CORPORATE GOVERNANCE FRAMEWORK 2016/17 FINAL CORPORATE... · Corporate Governance Framework 2016/17 Page 4 of 121 Framework / Instruments of governance The corporate governance framework

Corporate Governance Framework 2016/17

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CORPORATE GOVERNANCE

FRAMEWORK

2016/17


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CONTENTS

Page

Statement of Corporate Governance for the Police & Crime Commissioner

and Chief Constable for Merseyside Introduction Context 3 Principles 3 Framework / Instruments of governance 4 Leadership 4

Joint Code of Corporate Governance for the Police & Crime Commissioner

and Chief Constable for Merseyside Introduction 5 Statutory Governance Structure 6 Arrangements for Review 6 Code of Corporate Governance 9

Scheme of Corporate Governance Introduction 27 Definitions within this Scheme of Governance 28 Powers 28 Consent 28 Delegation 29 General Principles of Delegation 30 Financial Regulations, including Contract Standing Orders 31 Role of the Commissioner 31 Role of the Deputy Police & Crime Commissioner 34 Role of the Chief Executive, OPCCM 34 Role of the Chief Finance Officer, OPCCM 36 Role of the Chief Constable 37 Role of the Chief Constable Chief Finance Officer 38 Role of Other Senior Personnel 38 Role of the Head of Legal Services 38 Urgent Provisions 39 Appendix 1 : Scheme of Consent 40 Appendix 2 : Delegations from the Commissioner 41 Appendix 3 : Delegations from the Chief Constable 43 Appendix 4 : Financial Regulations and Contract Standing Orders 46


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Statement of Corporate Governance for the

Police & Crime Commissioner and Chief Constable of Merseyside

Introduction

The purpose of this statement is to give clarity to the way the two corporation’s sole, Police & Crime Commissioner (Commissioner) and Chief Constable will govern both jointly and separately, to ensure that the intended outcomes for stakeholders are defined and achieved while acting in the public interest at all times.

Context The principal statutory framework within which the corporations’ sole will operate is:-

Police Reform and Social Responsibility Act 2011;

Policing Protocol Order 2011;

Financial Management Code of Practice;

Strategic Policing Requirement; and

Code of Ethics. This framework creates a public sector relationship, based upon the Commissioner provider arrangement but with unique elements such as the single elected Commissioner and operational independence of the police service. It is therefore not appropriate to import corporate governance arrangements into this environment but to build upon existing good governance principles and experience. In accordance with the CIPFA / SOLACE framework on corporate governance, the Commissioner and Chief Constable are required to produce separate Annual Governance Statements to show how their respective organisations have complied with this joint code of corporate governance.

Principles The core principles to be adopted by both corporations sole will be those highlighted by CIPFA in their publication Delivering Good Governance in Local Government:-

A. Behaving with integrity, demonstrating strong commitment to ethical values, and respecting the rule of law;

B. Ensuring openness and comprehensive stakeholder engagement;

C. Defining outcomes in terms of sustainable service and economic benefits;

D. Determining the interventions necessary to optimise the achievement of the intended outcomes;

E. Developing the entity’s capacity, including the capability of its leadership and the individuals within it;

F. Managing risks and performance through robust internal control and strong public financial management; and

G. Implementing good practices in transparency, reporting, and audit to deliver effective accountability.


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Framework / Instruments of governance

The corporate governance framework within which both corporations sole will govern, both jointly and separately will consist of:-

Statement of Corporate Governance – statutory framework and local policy;

Code of Corporate Governance – sets out how the core principles will be implemented;

Scheme of Corporate Governance – defines the parameters within which the corporations soles will conduct their business; and

Separate policy and procedures for each corporation sole, with protocols where they operate jointly.

Leadership

The Corporate Governance Group will review the framework on an annual basis and oversee its implementation. Membership will consist of the Chief Executive, Head of Legal Services, Head of Organisational Support and the two Chief Finance Officers.

Statement of

Corporate Governance

Code of


Scheme of


OPCCM

Policy & procedures

Joint arrangement

Joint Audit Committee

Shared Internal Audit

Service

Force

Policy & procedures

Police Regulations

Code of Ethics

Code of E


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Joint Code of Corporate Governance for the

Police & Crime Commissioner and Chief Constable for Merseyside

1. Introduction 1.1. Governance comprises the arrangements put in place to ensure that the

intended outcomes for stakeholders are defined and achieved. To deliver good governance in the public sector, both governing bodies and individuals working for public sector entities must try to achieve their entity’s objectives while acting in the public interest at all times. Acting in the public interest implies primary consideration of the benefits for society, which should result in positive outcomes for service users and other stakeholders.

1.2. This Code of Corporate Governance describes how the Police & Crime

Commissioner (the Commissioner) and the Chief Constable of Merseyside discharge their responsibilities in this respect, reflecting their commitment to the statutory requirements. It should be read alongside the Scheme of Corporate Governance that defines the parameters for decision-making, including schemes of consents, delegations, financial regulations and standing orders relating to contracts.

1.3. The Commissioner has two key statutory responsibilities:-

To secure the maintenance of an efficient and effective local police force; and

To hold to account the Chief Constable of Merseyside Police for the exercise of his functions and those of persons under his direction and control.

In exercising these functions the Commissioner is accountable to the electorate in the Merseyside Police area.

1.4. The Chief Constable has a statutory responsibility for the control, direction

and delivery of operational policing services provided by the Force. 1.5. The CIPFA/SOLACE framework “Delivering Good Governance in Local

Government” 2016 sets out seven core principles on which effective governance should be built. These are:-

A. Behaving with integrity, demonstrating strong commitment to ethical

values, and respecting the rule of law;

B. Ensuring openness and comprehensive stakeholder engagement;

C. Defining outcomes in terms of sustainable service and economic benefits;

D. Determining the interventions necessary to optimise the achievement of the intended outcomes;


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E. Developing the entity’s capacity, including the capability of its leadership and the individuals within it;

F. Managing risks and performance through robust internal control and strong public financial management; and

G. Implementing good practices in transparency, reporting, and audit to deliver effective accountability.

1.6. To achieve this a joint Code of Corporate Governance has been developed

which sets out the Commissioner and Chief Constable shared approach to integrating the principles into the conduct of the business. Underneath each of the seven sets of principles are a series of behaviours and outcomes that demonstrate good governance in practice.

1.7. This Code applies to all personnel, contractors and/or agents providing a

direct service to the Commissioner.

2. Statutory Governance Structure

2.1. The Police Reform and Social Responsibility Act 2011 (the Act) and the

Policing Protocol Order 2011 (the Protocol) established not only the role of the Police and Crime Commissioner but also a statutory structure that contributes towards good governance.

2.2. The Commissioner is ultimately accountable to the electorate in the

Merseyside Police area. 2.3. The Commissioner has a statutory responsibility to hold the Chief Constable

of Merseyside Police to account for the exercise of their functions and those of persons under their direction and control.

2.4. The Police and Crime Panel provide support and scrutiny to the

Commissioner in fulfilling their role. The Panel does not scrutinise the Chief Constable, this is the role of the Commissioner. The panel is made up of 10 elected representatives (councillors plus Liverpool’s elected mayor) from the local authorities within the Merseyside Police Force area plus two independent co-opted members.

2.5. The Code of Corporate Governance builds on this structure, including other

requirements of the Act, Protocol, other legislation and local arrangements.

3. Arrangements For Review Of Governance 3.1. A formal review of both the Code of Corporate Governance and the Scheme

of Corporate Governance will be undertaken annually to ensure that they reflect any changes in legislation and current best practice.

3.2. The Commissioner and Chief Constable are committed to a joint local Code

of Corporate Governance and reviewing its effectiveness.


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3.3. The Commissioner and Chief Constable will both produce Annual

Governance Statements (AGS) that will be published on their websites alongside the annual Statement of Accounts. The AGSs will include an Action Plan to rectify any significant areas of weakness in internal control and/or corporate governance.

3.4. The review will be ongoing throughout the year with the results being brought

together annually to produce the AGSs. Significant elements of the review process are set out in the paragraphs below.

Corporate Governance Group

3.5. A corporate governance group will review the corporate governance

framework on an annual basis and oversee its implementation. Membership will consist of the Chief Executive, Head of Legal Services, Head of Organisational Support and the two Chief Finance Officers.

The Joint Independent Audit Committee

3.6. This statutory committee’s terms of reference include the following key

requirements in respect of corporate governance:

To maintain an overview of the organisations’ constitutions in respect of contract procedure rules, financial regulations and codes of conduct and behaviour;

To review any issue referred to it by the Commissioner, Chief Executive, Chief Finance Officers and Chief Constable;

To monitor the effective development and operation of risk management and corporate governance in the Office of the Commissioner and the Force;

To oversee the production of the Commissioner’s and Chief Constable’s Annual Governance Statement and to recommend their adoption;

To consider the Commissioner’s and Chief Constable’s arrangements for corporate governance and agreeing necessary actions to ensure compliance with best practice; and

To consider the Commissioner’s and Chief Constable’s compliance with their own and other published standards and controls.

Shared Internal Audit Service

3.7. Internal Audit is a shared service providing assurances to both the

Commissioner and the Chief Constable. Its purpose is to understand the key risks of both the Commissioner’s Office and the Merseyside Force and evaluate the adequacy and effectiveness of the system of risk management and internal control, as operated by the Commissioner and the Chief


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Constable. In line with Public Sector Internal Auditing Standard 2100 Internal Audit’s work covers:-

Improving governance arrangements (PSIAS 2110).

Determining the effectiveness of risk management processes (PSIAS 2120).

Assisting in maintaining and improving effective controls (PSIAS 2130).

3.8. Internal Audit reports regularly on the results of its work to the PCCCFO, the

Chief Constables CCFO, i.e. the Director of Resources, and the relevant Force Portfolio Holders. The results are also reported to the Joint Audit Committee. The Head of Internal Audit is also responsible for:-

Providing regular assessments of the adequacy and effectiveness of the Commissioner’s and Chief Constable’s governance processes, systems of risk management and internal controls based on the work off Internal Audit.

Reporting significant control issues and potential for improving risk management, governance and internal control processes.

Providing periodically, information on the status and results of the annual audit plan, the sufficiency of Internal Audit resources and the implementation by management of Internal Audit findings.

Providing periodically, an overview of Internal Audit’s performance feedback from clients within the Chief Constable’s and Commissioner’s Office.

Delivering an annual opinion to inform the Commissioner’s and Chief Constable’s governance statements covering the overall adequacy and effectiveness of the respective frameworks of governance, risk management and control.

External Audit

3.9. The external auditor will audit the financial statements of the Commissioner,

the Chief Constable and the Group accounts and will also review the Annual Governance Statements. External audit plans and reports, including the Annual Audit Letter, are considered by the Independent Joint Audit Committee at appropriate times in the annual cycle of meetings.


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Her Majesty’s Inspectorate of Constabulary (HMIC)

3.10. The role of HMIC is to promote the economy, efficiency and effectiveness of

policing in England, Wales and Northern Ireland through inspection of police organisations and functions to ensure agreed standards are achieved and maintained; good practice is spread and performance is improved. It also provides advice and support to the tripartite partners (Home Secretary, Commissioner and Forces).

3.11. HMIC reports are sent to the Chief Constable and the Commissioner for

consideration and appropriate action. HMIC, working alongside external audit, will play a key role in informing the Commissioner and the public on the efficiency and effectiveness of their Forces and, in so doing, will facilitate the accountability of the Commissioner to the public.

4. THE CODE OF CORPORATE GOVERNANCE

4.1 A joint Code of Corporate Governance has been developed which sets out the Commissioner’s and Chief Constable’s shared approach to integrating the principles of good governance into the conduct of the business. At year-end the Commissioner and Chief Constable will produce separate Annual Governance Statements to show their respective compliance with this Code

(see Section 3). 4.2 The way in which each of the core principles of good governance is put into

practice is set out below.

A. BEHAVING WITH INTEGRITY, DEMONSTRATING STRONG

COMMITMENT TO ETHICAL VALUES, AND RESPECTING THE RULE OF

LAW

4.3 Good governance flows from a shared ethos or culture, as well as from systems and structures. It is essential that the Commissioner and Chief Constable can demonstrate the appropriateness of all their actions and have mechanisms in place to encourage and enforce adherence to ethical values and to respect the rule of law. Good Governance depends on building a corporate environment where leaders and staff believe personally in acting in accordance with generally accepted values.

THE CORPORATE PROCESSES WHICH UNDERPIN THIS COMMITMENT

A1 The Policing Protocol Order 2011 [the protocol] requires all parties to abide by the seven Nolan principles and these will be central to the conduct and behaviour of all. It also highlights the expectation that the relationship between all parties will be based upon the principles of goodwill, professionalism, openness and trust.


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A2 The Financial Management Code of Practice requires the Commissioner and Chief Constable to ensure that the good governance principles are embedded within the way the organisations operate. As such, the Commissioner and Chief Constable will set the tone for their respective organisations by creating a climate of openness, support and respect.

A3 The Police Service Code of Ethics, issued under the Police Act 1996,

sets out principles and standards of professional behaviour for the policing profession of England and Wales. The Code applies to all police forces and, specifically, to Chief Officers in the discharge of their functions.

A4 The Commissioner and Chief Constable will set out their values in the

respective corporate and strategic plans and use them as a guide for decision making and as a basis for developing positive and trusting relationships.

A5 The Commissioner and Chief Constable will put in place arrangements

to ensure that systems and processes are designed in conformity with appropriate ethical standards, and monitor their continuing effectiveness in practice.

A6 The Commissioner and Chief Constable will recognise the limits of

lawful action placed on them (e.g. the ultra vires doctrine) and will observe both the specific requirements of legislation and the general responsibilities placed on the Commissioner and Chief Constable by public law.

BEHAVIOURS AND OUTCOMES THAT DEMONSTRATE GOOD

GOVERNANCE IN PRACTICE

Behaving with integrity A7 The Commissioner, Chief Officers and staff will behave with integrity

and lead a culture where acting in the public interest is visibly and consistently demonstrated thereby promoting and upholding the reputation of the organisation amongst its stakeholders.

A8 The Commissioner and Chief Officers will lead in establishing a culture

and specific values for their organisations and staff and that they are communicated and understood. The values should build on the Nolan Principles and the Code of Ethics.

A9 The Commissioner and Chief Officers will lead by example and use

these values as a framework for decision making and other actions.


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A10 The Commissioner and Chief Officers will demonstrate, communicate and embed values through appropriate policies and processes which are reviewed on a regular basis to ensure that they are operating effectively.

Demonstrating strong commitment to ethical values A11 The Commissioner and Chief Officers will seek to understand, monitor

and maintain the organisation’s ethical performance. A12 Underpinning personal behaviour with ethical values and ensuring they

permeate all aspects of the organisation’s culture and operation. A13 The Commissioner and Chief Officers will develop and maintain robust

policies and procedures which place emphasis on agreed ethical values.

A14 The Commissioner and Chief Officers will ensure that external

providers of services on behalf of the organisation are required to act with integrity and in compliance with high ethical standards.

Respecting the rule of law A15 The Commissioner, Chief Officers and staff will demonstrate respect

for the rule of law as well as adhering to relevant laws and regulations. A16 The Commissioner and Chief Constable will create the conditions to

ensure that statutory Chief Officers, other key post holders and (where appropriate) statutory committees are able to fulfil their responsibilities in accordance with best practice.

A17 The Commissioner, Chief Officers and staff strive to use full powers for

the benefit of citizens, communities and other stakeholders. A18 The Commissioner, Chief Officers and staff deal with reported

breaches of legal and regulatory provisions effectively. A19 The Commissioner and Chief Officers ensure that reported corruption

and misuse of power are dealt with effectively.

B. ENSURING OPENNESS AND COMPREHENSIVE STAKEHOLDER

ENGAGEMENT 4.4 Public organisations should ensure openness in their activities. Clear, trusted

channels of communication and consultation should be used to engage effectively with all groups of stakeholders, such as individual citizens and service users, as well as institutional stakeholders.


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4.5 The Commissioner and Chief Constable exist primarily to provide services that people need, and this will only be achieved if there is a consistent dialogue in both directions.


B1 The Policing Protocol Order 2011 highlights that the Commissioner is accountable to local people and has a duty to set and shape the strategic objectives for the force area in consultation with the Chief Constable, taking into account the Strategic Policing Requirement.

B2 The Commissioner and Chief Constable will ensure that a shared

vision, strategic plans, priorities and targets are developed having regards to the views of the local community and other key stakeholders, and that they are clearly articulated and disseminated.

B3 The Police and Crime Plan will clearly set out what the strategic

objectives and priorities are and how they will be delivered. B4 To complement this, communication and engagement strategies set

out how local people will be involved with the Commissioner and the Chief Constable to ensure that their views inform decision making, accountability and future direction.

B5 The Commissioner and Chief Constable will develop arrangements for

effective engagement with key stakeholders ensuring that, where appropriate, they inform decision making, accountability and future direction.

B6 The Commissioner, with the support of the Chief Constable, will

engage with the Police and Crime Panel to facilitate scrutiny and accountability, over the annual Police and Crime Plan and Precept.

B7 The Commissioner and Chief Constable will develop effective working

relationships with constituent local authorities and other partners as necessary and appropriate.

B8 The Commissioner and Chief Constable will seek to ensure that when

working in partnership that (a) there is clarity about the legal status of the partnership and that representatives, or organisations, both understand and make clear to all other partners the extent of their authority to bind their organisation to partner decisions and (b) that all employees are clear about their roles and responsibilities both individually and collectively in relation to the partnership and to the organisation.


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Openness B9 Ensuring an open culture through demonstrating, documenting and

communicating the organisation’s commitment to openness.

B10 Making decisions that are open about actions, plans, resource use, forecasts, outputs and outcomes. Providing clear reasoning and evidence for decisions in both public records and explanations to stakeholders and being explicit about the criteria, rationale and considerations used.

B11 Using formal and informal consultation and engagement to determine

the most appropriate and effective interventions/courses of action.

Engaging comprehensively with institutional stakeholders B12 Engaging effectively with institutional stakeholders to ensure that the

purpose, objectives and intended outcomes for each stakeholder relationship are clear so that outcomes are achieved successfully and sustainably.

B13 Developing formal and informal partnerships to allow for resources to

be used more efficiently and outcomes achieved more effectively. B14 Ensuring that partnerships, including collaborations, are based on trust,

a shared commitment to change, and a culture which promotes and accepts challenge amongst partners and that the added value of partnership working is explicit.

Engaging stakeholders effectively, including individual citizens and

service users B15 Establishing a clear policy about the type of issues on which the

organisation will meaningfully consult with, or involve, individual communities, citizens, service users and other stakeholders to ensure that a service (or other) provision is contributing towards the achievement of intended outcomes.

B16 Ensuring that communication methods are effective and that the Commissioner, Chief Officers and staff are clear about their roles with regard to community engagement.

B17 Encouraging, collecting and evaluating the views and experiences of

communities, citizens, service users and organisations of different backgrounds including reference to future needs.


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C. DEFINING OUTCOMES IN TERMS OF SUSTAINABLE SERVICE AND

ECONOMIC BENEFITS 4.6 The long term nature and impact of many of the Commissioner and Chief

Constable’s responsibilities mean that they should seek to define and plan outcomes and that these should be sustainable. Decisions should contribute to intended benefits and outcomes, and remain within the limits of authority and resources. Input from all groups of stakeholders, including citizens, service users, and institutional stakeholders, is vital to the success of this process and in balancing competing demands when determining priorities for the finite resources available.

4.7 Annual Plans and strategies will respond to changes in the current

environment, but these responses should always be framed within the Commissioner and Chief Constable’s long term objectives and aspirations for the service, and the resources available.


C1 The Police Reform and Social Responsibility Act 2011 (PRSRA 2011) requires the Commissioner to issue a Police and Crime Plan covering a five year period, including one year beyond his/her term of office. It will outline the police and crime objectives (outcomes) and the strategic direction for the policing.

C2 Both the Commissioner and Chief Constable must have regard to the

plan and the Commissioner must have regard to the priorities of the responsible authorities during its development.

C3 Each organisation will have an annual delivery plan which sets out how

it will operate to support achievement of these outcomes. C4 Collaboration agreements will set out those areas of business to be

undertaken jointly with other forces, local policing bodies and other emergency services, whether it be to reduce cost, increase capability and/or increase resilience in order to protect local people.

C5 A Medium Term Financial Strategy will be developed jointly by the

Commissioner and Chief Constable. This will be reviewed and refreshed at least annually to ensure delivery of the corporate aims and objectives. Detailed arrangements for financial management will be set out in financial regulations.

C6 The Commissioner is required to publish an Annual Report on the

activities of the Commissioner in relation to monitoring its own performance and that of the Chief Constable and Force.


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C7 A commissioning and award of grants framework will be developed by the Commissioner, which will incorporate commissioning intentions and priorities.



Defining outcomes C8 Having a clear vision – an agreed formal statement of the

organisation’s purpose and intended outcomes containing appropriate performance indicators which provide the basis for the organisation’s overall strategy, planning and other decisions.

C9 Specifying the intended impact on, or changes for stakeholders,

including individual citizens and service users. C10 Delivering defined outcomes on a sustainable basis within the

resources that will be available while recognising that changing demands will place additional pressure on finite resources.

C11 Identifying and managing risks to the achievement of outcomes as part

of delivering goods and services. C12 Managing expectations effectively with regard to determining priorities

and making the best use of the resources available.

Sustainable service and economic benefits C13 Considering and balancing the combined service and economic impact

of policies and plans when taking decisions. C14 Taking a longer term view with regard to decision making, taking

account of threat, harm and risk and acting transparently where there are potential conflicts between the Commissioner and the Chief Officer’s intended outcomes and short term factors such as the political cycle or financial constraints.

C15 Ensuring fair access to services.

D. DETERMINING THE INTERVENTIONS NECESSARY TO OPTIMISE THE

ACHIEVEMENT OF INTENDED OUTCOMES 4.8 Public bodies, including the Police, achieve their intended outcomes by

providing a mixture of legal, regulatory and practical interventions. Determining the right mix of these courses of action is a critically important strategic choice that the Police have to make to ensure intended outcomes are achieved. They need robust decision making mechanisms to ensure that


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their defined outcomes can be achieved in a way that provides the best trade-off between the various types of resource inputs while still enabling effective and efficient operations. Decisions made need to be reviewed continually to ensure the achievement of intended outcomes.

4.9 Policy implementation usually involves choice about the approach, the

objectives, the priorities and the costs and benefits. Commissioners and Chief Constables must ensure that they have access to the appropriate skills and techniques.


D1 The Commissioner and the Chief Constable will maintain a Medium Term Financial Strategy which will form the basis of the annual budgets, and provide a framework for evaluating future proposals.

D2 There will be a comprehensive process of analysis and evaluation of

plans, which will normally include option appraisal, techniques for assessing the impact of alternative approaches on the service’s outcomes, and benefits realisation.

D3 The Commissioner and Chief Constable will jointly consider how best

to achieve value for money and ensure that their agreed approach is reflected in the Police and Crime Plan objectives and associated delivery plans.

D4 The Commissioner and the Force will maintain appropriate workforce

development and asset management plans. D5 The Commissioner and Chief Constable will work together to provide

clarity over the arrangements to respond to the breadth of concerns raised by local people, whether they be organisational or individual failures.



Determining and Planning Interventions D6 Ensuring that decision makers receive objective and rigorous analysis

of a variety of options indicating how intended outcomes would be achieved and including the risks associated with those options. Therefore ensuring that best value is achieved however services are provided.

D7 Considering feedback from citizens and service users when making

decisions about service improvements, or where services are no longer


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required, in order to prioritise competing demands within limited resources available including people, skills, land and assets.

D8 Making informed decisions in accordance with the National Decision

Model. D9 Establishing and implementing robust planning and control cycles that

cover strategic and operational plans, priorities and targets. D10 Engaging with internal and external stakeholders in determining how

services and other courses of action should be planned and delivered. D11 Considering and monitoring shared risks when working collaboratively. D12 Ensuring arrangements are flexible and agile so that the mechanisms

for delivering outputs can be adapted to changing circumstances. D13 Establishing appropriate performance measures as part of the planning

process in order to assess and inform how the performance of the services and projects is to be measured, and service quality is reviewed.

D14 Preparing annual budgets in accordance with government funding

announcements, organisational objectives, strategies and the medium term financial plan.

D15 Informing medium and long term resource planning by drawing up

realistic and robust estimates of revenue and capital expenditure aimed at developing a sustainable funding strategy.

Optimising Achieving of intended outcomes D16 Ensuring the medium term financial strategy integrates and balances

service priorities, affordability, and other resource constraints. D17 Ensuring that the budgeting process is comprehensive, taking into

account the full cost of operations over the medium and longer term. D18 Ensuring the medium term financial strategy sets the context for

ongoing decisions on significant delivery issues or responses to changes in the external environment that may arise during the budgetary period in order for the outcomes to be achieved while optimising resource usage.

D19 Ensuring the achievement of ‘social value’ through service planning and commissioning.


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E. DEVELOPING THE ENTITY’S CAPACITY, INCLUDING THE CAPABILITY

OF ITS LEADERSHIP AND THE INDIVIDUALS WITHIN IT 4.10 The Commissioner and the police force need appropriate structures and

leadership, as well as people with the right skills, appropriate qualifications and mindset, to operate efficiently and effectively and achieve their intended outcomes within the specified periods. A public organisation must ensure that it has both the capacity to fulfil its own mandate and to make certain that there are policies in place to guarantee that its management has the operational capacity for the organisation as a whole. Both the individuals involved and the environment in which the police operate will change over time, and there will be a continuous need to develop its capacity as well as the skills and experience of the leadership and individual staff members. Leadership in the Police service is strengthened by the participation of people with many different types of background, reflecting the diversity of communities we serve.

4.11 Successful outcomes depend on the calibre of the people within the

organisation, and it is essential that they have the appropriate skills and support.


E1 The Office of the Commissioner’s and the Force’s people and personal development strategies set the climate for continued development of individuals. The respective performance development review processes will ensure that these strategies are turned into reality for officers and members of staff.

E2 To develop skills on a continuing basis to improve performance

including the ability to scrutinise and challenge and to recognise when outside expert advice is needed.

E3 To ensure that effective arrangements are in place for reviewing

performance and agreeing an action plan(s) which would include any training or development needs.

E4 To ensure that effective arrangements are designed to encourage

individuals from all sections of the community to engage with, contribute to and participate in the work of the Commissioner and police force.

E5 To ensure that career structures are in place to encourage participation

and development of employees.


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Developing the entity’s capacity E6 Reviewing operations, performance, risks and asset management on a

regular basis to ensure their continuing effectiveness. E7 Improving resource use through appropriate application of techniques

such as benchmarking and other options in order to determine how policing resources are allocated so that outcomes are achieved effectively and efficiently.

E8 Recognising and promoting the benefits of collaborative working where

added value can be achieved through partnerships. E9 Developing and maintaining an effective workforce plan to enhance the

strategic allocation of resources.

Developing the capability of the entity’s leadership and other individuals E10 Ensuring the Commissioner and Chief Officers have clearly defined

and distinctive leadership roles within a structure whereby the Chief Officers lead by implementing strategy and managing the delivery of services and other outputs set by the Commissioner and/or Chief Constable, and each provides a check and balance for each other’s responsibility.

E11 Developing the capabilities of the Commissioner and Chief Officers to

achieve effective shared leadership where appropriate, and to enable the organisation to respond successfully to changing legal and policy demands as well as economic, political, and environmental changes and risks.

E12 Ensuring the Commissioner, Chief Officers and staff receive

appropriate induction tailored to their role and that ongoing training and development matching individual and organisational requirements is available and encouraged.

E13 Ensuring that the Commissioner, Chief Officers and staff have the

appropriate skills, knowledge, resources and support to fulfil their roles and responsibilities and ensuring that they are able to update their knowledge on a continuing basis.

E14 Ensuring personal, organisation and system-wide development through

shared learning including lessons learnt from governance failures both internal and external.


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E15 Ensuring the Commissioner is independent of force management and free from relationships that would materially interfere with their role.

E16 The Office of the Commissioner, in conjunction with the Force, should

ensure that appropriate information is available for potential Commissioner candidates.

E17 Taking steps to consider the leadership’s own effectiveness and

ensuring leaders are open to constructive feedback from peer review and inspections.

E18 Holding staff to account through regular performance reviews which

take account of training or development needs. E19 Ensuring arrangements are in place to maintain the health and

wellbeing of the workforce and support individuals in maintaining their own physical and mental wellbeing.

F. MANAGING RISKS AND PERFORMANCE THROUGH ROBUST INTERNAL

CONTROL AND STRONG PUBLIC FINANCIAL MANAGEMENT 4.12 Public bodies need to ensure that the organisations and governance

structures that they oversee have implemented, and can sustain, an effective performance management system that facilitates effective and efficient delivery of planned services. Risk management, business continuity and internal control are important and integral parts of a performance management system and crucial to the achievement of outcomes. They consist of an ongoing process designed to identify and address significant risks involved in achieving outcomes. A strong system of financial management is essential for the implementation of policies and the achievement of intended outcomes, as it will enforce financial discipline, strategic allocation of resources, efficient service delivery and accountability.

4.13 All public bodies spend money raised from taxpayers and use assets which

have been paid for by taxpayers in order to deliver and maintain services. The public is entitled to expect high standards of control and the continuous oversight of performance to correct shortfalls and to identify factors which could undermine achievement.


F1 The Commissioner will develop and maintain effective arrangements to hold the Chief Constable to account for Force performance and compliance with other requirements.

F2 The decision making policy sets out principles behind how decisions

will be taken by the Commissioner and the standards to be adopted. This will ensure that those making decisions are provided with


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information that is fit for the purpose, relevant, timely and accurate and gives clear explanations of technical issues and their implications.

F3 It requires a combined forward plan of key decisions, which brings together the business planning cycles for the Police and Crime Plan, the Office of the Commissioner and the Force corporate planning process. This will ensure proper governance by bringing together the right information at the right time e.g. strategic needs assessments, costs, budgets etc.

F4 The National Decision Model (NDM) is suitable for all decisions and should be used by everyone in policing. It can be applied to spontaneous incidents or planned events, by an individual or team of people, and to both operational and non-operational situations.

F5 The scheme of corporate governance defines the parameters for key

roles in the corporations’ sole including schemes of delegations and/or consents from the Commissioner or Chief Constable, financial regulations and contract standing orders.

F6 The risk management strategy establishes how risk and decision

management is embedded throughout Merseyside Police, with the Commissioner and Chief Constable and their respective staff and officers all recognising that risk management is an integral part of their job.

F7 Communications and engagement strategies demonstrate how the Commissioner and chief constable will ensure that local people are involved in decision making.

F8 Information relating to decisions will be made readily available to local

people, with those of greater public interest receiving the highest level of transparency, except where operational and legal constraints exist.

F9 The forward plan of decisions combined with open and transparent

information schemes enables the police and crime panel to be properly sighted on the decisions of the Commissioner.



Managing risk F8 Recognising that risk management is an integral part of all activities

and must be regarded as a continuous process. F9 Implementing robust and integrated risk management arrangements

and ensuring that they are working effectively.


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F10 Ensuring that the organisation is risk aware and that its risk appetite is

defined and communicated clearly to those responsible for making decisions.

Managing performance F11 Monitoring service delivery effectively including planning, specification,

execution and independent post implementation review F12 The forward plan of decisions combined with open and transparent

information schemes enables the police and crime panel to be properly sighted on the decisions of the Commissioner.

F13 Ensuring an effective scrutiny or oversight function is in place which

encourages constructive challenge and debate on policies and objectives before, during and after decisions are made thereby enhancing the organisation’s performance and that of any organisation for which it is responsible.

F14 Providing the Commissioner and Chief Officers with regular reports on

service delivery plans and on progress towards outcome achievement. F15 Ensuring there is consistency between specification stages (such as

budgets) and post implementation reporting (e.g. financial statements).

Robust internal control F16 Aligning the risk management strategy and policies on internal control

with achieving the organisation’s objectives. F17 Evaluating and monitoring the organisation’s risk management and

internal control on a regular basis. F18 Ensuring effective counter fraud and anti-corruption arrangements are

in place F19 Ensuring additional assurance on the overall adequacy and

effectiveness of the framework of governance, risk management and control is provided by the internal auditor

F20 Ensuring a Joint Audit Committee, which is independent of the

executive, provides a further source of effective assurance to the Commissioner and Chief Constable regarding arrangements for managing risks and maintaining an effective control environment and that its recommendations are listened to and acted upon.


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Managing data F21 Ensuring effective arrangements are in place for the safe collection,

storage, use and sharing of data, including processes to safeguard personal data.

F22 Ensuring effective arrangements are in place and operating effectively

when sharing data with other bodies. F23 Reviewing and auditing regularly the quality and accuracy of data used

in decision making and performance monitoring.

Strong public financial management F24 Ensuring financial management supports both long term achievement

of outcomes and short term financial and operational performance. F25 Ensuring well developed financial management is integrated at all

levels of planning and control, including management of financial risks and controls.

G. IMPLEMENTING GOOD PRACTICES IN TRANSPARENCY, REPORTING,

AND AUDIT TO DELIVER EFFECTIVE ACCOUNTABILITY 4.14 Accountability is about ensuring that those making decisions and delivering

services are answerable for them. Effective accountability is concerned not only with reporting on actions completed but also ensuring that stakeholders are able to understand and respond as the organisation plans and carries out its activities in a transparent manner. Both external and internal audit contribute to effective accountability.

4.15 It is easy to pay lip service to the principles of accountability. Aspirations

which are not followed through, and actions which are not explained to those who are affected by them, undermine confidence.


G1 The PRSRA 2011 clearly sets out the functions of the Commissioner and Chief Constable and the Policing Protocol Order sets out how these functions will be undertaken to discharge their respective responsibilities.

G2 The Commissioner may appoint a Deputy who will be a member of her

staff as highlighted in the PRSRA 2011. The role description approved by the Commissioner may incorporate functions delegated within the scheme of corporate governance.


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G3 The PRSRA 2011 requires the Commissioner to have a chief executive and Chief Finance Officer. The Chief Executive will be the head of paid service and undertake the responsibilities of Monitoring Officer.

G4 The PRSRA 2011 requires the Chief Constable to appoint a Chief Finance Officer.

G5 The financial management code of practice sets out the responsibilities

of chief finance officers for both Commissioner and Chief Constable. G6 The Commissioner and Chief Constable will put in place appropriate

arrangements to help ensure that the Commissioner, Deputy Commissioner (if appointed) and all employees are not influenced by prejudice, bias or conflicts of interest in dealing with different stakeholders and put in place appropriate processes to ensure that they continue to operate in practice

G7 The scheme of corporate governance defines the parameters for

decision making, including delegations, consents, financial regulations and standing orders relating to contracts.

G8 The Commissioner, Chief Constable and all employees will operate within:

a. Office of Commissioner and Force policy and procedures,

b. corporate governance framework,

c. discipline regulations;

d. codes of conduct; and e. Code of Ethics.

G9 Assurance procedures to ensures effective monitoring of the

organisations to ensure they are achieving their priorities.

G10 A joint independent audit committee will operate in accordance with CIPFA guidance and the Financial Management Code of Practice.

G11 The Police and Crime Panel provide checks and balances in relation to the performance of the Commissioner. It does this by reviewing and scrutinising the decisions and actions of the Commissioner. However, the Panel does not scrutinise the Chief Constable.

G12 The Commissioner and Chief Constable will ensure that arrangements

are in place for whistle blowing to which employees and all those contracting with Merseyside Police have access.


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Implementing good practice in transparency G12 Writing and communicating reports for the public and other

stakeholders in an understandable style appropriate to the intended audience and ensuring they are easy to access and interrogate.

G13 Striking a balance between providing the right amount of information to

satisfy transparency demands and enhance public scrutiny whilst not being too onerous to provide and for users to understand.

Implementing good practices in reporting G14 Reporting at least annually on performance, value for money, and the

stewardship of resources to stakeholders in a timely and understandable way.

G15 Assessing the extent that the organisation is applying the principles

contained in the Framework and publishing the results of this assessment including an action plan for improvement and evidence to demonstrate good governance in action (the Annual Governance Statement).

G16 Ensuring the performance information that accompanies the financial

statements is prepared on a consistent and timely basis and the statements allow for comparison with other similar entities.

G17 Undertaking a separate audit assessment of the adequacy and

effectiveness of the governance arrangements for jointly managed functions

Assurance and effective accountability G18 Ensuring that recommendations for corrective action made by external

audit are acted upon G19 Ensuring an effective internal audit service exists with direct access to

the Commissioner, Chief Constable, and Joint Audit Committee, which provides assurance with regard to the organisation’s governance arrangements, and whose recommendations are acted upon

G20 Utilising peer challenge, reviews and inspections from regulatory

bodies, and implementing recommendations.


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G21 Gaining assurance on risks associated with delivering services through third party suppliers, and subjecting these arrangements to regular review.

G22 Ensuring that when working in partnership, arrangements for

accountability are clear and that the need for wider public accountability has been recognised and met.


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Scheme of Corporate Governance

for the

Police & Crime Commissioner and Chief Constable for Merseyside

1 Introduction

1.1 The Scheme of Corporate Governance is part of the Corporate Governance

Framework and should be read in conjunction with:

The Statement of Corporate Governance – which gives clarity to the way the two corporations sole (i.e. Police & Crime Commissioner and Chief Constable for Merseyside) will govern both jointly and separately to ensure they are conducting business in the right way, for the right reason at the right time; and

The Code of Corporate Governance sets out how the core principles will be implemented, and describes the strategies, arrangements, instruments and controls to ensure good governance in the two corporations sole.

1.2 This Scheme of Corporate Governance:-

Sets out the scheme of consent from the Commissioner to the Chief Constable, the delegations from the Commissioner and the Chief Constable to their respective personnel. It incorporates other instruments such as the financial regulations and contract standing orders and policies, strategies and procedures;

Aims to clarify those powers which, for the benefit of good business practice, are given to the statutory officers. The Commissioner and Chief Constable may limit these powers and/or remove delegation or consent;

Provides a framework which ensures business is carried out lawfully and efficiently, ensuring that decisions are not unnecessarily delayed and are taken at the appropriate level;

Does not identify all the statutory duties which are contained in specific laws and regulations; however it provides the framework in which the various duties and powers are exercised; and

Nothing in this scheme is intended to fetter the Chief Constable’s operational independence.


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2 Definitions within this Scheme of Governance

2.1 The Police & Crime Commissioner for Merseyside shall be referred to as the

Commissioner. 2.2 The Commissioner’s Chief Finance Officer shall be referred to as the

PCCCFO. 2.3 The Chief Constable’s Chief Finance Officer shall be referred to as the

CCCFO and is the Director of Resources. 2.4 The ‘Force’ shall refer to the Chief Constable, police officers, police civilian

staff, Police Community Support and Traffic Officers (PCS&TO), special constabulary, volunteers and other members of the wider police family under their direction and control.

3 Powers

3.1 Powers are given to the Commissioner and Chief Constable by laws, orders, rules or regulations. Also, national conditions of service give powers to the Commissioner and/or the Chief Constable or, as in the case of police regulations, the Secretary of State for the Home Department.

3.2 Chief Constables can carry out functions in their own right. That is a wide-ranging power: in addition to broad functions of keeping the peace and enforcing the law, the Chief Constable also has the power “to do anything which is calculated to facilitate, or is conducive or incidental to, to the exercise of [their] functions” (paragraph 7(1), Schedule 2 PRSR Act).

3.3 The persons appointed as the Commissioner’s Chief Executive (who will also be the Monitoring Officer) and the PCCCFO (appointed under Schedule 1, paragraph 6(1) (b) of the PRSR Act 2011) have statutory powers and duties relating to their positions and therefore, do not rely on matters being delegated to them to carry out these specific powers and duties.

3.4 To enable the Commissioner to exercise the functions of their office effectively, reasonable access to information and resources held by the Chief Constable will be needed. This access must not be unreasonably withheld or obstructed by the Chief Constable.

4 Consent

4.1 There are certain statutory restrictions on the Chief Constable’s power to

exercise certain functions in their own right: the Chief Constable may not acquire or dispose of land, and needs the consent of the Commissioner to enter into contracts and to acquire or dispose of property. The consent

granted is shown in the Scheme of Consent in Appendix 1.


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4.2 The documents contained within this scheme of Corporate Governance set

out the conditions on which the Commissioner has given consent to the Chief Constable to enter into contracts and to acquire or dispose of property (other than land and buildings). For the avoidance of doubt, this is not a delegation from the Commissioner; it is the Commissioner giving consent to the Chief Constable to exercise certain functions in their own right, subject to compliance with this Scheme.

4.3 The Commissioner has overall responsibility for the financial administration of

the Office and the Force. Therefore certain major financial decisions will remain with the Commissioner. The Financial Regulations show matters which are not consented to the Chief Constable and remain for the decision of the Commissioner.

5 Delegation

5.1 It is recognised that, unless a power or function must, as a matter of law, be exercised personally; such functions or powers need not be exercised personally but may be exercised by other officers and staff on behalf of the Commissioner or Chief Constable. There are numerous functions and powers which, as a matter of inevitable everyday practice, are in fact, exercised by other officers and members of staff. Case law recognises that where the responsibilities of an office created by statute are such that delegation is inevitable, there is an implied power to delegate. In such circumstances, there is a presumption that, where statutory powers and duties are conferred, there is a power to delegate the same unless the statute conferring them expressly or by implication provides to the contrary.

5.2 This Scheme of Corporate Governance aims to clarify those powers which, for the benefit of good business practice, are delegated to personnel. The Commissioner may limit these powers and/or remove delegation. Where this scheme refers to a delegation, it is a reference to a delegation of a function or power by the Commissioner to the Deputy Commissioner or to a member of their own staff.

5.3 Any powers or duties placed on other statutory officers should be exercised lawfully in accordance with the Commissioner’s and Chief Constable’s respective delegations, contract standing orders and financial regulations, and also relevant policies, procedures, plans, strategies and budgets. The statutory officers are responsible for ensuring that the members of personnel they supervise are aware of and comply with the provisions and obligations of this Scheme of Corporate Governance.

5.4 The Commissioner may not arrange for any constable or any person

employed by the Chief Constable to exercise any of the Commissioner’s functions (section 18 PRSRA). Under this scheme, there is no formal


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delegation of any function from the Commissioner to any constable or member of police staff.

5.5 This scheme also deals with the ways in which certain of the Chief

Constable’s functions will be exercised in such a way as is reasonable to assist the Commissioner to exercise their functions (section 2(5) PRSR Act). For the avoidance of doubt, these are not delegations from the Commissioner.

5.6 The general principles that apply to delegations are set out in Section 6 of

this document and the schemes of delegation, which shows how powers and duties will be delegated from the Commissioner and Chief Constable, are

attached as Appendices 2 & 3.

6 General principles of delegation 6.1 The Schemes of Delegation provides personnel with the legal authority to

carry out appropriate duties of the Commissioner and Chief Constable. In carrying out these duties, personnel must comply with all other statutory and regulatory requirements and relevant professional guidance; including:

The Police Reform and Social Responsibility Act 2011 and other relevant legislation issued under this Act (e.g. policing Protocol Order)

Financial Regulations

Contract Standing Orders

Home Office Financial Management Code of Practice

CIPFA Statement on the role of the Chief Financial Officer of the Commissioner and the Chief Finance Officer of the Chief Constable

The Commissioner and Chief Constable’s joint Corporate Governance Framework

The Commissioner’s and Merseyside Police policies and procedures.

6.2 This Scheme is a record of the formal delegations that are in effect at the time

of its publication. With the exception, of those matters listed in paragraph 8.6, any person to whom a power is delegated under this scheme may sub-delegate that power as they deem appropriate. The formal responsibility and accountability to the Commissioner or Chief Constable for the effective discharge of such sub-delegated powers remains in law with the person to whom the power was delegated by the Commissioner or Chief Constable.

6.3 The Commissioner and/or Chief Constable may ask that a specific matter be referred to them for a decision and not be dealt with under powers of delegation.

6.4 The scheme does not attempt to list all matters which form part of everyday

management responsibilities.


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6.5 Giving delegation to personnel under this scheme does not prevent them from referring the matter to the Commissioner and/or Chief Constable for a decision if the officer thinks this is appropriate (for example, because of sensitive community and stakeholder issues or any matter which may have a significant operational or financial implications).

6.6 All decisions officers make under formal powers delegated to them by the

Commissioner and/or Chief Constable must be recorded and be available for inspection.

6.7 The Commissioner and Chief Constable may set out their reporting arrangements on actions undertaken by their own personnel in respect of the use of powers delegated to them.

7 Financial Regulations, Including Contract Standing Orders 7.1 Financial regulations explain the working financial relationship between the

Commissioner, the Chief Constable and their respective Chief Finance Officers, having regard also to the role played by the Chief Executive.

7.2 Financial Regulations ensure that financial dealings are conducted properly and in a way which incorporates recognised best practice and focuses on bringing operational and financial management together with timely and accurate financial information. They also include sufficient safeguards for both Chief Finance Officers who are responsible for ensuring that the financial affairs of the Commissioner and Chief Constable are properly administered to discharge their statutory obligations.

7.3 Along with the Financial Regulations are the Contract Standing Orders which is a single set of standing orders relating to contracts. These orders explain the procedures to be followed for procurement, tenders and contracts, including tender thresholds and authorisation levels.

8 Role of the Commissioner

8.1 The Police Reform and Social Responsibility Act 2011 (the Act) and the

Policing Protocol Order 2011 (the Protocol) are the main sources of powers and duties for the Police and Crime Commissioner. The Commissioner’s main functions are to:-

Maintain an efficient and effective police Force for the police area; and

Hold the Chief Constable to account for the exercise of the functions of the office of Chief Constable and the functions of the persons under the direction and control of the Chief Constable.


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8.2 The Commissioner will receive all funding, including the government grants

and the council tax precept and other sources of income relating to policing and crime reduction. All funding to the Chief Constable must come via the Commissioner. How this funding is allocated is a matter for the Commissioner in consultation with the Chief Constable, or in accordance with any grant terms. The Chief Constable will provide professional advice and recommendations.

8.3 The Commissioner’s legal powers and duties include the following:

To set the strategic direction and objectives of the Chief Constable through the Police and Crime Plan (the Plan), which must have regard to the Strategic Policing Requirement set by the Home Secretary.

To scrutinise, support and challenge the overall performance of the Force including against the priorities agreed within the Plan.

To decide the budget, allocating assets and funds to the Chief Constable; and set the precept for the Force area.

To appoint the Chief Constable.

To remove the Chief Constable subject to following the process set out in Part 2 of Schedule 8 to the 2011 Act and regulations made under section 50 of the Police Act 1996.

To enter into collaboration agreements with other Commissioners, other policing bodies and partners that improve the efficiency or effectiveness of policing for one or more policing bodies or police Forces in consultation with the Chief Constable (where this relates to the functions of the Force, then it must be with the agreement of the Chief Constable).

To provide the local link between the police and communities, working to translate the legitimate desires and aspirations of the public into action, this involves obtaining and representing the views of local people, councils and other criminal justice organisations.

To publish information specified by the Secretary of State and information that the Commissioner considers necessary to enable the people who live in the Force area to assess the performance of the Commissioner and Chief Constable.

To provide the Panel with any information they may reasonably require and to comply with all reasonable formal requests from the Panel to attend their meetings.

To prepare and issue an annual report to the Panel on the Commissioner‘s delivery against the objectives set within the Plan.

To monitor all complaints made against officers and staff, whilst having responsibility for complaints against the Chief Constable.

To provide advice and assistance to a body outside the UK.

To consult on, prepare and publish a community remedy document for Merseyside.


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8.4 The Commissioner owns all land, buildings and assets and will sign contracts in accordance with the requirements of financial regulations. In approving the annual Treasury Management Strategy the Commissioner approves the borrowing limits.

8.5 When exercising these duties and functions, the Commissioner must have

regard to:

The views of the people in Merseyside, including victims of crime;

Any report or recommendation made by the Police and Crime Panel in respect of the Police and Crime Plan, the proposed annual precept, and the annual report for the previous financial year; and

The Police and Crime Plan and any guidance issued by the Secretary of State, including specifically the Strategic Policing Requirement.

(Note: this list is a summary and is not exhaustive) 8.6 The Commissioner may arrange for any person (who is not the Deputy Police

and Crime Commissioner) to exercise any of these functions, with the exception of those listed below:-

Determining the policing and crime objectives in the Police and Crime Plan.

Issuing the Police and Crime Plan.

Calculation of the budget requirement.

Appointing or suspending the Chief Constable, or calling upon the Chief Constable to retire or resign.

Attendance at the Police and Crime Panel in compliance with a requirement by the Panel to do so.

Attendance at, and presenting the annual report to, the Police and Crime Panel.

8.7 The Commissioner may appoint a deputy to exercise their functions, with the

exception of those which cannot be delegated as defined by the Police Reform and Social Responsibility Act 2011, as listed below:-




8.8 The Commissioner has wider responsibilities than those relating solely to the

Chief Constable, namely;-

A specific responsibility for the delivery of community safety and crime reduction.

The ability to bring together Community Safety Partnerships at Force level.


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To ensure collaboration agreements deliver better value for money or enhance the effectiveness of policing.

Enhancing the delivery of criminal justice within the Merseyside area.

9 Role of the Deputy Police and Crime Commissioner

9.1 The Commissioner has appointed a deputy who has the authority to exercise the Commissioner’s functions when required, with the exception of those which cannot be delegated as defined by the Police Reform and Social Responsibility Act 2011, as listed below:-




9.2 Specific responsibilities of the Deputy Police and Crime Commissioner are:-

To support the Commissioner by taking responsibility for the Commissioning of victims’ and restorative justice services as required by legislation

To support the Commissioner by taking responsibility for the development and maintenance of community remedies as required by legislation

To assist the Commissioner in carrying out all of her duties and responsibilities

To deputise for the Commissioner as necessary

To liaise with liaison with elected members of parliament, council and other elected bodies on Merseyside and advise the Commissioner

To assist with effective communication between the Commissioner and the public of Merseyside.

9.3 Additional specific responsibilities may be given to the Deputy Police and

Crime Commissioner as required to assist the Commissioner in the performance of her duties.

10 Role of the Commissioner’s Chief Executive

10.1 The Code of Corporate Governance identifies the role of the Chief Executive

as the head of the Commissioner’s staff, and is also the Monitoring Officer for the Commissioner.

10.2 The formal delegations from the Commissioner to the Chief Executive are

listed in Appendix 2. Other key responsibilities are set out below;-


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Governance

10.3 To prepare the Police and Crime Plan, in consultation with the Chief

Constable, for submission to the Commissioner, including:-

Obtaining the views of the public.

Identifying the strategic policing and crime priorities and objectives.

Planning how resources will be used.

How services will be commissioned.

Development and implementation of performance monitoring and reporting arrangements.

10.4 To provide information to the Police and Crime Panel, as reasonably required

to enable the Panel to carry out its functions. 10.5 To consider whether, in consultation with the PCCCFO, to provide indemnity

to the Commissioner (and Deputy Commissioner) in accordance with appropriate statutory provisions and to deal with or make provision to deal with other matters arising from any proceedings relating to them.

10.6 To consider and approve, in consultation with the PCCCFO, provision of indemnity and/or insurance to individual staff of the Commissioner in accordance with appropriate statutory provisions.

Financial 10.7 To manage the budget of the Commissioner’s office, in consultation with

PCCCFO, particularly to:-

Order goods and services and spend on items provided for in the revenue budget; and

Ask for and accept quotations and tenders for goods and services provided for in the revenue budget.

Human Resources

10.8 To appoint, in consultation with the Commissioner, staff in the Office of the

Police & Commissioner (OPCC).

10.9 To make recommendations to the Commissioner with regard to OPCC staff terms and conditions of service, in consultation with the PCCCFO as necessary.

10.10 To appoint Independent Custody Visitors and terminate appointments if necessary.


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10.11 To appoint lay members to sit on the panels considering police officer misconduct appeals and staff dismissal appeals.

Other Duties 10.12 To consider, with the Commissioner, and advise on any complaint made

against the Chief Constable, and where appropriate, to make arrangements for appointing an officer to investigate the complaint.

10.13 To respond to consultations on proposals affecting the Commissioner, if necessary, after first taking the views of the Commissioner, the PCCCFO and/or the Chief Constable, as necessary and appropriate.

10.14 To obtain legal or other expert advice and to appoint legal professionals whenever this is considered to be in the Commissioner’s best interests and of benefit to the exercise of their functions.

10.15 To make sure, in consultation with the Chief Constable, appropriate arrangements are made to gather the community’s views on the policing of Merseyside and preventing crime.

11 Role of the Commissioner’s Chief Finance Officer (PCCCFO) 11.1 The Commissioner must appoint a person to be responsible for the proper

administration of the Commissioner’s financial affairs, in accordance with the Financial Management Code of Practice, as issued by the Home Office.

11.2 As the PCCCFO, the post-holder has a statutory responsibility to manage the Commissioner’s financial affairs in accordance with sections 112 and 114 of the Local Government Finance Act 1988, and the Accounts and Audit Regulations 2003 (as amended).

11.3 The detailed financial management responsibilities of the PCCCFO, which includes a number of delegated powers, are set out in the financial regulations

(see Appendix 4).

11.4 Specific delegations from the Commissioner are set out in Appendix 2.


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12 Role of the Chief Constable

12.1 The Police Reform and Social Responsibility Act 2011 (the Act) and the

Policing Protocol Order 2011 (the Protocol) outline the role of the Chief Constable. The Chief Constable is responsible for maintaining the Queen’s peace, and has direction and control over the Force’s officers and staff.

12.2 The Chief Constable is accountable to the law for the exercise of police

powers, and to the Commissioner for the delivery of efficient and effective policing, and management of resources and expenditure by the Chief Constable. At all times the Chief Constable, their constables and staff, remain operationally independent in the service of the communities that they serve.

12.3 The Chief Constable is responsible for:

Leading the Force in a way that is consistent with the attestation made by all constables on appointment and ensuring that it acts impartially.

Supporting the Commissioner in the delivery of the strategy and objectives set out in the Police and Crime Plan.

Providing the Commissioner with access to information, officers and staff as required.

Having regard to the Strategic Policing Requirement when exercising and planning their policing functions in respect of their Force’s national and international policing responsibilities.

Notifying and briefing the Commissioner of any matter or investigation to which they may need to provide public assurance either alone or with the Commissioner.

Being the operational voice of policing in the Force area, and regularly explaining to the public the operational actions of officers and staff under their command.

Entering into collaboration agreements with other Chief Constables, other policing bodies and partners that improve the efficiency or effectiveness of policing, and with the agreement of the respective policing body.

Remaining politically independent of the Commissioner.

Managing all complaints against the force, its officers and staff, except in relation to the Chief Constable, and to ensure that the Commissioner is kept informed to enable the discharge of the statutory obligations in relation to complaints in a regular meaningful and timely fashion. Serious complaints and conduct matters must be passed to the Independent Police Complaints Commission.

Exercising the power of direction and control in such a way that the Commissioner will be able to access all necessary information and staff within the force.


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12.4 The list of delegations from the Chief Constable to key Force Personnel is

attached at Appendix 3.

13 Role of the Chief Constable’s Chief Finance Officer (CCCFO) 13.1 The Chief Constable is required to appoint a person to be responsible for the

proper administration of the Chief Constable’s financial affairs, in accordance with the Financial Management Code of Practice, as issued by the Home Office. This will be the Director of Resources.

13.2 As the Chief Finance Officer appointed by the Chief Constable there is a

statutory responsibility for the post-holder to manage the Force’s financial affairs, in accordance with sections 112 and 114 of the Local Government Finance Act 1988, and the Accounts and Audit Regulations 2003 (as amended).

13.3 The detailed financial management responsibilities of the Director of Resources, which includes a number of delegated powers, are set out in the

financial regulations (see Appendix 4).

13.4 Specific delegations from the Chief Constable are set out in Appendix 3.

14 Role of Other Senior Personnel

14.1 Senior police personnel undertake the day to day management of functions that support to Chief constable and provide assistance to the Commissioner. These duties should be undertaken in accordance with the financial

regulations (see Appendix 4).


14.3 Although the Commissioner owns all land and buildings the Head of Estates & Facilities Management will undertake the day to day management of the property function, subject to the provision of financial regulations, and in accordance with the agreed asset management strategy.

15 Role of Head of Legal Services 15.1 The Head of Legal Services will institute, defend or participate in legal actions

to protect the interests of Merseyside Police and the OPCC. They will provide advice, institute and defend legal proceedings on behalf of the Commissioner when requested to do so and where there is no identifiable conflict of interest between the Commissioner and the Chief Constable.



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16 Urgency provisions 16.1 If any matter which would normally be referred to the Commissioner (or

Deputy Commissioner) for a decision arises and cannot be delayed, the matter may be decided by the appropriate Chief Officer.

16.2 The appropriate Chief Officers authorised to decide urgent matters are:-

The Chief Executive (all issues)

The PCCCFO (financial and related issues, and all issues in the absence of the Chief Executive)

16.3 Urgent decisions taken must be reported to the Commissioner as soon as

practicably possible. 16.4 If any matter which would normally be referred to the Chief Constable (or

Deputy CC) for a decision arises and cannot be delayed, the matter may be decided by the appropriate Chief Officer. Urgent decisions taken must be reported to the Chief Constable as soon as practicably possible.


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Appendix 1

Police and Crime Commissioner for Merseyside

Scheme of Consent

General

1. The Financial Management Code of Practice, published by the Home Office in 2012, sets out the purpose and requirements of a Scheme of Consent.

2. The Scheme of Consent provides a framework to ensure that business is carried out efficiently and that decisions are not unnecessarily delayed. It should be read alongside the Financial Regulations (including Contract Standing Orders) and the Joint Code of Code of Corporate Governance. The Code of Corporate Governance details the key roles of the Commissioner and Chief Constable. Financial Regulations and Contract Standing Orders specify the powers given to the Chief Executive, Chief Finance Officer and Chief Constable, either individually or jointly.

3. The purpose of the Scheme is to set out the extent of, and any conditions attaching to, the Commissioner’s consent to the Chief Constable’s exercise of the powers to enter into contracts and acquire or dispose of property.

4. This Scheme does not identify all the statutory duties which are contained in specific laws and regulations, nor does it attempt to list all matters which form part of everyday management responsibilities.

Specific Consent

5. The Commissioner gives consent to the Chief Constable to enter into contracts and to acquire or dispose of property, other than land, buildings and assets, subject to the requirements of the Scheme of Corporate Governance, including the Financial Regulations and Contract Standing Orders. Assets are items that will be accounted for as ‘fixed assets’ within the annual accounts.


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Appendix 2

Delegations from the Commissioner

To the Deputy Police and Crime Commissioner

1. In the absence of the Commissioner (defined as leave or illness), the

Commissioner may delegate decisions in relation to the exercise of their statutory functions to the Deputy Commissioner, with the exception of those powers which cannot be delegated (see paragraph 8.7).

2. The Deputy Commissioner can delegate any functions to the Chief Executive to

carry out in their absence.

3. In particular the Commissioner has delegated the following to the Deputy Commissioner:

To be responsible for the Commissioning of victims and restorative justice services as required by legislation and as set out in the strategy approved by the Commissioner.

To be responsible for the development and maintenance of community remedies in accordance with the agreed Community Remedy Document.

To the Chief Executive

1. To prepare an annual report on the delivery of the Police and Crime Plan for

submission to the Commissioner.

2. To sign relevant contracts on behalf of the Commissioner, irrespective of value, once they have been properly approved, and when required to affix the common seal of the Commissioner to all relevant contracts, agreements or transactions. In the Chief Executive’s absence the PCCCFO can sign contracts as well as signing and affixing the seal.

3. To recruit and dismiss personnel employed by the Office of the Police and

Crime Commissioner. 4. To settle employment tribunal cases and grievances of staff working in the

OPCC, in consultation with the Legal Advisor and the Head of HR, with the exception of those cases felt to be exceptional because:-

They involve a high profile claimant;

There is a particular public interest in the case; and

There is a real risk that the Commissioner or their office will be exposed to serious public criticism or serious weaknesses in the organisation or policies and procedures will be revealed.


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5. In respect of personnel employed by the Commissioner to settle appeals against decisions of the Senior Administrator of the Local Government Pension Scheme, in line with the Occupational Pension Schemes (Internal Dispute Resolution Procedures) Regulations 2008.

6. To exercise the statutory powers of the Commissioner for professional

standards, as delegated to them on a temporary or permanent basis and such delegations to be documented with this Scheme.

7. To authorise people to make, defend, withdraw or settle any claims or uninsured

legal proceedings on the Commissioner’s behalf. Any damages or ex gratia payment of more than £30,000 must be approved by the Commissioner.

8. To approve the payment of damages or legal costs incurred by officers and staff

in connection with legal proceedings (including, but not limited to, inquest proceedings), in consultation with the Chief Constable’s Head of Legal Services. There is a presumption that officers and staff will be indemnified where they have acted in good faith in the normal course of their duties.

9. Arrange for the institution, defence or participation in legal proceedings on

behalf of the Commissioner.

To the PCCCFO

10. The PCCCFO is the Section 151 officer for the Commissioner and has overall responsibility for ensuring the proper administration of the financial affairs of the Commissioner.

11. In addition the Commissioner has delegated the following specific responsibilities: -

With the Chief Executive to manage the budget allocated to the Commissioner’s Office.

To execute and administer treasury management policies and practices and to arrange borrowing and investments in line with the CIPFA code and the Commissioner’s policy.

To have overall responsibility for the banking arrangements for the Commissioner.

To be the nominated Money Laundering Reporting Officer.

To ensure the provision of an adequate and effective internal audit service.

To approve virements where the virement is between an income budget line and a directly related expenditure budget line. The income and expenditure budgets will be increased for budget monitoring purposes.

To consider and approve applications to write off stock and stores in excess of the limits set out in section G of the financial regulations.

To approve damages or ex gratia payment within the financial limits set out in section G of the financial regulations.

To ensure the proper administration of the financial affairs of the Commissioner and the Force.


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Appendix 3

Delegations from the Chief Constable 1. It is recognised that, unless a power or function of the Chief Constable must, as

a matter of law, be exercised personally by the Chief Constable; such functions or powers need not be exercised by the Chief Constable personally but may be exercised on their behalf by such officers and staff as the Chief Constable thinks fit. There are numerous functions and powers of the Chief Constable which, as a matter of inevitable everyday practice, are in fact exercised by other officers and members of staff. Case law recognises that where the responsibilities of an office created by statute are such that delegation is inevitable, there is an implied power to delegate. In such circumstances, there is a presumption that, where statutory powers and duties are conferred, there is a power to delegate the same unless the statute conferring them expressly or by implication provides to the contrary.

2. The specific delegations set out in this Appendix are not, therefore intended to be

an exhaustive list of the functions and powers of the Chief Constable which may be exercised on their behalf by another person. However, where the delegation of a specific function or power is set out in this Appendix, it must only be exercised as provided for in this Appendix (unless specifically agreed otherwise by both Chief Constable and Commissioner).

To the CCCFO (Director of Resources)

3. The CCCFO is the Section 151 officer for Merseyside Police and has overall responsibility for:

Ensuring that the financial affairs of Merseyside Police are properly administered, having regard to probity, legality and appropriate standards;

Assisting the Commissioner in planning the Force’s budget;

Undertaking the day to day management of the budget delegated to the Chief Constable in accordance with financial regulations, reporting regularly on the Force’s financial position;

Committing expenditure within the approved budget to meet policies and objectives agreed with the Commissioner and reflected in the Police and Crime Plan;

Undertaking the day to day management of the procurement function in accordance with the contract regulations;

Undertaking the day to day management of the Estate function, subject to the provision of financial regulations; and

Undertaking the day to day management of the Shared Internal Audit Service on behalf of the Chief Constable and Commissioner


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4. To manage, as far as is allowed by government directives, the numbers,

locations, ranks and grading of police staff and police officers within the overall workforce budget approved by the Commissioner.

5. To extend the payment of Occupational Sick Pay to a member of Police Staff beyond their contractual entitlement for a period of time, in accordance with Merseyside Police policy, legislation and the needs of the organisation

6. To determine decisions relating to requests for early retirement for Police Staff in

accordance with the Chief Constable’s early retirement scheme and the payment of added years.

7. To apply the discretion of the employer to increase the total membership of an

active member for pension purposes. 8. To permit flexible retirement in respect of police staff. 9. To permit early payment of pension in respect of police staff.

10. To approve voluntary redundancy payments in line with a business change

programme approved by the Commissioner.

To the Head of Legal services

11. The authority to approve the financial settlement of all non-insured claims or requests for compensation felt to be non-significant because:

The compensation to be paid is £50,000 or less (to include multiple or linked claims / claimants) except in the case of accident claims where the threshold will be £200,000 or less ex gratia payments for damage caused by officers and staff where the threshold will be £5,000 or less;

They do not involve a high profile claimant including Chief Police Officer rank police officers;

There is no particular public interest in the case;

There is no real risk that the Commissioner or Merseyside Police will be exposed to serious public criticism or serious weaknesses in the organisation or policies and procedures will be revealed; or

It is not the nature of a test case.

12. Approval of all requests for financial assistance to officers and staff involved in legal proceedings or inquests, except those felt to be significant because:

They involve a high profile claimant;

There is a particular public interest in the case; or


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There is a real risk that the Commissioner or Merseyside Police will be exposed to serious public criticism or serious weaknesses in the organisation or policies and procedures will be revealed.


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Appendix 4

Financial Regulations and Contract Standing Orders

Contents

INTRODUCTION ....................................................................................................... 48

A1 FINANCIAL MANAGEMENT STANDARDS ........................................... 57 A2 ACCOUNTING SYSTEMS, RECORDS AND RETURNS ...................... 58 A3 THE ANNUAL STATEMENT OF ACCOUNTS ....................................... 59

SECTION B - FINANCIAL PLANNING AND CONTROL .......................................... 60

B1 FINANCIAL PLANNING ......................................................................... 60 B2 BUDGETARY CONTROL ...................................................................... 63 B3 CAPITAL PROGRAMME ....................................................................... 67 B4 MAINTENANCE OF BALANCES AND RESERVES .............................. 70

SECTION C - MANAGEMENT OF RISK AND RESOURCES .................................. 71

C1 RISK MANAGEMENT AND BUSINESS CONTINUITY .......................... 71 C2 INTERNAL CONTROLS ......................................................................... 73 C3 AUDIT REQUIREMENTS ....................................................................... 74 C4 PREVENTING FRAUD AND CORRUPTION ......................................... 79 C5 ASSETS ................................................................................................. 81 C6 TREASURY MANAGEMENT AND BANKING ARRANGEMENTS ........ 84 C7 STAFFING.............................................................................................. 88 C8 POLICE OBJECTIVE ANALYSIS/ACTIVITY ANALYSIS ....................... 88 C9 TRUST FUNDS ...................................................................................... 89 C10 EVIDENTIAL AND NON-EVIDENTIAL PROPERTY .......................... 89 C11 ACCEPTANCE OF GIFTS, LOANS AND SPONSORSHIP ................ 90

SECTION D - SYSTEMS & PROCEDURES ............................................................. 92

D1 GENERAL .............................................................................................. 92 D2 INCOME ................................................................................................. 93 D3 ORDERING AND PAYING FOR WORK, GOODS AND SERVICES ..... 94 D4 PAYMENTS TO PERSONNEL .............................................................. 96 D5 TAXATION ............................................................................................. 96 D6 CORPORATE CREDIT CARDS ............................................................. 97 D7 PURCHASING CARDS .......................................................................... 97 D8 EX GRATIA PAYMENTS ....................................................................... 98

SECTION E - EXTERNAL ARRANGEMENTS ......................................................... 99

E1 EXTERNAL FUNDING ........................................................................... 99 E2 WORKING FOR THIRD PARTIES ....................................................... 100 E3 JOINT WORKING ARRANGEMENTS ................................................. 100 E4 PARTNERSHIPS ................................................................................. 101

SECTION F - CONTRACT STANDING ORDERS .................................................. 105

F1 INTRODUCTION .................................................................................. 105 F2 DEFINITIONS ....................................................................................... 106 F3 COMPLIANCE WITH STANDING ORDERS ....................................... 106


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F4 NOMINATED SUB-CONTRACTORS/SUPPLIERS ............................. 107 F5 RESTRICTIONS ON CONTRACTS WITH CERTAIN PERSONS ....... 107 F6 TERMINATION OF CONTRACTS IN CASE OF CORRUPTION ......... 108 F7 SECURING AND DEMONSTRATING BEST VALUE .......................... 108 F8 EXCEPTIONS FROM QUOTATIONS OR TENDER ............................ 109 F9 SELECTION ......................................................................................... 110 F10 ADVERTISING ................................................................................. 110 F11 SUBMISSION OF TENDERS ........................................................... 110 F12 NOTIFICATION OF INVITATION TO TENDERS ............................. 111 F13 RECEIPT AND OPENING OF TENDERS ........................................ 111 F14 WITHDRAWAL OF TENDERS OR FAILURE TO SIGN OR EXECUTE A CONTRACT ............................................................................................. 111 F15 ACCEPTANCE OF TENDERS AND POWER TO ENTER INTO CONTRACTS .............................................................................................. 111 F16 FORM AND CONTENT OF CONTRACTS ....................................... 112 F17 CONDITIONS TO BE OBSERVED BY CONTRACTORS AND SUB-CONTRACTORS ......................................................................................... 113 F18 TAXATION STATUS OF SUB-CONTRACTORS ............................. 114 F19 BREACH OF CONTRACT ................................................................ 114 F20 ASSIGNMENT AND SUB-LETTING ................................................. 115 F21 ACQUISITION AND SALE OF PROPERTY OR LAND .................... 115 F22 CONTRACTS FOR THE SALE OF GOODS .................................... 115

SECTION G - DELEGATED LIMITS ....................................................................... 116

SECTION H - GUIDANCE NOTES ON BREACH OF STANDING ORDERS OR

FINANCIAL REGULATIONS .................................................................................. 120

SECTION I - ANTI FRAUD AND CORRUPTION ARRANGEMENTS..................... 121


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INTRODUCTION

PURPOSE 1. The purpose of this document is to set out the Financial Regulations that apply

to the Police & Crime Commissioner for Merseyside (the Commissioner), all staff in the office, the Chief Constable and police officers and police staff within the Merseyside Police Force having due regard to the overall regulatory framework of their approach to financial management.

2. To conduct business effectively, sound financial management policies are

essential and they must be strictly adhered to. Part of this process is to adopt and implement Financial Regulations. These Regulations have been drawn up in such a way as to ensure that the financial affairs of the Commissioner and the Chief Constable are conducted properly and in compliance with all necessary requirements. They also seek to reinforce the standards of conduct in public life required by the Commissioner, the Chief Constable, police officers, police staff and staff directly employed by the Commissioner and in particular the need for openness, accountability and integrity.

3. The Regulations are designed to establish financial responsibilities, to confer

duties, rights and powers upon the Commissioner, the Chief Constable and their officers and staff and to provide clarity about the financial accountabilities of groups or individuals and anyone acting on their behalf.

4. They reflect the application of best practice and the requirements of legislation.

In particular they seek to meet the criteria set out in the Financial Management Code of Practice issued by the Home Office under Section 17 of the Police Reform and Social Responsibility Act 2011 which permits the Secretary of State to issue codes of practice to all Police & Crime Commissioners and Chief Constables.

STATUS 5. These Financial Regulations should not be seen in isolation, but rather as part of

the overall regulatory and corporate governance framework that includes the Policing Protocol and codes of conduct. The regulations form part of the Scheme of Corporate Governance which also includes the schemes of consent and delegation.

6. The Commissioner, Chief Constable and all officers and staff have a general

duty to take reasonable action to provide for the security of assets under their control and for ensuring that the use of these resources is legal, properly authorised, provides value for money and achieves best value.


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7. Financial Regulations explain the working financial relationship between the Commissioner and the Chief Constable and their respective CFOs, the PCCCFO and the CCCFO, and the role played by the Commissioner’s Chief Executive and Monitoring Officer.

8. The Commissioner and Chief Constable are jointly responsible for approving or

amending Financial Regulations. The PCCCFO is responsible for maintaining and reviewing of Financial Regulations and submitting any additions or amendments to the Commissioner and Chief Constable, after consulting with the CCCFO and the Chief Executive. Copies will be available on the Commissioner’s website and on the Force Intranet.

9. A delegation in these Financial Regulations to a Chief Officer shall permit further

delegation to other officers provided that the terms of the delegation are clearly documented.

10. The Regulations will be supplemented by more detailed Financial Instructions

issued by the Chief Constable after consultation with the PCCCFO and the Chief Executive. The Financial Instructions will be available on the Force Intranet.

11. Chief Officers are responsible for ensuring that all staff, contractors and agents

are aware of the existence and content of these Financial Regulations and that they are complied with.

12. Breaches of Financial Regulations of a serious nature may result in disciplinary

proceedings and, potentially, criminal action. Such cases shall be reported to the PCCCFO and/or CCCFO who shall determine, after consulting with the Monitoring Officer, whether the matter shall be reported to the Commissioner

and/or Chief Constable. Further guidance is set out in Section H.

13. The Commissioner and all officers and staff have a duty to abide by the highest standards of probity (i.e. honesty, integrity and transparency) in dealing with financial issues.

14. The Financial Regulations shall only be suspended by a formal decision of the

Commissioner.


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THE FINANCIAL REGULATIONS 15. The Financial Regulations are divided into a number of sections. References are

made in the individual sections to delegated limits of authority with the actual

value of each limit is set out in Section G. Changes to delegated limits can then be made without reviewing the whole document.

Section A - Financial Management Framework Section B - Financial Planning and Control Section C - Management of Risk and Resources Section D - Systems and Procedures Section E - External Arrangements Section F - Contract Standing Orders Section G - Delegated Limits Section H - Guidance Notes on Breaches of Standing Orders and

Financial Regulations Section I - Anti Fraud and Corruption Arrangements

DEFINITIONS WITHIN THE REGULATIONS 16. These Regulations refer to:-

The Police & Crime Commissioner for Merseyside (the Commissioner) The Chief Constable of Merseyside Police The Statutory Officers The Force

17. The Statutory Officers are:-

The Commissioner’s Chief Finance Officer is the PCCCFO The Chief Constable’s Chief Finance Officer is the CCCFO The Chief Executive who also fulfils the role of Monitoring Officer

18. The ‘Force’ refers to the Chief Constable, police officers, police staff, police

community support and traffic officers (PCS&TOs), special constabulary, volunteers and other members of the wider police family under their direction and control.

19. Chief Officers when referred to as a generic term means the Chief Constable,

Chief Executive, PCCCFO and CCCFO.

20. ‘Personnel’ when referred to as a generic term refers to police officers, police staff and other members of the wider police family.

21. The expression ‘authorised officer’ refers to personnel authorised by a Chief

Officer.


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22. The expression ‘contract’ refers to any commitment (including purchase orders, memoranda of understanding, leases and service level agreements) to acquire, purchase or sell goods, services or building works made on behalf of the Commissioner, the Chief Constable or their affiliated bodies.

23. The expression ‘best value for money’ shall mean the most cost effective means

of meeting the need and takes account of whole life costs.

24. Within these Regulations, most of the references have been made to the responsibilities of the Chief Constable since most of the day to day operational financial management is vested in the Force. However, where resources are under the control of the Chief Executive or PCCCFO, the duties, rights and powers as detailed for the Chief Constable shall apply equally to the Chief Executive or PCCCFO.

25. The terms Chief Constable, Chief Executive, PCCCFO and CCCFO include any

member of personnel, contractors or agents to whom particular responsibilities may be given. However, the level of such responsibility must be evidenced clearly, made to an appropriate level and the member of personnel given sufficient authority, training and resources to undertake the duty in hand.

The Commissioner

26. The Police Reform and Social Responsibility Act 2011 (the Act) and the Policing Protocol Order 2011 (the Protocol) are the main source of powers and duties for the Commissioner. The Commissioner’s main aims are to:-

Maintain an efficient and effective police force for the police area; and

Hold the Chief Constable to account for the exercise of the functions of the office of Chief Constable and the functions of the persons under the direction and control of the Chief Constable.

27. The Commissioner will receive all funding, including the government grants and

the council tax precept and other sources of income relating to policing and crime reduction and all funding for the Chief Constable must come via the Commissioner. How this funding is allocated is a matter for the Commissioner in consultation with the Chief Constable, or in accordance with any grant terms. The Chief Constable will provide professional advice and recommendations.

28. The Commissioner is responsible for approving the policy framework and

budget, monitoring financial outcomes and the approval of medium term financial plans in consultation with the Chief Constable. The Commissioner is also responsible for approving the overall framework of accountability and control, and monitoring compliance. In relation to these Financial Regulations this includes:-


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The Police and Crime Plan

The Medium Term Financial Strategy including medium term financial forecasts

The Annual Revenue Budget

The Annual Capital Programme

The Treasury Management Strategy, including the annual investment strategy and Minimum Revenue Provision policy

The Estate Strategy and Asset Management plans

The Risk Management strategy

The Governance policies

29. The Commissioner is responsible for approving procedures for recording and reporting decisions taken and for monitoring compliance with agreed policy and related executive decisions.

30. The Commissioner is also responsible for approving procedures for agreeing

variations to approved budgets, plans and strategies forming the policy framework.

31. The Commissioner shall provide the PCCCFO with such personnel,

accommodation and other resources as are sufficient to allow the PCCCFO’s duties under this section to be performed.

32. The Commissioner may appoint a Deputy Commissioner and arrange for the

Deputy Commissioner to carry out appropriate functions of the Commissioner delegated to him/her.

The Deputy Police & Crime Commissioner (Deputy Commissioner)

33. A Deputy Commissioner (if appointed) may exercise any of the functions conferred on them by the Commissioner as detailed in the Scheme of Corporate Governance.

The Chief Constable

34. The Police Reform and Social Responsibility Act 2011 (the Act) and the Policing Protocol Order 2011 (the Protocol) outline the role of the Chief Constable. The Chief Constable is responsible for maintaining the Queen’s peace, and has direction and control over the Force’s officers and staff.

35. The Chief Constable is accountable to the law for the exercise of police powers,

and to the Commissioner for the delivery of efficient and effective policing, and management of resources and expenditure by the Chief Constable. At all times the Chief Constable, their constables and staff, remain operationally independent in the service of the communities that they serve.


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36. To help ensure the effective delivery of policing services and to enable the Chief

Constable all constables and staff within their Force, the Chief Constable should have day to day responsibility for financial management of the Force within the framework of the agreed budget allocation and levels of authorisation issued by the Commissioner.

37. The Chief Constable must ensure that the financial management of the allocated

budget remains consistent with the objectives and conditions set by the Commissioner.

38. When the Chief Constable intends to make significant change of policy or seeks

to move significant sums of their budget then the approval of the Commissioner should be sought.

39. The Chief Constable shall appoint a Chief Finance Officer (CCCFO) to lead the

Force on financial management and be responsible for the proper administration of the Chief Constable’s financial affairs.

40. The Chief Constable is responsible for the day to day financial management of

the Force within the framework of the budget, rules of virement and reporting arrangements. In operating day to day financial management, the Chief Constable shall comply with the approved policies and framework of accountability.

41. The Chief Constable shall prepare Financial Instructions to supplement the

Financial Regulations and provide detailed advice on the operation of the specific financial processes delegated to him/her. He/she shall ensure that all personnel are made aware of the existence of these Regulations and are given access to them. Where appropriate, training shall be provided to ensure that the Regulations can be complied with.

THE ROLE OF THE STATUTORY AND KEY OFFICERS

The Commissioner’s Chief Finance Officer (PCCCFO)

1. The PCCCFO has responsibility for proper financial administration and a

personal fiduciary responsibility to the local council taxpayer.

2. The PCCCFO’s statutory responsibilities and duties are set out in:-

Paragraph 6 of Schedule 1 to the Police Reform and Social Responsibility Act 2011;

Section 114 Local Government Finance Act 1988 (formal powers to safeguard lawfulness and propriety in expenditure);

The Accounts and Audit Regulations 2015;

The Financial Management Code of Practice; and

CIPFA guidance and codes of practice.


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3. The PCCCFO is the Commissioner’s professional adviser on financial matters

and shall be responsible for:-

Ensuring that the financial affairs of the Commissioner are properly administered and that Financial Regulations are observed and kept up to date;

Ensuring regularity, propriety and Value for Money (VfM) in the use of public funds;

Ensuring that the funding required to finance agreed programmes is available from Central Government, council tax precept, other contributions and recharges;

Reporting to the Commissioner, and to the external auditor:- - any unlawful, or potentially unlawful, expenditure by the Commissioner

or officers of the Commissioner; - when it appears that any expenditure is likely to exceed the resources

available to it to meet that expenditure;

Advising the Commissioner on the robustness of the estimates and the adequacy of financial reserves;

Preparing the annual statement of accounts, in conjunction with the CCCFO;

Ensuring the provision of an effective Internal Audit Service, in conjunction with the CCCFO;

Securing the treasury management function, including loans and investments;

Advising, in consultation with the Chief Executive on the safeguarding of assets, including risk management and insurance;

Arranging for the determination and issue of the precept;

Liaising with the external auditor; and

Advising the Commissioner on the application of value for money principles by the Force to support the Commissioner in holding the Chief Constable to account for efficient and effective financial management.

4. The PCCCFO has certain statutory duties which cannot be delegated, namely,

reporting any potentially unlawful decisions by the Commissioner on expenditure and preparing each year, in accordance with proper practices in relation to accounts, a statement of the Commissioner’s accounts, including group accounts.

5. To enable him/her to fulfil these duties and to ensure the Commissioner is

provided with adequate financial advice the PCCCFO:-

Must be a key member of the Commissioner’s Leadership Team, working closely with the Chief Executive, helping the team to develop and implement strategy and to resource and deliver the Commissioner’s strategic objectives sustainably and in the public interest;

Must be actively involved in, and able to bring influence to bear on, all strategic business decisions, of the Commissioner, to ensure that the financial aspects of immediate and longer term implications, opportunities and risks


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are fully considered, and alignment with the Commissioner’s financial strategy;

Must lead the promotion and delivery by the Commissioner of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively; and

Must ensure that the finance function is resourced to be fit for purpose.

The Chief Constable’s Chief Finance Officer (CCCFO)

6. The CCCFO has responsibility for proper financial administration and a personal fiduciary responsibility to the local council taxpayer.

7. The CCCFO’s responsibilities are set out in:-

Paragraph 6 of Schedule 1 to the Police Reform and Social Responsibility Act 2011;

Section 114 Local Government Finance Act 1988 (formal powers to safeguard lawfulness and propriety in expenditure);

The Accounts and Audit Regulations 2011;

The Financial Management Code of Practice; and

CIPFA guidance and codes of practice. 8. The CCCFO is responsible to the Chief Constable for all financial activities within

the Force or contracted out under the supervision of the Force. 9. The CCCFO is the Commissioner’s professional adviser on financial matters and

shall be responsible for:-

ensuring that the financial affairs of the Chief Constable are properly administered and that these Financial Regulations are observed and kept up to date;

ensuring regularity, propriety and Value for Money (VfM) in the use of public funds;

Reporting to the Chief Constable, the Commissioner, the PCCCFO and to the external auditor:-

- any unlawful, or potentially unlawful, expenditure by the Chief Constable or officers of the Chief Constable; and

- when it appears that any expenditure of the Chief Constable is likely to exceed the resources available to it to meet that expenditure;

advising the Chief Constable and the Commissioner on the soundness of the budget in relation to the Force;

working with the PCCCFO and their staff to produce the statement of accounts for the Chief Constable and to assist in the production of group accounts;

ensuring the provision of an effective Internal Audit Service, in conjunction with the CCCFO;

liaising with the external auditor; and

Advising the Commissioner on the application of value for money principles by the Force.


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10. The CCCFO has certain statutory duties which cannot be delegated, namely,

reporting any potentially unlawful decisions by the Chief Constable on expenditure and preparing each year, in accordance with proper practices in relation to accounts, a statement of the Chief Constable’s accounts. The CCCFO will need to observe the locally agreed timetable for the compilation of the group accounts by the PCCCFO.

11. To enable him/her to fulfil these duties the CCCFO:-

Must be a key member of the Chief Constable’s Management Team, helping it to develop and implement strategy and to resource and deliver the Commissioner’s strategic objectives sustainably and in the public interest;

Must be actively involved in, and able to bring influence to bear on, all strategic business decisions of the Chief Constable to ensure that the financial aspects of immediate and longer term implications, opportunities and risks are fully considered and alignment with the Commissioner’s financial strategy;

Must lead the promotion and delivery by the Chief Constable of good financial management so that public money is safeguarded at all times and used appropriately, economically, efficiently and effectively; and

Must ensure that the finance function is resourced to be fit for purpose. 12. It must be recognised that Financial Regulations cannot foresee every

eventuality. The CCCFO, in consultation with the PCCCFO, shall be responsible for interpreting these Regulations so as to ensure the efficient and effective operation of services.

The Chief Executive and Monitoring Officer

13. The Chief Executive is responsible for the leadership and general administration of the Commissioner’s office.

14. The Chief Executive is also the Commissioner’s designated Monitoring Officer, appointed under section 5(1) of the Local Government and Housing Act 1989.

15. As Monitoring Officer he/she is responsible for:- Ensuring the legality of the actions of the Commissioner and their officers; Ensuring that procedures for recording and reporting key decisions are

operating effectively; Advising the Commissioner and officers about who has authority to take a

particular decision; Advising the Commissioner about whether a decision is likely to be

considered contrary or not wholly in accordance with the policy framework; and

Advising the Commissioner on matters relating to standards of conduct.


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SECTION A - FINANCIAL MANAGEMENT FRAMEWORK

A1 FINANCIAL MANAGEMENT STANDARDS 1.1 The Commissioner, Chief Constable and all personnel have a duty to abide by

the highest standards of probity (i.e. honesty, integrity and transparency) in dealing with financial issues. This is facilitated by ensuring that everyone is clear about the standards to which they are working and the controls that are in place to ensure that these standards are met.

1.2 The Commissioner shall receive updates on the financial performance of the

Force and the Office of the Commissioner by receiving regular budget monitoring and outturn reports, and also the Annual Audit Letter provided by the external auditor.

Joint Responsibilities of the PCCCFO and CCCFO 1.3 To ensure the proper administration of the financial affairs of the Commissioner

and the Chief Constable. 1.4 To ensure that proper practices are adhered to. 1.5 To advise on the key strategic controls necessary to secure sound financial

management. 1.6 To ensure that financial information is available to enable accurate and timely

monitoring and reporting of comparisons based on national and local financial performance indicators.

1.7 To ensure that all officers and staff are aware of, and comply with, proper

financial management standards, including these Financial Regulations. 1.8 To ensure that all personnel are properly managed, developed, trained and

have adequate support to carry out their financial duties effectively.

Responsibilities of the Chief Constable 1.9 The Chief Constable shall ensure that specific duties and responsibilities in

financial matters are made clear to individuals and that these are properly recorded.


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A2 ACCOUNTING SYSTEMS, RECORDS AND RETURNS 2.1 Maintaining proper accounting records is one of the ways in which the

Commissioner and Chief Constable will discharge their responsibility for stewardship of public resources. There is a statutory responsibility to prepare annual accounts to present a true and fair view of the financial position of the Commissioner and the Chief Constable and of operations during the year. These are subject to external audit. This audit provides assurance that the accounts are prepared properly, that proper accounting practices have been followed and that adequate arrangements have been made for securing economy, efficiency and effectiveness in the use of resources.

Joint Responsibilities of the PCCCFO and CCCFO

2.2 To determine the accounting policies and procedures to be adopted, in

accordance with recognised accounting practices, and approve the strategic accounting systems and procedures employed by the Chief Constable. All personnel shall operate within the required accounting policies and published timetables.

2.3 To make proper arrangements for the audit of the Commissioner’s, Chief

Constable’s and group accounts in accordance with the Accounts and Audit Regulations 2015.

2.4 To ensure that all claims for funds including grants are made by the due date. 2.5 To ensure that bank reconciliations and other key control accounts are

reconciled on a timely and accurate basis. 2.6 To prepare and publish the audited accounts in accordance with the statutory

timetable.

Joint Responsibilities of the Chief Constable and CCCFO 2.7 To obtain the approval of the PCCCFO before making any fundamental

changes to accounting records and procedures or accounting systems. 2.8 To ensure that all transactions, material commitments and contracts and other

essential accounting information are recorded completely, accurately and on a timely basis.

2.9 To maintain adequate records to provide a management trail leading from the

source of income and expenditure through to the accounting statements. 2.10 To ensure that prime documents are retained in accordance with legislative and

internal requirements. The format of such documents shall satisfy the requirements of internal and external audit.


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A3 THE ANNUAL STATEMENT OF ACCOUNTS 3.1 The Commissioner and Chief Constable have a statutory responsibility to

prepare their own accounts to present a true and fair view of the financial position of the Commissioner and the Chief Constable and of operations during the year. They must be prepared in accordance with proper practices as set out in the Code of Practice on Local Authority Accounting in the United Kingdom (the Code). The accounts will comprise separate statements for the Commissioner, Chief Constable as well as group accounts covering both entities.

3.2 The Commissioner and Chief Constable are responsible for approving their own annual accounts.

3.3 The accounts are subject to detailed independent review by the external

auditor. This audit provides assurance that the accounts are prepared correctly, that proper accounting practices have been followed and that arrangements have been made for securing economy, efficiency and effectiveness in the use of resources are adequate.


3.4 To draw up the timetable for final accounts preparation, in consultation with the external auditor.

3.5 To prepare, sign and date the statement of accounts, stating that it presents a

true and fair view of the financial position of the Commissioner and the Chief Constable at the accounting date and its income and expenditure for the financial year just ended.

3.6 To publish the approved and audited accounts each year, in accordance with

the statutory timetable.

3.7 To select suitable accounting policies and apply them consistently. 3.8 To make judgements and estimates that are reasonable and prudent. 3.9 To comply with the Code of Practice on Local Authority Accounting.

Responsibilities of the CCCFO

3.10 To comply with accounting guidance provided by the PCCCFO and supply him with appropriate information upon request within a reasonable timescale.

Responsibilities of the Commissioner and Chief Constable

3.11 To consider and approve their annual accounts in accordance with the statutory timetable.


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SECTION B - FINANCIAL PLANNING AND CONTROL

B1 FINANCIAL PLANNING

1.1 Overview 1.1.1 Delivering a range of policing activities is complex and needs systems to be

developed and implemented to enable scarce resources to be allocated in accordance with carefully considered priorities. Proper financial planning is essential if an organisation is to function effectively.

1.1.2 The financial planning process should be directed by the approved policy

framework, the business planning process and the need to meet key objectives.

1.1.3 The planning process should be continuous and the planning period should

cover at least 3 years. The process should include a more detailed annual plan, the budget, covering the forthcoming financial year. This allows the Commissioner and the Chief Constable to plan, monitor and manage the way funds are allocated and spent during the financial year and over the medium term.

1.1.4 The format of the annual budget determines the level of detail to which

financial control and management will be exercised and shapes how the virement rules operate. The annual budget will be supported by a detailed objective analysis of spending at Area and Departmental level.

1.1.5 It is recognised that the impact of financial planning in the police service will

be constrained by the quality and timing of information made available by Central Government on resource allocation.

1.2 Medium Term Financial Strategy 1.2.1 The Commissioner and Chief Constable share a responsibility to provide

effective financial and budget planning for the short, medium and longer term. They achieve this by preparing a medium term financial strategy including financial projections for at least 3 years together with a capital programme covering the same period.

Responsibilities of the Commissioner 1.2.2 To identify and agree, in consultation with the Chief Constable and other

relevant partners and stakeholders, a Medium Term Financial strategy, which includes funding and spending, plans for both revenue and capital. The strategy should take into account multiple years, the inter-dependencies of revenue budgets and capital investment, the role of reserves and consideration of risks. It should have regard to affordability and also to


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CIPFA’s Prudential Code for Capital Finance in Local authorities. The strategy should be aligned with the Police and Crime Plan.

Joint Responsibilities of the PCCCFO and CCCFO 1.2.3 To determine the format and timing of the medium term financial strategy to

be presented to the Commissioner. The format is to comply with all legal requirements and with latest guidance issued by CIPFA.

1.2.4 To prepare a medium term forecast of proposed income and expenditure for

submission to the Commissioner. When preparing the forecast, the PCCCFO and CCCFO shall have regard to:-

The Police and Crime Plan;

Policy requirements approved by the Commissioner as part of the policy framework;

The Strategic Policing Requirement;

Unavoidable future commitments, including legislative requirements;

Initiatives already underway;

Revenue implications of the capital programme;

Proposed service developments and plans which reflect public consultation;

The need to deliver efficiency and/or productivity savings;

Government grant allocations; and

Potential implications for local taxpayers. 1.2.5 To ensure that the medium term financial strategy includes options for the

use of general balances, reserves and provisions, assumptions about future levels of government funding and demonstrates potential implications for local taxation.

1.2.6 A gap may be identified between available resources and required

resources. Requirements should therefore be prioritised by the Chief Constable and the CCCFO, in conjunction with the PCCCFO, to enable the Commissioner to make informed judgements as to future funding levels and planning the use of resources.

1.3 Annual Revenue Budget Preparation 1.3.1 The revenue budget provides an estimate of the annual income and

expenditure requirements for the police service and sets out the financial implications of the Commissioner’s strategic policies. It provides Chief Officers with authority to incur expenditure and a basis on which to monitor the financial performance of both the Commissioner and the Chief Constable.


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1.3.2 The Commissioner should consult with the Chief Constable and other relevant partners and stakeholders in planning the overall annual budget which will include a separate force budget. This will take into consideration funding from Government and from other sources and balance the expenditure needs of the policing service and the Commissioner against the level of local taxation. This should meet the statutory requirements to achieve a balanced budget (Local Government Act 2003) and be completed in accordance with the statutory timeframe.

1.3.3 The impact of the annual budget on the priorities and funding of future years

as set out in the Police and Crime Plan and the medium term financial strategy should be clearly identified.

Responsibilities of the Commissioner

1.3.4 To obtain the views of the local community on the proposed expenditure

(including capital expenditure) ahead of the financial year to which the proposed expenditure relates.

1.3.5 To present the proposed budget and precept recommendations to the Police

and Crime Panel and respond to their views and comments. 1.3.6 To approve the annual budget.

Joint responsibilities of the PCCCFO and CCCFO

1.3.7 To agree the planning timetable. 1.3.8 To determine the format of the revenue budget to be presented to the

Commissioner. The format is to comply with all legal requirements and with latest guidance issued by CIPFA.

Responsibilities of the PCCCFO 1.3.9 To obtain timely and accurate information from billing authorities on the

council tax base and the latest surplus/deficit position on collection funds to inform budget deliberations.

1.3.10 To advise the Commissioner on appropriations from/to and or the

appropriate level of general balances, earmarked reserves or provisions to be held.

1.3.11 To submit a report to the Commissioner on (1) the robustness of the

estimates and the adequacy of reserves and (2) the suite of prudential indicators for the next three years, arising from the Prudential Code for Capital Finance in Local Authorities. These indicators shall be consistent with the annual revenue budget and capital programme approved by the Commissioner.


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1.3.12 Upon approval of the annual budget, to submit the council tax requirement

return to Central Government and precept requests to appropriate bodies in accordance with the legal requirement.

1.3.13 To produce and issue information required by the billing authorities to

explain how the precept will be used to pay for the cost of policing, in accordance with statutory requirements.

Joint Responsibilities of the Chief Constable and CCCFO

1.3.14 To prepare detailed budget estimates for the forthcoming financial year in

accordance with the timetable agreed with the PCCCFO. 1.3.15 To submit estimates in the agreed format to the Commissioner for approval. 1.3.16 To identify all newly proposed individual major revenue projects (a major

revenue project shall be defined as one in excess of the value shown in

Section G).

B2 BUDGETARY CONTROL

2.1 Overview 2.1.1 Budget management ensures that once the Commissioner has approved the

budget, resources allocated are used for their intended purpose and are properly accounted for. Budgetary control is a continuous process, enabling both the Chief Constable and Commissioner to review and adjust their budget targets during the financial year. It also provides the mechanism that calls to account managers responsible for defined elements of the budget.

2.1.2 The key controls for managing and controlling the revenue budget are that:-

There is a nominated budget manager for each cost centre heading who is accountable for the budgets under his direct control; and

The management of budgets must not be seen in isolation. It should be measured in conjunction with service outputs and performance measures.

2.2 Revenue Budget Monitoring 2.2.1 By continuously identifying and explaining variances against budgetary

targets, the Commissioner and the Chief Constable can identify changes in trends and resource requirements at the earliest opportunity. The Commissioner and Chief Constable both operate within an annual cash limit, approved when setting the annual budget. To ensure that the budget is not overspent in total, the Chief Constable, the Chief Executive and the PCCCFO are required to manage expenditure within their budget allocations, subject to the rules of virement.


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Joint Responsibilities of the Chief Constable and CCCFO

2.2.2 To provide appropriate financial information to enable budgets to be monitored effectively.

2.2.3 To ensure that each element of income or expenditure has a nominated

budget manager to take responsibility for that part of the budget. Budget responsibility should be aligned as closely as possible to the decision making process that commits expenditure. Details of the budget managers’ responsibilities and the reporting requirements will be contained within the Financial Instructions issued by the Chief Constable.

2.2.4 To ensure that total spending for operational policing remains within the

overall allocation of resources and takes corrective action where significant variations from the approved budget are forecast. Where total projected expenditure exceeds the total allocation of resources due to circumstances beyond the control of the Chief Constable, both the PCCCFO and Commissioner shall be alerted immediately and proposals for remedy should be put forward as part of the regular reporting process to the Commissioner.

Joint Responsibilities of the PCCCFO and CCCFO 2.2.5 To submit a budget monitoring report to the Commissioner on a regular

basis throughout the year, containing the most recently available financial information. The reports shall be in a format agreed with the Commissioner and PCCCFO.

2.2.6 To refer major revenue projects back to the Commissioner for further

approval where amendments to the nature of the scheme are sought or the cost of the scheme increases by an amount in excess of the limits shown in

Section G. 2.2.7 To submit to the Commissioner an annual outturn report covering all the

Commissioners financial responsibilities, containing the most recently available financial information and showing spending to date and comparisons of projected outturn with the latest approved budget.

Joint Responsibilities of the Chief Executive and PCCCFO 2.2.8 To manage the budget allocated for the Commissioner’s Office and submit a

report of the expenditure to the Commissioner.


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2.2.9 To ensure that total spending for the Commissioner’s Office remains within the overall allocation of resources and take corrective action where significant variations from the approved budget are forecast. Where total projected expenditure exceeds the total allocation of resources due to circumstances beyond the control of the Chief Executive the Commissioner shall be alerted immediately together with proposals to remedy the situation as part of the regular reporting process to the Commissioner.

2.3 Revenue Virement 2.3.1 A virement is a planned reallocation of resources between approved

budgets or heads of expenditure. A budget head is a line in the approved budget report. Virements do not create additional overall budget liabilities. They are undertaken as necessary to maintain the accuracy of budget monitoring by ensuring the budget reflects the financial implications of decisions taken during the current year.

2.3.2 The process of virements is intended to enable chief officers to manage their

budgets with a degree of flexibility within the overall policy framework determined by the Commissioner and, therefore, to provide the opportunity to optimise the use of resources to meet emerging needs.

2.3.3 Routine allocations of central budgets, such as adjustments for pay awards

and inflation, and specific grants are not considered as a virement for the purpose of these regulations.

2.3.4 The Chief Constable is expected to exercise discretion in managing budgets

responsibly and prudently and should only be required to refer back to the Commissioner when virement would incur major changes in the policing policy of the Commissioner, a significant reallocation of resources (as shown

in Section G) or where a virement might create a future year or continuing commitment.

2.3.5 The Chief Constable shall still be held to account by the Commissioner for

decisions made and the way in which resources are deployed. The virement rules allow greater freedom but require detailed reports on significant changes.

Responsibilities of the Commissioner 2.3.6 To approve virements in respect of:-

A major change in policing policy;

A significant addition to commitments in future years;

individual virements on an approved budget head that is more than (20%) of the budget head or the equivalent of (0.5%) of the gross operational budget, whichever is the lower;


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Cumulative virements within a financial year that in total are more than (20%) of the budget head or the equivalent of (0.5%) of the gross operational budget, whichever is the lower. Subsequent virements to these budget heads should also be approved; or

Virements from capital budget to revenue budget.


2.3.7 To authorise any requests for virements within the financial limits set within

Section G.


2.3.8 To approve virements where the virement is between an income budget line and a directly related expenditure budget line. The income and expenditure budgets will be adjusted for budget monitoring purposes

2.4 Treatment of Year End Balances 2.4.1 A year-end balance is the amount by which actual income and expenditure

varies from the final budget, normally identified down to devolved budget holder level. Arrangements are necessary for the transfer of resources between accounting years, i.e. a carry-over. This may increase or decrease the resources available to budget holders in the following financial year, dependent upon the nature of the budget variation. Carry-overs will be undertaken in accordance with the approved scheme.

2.4.2 The carry-over of underspent and overspent budgets is permitted only within

the delegation limits set out Section G. Carry-overs are to be the subject of a report to the Commissioner as part of the year end outturn report. Budget Managers will be required to satisfy the Chief Constable that expenditure proposed against carry-over underspendings is in accordance with Police and Crime Plan priorities and is non-recurrent in nature.

Joint Responsibilities of the PCCCFO and the CCCFO 2.4.3 To ensure that Budget Managers report any overspend on their budgets in

any financial year. 2.4.4 To consider reducing budgets for the following financial year where

overspending has occurred or is expected to occur. 2.4.5 To consider requests from Budget Managers who identify planned

underspends in any financial year for budget provision to be carried-over to

the following financial year, subject to the limits indicated in Section G. 2.4.6 To refer all carry forwards that fall outside of the parameters stipulated in

these Regulations to the Commissioner for approval.


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Responsibilities of the Commissioner 2.4.7 To consider the arrangements for carrying-over underspends when

considering the level of reserves and balances as part of the development of the medium term financial strategy.

2.4.8 To approve the annual carry-over scheme.

B3 CAPITAL PROGRAMME

3.1 Capital Planning 3.1.1 Capital expenditure involves acquiring or enhancing fixed assets with a long-

term value, such as land, buildings, and major items of plant, equipment or vehicles. Capital assets shape the way services are delivered in the long term and may create financial commitments in the form of financing costs and revenue running costs.

3.1.2 Capital investment can be undertaken providing the spending plans are

affordable, prudent and sustainable. CIPFA’s Prudential Code sets out the framework under which the Commissioner will consider the spending plans.

3.1.3 The capital programme is linked to the Estate Strategy and other strategies

involving proposals for significant investment in capital assets which must be included within the approved Medium Term Financial Strategy.

Responsibilities of the Commissioner 3.1.4 To approve the Estate Strategy and asset management plans together with

other strategies involving proposals for significant investment in capital assets.

3.1.5 To approve the capital programme.

Responsibilities of the Chief Constable

3.1.6 To develop and implement approved Estate Strategy and asset management plans.

Joint Responsibilities of the PCCCFO and Chief Constable 3.1.7 To ensure capital spending plans are included in the Medium Term Financial

Strategy.


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Joint Responsibilities of the Chief Constable and CCCFO 3.1.8 To prepare a rolling capital programme for at least 3 years of proposed

expenditure for consideration and approval by the PCCCFO and Commissioner. Each scheme shall identify the total capital cost of the project and any additional revenue commitments.

3.1.9 To prepare project appraisals for all schemes to be included in the capital

programme for submission to the PCCCFO and Commissioner for consideration and scheme approval. This will include all additional revenue and capital costs and provide evidence of the scheme’s viability for inclusion.

3.1.10 To ensure that each capital project has a named officer responsible for

managing the scheme, monitoring progress and ensuring completion of the scheme.

3.1.11 To identify, in consultation with the PCCCFO, available sources of funding

the capital programme, including the identification of potential capital receipts from disposal of property or other assets.

3.1.12 To prioritise requirements so that if a gap is identified between available

resources and required capital investment the Commissioner can make informed judgements as to which schemes should be included in the capital programme, the minimum level of funding required for each scheme and the potential phasing of capital expenditure.

3.1.13 Not to incur capital expenditure unless the scheme is approved by the

Commissioner.

Responsibilities of the PCCCFO 3.1.14 To make recommendations to the Commissioner on the most appropriate

level of revenue support and appropriate levels of borrowing, under the Prudential Code, to support the capital programme.

Responsibilities of the Commissioner 3.1.15 To approve a fully funded medium term capital programme.

3.2 Annual Capital Programme

Responsibilities of the Commissioner 3.2.1 To approve the annual capital programme, and how it is to be financed.


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Responsibilities of the Chief Executive 3.2.2 To approve the entering into of property leases or renewals, finance leases

or other credit arrangements as included within the approved annual capital programme.

Responsibilities of the Chief Constable 3.2.3 To incur expenditure on approved capital scheme and provided cost

variations do not exceed the sum contained in the approved programme by

more than the amounts identified in Section G.

3.3 Monitoring of Capital Expenditure

Responsibilities of the Chief Constable 3.3.1 To ensure that adequate records are maintained for all capital contracts.

Joint Responsibilities of the Chief Constable and the PCCCFO 3.3.2 To monitor progress of the capital programme and expenditure throughout

the year against the approved annual programme. 3.3.3 To submit capital monitoring reports to the Commissioner on a regular basis

throughout the year. These reports are to be based on the most recently available financial information. The monitoring reports will show spending to date and compare projected income and expenditure with the approved programme. The reports shall be in a format agreed by the PCCCFO.

3.3.4 To prepare a business case for all new capital schemes (after the annual

programme has been agreed) for submission to the Commissioner for consultation and approval.

3.3.5 To demonstrate how any amendments to the programme increasing the

overall costs are to be funded.

Joint Responsibilities of the PCCCFO and the CCCFO 3.3.6 To report on the outturn of capital expenditure as part of the annual report

on the statutory accounts.


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B4 MAINTENANCE OF BALANCES AND RESERVES 4.1 The Commissioner will decide the level of general balances and earmarked

reserves to be retained before deciding the level of council tax precept. Reserves are maintained as a matter of prudence. They enable the organisation to provide for cash flow fluctuations and unexpected costly events and thereby help protect it from overspending the annual budget, should such events occur. Reserves for specific purposes may also be maintained where it is likely that a spending requirement will occur in the future.

Responsibilities of the PCCCFO 4.2 To advise the Commissioner on reasonable levels of general balances and

reserves. 4.3 To report to the Commissioner on the adequacy of reserves and general

balances before approval of the annual budget and precept. 4.4 To recommend appropriate appropriations to and from general balances and

each earmarked reserve.

Responsibilities for the Chief Constable

4.5 To ensure that the annual revenue budget is sufficient to finance foreseeable

operational needs without having to request additional approval. 4.6 To present a business case to the PCCCFO and Commissioner for one-off

expenditure items to be funded from earmarked reserves and/or general balances.

Responsibilities of the Commissioner 4.7 To approve a policy on reserves and general balances, including the minimum

acceptable level of general balances. 4.8 To approve the creation of each earmarked reserve. The purpose, usage and

basis of transactions should be clearly identified for each reserve established. 4.9 To approve the allocation of monies to and from General Balances and

earmarked reserves, as part of the annual budget setting process. 4.10 To approve appropriations to and from general balances and each earmarked

reserve. These will be separately identified in the Annual Statement of Accounts.


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SECTION C - MANAGEMENT OF RISK AND RESOURCES

C1 RISK MANAGEMENT AND BUSINESS CONTINUITY

1.1 It is essential that robust, integrated systems are developed and maintained for identifying and evaluating all potential significant corporate and operational risks. This should include the proactive participation of all those associated with planning and delivering services.

1.2 All organisations, whether private or public sector, face risks to people, property and continued operations. Risk is the chance or possibility of loss, damage, injury or failure to achieve objectives caused by an unwanted or uncertain action or event. Risk cannot be eliminated altogether. However, risk management is the planned and systematic approach to the identification, evaluation and control of risk. Its objectives are to secure the assets of the Commissioner and the Chief Constable and to ensure continued corporate and financial well-being. In essence it is, therefore, an integral part of good business practice.

Joint Responsibilities of the Commissioner and Chief Constable

1.3 The Code of Corporate Governance highlights the importance of risk management being embedded throughout the governance arrangements in both organisations, whether operating jointly or separately. The Commissioner and Chief Constable are jointly responsible for approving the risk management policy statement and strategy, and for reviewing the effectiveness of risk management.

Responsibilities of Chief Officers / Chief Executive

1.4 To prepare a risk management policy statement and for promoting a culture of risk management awareness throughout the Force and the Office of the Commissioner and reviewing risk as an on-going process.

1.5 To implement procedures to identify, assess, prevent or contain material known risks, with a monitoring process in place to review regularly the effectiveness of risk reduction strategies and the operation of these controls. The risk management process should be formalised and conducted on a continuing basis.

1.6 To ensure that appropriate business continuity plans are developed, implemented and tested on a regular basis.


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Responsibilities of the PCCCFO

1.7 To advise the Commissioner on appropriate arrangements for insurance. Acceptable levels of risk should be determined and insured against where appropriate. Activities leading to levels of risk assessed as unacceptable should not be undertaken.

1.8 To arrange for regular reviews to be undertaken of self-insurance arrangements and, following these reviews, to recommend to the Commissioner a course of action to ensure that, over the medium term, funds are available to meet all known liabilities.


1.9 To ensure, in consultation with the PCCCFO, that appropriate insurance cover is provided, including where new risks are identified or circumstances affecting risks change.

1.10 To notify the PCCCFO of any significant claims.

1.11 To notify the Chief Executive of any terms of indemnity that are requested.

1.12 To make all appropriate personnel aware of their responsibilities for managing relevant risks.

1.13 To ensure that personnel, or anyone covered by the Chief Constable and Commissioner Insurance, is instructed not to admit liability or make any offer to pay compensation that may prejudice the assessment of liability in respect of any insurance claim.

1.14 To ensure that a comprehensive risk register is produced and updated regularly, and that corrective action is taken at the earliest possible opportunity to either transfer, treat, tolerate or terminate the identified risk.

Responsibilities of the Chief Executive

1.15 To evaluate and authorise any terms of indemnity that is requested by external parties.

1.16 To approve before any contract for works is made that adequate insurance cover be furnished by the contractor in respect of any act or defaults unless cover is provided by the Commissioner.

1.17 To ensure that a comprehensive risk register is produced and updated regularly, and that corrective action is taken at the earliest possible opportunity to either transfer, treat, tolerate or terminate the identified risk.


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C2 INTERNAL CONTROLS

2.1 Internal control refers to the systems of control devised by management to help ensure objectives of the Commissioner and the Chief Constable are achieved in a manner that promotes economical, efficient and effective use of resources and that assets and interests are safeguarded.

2.2 Policing is complex and requires an internal control framework to manage and monitor progress towards strategic objectives. The Commissioner and the Chief Constable have statutory obligations, and, therefore, systems of internal control are required to identify, meet and monitor compliance with these obligations.

2.3 The Commissioner and the Chief Constable face a wide range of financial, administrative and commercial risks, both from internal and external factors, which threaten the achievement of their objectives. Systems of internal control are necessary to manage these risks. These systems of internal control are established in order to provide achievement of:-

Efficient and effective operations;

Reliable financial information and reporting;

Compliance with laws and regulations; and

Risk management.

Responsibilities of Chief Officers

2.4 To implement effective systems of internal control, in accordance with advice from the PCCCFO and CCCFO. These arrangements shall ensure compliance with all applicable statutes and regulations, and other relevant statements of best practice. They shall ensure that public resources are properly safeguarded and used economically, efficiently and effectively.

2.5 To ensure that effective key controls exist and are operating in managerial control systems, including defining policies, setting objectives and plans, monitoring financial and other performance information and taking appropriate anticipatory and remedial action where necessary. The key objective of these control systems is to define roles and responsibilities.

2.6 To ensure that effective key controls are operating in financial and operational systems and procedures. This includes physical safeguard of assets, segregation of duties, authorisation and approval procedures and robust information systems.

2.7 To produce separate Annual Governance Statements for consideration and approval by the Commissioner and Chief Constable.


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C3 AUDIT REQUIREMENTS

3.1 Joint Independent Audit Committee

3.1.1 The purpose of an Audit Committee is to provide those charged with

governance (i.e. the Commissioner and Chief Constable) independent assurance on the adequacy of the risk management framework, the internal control environment and the integrity of the financial reporting and annual governance processes. By overseeing internal and external audit it makes an important contribution to ensuring that effective assurance arrangements are in place.

Responsibilities of the Commissioner and Chief Constable

3.1.2 To recruit and appoint 3-5 members of the Committee. These members

should be independent of both the Commissioner and the Chief Constable.

3.1.3 To establish the Committee Terms of Reference.

3.1.4 To prepare and sign annual letters of representation and submit to the external auditor.

3.1.5 To receive and act upon the annual assurance statement from the

Committee.

3.2 Internal Audit 3.2.1 Internal Audit is an assurance function that provides an independent and

objective opinion to an organisation on the control environment, by evaluating its effectiveness in achieving the organisation’s objectives. It objectively examines, evaluates and reports on the adequacy of the control environment as a contribution to the proper, economic, efficient and effective use of resources.

3.2.2 The requirement for an internal audit function for local authorities is either

explicit or implied in the relevant local government legislation (section 151 of the Local Government Act 1972), which requires that authorities “make arrangements for the proper administration of their financial affairs”. In the Police Service the Commissioner and Chief Constable are required to maintain an effective audit of their affairs by virtue of the Accounts and Audit Regulations 2011 (as amended) which state that a “relevant body must maintain an adequate and effective system of internal audit of its accounting records and of its system of internal control in accordance with the proper practices in relation to internal control”. The guidance accompanying the legislation states that proper internal control practices for internal audit are those contained in the Public Sector Internal Audit Standards.


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3.2.3 In fulfilling this requirement the Commissioner and Chief Constable should

have regard to the Public Sector Internal Audit Standards. The Statement on the Role of the Head of Internal Audit in Public Service Organisations issued by CIPFA sets out best practice and should be used to assess arrangements to drive up audit quality and governance arrangements.

3.2.4 Internal Audit reports regularly on the results of its work to the PCCCFO, the

CCCFO and the relevant Force Portfolio Holders. The results are also reported to the Joint Audit Committee. The Head of Internal Audit also provides:-

Regular assessments of the adequacy and effectiveness of the Commissioner and Chief Constable’s governance processes, systems of risk management and internal controls based on the work off Internal Audit;

Reporting on significant control issues and potential for improving risk management, governance and internal control processes;

Periodic information on the status and results of the annual audit plan, the sufficiency of Internal Audit resources and the implementation by management of Internal Audit findings;

Periodically, an overview of Internal Audit’s performance feedback from clients within the Force and Commissioner’s Office; and

An annual opinion to inform the Commissioner’s and Chief Constable’s governance statements covering the overall adequacy and effectiveness of the respective frameworks of governance, risk management and control.

Responsibilities of the Joint Independent Audit Committee

3.2.5 To provide independent assurance of the adequacy of the risk management

framework and the associated control environment, independent scrutiny of the organisations financial and non-financial performance to the extent that it affects the organisations exposure to risk and weakens the control environment, and to oversee the financial reporting process. Specifically in relation to audit this covers:-

To consider the Head of Internal Audit’s annual report and opinion, and a summary of internal audit activity (actual and proposed) and the level of assurance it can give over the corporate governance arrangements.

To consider summaries of specific internal audit reports as requested.


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To consider reports dealing with the performance of the Joint Internal Audit service.

To consider a report from internal audit on the implementation of audit recommendations.

To consider the external auditor’s annual letter, relevant reports, and the report to those charged with governance.

To consider specific reports as agreed with the external auditor.

To comment on the scope and depth of external audit work and to ensure it gives value for money.

To liaise with the Audit Commission over the appointment of the external auditor.

Joint Responsibilities of the Commissioner and Chief Constable 3.2.6 To ensure the provision of an adequate and effective internal audit service.

Joint Responsibilities of the Commissioner, Chief Constable, PCCCFO

and CCCFO

3.2.7 To ensure that internal auditors, having been management vetted, have the

authority to:-

access police and Commissioner premises at reasonable times;

access all assets, records, documents, correspondence, control systems and appropriate personnel, subject to appropriate security clearance;

receive any information and explanation considered necessary concerning any matter under consideration;

require any personnel to account for cash, stores or any other police and Commissioner assets under their control; and

Access records belonging to contractors, when required. This shall be achieved by including an appropriate clause in all contracts.

3.2.8 To ensure that Internal Audit has direct access to all Chief Officers and

personnel, where necessary.


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Responsibilities of the Head of Internal Audit 3.2.9 To prepare, in consultation with the Commissioner, Chief Constable,

PCCCFO and CCCFO, an annual audit plan that conforms to the Public Sector Internal Audit Standards, for consideration by the Independent Audit Committee.

3.2.10 To attend meetings of the Independent Audit Committee and to present to

each meeting a report on the progress in delivering the annual plan, the matters arising from audits, and the extent to which agreed actions in response to issues raised in the audit reports have been delivered.

3.2.11 To present an annual report to the Independent Audit Committee, including

an opinion on the effectiveness of the internal control environment within the Force and those managed by the Commissioner.


3.2.12 To consider and respond promptly to control weaknesses, issues and recommendations in audit reports and ensure that all critical or significant agreed actions arising from the audit are carried out in accordance with the agreed action plan included in each report.


3.2.13 To ensure that new systems for maintaining financial records or records of

assets, or significant changes to existing systems, are discussed with and agreed by the PCCCFO and Internal Audit prior to implementation.

3.2.14 To notify the PCCCFO immediately of any loss or financial irregularity or

suspected irregularity, fraud, theft, improper use of property or of any circumstances which may suggest the possibility of losses or irregularities, including those affecting cash, stores and other property of the Commissioner.

3.2.15 Pending investigation and reporting, the Chief Constable should take all

necessary steps to prevent further loss and to secure records and documentation against removal or alteration.

3.2.16 Investigation of internal financial irregularities shall be undertaken in

accordance with the approved Fraud/Corruption/Irregularities procedures contained within Force Financial Instructions.

Responsibilities of the PCCCFO 3.2.17 The PCCCFO shall report serious losses and irregularities to the

Commissioner.


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3.3 External Audit 3.3.1 The Audit Commission is responsible for appointing external auditors to local

and other authorities and to police forces and elected policing bodies (Commissioners). The Code of Audit Practice prescribes the way in which auditors appointed by the Audit Commission carry out their functions under the Audit Commission Act 1998. The external auditor has rights of access to all documents and information necessary for audit purposes.

3.3.2 The basic duties of the external auditor are governed by section 15 of the

Local Government Finance Act 1982, the Audit Commission Act 1998 and the Local Government Act 1999. In particular, section 4 of the 1998 Act requires the Audit Commission to prepare a code of audit practice, which external auditors follow when carrying out their duties. The code of audit practice sets out the auditor’s objectives to review and report upon:-

The audited body’s financial statements; and

Aspects of the audited body’s arrangements to secure Value for Money. 3.3.3 In auditing the annual accounts the external auditors must satisfy

themselves, in accordance with Section 5 of the 1998 Act, that:-

The accounts are prepared in accordance with the relevant regulations;

They comply with the requirements of all other statutory provisions applicable to the accounts;

Proper practices have been observed in the compilation of the accounts; and

The body whose accounts are being audited has made proper arrangements for securing economy, efficiency and effectiveness.

3.3.4 The 1998 Act sets out other specific responsibilities of the auditor, for

example under the section on financial reporting.

Responsibilities of the Joint Independent Audit Committee 3.3.5 To approve the annual audit plan. 3.3.6 To consider the external auditor’s Annual Audit Letters, relevant reports and

the report to the Commissioner and Chief Constable.

3.3.7 To comment on the scope and depth of external audit work and to ensure it gives value for money.

3.3.8 To receive and respond to progress reports from the Head of Internal Audit.


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Joint Responsibilities of the PCCCFO and CCCFO 3.3.9 To liaise with the external auditor and advise the Commissioner and Chief

Constable on their responsibilities in relation to external audit and ensure there is effective liaison between external and internal audit.

3.3.10 To provide the Home Office with a copy of the Annual Audit Letter.

Joint Responsibilities of the Chief Constable and PCCCFO 3.3.11 To ensure that for the purposes of their work the external auditors are given

the access to which they are statutorily entitled in relation to premises, assets, records, documents, correspondence, control systems and personnel, subject to appropriate security clearance.

3.3.12 To respond to draft action plans and to ensure that agreed

recommendations are implemented in a timely manner.

3.4 Other Inspection Bodies 3.4.1 The Chief Constable and the Commissioner may, from time to time, be

subject to audit, inspection or investigation by external bodies such as HMIC and the HM Revenue & Customs, who have statutory rights of access.


3.4.2 To publish comments in response to a HMIC report.

Joint Responsibilities of the Commissioner and the Chief Constable 3.4.3 To receive and respond to reports from HMIC and other inspection bodies.

C4 PREVENTING FRAUD AND CORRUPTION

4.1 The Commissioner and the Chief Constable will not tolerate fraud or corruption in the administration of their responsibilities, whether from inside or outside their organisations.

4.2 Expectations of propriety and accountability are that the Commissioner, Chief Constable and personnel at all levels will lead by example in ensuring adherence to legal requirements, rules, procedures and practices.

4.3 It is expected that all individuals and organisations (e.g. suppliers, contractors, and service providers) with whom they come into contact will act with honesty and integrity and without thought or actions involving fraud or corruption.


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Joint Responsibilities of the Commissioner and Chief Constable

4.4 To foster a culture that will not tolerate fraud and corruption.

4.5 To approve and maintain an effective anti-fraud and corruption arrangements

(Section I).

4.6 To ensure that adequate and effective internal control arrangements are in place.

4.7 To maintain a policy for the registering of interests and the receipt of hospitality and gifts covering both the Commissioner, Chief Constable and all personnel. A register of interests and a register of hospitality and gifts shall be maintained for the Commissioner, the Chief Constable, Chief Officers and all personnel.

4.8 To maintain a whistle blowing policy to provide a facility that enables personnel, the general public and contractors to make allegations of fraud, misuse and corruption in confidence, and without recrimination, to an independent contact. Procedures shall ensure that allegations are investigated robustly as to their validity that they are not malicious and that appropriate action is taken to address any concerns identified. The Chief Constable shall ensure that all personnel are aware of any approved whistle blowing policy.

4.9 To implement and maintain a clear internal financial control framework setting out the approved financial systems to be followed by all members and personnel.

4.10 To adopt and adhere to the whistle blowing policy.

Joint Responsibilities of the Chief Executive, PCCCFO and Chief

Constable

4.11 To prepare an effective anti-fraud and corruption arrangements for approval by the Commissioner and Chief Constable.

4.12 To adhere to appropriate legislation, e.g. the Public Disclosure Act 1998.

4.13 To arrange for any suspected incidents of fraud or corruption to be reported in line with the protocol agreed between the Chief Constable’s Head of Professional Standards, the PCCCFO, the CCCFO and the Head of Internal Audit and for these to be unrestricted in line with the agreed anti-fraud and corruption arrangements.


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C5 ASSETS

5.1 Overview 5.1.1 Assets are held in the form of land, property, vehicles, equipment, furniture

and other items. It is important that assets are safeguarded and used efficiently in service delivery, that there are arrangements for the security of both assets and information required for service operations and that proper arrangements exist for the disposal of assets. An up-to-date asset register is a prerequisite for proper fixed asset accounting and sound asset management which provides information about assets so that they are:-

Accurately recorded and classified;

Safeguarded against loss;

Used efficiently and effectively;

Adequately maintained; and

Valued in accordance with statutory and management requirements.

5.2 Context

5.2.1 The Commissioner will initially own and fund all assets regardless of whether

they are used by the Commissioner, by the Chief Constable or by both bodies. The Commissioner has not given the Chief Constable consent to acquire land and buildings.

5.2.2 The Chief Constable is responsible for the direction and control of the Force

and should therefore have day-to-day management of all assets used by the Force.

5.2.3 The Commissioner should consult the Chief Constable in planning the

budget and developing a medium term financial strategy. Both these processes should involve a full assessment of the assets required to meet operational requirements, including in terms of human resources, infrastructure, land, property and equipment.

Joint Responsibilities of the Commissioner and Chief Constable 5.2.4 To ensure that:-

Assets are only used for the purposes of the Chief Constable and the Commissioner and are available for use when required and are properly accounted for;

An asset register is maintained that provides information about fixed assets so that they are safeguarded, used efficiently and effectively, adequately maintained and valued in accordance with statutory and management requirements;


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Assets and records of assets are properly maintained and securely held and that contingency plans for the security of assets and continuity of service in the event of disaster or system failure are in place;

Lessees and other prospective occupiers of land owned by the Commissioner are not allowed to take possession or enter the land until a lease or agreement has been established as appropriate;

Title deeds to Commissioner property are held securely;

No Commissioner’s asset is subject to personal use by any personnel without proper authority;

Valuable and portable items such as computers, cameras and video recorders are identified with security markings as belonging to the Commissioner;

All personnel are aware of their responsibilities with regard to safeguarding assets and information, including the requirements of the Data Protection Act and software copyright legislation;

Assets no longer required are disposed of in accordance with the law and these financial regulations; and

All personnel are aware of their responsibilities with regard to safeguarding the security of Chief Constable and Commissioner ICT systems, including maintaining restricted access to the information held on them and compliance with the information and security policies.

5.3 Valuation

Responsibilities of the Chief Constable 5.3.1 To maintain an asset register for all fixed assets with a value in excess of

the limits shown in Section G, in a form approved by the PCCCFO. 5.3.2 To ensure that assets are recorded when they are acquired by the Chief

Constable or the Commissioner and that they remain on the asset register until disposal and are valued in accordance with the Code of Practice on Local Authority Accounting in the United Kingdom and the requirements specified by the PCCCFO.

5.4 Inventories

Responsibilities of the Chief Constable and CCCFO 5.4.1 To ensure that inventories are maintained for the Force in a format approved

by the PCCCFO that record an adequate description of items with a value in

excess of the amount shown in Section G. Other items of equipment should also be recorded if they are deemed to be both desirable and portable (e.g. laptops).


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5.4.2 To ensure that inventories are maintained for the Commissioner’s Office in a

format approved by the PCCCFO that record an adequate description of

items with a value in excess of the amount shown in Section G. Other items of equipment should also be recorded if they are deemed to be both desirable and portable (e.g. laptops).

5.5 Stocks and Stores

Responsibilities of the Chief Constable and CCCFO 5.5.1 To make arrangements for the care, custody and control of the stocks and

stores and maintain detailed stores accounts. 5.5.2 To undertake a complete stock check at least once per year either by means

of continuous or annual stocktake. The stocktake shall be undertaken and certified by an authorised member of personnel who is independent of the stock keeping function. This procedure shall be followed and a complete stock check undertaken whenever stock keeping duties change.

5.5.3 Discrepancies between the actual level of stock and the book value of stock

may be written-off, in consultation with the PCCCFO.

5.5.4 To write-off obsolete stock, up to the limits shown in Section G. Amounts for write off above this value must be referred to the PCCCFO for approval supported by a written report.

5.5.5 To approve the arrangements for accounting for stores.

Responsibilities of the PCCCFO 5.5.6 To consider and approve applications for write offs in excess of the limits set

out in Section G.

5.6 Intellectual Property 5.6.1 Intellectual property is a generic term that includes inventions and writing. 5.6.2 If any Intellectual Property is created by the personnel during the course of

employment or as part of their office, then, as a general rule, this will belong to the employer, not the personnel. Various acts of Parliament cover different types of intellectual property. Certain activities undertaken within the Force, by the Commissioner and within the Commissioner may give rise to items that could be patented, for example, software development. These items are collectively known as intellectual property.


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5.6.3 In the event that the Chief Constable or Commissioner decides to become involved in the commercial exploitation of inventions, the matter should be brought to the attention of the Chief Executive.

Responsibilities of the Chief Constable 5.6.4 To ensure that personnel are aware of these procedures.

Responsibilities of the Chief Executive 5.6.5 To prepare guidance on intellectual property procedures and ensure that

personnel are aware of these procedures.

5.7 Asset Disposal 5.7.1 Assets shall be disposed of when in the best interests of the Chief Constable

and the Commissioner and at the most advantageous price. Where this is not the highest offer, a report must be prepared for the Commissioner outlining the reasons.

Responsibilities of the Commissioner 5.7.2 To approve the disposal of all land or buildings.

Responsibilities of the Chief Constable 5.7.3 To dispose of vehicles and items of equipment. If the estimated value is over

that shown in Section G disposal should be via a public auction or sealed bids after advertisement.

5.7.4 To record all asset disposals in the asset register or inventory as

appropriate.

Joint Responsibilities of the PCCCFO and CCCFO 5.7.5 To ensure that income is received and accounted for.

C6 TREASURY MANAGEMENT AND BANKING ARRANGEMENTS

6.1 Treasury Management 6.1.1 It is important that monies held by the Commissioner are managed properly,

in a way that balances risk with return, but with the prime consideration being given to the security of the capital sums involved.


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6.1.2 The Commissioner has adopted the CIPFA Code of Practice on Treasury

Management. The primary requirements of the Code are:-

A treasury management policy statement, stating the policies, objectives and approach to risk management of its treasury management activities.

Approved Treasury Management Practices (TMPs) setting out the manner in which the organisation will seek to achieve those policies and objectives, and prescribing how it will manage and control those activities.

Approval of the annual Treasury Management Strategy Statement (TMSS) including the annual investment strategies and Minimum Revenue Provision (MRP). An annual report and as a minimum a Mid Term Review report covering Treasury Management activities.

Responsibilities of the Commissioner 6.1.3 To adopt the key recommendations of CIPFA’s Treasury Management in the

Public Services: the CIPFA Code of Practice. 6.1.4 To approve the annual Treasury Management Strategy Statement including

the annual investment strategy and Minimum Revenue Provision. 6.1.5 To receive and approve an annual report on treasury management activity

and as a minimum a Mid Term Review report.

Responsibilities of the PCCCFO 6.1.6 To implement and monitor treasury management policies and practices in

line with the CIPFA Code and other professional guidance. 6.1.7 To prepare reports on the Commissioner’s treasury management policies,

practices and activities, including, as a minimum, an annual TMSS, including annual investment strategy and MRP policy.

6.1.8 To execute and administer treasury management in accordance with the

CIPFA Code and the Commissioner’s policy. 6.1.9 To arrange borrowing and investments, in compliance with the CIPFA Code. 6.1.10 To ensure that all investments and borrowings are made in the name of the

Commissioner for Merseyside.


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6.2 Banking Arrangements 6.2.1 Banking activities are controlled by a single contract which aims to provide a

wide range of complex and specialist banking services to departments, establishments and personnel. A consistent and secure approach to banking services is essential in order to achieve optimum performance from our bankers and the best possible value for money.

Responsibilities of the PCCCFO 6.2.2 To have overall responsibility for the banking arrangements for the

Commissioner. 6.2.3 To produce a protocol on the establishment and maintenance of bank

accounts, in consultation with the CCCFO. 6.2.4 To authorise the opening and closing of all Commissioner bank accounts.

No other personnel shall open a bank account unless they are performing a statutory function (e.g. treasurer of a charitable body) in their own right.

6.2.5 To determine signatories on all Commissioner bank accounts.


6.2.6 To arrange for bank reconciliations to be undertaken on a timely and accurate basis.

6.2.7 To authorise the opening and closing of bank accounts, for specific

purposes, as agreed with the PCCCFO.

6.3 Imprest Accounts/Petty Cash 6.3.1 Cash advances or bank imprest accounts may be made to an individual in

order that relatively small incidental payments for their department or BCU may be made quickly. A record of disbursements from the account should be maintained to control the account and so that the expenditure may be substantiated, accurately reflected in the Commissioner’s accounts and correctly reimbursed to the account holder.

Responsibilities of the CCCFO 6.3.2 To provide appropriate personnel with cash or bank imprest to meet minor

expenditure on behalf of the Commissioner and Chief Constable. 6.3.3 To determine reasonable cash limits and maintain a record of all

transactions and advances made, and periodically review the arrangements for the safe custody and control of these advances.


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6.3.4 To prepare detailed Financial Instructions for dealing with petty cash and

bank imprest accounts, to be agreed with the PCCCFO, and these shall be issued to all appropriate personnel.

Responsibilities of the PCCCFO 6.3.5 To provide appropriate personnel within the Commissioner’s office with cash

or bank imprest to meet minor expenditure on behalf of the Commissioner. 6.3.6 To determine reasonable petty cash limits and maintain a record of all

transactions and petty cash advances made, and periodically review the arrangements for the safe custody and control of these advances.

6.4 Money Laundering

6.4.1 The Commissioner and Chief Constable are alert to the possibility that they

may become the subject of an attempt to involve them in a transaction involving the laundering of money.

6.4.2 Suspicious cash deposits in any currency in excess of €15,000 (or

equivalent) should be reported to the National Crime Agency (NCA). 6.4.3 Internal control procedures will be monitored to ensure they are reliable and

robust.

Responsibilities of the PCCCFO 6.4.4 To be the nominated Money Laundering Reporting Officer (MLRO). 6.4.5 To consider, in the light of all information, whether a disclosure gives rise to

such knowledge or suspicion. 6.4.6 To disclose relevant information to the National Crime Agency (NCA).

Responsibilities of Chief Officers 6.4.7 To undertake appropriate checks to ensure that all new suppliers and

contractors/subcontractors are bona fide.

Responsibilities of personnel

6.4.8 To notify the PCCCFO as soon as they receive information which may result

in them knowing or having reasonable grounds for knowing or suspecting, that the Commissioner’s bank account is being used for money laundering, fraud or use of the proceeds of crime.


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6.4.9 Cash banking from a single source over €15,000 should be reported to the PCCCFO. This instruction does not apply to seizures and subsequent banking’s under the Proceeds of Crime Act.

C7 STAFFING

7.1 Staffing costs form the largest element of the annual policing budget. An appropriate Human Resources (HR) strategy should exist, in which staffing requirements and budget allocations are matched. The Commissioner is responsible for approving the overall HR strategy.


7.2 To ensure that personnel are appointed, serve and are dismissed in accordance with relevant statutory regulations, national agreements and personnel policies, budgets and strategies agreed by the Commissioner and that there is a proper use of the evaluation or other agreed systems for delivering the remuneration of a job.

7.3 To adjust the staffing numbers to meet the approved budget provision, and varying the provision as necessary within policy constraints in order to meet changing operational needs.

7.4 To have systems in place to record all matters affecting payments to personnel, including appointments, resignations, dismissals, secondments, suspensions, transfers and all absences from work.

7.5 To approve, in consultation with the PCCCFO, policy arrangements for premature retirements on grounds of ill-health or efficiency for all personnel and redundancy arrangements for support personnel.


7.6 To have the same responsibilities as above for staff employed by the Commissioner and working within the office of the Commissioner.

C8 POLICE OBJECTIVE ANALYSIS/ACTIVITY ANALYSIS

8.1 The CIPFA Police Objective Analysis (POA) enables forces to compare costs in relation to specific categories of policing. The results of these comparisons and analysis can be used to help ensure activities and resources are aligned with local Police and Crime Plan priorities.


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8.2 To analyse costs on the basis of the POA in accordance with CIPFA requirements.

8.3 To ensure that appropriate reports using cost comparisons are prepared, as required, and presented to Chief Officers, Area Commanders and Departmental Managers and to the Commissioner as appropriate to assist the Chief Constable and Commissioner in considering the most effective allocation of resources.

C9 TRUST FUNDS

9.1 Trust Funds have a formal legal status governed by a Deed of Trust. Staff and police officers acting as trustees must ensure that they are conversant with the requirements of the Trust Deed and the law and comply fully with them.

9.2 The Commissioner’s and Force’s financial regulations, instructions and procedures should be viewed as best practice, which ought to be followed whenever practicable.

9.3 No personnel shall open a trust fund by virtue of their official position without the specific approval of the Chief Constable and Commissioner.

Responsibilities of Trustees

9.4 All personnel acting as trustees by virtue of their official position shall ensure that accounts are audited as required by law and submitted annually to the appropriate body, and the PCCCFO and/or CCCFO shall be entitled to verify that this has been done.

C10 EVIDENTIAL AND NON-EVIDENTIAL PROPERTY

10.1 The Chief Constable is required to exercise a duty of care and safeguard evidential or non-evidential property pending decisions on its ownership, or private property of an individual e.g. a suspect in custody.


10.2 To determine procedures for the safekeeping of the private property of a person, other than a member of personnel, under their guardianship or supervision. These procedures shall be made available to all appropriate personnel. More detailed information will be provided in The Property and Evidence Management Policy.


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10.3 To determine procedures for the safekeeping of evidential or non-evidential property. These procedures shall be made available to all appropriate personnel and shall make specific reference to the need for insurance of valuable items.

10.4 To provide Financial Instructions and Policy and Procedures for dealing with cash, including cash seized under the Proceeds of Crime Act.

10.5 To notify the PCCCFO of any loss or irregularity or suspected irregularity, or any circumstance which may suggest the possibility of losses or irregularities.

Responsibilities of all personnel

10.6 To notify the Chief Constable immediately in the case of loss or diminution in value of such private property.

C11 ACCEPTANCE OF GIFTS, LOANS AND SPONSORSHIP

11.1 This section does not include the offer of gifts or hospitality to an individual for their own use.

11.2 In accordance with the Police Act 1996, the Commissioner may decide to accept gifts of money and gifts or loans of other property or services (e.g. car parking spaces) if they will enable the police either to enhance or extend the service which they would normally be expected to provide. The terms on which gifts or loans are accepted may allow commercial sponsorship of some Force activities.

11.3 Gifts, loans and sponsorship are particularly suitable for multi-agency work such as crime prevention, community relations work, and victim support schemes.

11.4 Gifts, loans and sponsorship can be accepted from any source which has genuine and well intentioned reasons for wishing to support specific projects. In return, the provider may expect some publicity or other acknowledgement. It is acceptable to allow the provider to display the organisation’s name or logo on publicity material, provided this does not dominate or detract from the purpose of the supported project.

11.5 The total value of gifts, loans and sponsorship accepted, should not exceed 1% of the Commissioner’s annual gross revenue budget of the Chief Constable and Commissioner.


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11.6 To approve the policy on accepting gifts, loans and sponsorship.

Joint Responsibilities of the CCCFO and Chief Executive

11.7 To accept gifts, loans or sponsorship within agreed policy guidelines.

11.8 To refer all gifts, loans and sponsorship offered above the limit identified in

Section G to the Commissioner for approval before they are accepted.

Joint Responsibilities of the CCCFO and PCCCFO

11.9 To present an annual report to the Commissioner listing all gifts, loans and sponsorship offered and to record those that have been accepted.

11.10 To maintain a central register, in a format agreed by the PCCCFO, of all sponsorship initiatives and agreements including their true market value, and to provide an annual certified statement of all such initiatives and agreements. The PCCCFO shall satisfy him/herself that it provides a suitable account of the extent to which such additional resources have been received.


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SECTION D - SYSTEMS & PROCEDURES

D1 GENERAL 1.1 The PCCCFO and CCCFO both have a statutory responsibility to ensure that

financial systems are sound and should therefore be notified of any proposed new developments or changes.

Responsibilities of the PCCCFO and CCCFO 1.2 To make arrangements for the proper administration of the financial affairs,

including :

To issue advice, guidance and procedures for officers and staff of the Chief Constable and the Commissioner.

To determine the accounting systems, form of accounts and supporting financial records.

To establish arrangements for the audit of the financial affairs of the Chief Constable and the Commissioner.

To approve any new financial systems to be introduced.

To approve any significant changes to existing financial systems. 1.3 To ensure, in respect of systems and processes, that:-

Systems are secure, adequate internal control exist and accounting records (e.g. invoices, income documentation) are properly maintained and held securely and that duties are appropriately segregated to minimise the risk of error, fraud or other malpractice;

Appropriate controls exist to ensure that all systems input, processing and output is genuine, complete, accurate, timely and not processed previously;

A complete audit trail is maintained, allowing financial transactions to be traced from the accounting records to the original document and vice versa; and

Systems are documented and personnel trained in operations. 1.4 To ensure that there is a documented and tested business continuity plan to

allow key system processing to resume quickly in the event of an interruption. Effective contingency arrangements, including back up procedures, are to be in place in the event of a failure in computer systems.

1.5 To establish separate schemes of delegation from the Commissioner and Chief

Constable to their own personnel, identifying personnel authorised to act upon their behalf in respect of income collection, placing orders, making payments and employing personnel.


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D2 INCOME

2.1 Effective systems are necessary to ensure that all income due is identified,

collected, receipted and banked promptly. The responsibility for cash collection should be separated from that for identifying the amount due and for reconciling the amount due to the amount received.

2.2 The Commissioner and Chief Constable should adopt the ACPO national

charging policies and national guidance when applying charges under section 25 of the Police Act 1996. The purpose of charging for special services is to ensure that, wherever appropriate, those using the services pay for them.

2.3 The Commissioner will ensure that there are arrangements in place so that

expected charges are clearly identified in the budgets and that costs are accurately attributed and charged. When considering budget levels the Commissioner should ensure that on-going resource requirements are not dependent on a significant number of uncertain or volatile income sources and should have due regard to sustainable and future year service delivery.

2.4 When specifying resource requirements the Chief Constable will identify the

expected income from charging. The Chief Constable should adopt ACPO charging policies in respect of mutual aid.

Joint Responsibilities of the Chief Constable and Commissioner

2.5 To adopt the ACPO national charging policies and national guidance when applying charges under section 25 of the Police Act 1996 and to keep scales of fees and charges under review with such reviews being carried out at least annually.

Joint Responsibilities of the CCCFO and PCCCFO 2.6 To make arrangements for the collection of all income due and approve the

procedures, systems and documentation for its collection, including the correct charging of VAT.

2.7 To agree a charging policy for the supply of goods and services, including the

appropriate charging of VAT, and to review it regularly in line with corporate policies. All charges should be at full cost recovery except where regulations require otherwise or with the express approval of the Commissioner.

2.8 To ensure that all income is paid fully and promptly into the designated

Receipts Bank Account. In no case shall the lodgement of cash be less frequent than weekly except by arrangement with the PCCCFO. Appropriate details should be recorded on to paying-in slips to provide an audit trail and money collected and deposited reconciled on a monthly basis.


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2.9 To ensure income is not used to cash personal cheques or make other payments.


2.10 To order and supply to appropriate personnel all receipt forms, books or tickets and similar items and be satisfied as to the arrangements for their control. For any income not received by direct transfer into the bank account; official receipts or other suitable documentation shall be issued except where a request for payment (e.g. invoice, grant claim etc.) has been issued.

2.11 To operate effective debt collection procedures, in consultation with the

PCCCFO. 2.12 To approve the write-off of bad debts, in consultation with the Chief Executive

or the PCCCFO, up to the level shown in Section G. Amounts for write-off above this value must be referred to the PCCCFO for approval, supported by a written report explaining the reason(s) for the write-off.

2.13 To prepare detailed Financial Instructions for dealing with income, to be agreed

with the PCCCFO, and to issue them to all appropriate personnel.

2.14 Should ensure that the following principles are observed in the allocating of accounting duties:

The duties of providing information regarding sums due to or from the Commissioner and of calculating, checking and recording these sums, shall be separated as completely as possible from the duty of collecting or disbursing them.

Officers charged with the duty of examining and checking the accounts of cash transactions shall not themselves be engaged in any of these transactions.

D3 ORDERING AND PAYING FOR WORK, GOODS AND SERVICES 3.1 Public money should be spent in accordance with Commissioner's and Chief

Constable's policies. The Commissioner and the Chief Constable have a statutory duty to ensure financial probity and best value. Financial Regulations and purchasing procedures help to ensure that the public can receive value for money. These procedures should be read in conjunction with the Standing

Orders relating to Contracts in Section F.

Responsibilities of the CCCFO 3.2 To maintain a procurement policy covering the principles to be followed for the

purchase of goods and services and that all payments are made in accordance with this policy.


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3.3 To issue official orders for all work, goods or services to be supplied to the

Chief Constable and Commissioner, except for supplies of utilities, periodic payments such as rent or rates, petty cash purchases or other exceptions approved by the PCCCFO. Orders must be in a form approved by the PCCCFO.

3.4 Official orders must not be raised for any personal or private purchases, nor

must personal or private use be made of the Chief Constable and Commissioner contracts.

3.5 Goods and services ordered must be appropriate and there must be adequate

budgetary provision. Quotations or tenders must be obtained where necessary, in accordance with these regulations and the standing orders relating to

contracts in Section F. 3.6 Payments are not to be made unless goods and services have been received

at the correct price, quantity and quality in accordance with any official order. 3.7 To ensure that payments are made to the correct person, for the correct

amount, on time (i.e. with 28 days) and are recorded properly, regardless of the method of payment.

3.8 To ensure that VAT is recovered where appropriate. 3.9 To ensure that all expenditure, including VAT, is accurately recorded against

the right budget and any exceptions are corrected. 3.10 To ensure that all purchases made through e-procurement follow the rules,

regulations and procedures, detailed in Section F. 3.11 To prepare, in consultation with the PCCCFO, detailed Financial Instructions for

dealing with the ordering and payment of goods and services, and to issue these to all appropriate personnel.

Responsibilities of the Chief Officers

3.12 To ensure that every member of personnel declares any links or personal

interests that they may have with purchasers, suppliers and contractors if they are engaged in contractual or purchasing decisions on behalf of the Commissioner or Chief Constable and that such persons take no part in the selection of a supplier or contract with which they are connected.


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D4 PAYMENTS TO PERSONNEL 4.1 Personnel costs are the largest item of expenditure for the Chief Constable and

Commissioner. It is therefore important that there are controls in place to ensure accurate, timely and valid payments are made in accordance with individuals’ conditions of employment.

Responsibilities of the Chief Constable 4.2 To ensure, in consultation with the PCCCFO, the secure and reliable payment

of salaries, overtime, pensions, compensation and other emoluments to existing and former personnel.

4.3 To ensure that tax, superannuation and other deductions are made correctly

and paid over at the right time to the relevant body. 4.4 To pay all valid travel and subsistence claims or allowances. 4.5 To ensure that payroll transactions are processed only through the payroll

system. Payments to individuals employed on a self-employed consultant or subcontract basis shall only be made in accordance with HM Revenue & Customs (HMRC) requirements. The HMRC applies a tight definition of personnel status, and in cases of doubt, advice should be sought from them.

4.6 To ensure that full records are maintained of payments in kind and properly

accounted for in any returns to the HMRC. 4.7 To prepare detailed Financial Instructions for dealing with payments to

personnel, to be agreed with the PCCCFO, and these shall be issued to all appropriate personnel.


4.8 To have the same responsibilities as above for staff employed by the Commissioner and working within the office of the Commissioner.

D5 TAXATION

5.1 Tax issues are often very complex and the penalties for incorrectly accounting

for tax are severe.

Joint Responsibilities of the PCCCFO and CCCFO 5.2 To ensure that arrangements are in place for the timely completion and

submission of all HM Revenue & Customs (HMRC) returns regarding PAYE and that due payments are made in accordance with statutory requirements.


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5.3 To ensure that arrangements are in place for the timely completion and

submission of VAT claims, inputs and outputs to HMRC.

5.4 To ensure that the correct VAT liability is attached to all income due and that all VAT recoverable on purchases complies with HMRC regulations.

5.5 To provide details to the HMRC regarding the construction industry tax

deduction scheme. 5.6 To ensure that appropriate technical personnel have access to up to date

guidance notes and professional advice.

D6 CORPORATE CREDIT CARDS 6.1 Credit cards provide an effective method for payment for designated officers

who, in the course of their official business, have an immediate requirement for expenditure which is relevant to the discharge of their duties.

Responsibilities of the Chief Constable 6.2 In conjunction with the PCCCFO to provide Financial Instructions to all

cardholders.

Responsibilities of the PCCCFO 6.3 To authorise and maintain control over the issue of cards.

Responsibilities of credit card holders 6.3.1 To ensure that purchases are in accordance with approved policies e.g.

catering, hospitality. 6.3.2 To provide receipted details of all payments made by corporate credit card

each month, including nil returns, to ensure that all expenditure is correctly reflected in the accounts and that VAT is recovered.

D7 PURCHASING CARDS

7.1 Purchase cards, e.g. fuel cards are an alternative method of buying and paying

for relatively low value goods, which generate a high volume of invoices. This should generate an efficiency saving from lower transaction costs (i.e. fewer invoices processed and paid for through the integrated accounts payable system), as well as reducing the number of petty cash transactions.


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7.2 To provide detailed financial instructions to card holders. 7.3 To authorise and maintain control over the issue of cards. 7.4 To reconcile the purchase card account to the ledger on a monthly basis.

Responsibilities of Purchasing Card Holders 7.5 To be responsible for ordering and paying for goods and services in

accordance with the procurement policy, guidance and contract standing orders and all procedures laid down by the CCCFO.

7.6 To provide receipted details of all payments made by purchasing card each

month, to ensure that all expenditure is correctly reflected in the accounts and that VAT is recovered.

D8 EX GRATIA PAYMENTS

8.1 An ex gratia payment is a payment made where no legal obligation has been

established. An example may be recompense to a police officer for damage to personal property in the execution of duty or to a member of the public for providing assistance to a police officer in the execution of duty.

Responsibilities of the Force Solicitor/ CCCFO 8.2 To make ex gratia payments, on a timely basis, to members of the public up to

the level shown below in any individual instance, for damage or loss to property or for personal injury or costs incurred as a result of police action where such a payment is likely to facilitate or is conducive or incidental to the discharge of any of the functions of the Commissioner and the Chief Constable up to the

limits set and in Section G. 8.3 To maintain details of ex gratia payments in a register.


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SECTION E - EXTERNAL ARRANGEMENTS

E1 EXTERNAL FUNDING

1.1 External funding can be a very important source of income, but funding conditions need to be carefully considered to ensure that they are compatible with the aims and objectives of the Commissioner and Chief Constable. Funds from external agencies provide additional resources to enable policing objectives to be delivered. However, in some instances, although the scope for external funding has increased, such funding is linked to tight specifications and may not be flexible enough to link to the Police and Crime Plan.

1.2 The main sources of such funding will tend to be specific Government grants, additional contributions from local authorities (e.g. for ANPR, CCTV and PCS&TOs) and donations from third parties (e.g. towards capital expenditure).


1.3 To pursue actively any opportunities for additional funding where this is considered to be in the interests of the Chief Constable and Commissioner.

Joint Responsibilities of the Chief Constable and the Commissioner

1.4 To ensure that the match-funding requirements and exit strategies are considered prior to entering into the agreements and that future medium term financial forecasts reflect these requirements.


1.5 To ensure that all funding notified by external bodies is received and properly accounted for, and that all claims for funds are made by the due date and that any audit requirements specified in the funding agreement are met.


1.6 To ensure that funds are acquired only to meet policing needs and objectives.

1.7 To ensure that key conditions of funding and any statutory requirements are complied with and that the responsibilities of the accountable body are clearly understood.

1.8 To ensure that any conditions placed on the Commissioner and the Chief Constable in relation to external funding are in accordance with the approved policies. If there is a conflict, this needs to be taken to the Commissioner for resolution.

1.9 To report to the Commissioner where the Force has identified, pursued and

secured external funding in excess of the limits contained in Section G.


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E2 WORKING FOR THIRD PARTIES

2.1 Overview

2.2 The Chief Constable provides services to other bodies outside of its normal obligations, for which charges are made e.g. training, special services. Arrangements should be in place to ensure that any risks associated with this work are minimised and that such work is not ultra vires.


2.3 To ensure that proposals for assistance are costed, that no contract is subsidised by the Chief Constable or the Commissioner and that, where appropriate, payment is received in advance of the delivery of the service so that the Chief Constable and the Commissioner are not put at risk from any liabilities such as bad debts.

2.4 To ensure that appropriate insurance arrangements are in place.

2.5 To ensure that all contracts are properly documented.

2.6 To ensure that such contracts do not impact adversely on the services provided by the Chief Constable and the Commissioner.

E3 JOINT WORKING ARRANGEMENTS

3.1 Public bodies are increasingly encouraged to provide seamless service delivery through working closely with other public bodies, local authorities, agencies and private service providers.

3.2 Joint working arrangements can take a number of different forms, each with its own governance arrangements. These can be grouped under the following headings:-

Partnerships

Consortia

Collaboration

3.3 Partners engaged in joint working arrangements have common responsibilities, which include:

To act in good faith at all times and in the best interests of the partnership’s aims and objectives.

To be willing to take on a role in the broader programme, appropriate to the skills and resources of the contributing organisation.

To be open about any conflicts that might arise.


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To encourage joint working and promote the sharing of information, resources and skills.

To keep secure any information received as a result of partnership activities or duties that is of a confidential or commercially sensitive nature.

To promote the project.

3.4 In all joint working arrangements the following key principles must apply:-

Before entering into the agreement, a risk assessment has been prepared.

Such agreements do not impact adversely upon the services provided by the Chief Constable and Commissioner.

Project appraisal is in place to assess the viability of the project in terms of resources, staffing and expertise.

All arrangements are properly documented.

Regular communication is held with other partners throughout the project in order to achieve the most successful outcome.

Audit and control requirements are satisfied.

Accounting and taxation requirements, particularly VAT, are understood fully and complied with.

An appropriate exit strategy has been produced.

3.5 The Chief Constable and Commissioner element of all joint working arrangements must comply with these Financial Regulations.

E4 PARTNERSHIPS

4.1 Overview 4.1.1 The term partnership refers to groups where members work together as

equal partners with a shared vision for a geographic or themed policy area, and agree a strategy in which each partner contributes towards its delivery. A useful working definition of such a partnership is where the partners:-

Are otherwise independent bodies;

Agree to co-operate to achieve a common goal; and

Achieve it to create an organisational structure or process and agreed programme, and share information, risks and rewards.

4.1.2 The number of partnerships, both locally and nationally, is expanding in

response to Central Government requirements and local initiatives. This is in recognition of the fact that partnership working has the potential to:-

Comply with statutory requirements;

Deliver strategic objectives; in new and better ways;

Improve service quality and cost effectiveness;

Ensure the best use of scarce resources and access new resources;


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Deal with issues which cut across agency and geographic boundaries, and where mainstream programmes alone cannot address the need;

Forge new relationships; and

Find new ways to share risk. 4.1.3 Partnerships typically fall into three main categories i.e. statutory based,

strategic, and ad-hoc.

Statutory based - these are partnerships that are governed by statute. They include, for example, Community Safety Partnerships (CSPs) and Local Strategic Partnerships (LSPs).

Strategic - these are partnerships set up to deliver core policing objectives. They can either be force-wide or local.

Ad-hoc - these are typically locally based informal arrangements agreed by Divisional Commanders.

4.1.4 As set out in section 10 of the Police Reform and Social Responsibility Act

2011, the Commissioner, in exercising their functions, must have regard to the relevant priorities of each responsible authority. Subject to the constraints that may be placed on individual funding streams, Commissioners are free to pool funding as they and their local partners see fit. Commissioners can enter into any local contract for services, individually or collectively with other local partners, including non-police bodies.

4.1.5 When the Commissioner acts as a Commissioner of services, he/she will

need to agree the shared priorities and outcomes expected to be delivered through the contract or grant agreement with each provider. The Commissioner is able to make crime and disorder reduction grants in support of local priorities. The inclusion of detailed grant conditions directing local authorities how to spend funding need not be the default option. The power to make crime and disorder reduction grants with conditions is contained in section 9 of the Police Reform and Social Responsibility Act 2011. The power to contract for services is set out in paragraph 14 of Schedule 1 and paragraph 7 of Schedule 3 to the Police Reform and Social Responsibility Act 2011.


4.1.6 To have regard to relevant priorities of local partners when considering and

setting the 5 year Police and Crime Plan and the annual delivery plan. 4.1.7 To make appropriate arrangements to commission services from either the

Force or external providers. 4.1.8 To commission:


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Services that in the opinion of the Commissioner will secure, or contribute to securing, crime and disorder reduction in Merseyside;

Services that are intended by the Commissioner to help victims or witnesses of, or other persons affected by, offences and anti-social behaviour; and

Services of a description specified in an order made by the Secretary of State.

4.1.9 To approve the Force and Commissioner participation of partnership

arrangements.

Responsibilities of Chief Constable

4.1.10 To follow the Financial Instructions for local partnerships, as published on the Force intranet.

4.1.11 To consult, as early as possible, the CCCFO and the PCCCFO to ensure the

correct treatment of taxation and other accounting arrangements. 4.1.12 To produce a Memorandum of Understanding (MOU) setting out the

appropriate governance arrangements for the project. This document should be signed by the Chief Executive.

4.2 Consortium Arrangements 4.2.1 A consortium is a long-term joint working arrangement with other bodies,

operating with a formal legal structure approved by the Commissioner.



correct treatment of taxation and other accounting arrangements. 4.2.3 To produce a business case to show the full economic benefits to be

obtained from participation in the consortium. 4.2.4 To produce a Memorandum of Understanding (MOU) setting out the



4.2.5 To approve the Force and Commissioner participation in the consortium

arrangement.


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Joint Responsibilities of the PCCCFO and the CCCFO 4.2.6 To monitor the financial contributions to/from partners to ensure that they

are in accordance with agreed procedures.

4.3 Collaboration 4.3.1 Under sections 22A to 22C of the Police Act 1996 as amended, Chief

Constables and Commissioners have the legal power and duty to keep collaboration opportunities under review and to enter into collaboration agreements to improve the efficiency or effectiveness of one or more police force areas. Any collaboration which relates to the functions of a Force must include as parties the Chief Constable and the Commissioner of the Force area concerned.

4.3.2 The Commissioners shall jointly hold their Chief Constables to account for

any collaboration in which their Force is involved. 4.3.3 Any collaboration proposal must be discussed with the PCCCFO and

CCCFO in the first instance.


4.3.4 To seek approval of the Commissioner before entering into a formal collaboration agreement, to establish the correct legal framework.


correct treatment of taxation and other accounting arrangements.

4.3.6 To produce a business case to show the full economic benefits to be obtained from participation in the collaboration.

4.3.7 To produce a Memorandum of Understanding (MOU) setting out the


Responsibilities of the Commissioner 4.3.8 To approve the Chief Constable and Commissioner participation in any

collaboration arrangement.

4.3.9 To consult with the Chief Constable on any collaboration about policing body support.

Joint Responsibilities of the PCCCFO and the CCCFO 4.3.10 To monitor the financial contributions to/from partners to ensure that they

are in accordance with agreed procedures.


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SECTION F - CONTRACT STANDING ORDERS

F1 INTRODUCTION

1.1 These Standing Orders have been prepared in accordance with the requirements of the Code of Practice on Financial Management, which is made under section 17 Police Reform and Social Responsibility Act 2011.

1.2 The main aims of these Standing Orders are to:-

Outline the manner in which contracts are handled and managed by the Police & Crime Commissioner (the Commissioner) and the Chief Constable to ensure compliance with all relevant legislation including directives of the European Union; and

Outline the relative responsibilities of the Commissioner and the Chief Constable in this process.

1.3 The Commissioner has given consent for the Chief Constable to enter into contracts in their own name except for contracts that relate to the purchase of land, property or assets. Assets are items that will be accounted for as ‘fixed assets’ in the annual accounts.

1.4 The Chief Constable has a duty to provide assistance to the Commissioner. Where staff and officers under the direction of the Chief Constable provide assistance in the procurement and contracting of goods, property or services for the Commissioner these standing orders shall apply.

1.5 The aim of these Standing Orders to delegate responsibility for the day to day management and control of contracts to the appropriate Chief Finance Officer subject to the provisions of these standing orders and provided always that the Commissioner and Chief Constable are satisfied that there are adequate systems, procedures, personnel and expertise to discharge these responsibilities.

1.6 The CCCFO shall manage the tendering and contracting process in accordance with these Standing Orders.

1.7 These Standing Orders are supplemented by both Financial Regulations and Force Financial Instructions, and should be read in conjunction with these documents.

1.8 These Standing Orders including the financial values shown in the Financial

Regulations section G and in section F5 will be kept under review by the Chief Executive, PCCCFO, Chief Constable and CCCFO to ensure that the working arrangements for both the Commissioner and the Chief Constable are conducted in accordance with the relevant legislation and latest best practice. They can only be varied with the approval of the Commissioner.


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F2 DEFINITIONS

2.1 In these Standing Orders:-

2.2 The expression “the Commissioner” shall where the context allows be deemed to include reference to person acting in accordance with delegated authority on behalf of the Commissioner.

2.3 The expression “the Commissioner/Chief Constable” shall mean either the Commissioner or Chief Constable depending which is a party to the contract under consideration.

2.4 The expression “appropriate officer” shall mean any officer who authorised in writing by the Commissioner or Chief Constable.

2.5 The expression “contract” shall relate to a contract for the supply of goods or the provision of services to the Force or for the execution of works and if appropriate include sub-contracts.

2.6 Reference to the contract sum in relation to a contract to be performed over a specified period shall be to the aggregated estimate for the whole of that period. Any transaction for the supply of goods or materials, the provision of services, or for the execution of works which forms part of a larger transaction shall not be regarded as a separate contract in the calculation of the contract sum.

2.7 Reference to any statute, enactment, order, regulation or other similar instrument shall be construed as a reference to the statute, enactment, order, regulation or instruments as amended by any subsequent statute, enactment, order, regulation or instruction as contained in any subsequent re-enactment thereof.

2.8 E-tendering in the context of these Contract Standing Orders will mean any Commissioner approved e-tendering arrangement.

F3 COMPLIANCE WITH STANDING ORDERS

3.1 Every contract made by the Commissioner/Chief Constable, and the procedures relating to them, shall comply with these Standing Orders and with Financial Regulations and all supplementary codes of practice. No exception from any of the provisions of these Standing Orders and Financial Regulations and supplementary codes of practice shall be made unless approved by the Commissioner.

3.2 A record of any exception to any of the provisions of these Standing Orders shall be reported by the CCCFO to the Commissioner.


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3.3 Any failure to comply with any of the requirements of these Standing Orders shall be reported to the Chief Executive of the Commissioner as soon it is discovered. The Chief Executive shall consult with the PCCCFO and the Chief Constable before determining what actions as may be appropriate.

3.4 Every contract shall comply with any relevant directives of the European Union for the time being in force in the U.K. including the requirements of the Public Contract Regulations 2015.

3.5 Every contract to which the Public Services (Social Value) Act 2012 applies shall comply with the requirements of the Act.

F4 NOMINATED SUB-CONTRACTORS/SUPPLIERS

4.1 This section of the Standing Orders shall have effect where a sub-contractor/supplier is to be nominated to a main contractor/supplier.

4.2 The terms of any tender or quotation by a nominated sub-contractor/supplier shall require an undertaking that, if he is selected, he will be willing to enter into a contract with the main contractor/supplier on terms which indemnify:-

The main contractor/supplier and the Commissioner/Chief Constable against their own obligations under the main contract included in the sub-contract unless provision is made to the contrary under the conditions of contract; and

The Commissioner/Chief Constable against any third party claims arising out of any act or omission by the said nominated sub-contractor/suppliers.

4.3 The Chief Constable or appropriate Officer shall nominate to the main contractor the person whose tender in their opinion is the most satisfactory, provided that where the tender is other than the lowest received, the circumstances shall be reported to the Commissioner as part of the periodic reporting arrangements.

F5 RESTRICTIONS ON CONTRACTS WITH CERTAIN PERSONS

5.1 The Commissioner (and appointed deputy), nor any company, partnership or firm in which the Commissioner (and appointed deputy) is interested nor any employer, nominee or spouse of the Commissioner (and appointed deputy) shall undertake the execution of work on behalf of the Commissioner/Chief Constable or shall accept an order for the supply or disposal of goods or materials from the Commissioner/Chief Constable or shall provide services for the Commissioner/Chief Constable unless such works or other contract for goods or materials or services have been offered or secured or provided by competitive tender or quotation.


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F6 TERMINATION OF CONTRACTS IN CASE OF CORRUPTION

6.1 Every contract shall contain a provision allowing the Commissioner/Chief Constable to terminate a contract and recover from the contractor the amount of any loss resulting from such termination if the contractor shall:-

Have offered or given or agreed to give to any gift or consideration of any kind as an inducement or reward for doing or forbearing to do, or for having done or forborne to do, any action in relation to obtaining execution of the contract or any other contract with the Commissioner/Chief Constable; or

For showing or forbearing to show any favour or disfavour to any person in relation to the contract or any other contract with the Commissioner/Chief Constable; or

If the like acts shall have been done by any person employed by him or acting on their behalf (whether with or without the knowledge of the contractor); or

If in relation to any contact the contractor or any person employed by him or acting on their behalf shall have committed an offence under the Bribery Act 2010 or shall have given any fee or reward, the receipt of which is an offence under Sections 117(2) and 117(3) of the Local Government Act 1972.

6.2 If a contract is terminated under this Standing Order the Contractor shall be debarred from entering into any contract for the supply of goods or services for a period of five years unless in the meantime the Commissioner otherwise determine.

F7 SECURING AND DEMONSTRATING BEST VALUE

7.1 Personnel must be able to demonstrate that purchases have secured best value. Purchases may require certain quotations or tenders depending on the value involved.

7.2 In all cases personnel must keep a written record to demonstrate that they have taken appropriate steps to obtain best value for money and be prepared to justify the method of contractor selection.

7.3 Where reference is made to a financial limit, this refers to the total value of works, goods or services that are required over the potential life of the contractual arrangement or period of supply including potential extension periods. The limit should not be considered solely in terms of a single purchase, especially when it is clear that there will be an on-going supply of works, goods or services from a given supplier.


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7.4 Purchases up to £100,000

7.4.1 The appropriate officer shall ensure and document in writing that all purchases

achieve what they consider to be best value in the particular circumstances. Details of procedures to be followed are provided within the Force Procurement Department Contract Standing Orders Guidance Notes, approved by both CCCFO and PCCCFO.

7.4.2 If for any reason purchasing decisions do not use the managed arrangements set out in the Procurement Department Guidance Notes the rationale should be countersigned by the CCCFO or PCCCFO, as appropriate.

7.5 Purchases of £100,000 and above

7.5.1 Tendering procedure required. This will be done by use of E-tendering arrangements. (See Force Financial Instructions for detailed guidance).

7.5.2 Where a tender other than the one that scores the highest on the pre-set evaluation criteria as described in the tender documentation is recommended for acceptance, the group reviewing the tenders should make a written record of the reasons and if appropriate, the CCCFO shall report the circumstances to the Commissioner as part of the periodic reporting arrangements.

7.5.3 On rare occasions where it is not possible to use the electronic quotation and tendering systems instructions will be issued on the process to be adopted.

F8 EXCEPTIONS FROM QUOTATIONS OR TENDER

8.1 Subject to compliance with EU regulations/Public Contract Regulations, only one tender or quotation need be obtained for:-

a) The purchase of patented or proprietary articles where no suitable alternative is available.

b) The urgent supply of goods or services or works where there is no time to

get quotations or tenders.

c) The supply of goods or services or works in respect of which there is no valid commercial reason to get quotations or tenders.

d) The supply of goods or services which the Home Office have specified.

e) The supply of goods or services or works the price of which is fixed by a

trade organisation or government department and no alternative is available.


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8.2 Form PD1 will need to be completed to evidence the use of the exception.

8.3 No tender or quotation is required if the supply of goods and services that are obtained through purchasing framework, consortium or call-off arrangements, in which the Chief Constable or the Commissioner is an agreed participant.

8.4 Any use of the above exemptions shall require the approval of the CCCFO.

8.5 Where exemptions are considered for tenders over the EU threshold for procurement regulations (€209,000) advice from the procurement department should be sought on the application of EU regulations.

8.6 The CCCFO and PCCCFO should report to the Commissioner details of all exceptions from tenders. In addition the CCCFO and PCCCFO should report, where the Chief Constable or the Commissioner is an agreed participant, within the regular tender monitoring reports the following information:-

details of the supply of goods and services obtained through a purchasing framework, consortium or call off arrangements; and

tenders opened and subsequently abandoned.

F9 SELECTION

9.1 Where an appropriate officer considers it appropriate, tenders may be invited from a list of approved contractors or suppliers in a particular category of works, supply or service.

9.2 Lists of approved contractors or suppliers may be created and received under a procedure approved by the CCCFO as appropriate in consultation with the PCCCFO.

F10 ADVERTISING

10.1 All tenders will be invited by electronic means through the use of E-Tendering arrangements. Tenders shall be invited by complying with any E.U. Directive currently in force which requires the invitation of tenders from within all the member states of the Union.

F11 SUBMISSION OF TENDERS

11.1 Tenders should be submitted electronically via the E-Tendering system. All tenders received electronically will be stored securely in the E-Tendering system, which has the ability to log time and dates of receipt without revealing the identity of the sender until the date of opening.


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F12 NOTIFICATION OF INVITATION TO TENDERS

12.1 The CCCFO and PCCCFO will prepare a half yearly report on all contracts over £100,000 that are due for renewal in the following six months and any new contracts that have been identified at the time of the report.

12.2 The Chief Executive and the PCCCFO shall be notified by the CCCFO of the invitation of tenders.

F13 RECEIPT AND OPENING OF TENDERS

13.1 No tender shall be considered which arrives after the closing date and time for receipt of tenders.

13.2 All tenders submitted on time will be automatically released by the E-Tendering system at the closing date and time of submission.

F14 WITHDRAWAL OF TENDERS OR FAILURE TO SIGN OR EXECUTE A

CONTRACT

14.1 In the event that any person in the opinion of the Chief Executive or the Chief Constable without proper reason withdraws a tender, or refuses to sign or execute a contract after a tender has been accepted, such person shall not be considered for a contract for a period of three years thereafter, unless in the meantime the Commissioner otherwise determines. The circumstances will be reported to the Commissioner as part of the periodic reporting arrangements.

F15 ACCEPTANCE OF TENDERS AND POWER TO ENTER INTO CONTRACTS

15.1 The CCCFO is not bound to accept any tender.

15.2 Before accepting any tender the CCCFO must satisfy himself that best value is being obtained in the light of the original estimate and other relevant circumstances.

15.3 In respect of tenders exceeding £100,000, the CCCFO shall have power to accept the tender that scores the highest on the pre-set evaluation criteria as described in the tender documentation.

15.4 A tenderer shall not be allowed to alter a tender after the date fixed for its receipt provided that significant errors in arithmetic and obvious errors in pricing discovered before acceptance shall be corrected and the tenderer shall be given the opportunity of confirming the offer or of amending it to take account of such errors as are genuine before any tender for the contract is accepted.

15.5 Any extensions to contracts shall require the approval of the CCCFO and be reported to the Commissioner as part of the regular tender monitoring report.


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15.6 Any formal variation in the amount of an accepted tender or contract must be authorised and reported as follows:-

Up to 10% or £49,999 (whichever is the lower) – Approved by the Head of Department or appropriate officer and reported to the CCCFO.

Over 10% or £50,000 (whichever is the lower) - approved by the Head of Department or appropriate officer and then submitted to the CCCFO. In addition, variations of this value must be reported to the PCCCFO in order to prepare a joint report to the Commissioner’s high level governance meeting with the Chief Constable.

F16 FORM AND CONTENT OF CONTRACTS

16.1 Contracts shall be in writing or signed and sealed as required by the Scheme of Corporate Governance.

16.2 Contracts shall clearly specify:-

The goods, materials or services to be supplied and/or the work to be done as the case may be;

The price to be paid with a statement of discounts or other deductions;

The time or times within which the contract is to be performed; and

The liquidated damages if appropriate to be paid by the contractor if the contract is not completed at the specified date.

16.3 It shall be a condition of the engagement of the services of any person (not being a member of staff of the Commissioner/Chief constable) who is to be responsible through the CCCFO for the supervision of a contract, that in relation to the contract they shall:-

Comply with these Standing Orders and the Financial Regulations as though he were a Chief Officer;

At any time during the carrying out of the contract, produce to the Procurement Department on request, all the records maintained by him in relation to the contract; and

On completion of a contract, transmit all such records to the Procurement Department.

16.4 The Commissioner shall require and take sufficient security for the due performance of every construction contract exceeding £50,000, and may


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require and take sufficient security for the performance of every such contract below £50,000, where the CCCFO considers it necessary to do so in the interests of the Commissioner.

16.5 The Commissioner shall not require security for the performance of any contract let to Contractors on an approved framework agreement unless following a joint report of the PCCCFO and CCCFO it is decided that security is necessary.

16.6 Where an appropriate Standard Specification or Standard Code of Practice issued by the British Standards Institution or the EU equivalent is current one calendar month before the date of tender, the contract shall require all goods and materials used or supplied and/or all workmanship to be at least in accordance with that standard or such higher standard as may be specified.

16.7 A Contractor shall be required to indemnify the Commissioner/Chief Constable against:-

Any claim which may be made in respect of Employer’s liability against the Commissioner/Chief Constable or the Contractor by any employee of the Commissioner / Chief Constable or by any workman employed by the contractor or any Sub-contractor arising out of or in connection with the execution of the work; and

Any claim for bodily injury caused by a third party or damage caused to property of third parties, including any employee of the Commissioner / Chief Constable, caused by any negligent act or omission of the contractor;

16.8 The Contractor shall produce, before any work commences, evidence that he is satisfactorily insured against any such claim.

16.9 Any extensions to contracts shall require the approval of the CCCFO and be reported to the Commissioner as part of the regular tender monitoring report.

F17 CONDITIONS TO BE OBSERVED BY CONTRACTORS AND SUB-

CONTRACTORS

17.1 In each contract there shall be inserted a clause to the following effect:-

17.2 The Contractor shall in respect of all persons employed by him (whether in execution of the contract or otherwise) in every factory, workshop or place situate and occupied or used by him for the execution of the contract, comply with the following conditions, namely:-

The Contractor shall not unlawfully discriminate within the meaning and scope of the provisions of the equality laws.


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The Contractor shall keep proper records necessary for the satisfactory completion of the Contract including wages, records and time sheets, showing the wages paid to and the time worked by the work people in their employ and about the execution of the contract, and all such records shall be produced whenever required for inspection by any officer authorised by the Commissioner.

The Contractor shall be responsible for the observance of this provision by Sub-Contractors employed in the execution of the contract and shall if required notify the Commissioner of the names and addresses of all such Sub-Contractors.

In the event of any question arising as to whether the foregoing conditions are being observed, the question shall, if not otherwise disposed of, be referred to an independent tribunal for decision.

F18 TAXATION STATUS OF SUB-CONTRACTORS

18.1 Tender forms and Conditions of Contract issued shall incorporate a declaration by the tenderer that he will ensure that all persons working on the project shall either be:-

Directly employed by him; or

A registered limited company (or other corporate body registered with HMRC); or

Self-employed workman registered as a sub-contractor with HMRC under the Construction Industry Scheme; or

Registered with HMRC as self-employed.

18.2 Tender forms and Conditions of Contract shall also include a provision stating that if request evidence of HMRC registrations shall be produced to the CCCFO in respect of proposed Sub-Contractors

F19 BREACH OF CONTRACT

19.1 Each contract shall provide that, in the event of a fundamental breach by the Contractor, or by any person to whom the contract or any part thereof may have been assigned or underlet, of any of the conditions and provisions of these Standing Orders, the Commissioner/Chief Constable may absolutely terminate the contract; and that furthermore, the Commissioner/Chief Constable may proceed to complete the works or obtain or dispose of the materials elsewhere as the case may be, either by contract or otherwise.

19.2 Any sums which may be incurred or sustained by the Commissioner/Chief Constable by reason of the termination of the contract as aforesaid shall be borne by the Contractor and at the discretion of the Commissioner/Chief


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Constable may be deducted from any monies due or to become due to him under the contract or recovered by action.

19.3 If a contract is terminated under this Standing Order, the Contractor shall not be considered as a party for a contract for a period of five years unless in the meantime the Commissioner otherwise determine.

F20 ASSIGNMENT AND SUB-LETTING

20.1 Each contract shall provide that a Contractor shall not assign a contract or any part thereof without the previous consent of the Commissioner/Chief Constable or sub-let the same or part thereof without the written consent of the Chief Constable or appropriate Chief Officer which shall not unreasonably be withheld.

F21 ACQUISITION AND SALE OF PROPERTY OR LAND

21.1 Any acquisition and/or disposals of property or land must be in accordance with the Commissioner’s Estate Strategy.

21.2 The CCCFO having received in writing the approval of the Commissioner will arrange the disposal of police houses on behalf of the Commissioner.

21.3 All other proposed disposals must be reported to the Commissioner in accordance with the Joint Scheme of Corporate Governance.

F22 CONTRACTS FOR THE SALE OF GOODS

22.1 Competitive quotations should be sought for contracts for the sale of goods.

22.2 Where payment is to be received by the Commissioner the CCCFO may accept the highest quotation.


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SECTION G - DELEGATED LIMITS

References to Sections refer to the relevant part of these regulations where a delegated limit is to apply.

SECTION B

B1 Financial Planning 1. The budget estimates shall identify all newly proposed individual major revenue

proposals. A major revenue proposal shall be defined as one in excess of the estimated value shown below:-

£500,000

B2 Budgetary Control 2. Major projects i.e. those over £0.5m need not be referred back to the

Commissioner for further approval unless, when negotiating contract details, amendments to the nature of the scheme are sought or the cost of the scheme exceeds the limits shown below:-

Cost of project varies from approved estimate by lesser of 10% or £250,000 (whichever is the lower).

Year End Balances

3. Subject to the annual approval of the Commissioner the following carry over

rules will apply:-

Devolved budgets - any overspend is carried forward into the next financial year in full, whilst any under-spend is allowed to be carried forward up to 1% of budget or £0.025m whichever is greater.

Central budgets are allowed no carry-over with any under or overspend directly affecting the Commissioner’s overall outturn position.

B3 Capital Programme

4. The Chief Constable shall notify the Commissioner of all proposed property

leases or renewals before any agreement is made. All property leases shall be subject to the Commissioner's approval.


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5. Detailed estimates for each scheme in the approved capital programme shall be

prepared by the responsible officer before tenders are sought or commitments made. Schemes need not be referred back to the Commissioner for further approval unless the cost of the scheme exceeds the limits shown below:

Cost of project varies from approved estimate of 10% (of the approved amount) or £250,000, whichever is the lower, or is not included in the capital plan.

SECTION C

C5 Assets

6. The Chief Constable shall maintain an asset register for all fixed assets with a

value in excess of the limits shown below:-

Land & Buildings - All values Vehicles - All Values Computers - £2,500

Plant & Equipment - £2,500 7. The Chief Constable and Chief Executive shall maintain inventories that record

an adequate description of portable and desirable items such as computers, monitors, printers, facsimile machines, mobile phones and photographic equipment above the value shown below:-

£250

8. Discrepancies between the actual level of stock and the book value of stock may

be written off by the Chief Constable up to the level shown below. Amounts for write off above this value must be referred to the PCCCFO for approval.

Individual items £5,000

Overall annual limit on all stock £15,000 9. Obsolete stock, or equipment and materials surplus to requirements may be

written off by the Chief Constable up to the level shown below. Amounts for write off above this value must be referred to the PCCCFO for approval.

Individual items £5,000

Overall annual limit on all stock £15,000


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10. The Chief Constable may dispose of surplus vehicles and items of equipment up

to the estimated value shown below. Disposals above this value are to be reported to the Commissioner for prior approval.

Equipment £10,000 Vehicles £15,000

11. Items above the estimated value shown below shall be disposed of by public

auction or sealed bids after advertisement.

Equipment £5,000

C11 ACCEPTANCE OF GIFTS, LOANS AND SPONSORSHIP 12. The Chief Constable may enter into arrangements under which the

Commissioner receives sponsorship up to the level shown below:-

£100,000

Sponsorship arrangements above this value are to be reported to the Commissioner for prior approval.

SECTION D

D2 Income

13. Individual amounts may be written off by the CCCFO or PCCCFO up to the level

shown below. Amounts for write off above this value must be referred to the PCCCFO for approval.

£5,000

All cases where write off action results from theft or fraud shall be referred to the PCCCFO for approval up to a maximum of £10,000 and in conjunction with the Chief Executive and the Commissioner for approval of amounts in excess of that sum.

D3 Ordering of Goods and Services

14. Quotations shall be obtained or tenders invited from suppliers or contractors in

accordance with the requirements set out in Standing Orders Relating to

Contracts (see Section F).


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D4 Ex gratia Payments

15. The Force Solicitor/ CCCFO may make ex gratia payments to members of the

public up to the level shown below in any individual instance, for damage or loss to property or for personal injury or costs incurred as a result of police action where such a payment is likely to facilitate or is conducive or incidental to the discharge of any of the functions of the Force. The circumstances of the proposed payment must not have the effect of circumventing other pay and allowances, policies, rates and rules.

Up to £1000 – to be reported to the PCCCFO within 3 days

£1,000 - £30,000 in consultation with the PCCCFO and Chief Executive Over £30,000 – approval of Commissioner

SECTION E

E2 External Funding 16. The CCCFO will report to the Commissioner where the Chief Constable has

identified and pursued external funding in excess of the amount below:-

£100,000


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SECTION H - GUIDANCE NOTES ON BREACH OF STANDING ORDERS OR

FINANCIAL REGULATIONS

1. These guidance notes are supplemental to the Commissioner and Chief

Constable’s anti-fraud and corruption arrangements and should be read in conjunction with those documents.

2. The PCCCFO and the CCCFO have responsibility under section 114 of the

Local Government Finance Act 1998 to make a report if it appears to either of them that any person holding any office or staff or member of any collaborative body on which the Commissioner or the Chief Constable is represented:

(a) has made, or is about to make a decision which involved or would

involve the Commissioner or the Chief Constable incurring expenditure which is unlawful;

(b) has taken or is about to take a course of action which, if pursued to its conclusion, would be unlawful and likely to cause a loss or deficiency on the part of the Commissioner or the Chief Constable; and

(c) is about to enter an item on account, the entry of which is unlawful. 3. It is also the duty of the Chief Executive and Monitoring Officer to prepare a

report for the Commissioner with respect to any proposal, decision or mission by any person holding any office or employment which may contravene any enactment, rule of law or code of practice or any maladministration or injustice as defined. In doing so it is the Monitoring Officer's duty, so far as is practicable, to consult with the PCCCFO and the CCCFO. A copy of such a report shall be sent to the external auditor.

4. To provide for effective action to deal with any fraud and corruption and to

assist the PCCCFO and the CCCFO in the performance of their duties to ensure the financial affairs of the Chief Constable and the Commissioner are properly conducted, the PCCFO and CCCFO, together with the Head of Internal Audit and the Head of the Professional Standards Department, shall be informed immediately of any loss or financial irregularity or suspected irregularity, or of any circumstances which may suggest the possibility of losses or irregularities, including those affecting cash, stores, and other property of the Commissioner and Chief Constable. Except where the urgency of the situation dictates, no investigation or interview in connection with an alleged irregularity shall be undertaken prior to the CFOs being informed. Nor should any statements be requested of staff within the Department concerned, since this could prejudice any investigation that may take place. The PCCFO and CCCFO in conjunction with the Head of the Department concerned, shall take such steps as they consider necessary by way of investigation and report, and where it appears an offence may have been committed, shall consult with the Force Solicitor. In appropriate circumstances the PCC Chief Executive shall be informed.


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SECTION I - ANTI FRAUD AND CORRUPTION ARRANGEMENTS

Arrangements to prevent fraud and corruption are included within several strategies, policies and guidance including:

1. Integrity and anti-corruption strategy

2. Service Confidence Policy

3. Notifiable Association Policy

4. Vetting Policy

5. Doing the right thing Policy

6. Substance Misuse Policy

7. Police Regulations Guidance

8. Conditions of Service (Police Staff)

9. Business Interest Policy.

10. Data Protection Policy

11. Information Security Guidance

12. Management of Police Information

13. Gifts & Hospitality

14. Social Networking Sites - Guidance

15. E-MAIL & Internet Policy

16. First Contact Scheme

17. Freedom of Information policy

18. Referred officer Policy

19. Exit Interview Procedure

20. Remote Working Policy

21. Mobile Phone Policy

Documents

CORPORATE GOVERNANCE FRAMEWORK 2016/17 FINAL CORPORATE... · Corporate Governance Framework 2016/17 Page 4 of 121 Framework / Instruments of governance The corporate governance framework