Nottinghamshire Fire and Rescue Service
Financial Regulations

5. Systems and Procedures

  1. Systems and Procedures

    1. Introduction

      1. Sound systems and procedures are essential to an effective framework of accountability and control.

    2. General

      1. The Head of Finance and Treasurer is responsible for the operation of the Authority’s accounting systems, the form of accounts and the supporting financial records.
      2. Principal Officers and Area Managers are responsible for the proper operation of financial processes in their own departments in line with advice issued by the Head of Finance and Treasurer. Any deviation from these agreed procedures requires prior approval from the Head of Finance and Treasurer.
      3. Principal Officers and Area Managers should ensure that their staff receive relevant financial training, as approved by the Treasurer.
      4. Principal Officers and Area Managers must ensure that, where appropriate, computer and other systems are registered in accordance with data protection legislation and that their staff are aware of their responsibilities under Freedom of Information legislation.
      5. The Chief Fire Officer in consultation with the Head of Finance and Treasurer must ensure that, where appropriate, computer and other systems are registered in accordance with data protection legislation.

    3. Procurement

      1. Principal Officers, Area Managers and Budget Holders are required to ensure that NFRS obtains value for money / best value from procurement and that it is compliant with the approved Procurement Policy (Procurement thresholds are within Appendix 2).
      2. Tendering procedures as set out in the procurement policy may be waived in the following specific circumstances:
        1. Tenders have been invited by a recognised consortium or similar body framework agreements
        2. In the case of contracts for the supply of goods or materials, where the goods or materials are sold only at a fixed price and no reasonable satisfactory alternative is available;
        3. The work to be executed or the goods or materials to be supplied constitute an extension of an existing contract, and the necessary budget provision exists.
        4. The work to be executed or the goods or materials to be supplied are required so urgently as not to permit the invitation of tenders;
        5. The work to be executed or the goods or materials to be supplied consist of repairs to or parts for existing proprietary machinery, where such repairs or parts are specific to that machinery;
      3. For any of the above exemptions to apply the specific written approval is needed via a single source supplier form being approved in accordance with the levels set out in the Procurement thresholds at Appendix 2. The Procurement Manager will maintain a record of all occasions when these exemptions have been applied and will report these annually to the Finance and Resources Committee.
      4. If there are any other reasons why tendering procedures should be waived the approval of both the Solicitor and Clerk and the Head of Finance and Treasurer shall be sought. All such instances shall be reported to the Finance and Resources Committee.

    4. Contracts

      1. The term 'contract' shall mean any agreement between the Fire Authority and any other party, which is intended to be legally binding. The term therefore applies to all formal contracts, together with all orders placed on behalf of the Fire Authority.
      2. An official written order shall be issued for all work, goods or services to be supplied to the Fire Authority.
      3. A formal contract shall be entered into for all work, goods or services of over £100,000. Construction and maintenance contracts over £100k and such other contracts as the Clerk to the Fire Authority deems appropriate shall be executed as speciality contracts (i.e. generally under seal).
      4. No work may be commenced on site or goods or materials ordered until either an official written order has been issued, or a formal contract and a bond (if appropriate), has been duly executed by the contractor and returned to the Fire Authority
      5. The Chief Fire Officer, the Clerk, The Head of Finance and Treasurer are authorised to enter into contracts on the Fire Authority’s behalf and manage the tendering and contract process.
      6. Members or employees who have a direct or indirect pecuniary interest in a contract must declare it. They shall not be supplied with or given access to any tender documents, contracts or other information relating thereto without the authority of the Clerk to the Fire Authority.
      7. Where deemed appropriate by the Clerk to the Fire Authority and the Treasurer, contracts under seal which are for the execution of work or for the supply of goods or materials by a particular date or series of dates shall provide for liquidated and ascertained damages of an amount to be specified in each such contract by them.
      8. The Clerk to the Fire Authority will advise the Chief Fire Officer on circumstances where there is a requirement to provide security for the due performance of any contract exceeding £500,000. The nature and amount of any such security shall be specified as a provisional item in the conditions of tender and be in a form and obtained from an institution approved by the Treasurer.
      9. Every extra or variation on a contract for the execution of works shall be authorised in writing by the Chief Fire Officer, his/her nominee or by a consultant appointed by the Chief Fire Officer.
      10. Claims from contractors in respect of matters not clearly within the terms of the contract shall be referred to the Clerk to the Fire Authority for consideration of the Fire Authority's legal liability as soon as they are known. Valid claims for loss and expense arising from delay and disruption shall be notified to the Finance and Resources Committee where they are likely to exceed £100,000 in value or where there is a possibility of legal proceedings, including arbitration procedures as provided for by the conditions of contract, being commenced.
      11. Unless the Treasurer and the Clerk to the Fire Authority agree otherwise, liquidated and ascertained damages, where allowed for, shall be applied in respect of contracts not completed within the original contract period, together with any extensions of time granted in accordance with the contract.

    5. Purchase / Procurement Cards

      1. Procurement Cards are a legitimate method of purchasing goods / services. However, they should only be used for urgent purchases and are not appropriate methods of purchasing stock items and / or non-urgent items which should be procured via raising an appropriate Purchase Order and paying the invoice.
      2. Procurement card should only be used by the nominated cardholder.
      3. If a new card holder is required a business case needs to be sent to the Head of Finance and Treasurer (or their Deputy) for approval. While the Head of Finance and Treasurer has the authority to freeze / withdraw colleague access to the Procurement Card system following improper use and / or card is no longer required for the colleague to carry out their duties.
      4. The Procurement Card holder is responsible for obtaining valid VAT receipts and provide receipts to finance to ensure the Authority is able to recover any VAT charged.

    6. Income and expenditure

      1. It is the responsibility of the Chief Fire Officer in consultation with the Head of Finance and Treasurer to ensure that a proper scheme of delegation has been established and is operating effectively. The scheme of delegation should identify staff authorised to act on behalf of the Chief Fire Officer, in respect of payments, income collection and placing orders, in line with limits delegated by the Chief Fire Officer and in accordance with these Financial Regulations and the Procurement
      2. The Head of Finance and Treasurer is responsible for approving procedures for writing off debts, with appropriate reports to the Fire Authority, as part of the overall control framework of accountability and control.
      3. No Employee may enter into any finance lease, operating lease or hire purchase agreement without prior agreement of the Head of Finance and Treasurer.
      4. The VAT implications of new income proposals and all potential land and property negotiations should be discussed with the Head of Finance and Treasurer at the earliest opportunity before commitments are made.
      5. Commitments incurred by placing orders must be shown against the appropriate budget allocation so that it can be considered in budget monitoring reports.

    7. Banking and Income

      1. The Head of Finance and Treasury is responsible for all banking arrangements and must authorise the creation, amendment or closure of any Fire Authority accounts. All bank accounts shall have an official title and in no circumstances shall a bank account be opened or operated in the name of an individual.
      2. The Head of Finance and Treasury is responsible for the daily management and operation of all bank accounts including the regular reconciliation of bank accounts with banking records at not less than monthly intervals.
      3. The Head of Finance and Treasury is responsible for arranging appropriate imprest accounts and associated banking facilities.
      4. All cheques drawn on the Fire Authority account shall be signed by two bank authorised signatories.
      5. The Head of Finance and Treasury will ensure that all income is properly accounted for, secure, safeguarded and paid into the Fire Authority's bank account promptly and intact.
      6. No income may be paid into any imprest account or used to defray expenditure.

    8. Payment for Works, Goods and Services

      1. Before authorising an official order, or any process which may lead to a payment, all employees shall:
        • Ensure they are authorised to place the order / process payment and the transaction is a reasonable charge on the funds under their control
        • The transaction demonstrates ‘Value for Money’ and in accordance with the Procurement limits as set out in the Procurement Policy
        • There is adequate budget
        • Be satisfied that the works/goods/services have been received, conform in all respects with an official order and are acceptable in every way
        • Ensure price is correct including any discount etc.
      2. Official orders are not necessary for supplies of public utility services, for periodic payments such as rent and rates, any exemptions outside of this definition needs authorisation by the Chief Fire Officer and the Head of Finance and Treasurer.
      3. Each stage of the payment process (e.g. ordering, receiving, approving for payment) must not be performed by the same officer.

    9. Payments to Employees and Members

      1. The Head of Finance and Treasurer is responsible for all payments of salaries and wages to all staff, including payments for overtime, and for payment of allowances to Members.
      2. Line Managers must notify HR as soon as possible of any matters that may affect payments due to an employee.
      3. Reimbursement of employee and member expenses is required to be in accordance with the Expenses Policy.

    10. Taxation

      1. The Head of Finance and Treasurer is responsible for advising employees and members on all taxation issues the affect NFRS, including new or amended guidance / legislation issued by appropriate bodies.
      2. The Head of Finance and Treasurer is responsible for maintaining the Authority’s tax records, making all tax payments, receiving tax credits and submitting tax returns by their due date as appropriate.
      3. Principal Officer, Area Managers and Budget Holders are required to consult with the Head of Finance and Treasurer about possible expenditure or income proposals, which may have tax implications. Reports are required to include tax implications where appropriate for consideration.

    11. Stocks, stores and inventories

      1. Inventories shall be kept by the relevant department of:
        • All items of operational equipment
        • All vehicles and plant with a value of over £30,000
      2. for maintaining proper security of all assets, with an aim of achieving maximum utilisation of these assets in the provision of services.
      3. The Principal Officers and Area Managers are responsible for the care and custody of inventories in their respective departments.
      4. Items identified for disposal require the disposal route approving by the Head of Finance and Treasurer.
      5. Adjustments to levels of inventories for surpluses or obsolete items shall be subject to the approval of the Head of Finance and Treasurer.
      6. Principal Officers, Area Managers and Budget Holders are not allowed to bulk purchase items to spend in year revenue budget or hold excessive items, without prior approval of the Head of Finance and Treasurer.

    12. Gifts and Hospitality

      1. The Head of Finance and Treasury is responsible for ensuring g that all gifts of money, gifts or loans of other property, including sponsorship, which are received by the Fire Authority, are properly recorded in the Fire Authority’s accounts. For further information see the Service’s Gift & Hospitality Policy.