Financial roles and responsibilities

Responsibility for the council's finances is held by a number of different people and groups. A summary of the main financial roles and responsibilities for councillors and senior officers is set out below.

Approving the council's financial regulations and budget and policy framework as proposed by the Cabinet.
Approving procedures for agreeing variations and exceptions to the above.
Agreeing the council's annual budget and subsequently the level of council tax.
Setting the level at which the Cabinet may reallocate budget funds from one service to another.

Cabinet's responsibilities:

Proposing the Council's financial regulations and budget and policy framework to the full council.
Taking decisions during the financial year on resources and priorities in order to deliver the budget within the financial limits set by the council - including agreeing all virements in excess of £200k.
Approving the council's risk management strategy and the effectiveness of risk management procedures.
Ensuring that proper insurance exists where appropriate.

Lead members' responsibilities:

Overseeing and approving the setting and managing of the directorate's budget within the limits agreed by the council and Cabinet.
Approving budget virements of £100k to £200k.
Approving the arrangements put in place by strategic directors to ensure an effective system of internal control and the safeguarding of assets.
Approving any partnership arrangements entered by the directorate.

Budget Scrutiny Committee responsibilities:

Receiving budget monitoring reports throughout the year.
Challenging the performance of directorates and services against budgets and savings targets.
Reviewing the management of the council's financial resources including prudential indicators for borrowing and other treasury management functions.
Acting as advisors to the Cabinet in relation to financial decisions.

Audit & Accounts Committee responsibilities:

Approving the annual statement of accounts.
Receiving the Audit Commission's report on the annual statement of accounts.
Considering the effectiveness of the council's risk management arrangements, the control environment, and associated anti-fraud and corruption arrangements.
Approving Internal Audit's strategy and work plan and monitoring their performance.
Reviewing reports from Internal Audit, External Audit and inspection agencies and monitoring actions taken in responsse to them.
Ensuring an effective relationship between Internal and External Audit and other relevant bodies.
Considering the council's arrangements for corporate governance and monitoring compliance with its own and other published standards and controls.

Under section 151 of the Local government Act 1972, the designated officer "shall make arrangements for the proper administration of the council's financial affairs". The section 151 officer for Salford City Council is the City Treasurer.

City Treasurer's responsibilities:

Maintaining a continuous review of the financial regulations and submitting any additions or changes necessary to the council for approval.
Preparing a prudent and appropriate annual budget for the council, for approval by the Cabinet and council, including maintaining reasonable levels of reserves.
Ensuring that financial management arrangements are sound and effective, and that there is an effective system of internal financial control.
Ensuring that any partnership arrangements (or other innovative structures for service delivery) are underpinned by clear and well-documented internal financial controls.
Ensuring there is an adequate and effective internal audit function in accordance with Accounts and Audit Regulations 2003.
Ensuring that risk management is embedded within the council, including advising directorates on arrangements for safeguarding assets, risk avoidance and insurance.
Advising on anti-fraud and anti-corruption strategies and measures.
Ensuring that statutory and other accounts and associated claims and returns in respect of grant are prepared, including certifying that the annual statement of accounts presents fairly the financial position and transactions of the council.

To help carry out his responsibilities, the City Treasurer has a service accountancy and finance team in each directorate, as well as corporate teams for accountancy, payroll, invoice payment, invoice raising, debt recovery, purchasing and financial systems, and an Audit and Risk Management Unit made up of internal audit, computer audit, energy audit and insurance and risk management teams.

Strategic directors' responsibilities:

Submitting annual service budgets in line with guidance from the City Treasurer.
Managing the directorate's income and expenditure in line with the budget agreed by the council and Cabinet.
Ensuring that effective arrangements are in place for internal control and the safeguarding of assets within the directorate.

Audit Commission's responsibilities:

Auditing the council's annual financial statements in accordance with relevant legal and regulatory requirements and standards.
Reporting on their opinion as to whether the statements present fairly the position of the council.
Reviewing the council's statement of internal control.
Reviewing and expressing an opinion on the council's arrangements for securing value for money in the use of resources.

This page was last updated on 1 May 2012