Review of financial and contract regulations

Report: 7
Date: 17 September 2009
By: Treasurer

Summary

This report provides details of proposed changes to financial and contract regulations and the scheme of delegation highlighted as part of the annual review. Only minor changes are proposed as a more fundamental review of the regulations was undertaken in 2007

A. Recommendation

That members consider and approve the proposed amendments to financial and contract regulations and the scheme of delegation and forward them to Full Authority;

B. Supporting information

Introduction

1. The Authority’s standing orders regulate the conduct of its business to ensure fair and accountable decision making, they also provide for the delegation of Authority functions and decision making to committees, panels and officers. The current standing orders were agreed when the Authority came into existence in July 2000.

2. They have since been reviewed a number of times to provide clarification and to update when necessary following changes in legislation, the most recent review being 2008.

3. Contract and financial regulations underwent a thorough review in 2007, therefore this year’s review (as with 2008) has been light touch and only minor amendments are proposed to provide clarification and reflect changes in governance arrangements.

Financial Regulations (appendix 1)

4. Changes to Financial Regulations are minor, with amendments being made to add clarity and address new requirements. The main changes are summarised below.

1. Treasury Management – This section has been updated to ensure it aligns with the treasury management policy especially with regard individual roles and responsibilities as recommended by the external independent specialist review into the investment of funds in Landsbanki.
2. Damage to property – A new section has been included to reflect delegation of authority with regard ex gratia payments in respect of claims for loss or damage to property, as approved by Strategic and Operational Policing Committee in April this year. The scheme of delegation has also been amended accordingly.
3. Disposal of properties – This section has been amended to increase members oversight of property disposals. In future members will be presented with a schedule of all proposed disposals prior to the beginning of each financial year to which they relate. In addition Authority approval will be required for the disposal of any property felt to be of particular concern, and not just for properties with an estimated value of £1M or more.
4. Internal Audit – This section has been updated to clarify the role of internal audit and its roles and responsibilities and reporting requirements.

Contract Regulations (appendix 2)

An additional section has now been included clarifying the approval process for the early termination of contracts. Authority approval will now be required for the early termination of all contracts in excess of £5M.

C. Race and equality impact

The GLA Responsible Procurement Policy and the Authority’s Equalities and Diversity Statement support Contract Regulations. These documents aim to reduce inequalities and promote diversity in the purchasing of goods and services.

The Contract Regulations and Financial Regulations have all been equality impact assessed in the past. The impact assessments are presently being reviewed in light of proposed amendments made to the regulations.

D. Financial implications

The revised regulations will ensure that we are compliant with UK and EU legislation and that the Authority meets its statutory responsibilities in relation to the proper administration of its financial affairs.

E. Background papers

• None

F. Contact details

Report author: Annabel Adams

For information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

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