of the Authority are responsible for the following:
Promoting a culture of sound financial discipline and control, including effective financial monitoring and reporting framework to ensure awareness of financial issues / risks.
Establishing appropriate controls to mitigate any identified financial risks appropriately
Ensuring staff within the departments (such as Budget Holders) are aware of their responsibilities and are capable to discharge them.
Understand the financial reporting requirements of their areas of responsibility and provide exception reports to the Head of Finance and Treasurer and the Chief Fire Officer as required.
Budget Holders
The Budget Holders of the Authority are responsible for the following:
Reporting any financial risks including potential overspend to the Principal Officer as part of an agreed budget reporting schedule.
understanding the nature of internal control and the requirements of these financial regulations and procurement policy and other corporate financial standards, rules and protocols.
the introduction and maintenance of adequate and cost-effective systems of internal control within their area of responsibility.
Promoting a culture of sound financial discipline and control in accordance with the financial culture of the organisation.
Internal Audit
The Head of Finance and Treasurer is responsible for maintaining an effective internal audit of all activities of the Authority.
Internal Audit are responsible for the control of systems within the authority to assess their adequacy to ensure:
Reliable financial and other management information and reporting
Compliance with laws, regulations, policies and procedures, etc
Authority’s assets and interest are properly safeguarded
Operations are efficient and effective.
Providing advice on the nature of internal control, including consequences of poor control and options available to limit financial risk.
As directed by the Head of Finance and Treasurer and/or the Chief Fire Officer complete reports on a exception basis as required.
Following completion of the assessment Internal Audit are required to make recommendations as necessary to improve the Authorities systems to the Head of Finance and Treasurer and the Finance and Resources Committee as required.
Other Financial Accountabilities
Virement – Budgetary virements are required to be approved as set out in the Scheme of Financial Delegations.
Accounting Policies, Record Retention and Returns – The Head of Finance and Treasurer is responsible for selecting accounting policies that are compliant with the relevant accounting standards and ensuring the policies are applied consistently.
Financial records and supporting documentation must be properly secured and be retained in accordance with the Authority’s Retention Schedule, any clarification should be sought from the Head of Finance and Treasurer.
It is the responsibilities of the Head of Finance and Treasurer that all statistical returns and other requested financial information is completed in an accurate and timely manner.
Treatment of year-end balances – The Head of Finance will report to the Finance and Resource Committee on the revenue and capital outturn as soon as practicable after the end of the financial year and recommend treatment of year-end balances. The Finance and Resources Committee is responsible for agreeing procedures for any under / overspends and carry forwards.
Annual Statement of Accounts – The Head of Finance and Treasurer is responsible for ensuring that the annual statement of accounts is prepared on a ‘true and fair’ basis and in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom: A Statement of Recommended Practice (CIPFA/LASAAC). The Finance and Resources Committee is responsible for approving the annual statement of accounts.
Systems – The Chief Fire Officer will be responsible for the procurement, installation, maintenance and development of the necessary prime systems to provide sound, timely, well presented financial information and advice to Budget Holders. The prime systems will be the official accepted record of the Fire Authority’s transactions and financial position.
The Head of Finance and Treasurer must be satisfied that the financial systems are adequate to support their section 114 and 151 responsibilities
Principal Officers, Area Managers and Budget Holders are required to develop wider management systems which will contribute to the effective financial management of their activities. Information from other systems and sources which is used in financial decision making must be made available to the Head of Finance and Treasurer as required.