10. Accounting

The Commission maintains proper accounting records and produces financial statements in accordance with the Framework Agreement and the Government Financial Reporting Manual issued by the Treasury (“the FReM”).

As Accounting Officer, the CEO is responsible for ensuring compliance with this, and he/she delegates the task to the Head of Finance.

In designing financial procedures, controls, checks and balances will be put in place to reduce the risk of error and fraud consistent with the Fraud & Bribery Policy Statement.

The CEO, advised by the Head of Finance, is responsible for determining accounting policies in accordance with the FReM and ensuring that they are applied consistently.

The CEO, advised by the Head of Finance, is responsible for determining the accounting procedures and records for the Commission.

The CEO, advised by the Head of Finance, is responsible for ensuring that the Annual Report and Accounts are prepared in accordance with the requirements of the Framework Agreement and the FReM.

11. Investments and borrowings

All investments of money will be made in the name of the Commission. All lease purchase arrangements and overdraft facilities will be arranged only in the name of the Commission. The Head of Finance will maintain records of all investments, lease purchases and overdraft facilities in the name of the Commission.

The Head of Finance will supervise investments to ensure that all surplus funds are invested wisely and with minimal risk. Unless specifically authorised by the Commission, investments will be restricted to placing funds surplus to immediate requirements in deposit accounts, or to the Commission’s bankers for investing on fixed deposit or on the money market. 

The Commission may, for the purpose of short-term management of its finances, borrow from any person by way of overdraft or otherwise. The Commission can only borrow in the long-term from the Secretary of State.

12. Banking arrangements

The CEO is responsible for ensuring that the Commission’s banking arrangements are in accordance with the requirements of Government Accounting.

The CEO has delegated responsibility for opening any bank account in the name of the Commission.

The opening of all new bank accounts can only be undertaken following the specific authority of the Commission.

The nomination of authorised signatories can only be undertaken following the specific authority of the Executive Team.

The Head of Finance must advise the bankers in writing of the conditions under which the accounts are to be operated.

The Commission’s banking arrangements will be reviewed, by the Head of Finance, at regular intervals of approximately three years. The Commission will appoint Bankers in compliance with the procurement procedures.

13. Cheques / Payments

Cheques drawn on the Commission’s bank account will be signed in accordance with the bank mandate. Electronic payments drawn on the Commission’s bank account will be authorised in accordance with the bank mandate. The Head of Finance will advise the bankers in writing of the officers authorised by the Executive Team to sign cheques or release money from Commission accounts, and will notify them promptly of the cancellation of any such authorisations.

14. Staffing and Payroll

All new recruitment must be within the financial limits set out in the Annual Budget and must be approved by the Executive Team. The payment of the monthly net pay must be authorised in advance by the Head of Finance or the CEO, and retrospectively authorised by both. 

15. Procurement

All purchases made by the Commission will take into account the need to secure value for money and exercise propriety when expending Commission resources. This will include competitive and transparent tendering procedures at appropriate levels of expenditure.

The Commission delegates the establishment of procurement procedures to the CEO who should ensure that such procedures are operated effectively and reviewed periodically.

Goods and services procured must be for the purposes and within the financial limits set out in the Business Plan and Annual Budget.

To ensure that control is maintained, the ordering function will be separated from the certifying and payment functions. Responsibility for initiating orders for goods and services and arrangements for payment will be as described in Financial Instructions.

The CEO can authorise the waiver of Financial Instructions where less than the required number of quotations has been obtained; or it is appropriate to accept a quotation other than the lowest received.

The Head of Finance will submit to ARAC details of the waiver of financial instructions approved by the CEO.

16. Payment of accounts

The Head of Finance is responsible for ensuring bills are paid in accordance with the terms of contracts, that there is a system for dealing quickly with complaints, and will advise suppliers or contractors when an invoice (or part of any invoice) is disputed. 

17. Protection of financial data

The Head of Finance is responsible for the accuracy and security of the financial data held by the LGSCO and will ensure adequate and appropriate procedures are in place to protect the Commission and individuals from inappropriate use or misuse of the data.

18.Travelling, subsistence, hospitality and hotel allowances

All claims for payment of car, hospitality, hotel and subsistence allowances, travelling and incidental expenses will be submitted, duly certified in accordance with the Travel and Subsistence Policy, to the Head of Finance.

19. Income

The Head of Finance will arrange for invoices to be issued as appropriate and will take such measures as are necessary to ensure income due is received.

20. Risk

The Commission will ensure that an appropriate system of risk management is in place and regularly reviewed. ARAC will be responsible for reviewing the effectiveness of the system.

21. Insurance

On behalf of the CEO, the Head of Finance is responsible for assessing the need for insurance cover and annually reviewing insurance requirements. Current Government policy is that no commercial insurance policies are necessary (other than motor insurance for hire cars) as the Commission falls under the Government policy to cover its own risks. (see ‘Managing Public Money - Annex 4.4’).

22. Leases

The Commission may not enter into property or finance leases without the prior approval of the Department. 

23. Assets, money and stores inventories

The Head of Finance will take measures to ensure the safeguarding of the Commission’s assets, the reliability of its records, and the adequacy of checks carried out before payment of any account and will institute any examination of the accounting, financial and other operations of the Commission as necessary.

24. Fraud

The Commission has a policy in place for preventing bribery and fraud.
 

Nigel Ellis

Accounting Officer