Waverley Borough Council Committee System - Committee Document
Meeting of the Executive held on 02/10/2007
Revisions to Financial Regulations and Contract Procedure Rules
Waverley Borough Council
Executive – 2ND October 2007
REVISIONS TO FINANCIAL REGULATIONS AND CONTRACT PROCEDURE RULES
[Wards Affected: All]
Summary and purpose:
There have been regular, at least annual, amendments to both Financial Regulations and Contract Procedure Rules since they were last fully amended in April 2003. The most recent changes came into effect in April 2007. Since then there have been developments which require further amendment, and these are contained in the annexes to this report. The report recommends that the changes come into effect from 1st November 2007.
Contract Procedure Rules (CPRs) have a direct impact upon the letting of contracts, which in turn have environmental implications.
Social / community implications:
Council contracts also have a direct impact upon the local community.
This particular set of revisions to CPRs and Financial Regulations have no direct e-government implications.
Resource and legal implications:
There are no direct resource implications arising from this report, but the amendment of Waverley’s governance arrangements is essential in order to ensure that the way Council business is conducted is both lawful and appropriate.
1. Since the last set of amendments to Contract Procedure Rules (CPRs) and Financial Regulations (FRs), there have been some further changes in circumstances and developments that warrant further changes. This includes the re-designation of the post of Chief Executive, the appointment of a Chief Executive and the issue of a new Code of Practice for Internal Auditors in Local Government by the Chartered Institute of Public Finance and Accountancy (CIPFA).
2. This report explains the proposed changes and seeks approval to them. It is suggested that they take effect from 1st November 2007.
Contract Procedure Rules
3. With the recent re-designation of the post of Managing Director to Chief Executive, any references to the former within CPRs now need to be amended.
4. Following the appointment of the Chief Executive, the temporary amendments to CPRs concerning the arrangements to obtain a waiver under the situation where the four directors were fulfilling the role of Managing Director on a rotational basis need to be removed. It is proposed that the provisions that existed previously be re-instated.
5. The amendments to CPRs are set out in the attached
. Deleted text is shown scored-through, and inserted text is underlined. For the sake of clarity, any reference to “Managing Director” that is not shown in the Annexe will be also amended to “Chief Executive”.
6. The CIPFA Code of Practice for Internal Auditors 2006 (replacing the 2003 Code) has strengthened expectations regarding the reporting of suspected or proven cases of fraud, corruption or impropriety. It has also placed greater emphasis on partnerships, governance and risk management, specifying this as one of the considerations that the Head of Internal Audit (at Waverley, the Audit Manager) should take into account when preparing the Internal Audit Plan.
7. The proposed changes to Financial Regulations are set out at
. Once again, deleted text is shown scored-through, and inserted text is underlined.
It is recommended that
1. the proposed changes to Contract Procedure Rules, as set out in Annexe 1 and as described in paragraph 5 above, be approved;
2. the proposed changes to Financial Regulations, as set out in Annexe 2, be approved; and
3. all changes come into effect from 1st November 2007.
There are no background papers (as defined by Section 100D(5) of the Local Government Act 1972) relating to this report.
Mr M Hill
PROPOSED CHANGES TO CONTRACT PROCEDURE RULES
1. All references to “Managing Director” be replaced with “Chief Executive”.
2. The following addition is proposed to ensure Waverley has adequate access to contractors’ records in situations where the nature of the contract is such that Waverley will be developing the service in partnership with the contractor:
Re: Standard clauses in contracts
Where a contract is of a nature of a partnership, where the Council and contractor will work over the period of the contract to develop and improve the specification of the contract to improve service delivery, there shall be a clause within the contract to grant the Council officers, including Internal Audit, access to the contractor’s records appertaining to the contract. This shall include such considerations, but not restricted to, financial, governance, business continuity, transactions and performance data.
3. The following specific amendments to CPR W:
Re: waivers to CPRs
W101 In circumstances where there is a demonstrable and justifiable need to waive one or more of these CPRs due to reasons that are not covered by any other CPR, whether this be on the grounds of urgency or other specific cause, the approval of the Executive shall be sought by the relevant chief officer. Waiver shall only be permitted where the Executive gives approval. If the matter is of such urgency that it cannot wait until the Executive is next scheduled to meet or until the Executive can be convened, a request shall be made in writing seeking the approval of the
may either give approval personally or refer the matter to the relevant portfolio holder for approval.
W102 Requests for a waiver shall be made in writing, detailing:
a) the specific CPRs to be waived
b) the reasons why a waiver is sought
c) the proposed course of action
d) the signature of the requesting officer..
W103 In any instance where the relevant chief officer is required to consult the Director of Finance, where the Director of Finance is the relevant chief officer the
shall be consulted and their approval or advice sought.
If the Director of Finance is, at the time being, also the Managing Director, the Chairman of the Executive shall be consulted and their approval or advice sought.
At times when the Chief Executive is absent for an extended period, a director shall be nominated by the Chief Executive to consider applications for waivers. That director shall operate in accordance with this CPR. Where a waiver is sought in respect of a contract for which that director is the relevant chief officer, if that request is urgent then the approval shall be sought from the Chairman of the Executive.
W104 In any instance where the relevant chief officer is required to consult the
, where the
is the relevant chief officer, the Chairman of the Executive shall be consulted and their approval or advice sought
. If the relevant chief officer is, at the time being, also the Managing Director, the Chairman of the Executive shall be consulted and their approval or advice sought.
W105 The approval of a waiver shall be evidenced by the
or the Chairman of the Executive annotating the request with “approved” and signing the request in person. This approval document shall be retained by the relevant chief officer for a minimum of seven years or otherwise as in accordance with the Council’s policy on document retention.
PROPOSED CHANGES TO FINANCIAL REGULATIONS
To achieve clear compliance with the CIPFA Code of Practice for Internal Auditors in Local Government, the following changes to Financial Regulations are proposed:
C104 To notify the Director of Finance
and Audit Manager
immediately of any loss, liability or damage that may lead to a claim against Waverley, together with any information or explanation required by the Director of Finance or the authority’s insurers.
E104 To ensure that, before entering into agreements with external bodies, a risk management appraisal has been prepared
and to report the outcome to the Director of Finance and the Audit Manager.
To ensure that a lead authority is identified that will assume responsibility for leading and developing the partnership
To nominate a lead officer to represent Waverley in the partnership, who will be responsible for reporting on partnership developments to Waverley’s chief officers and to Audit Manager regarding risk management and governance matters.