Transport for South Hampshire

FINANCIAL PROTOCOLS

A. General

1. These protocols are to read in conjunction with the Joint Agreement established between the participating authorities.

2. Interest on balances held in Hampshire County Council accounts will be paid to Transport for South Hampshire (TfSH) annually. "Overdrafts" will be charged interest in like manner.

3. All bids for revenue and capital grants to be cleared by the Treasurer in advance of submission.

4. "Aligned" funding (whether revenue or capital) is reported as part of the host authority and is not to be brought into TfSH's accounts. However, the financial reports should disclose these as memorandum items. (Aligned funds are those which meet the TfSH business plan objectives but for which TfSH is not actually responsible).

5. TfSH core staff will be employed by the lead authority for financial matters (Hampshire County Council), unless agreed otherwise by the Project Director in consultation with the Chief Financial Officer. Secondments can be utilised where appropriate.

B. Revenue

6. Joint Committee to set overall budget.

7. TfSH Senior Management Board to monitor budgets and take appropriate action, or make recommendations to Joint Committee.

8. Where invoices are to be paid directly by the accountably body, procurement must be through Hampshire County Council, otherwise the lead authority for the project must follow their own procurement procedures, pay the invoice and seek reimbursement from Hampshire County Council.

9. Use the emerging South Hampshire Framework Agreement for all consultancy commissions paid directly through Hampshire County Council, unless there are exceptional circumstances.

10. All commitments to be agreed before they are entered into by the Lead Chief Officer of the authority appointed as Lead Authority for any major projects, or the TfSH Project Director and sanctioned by the Treasurer following confirmation of available budget.

11. All invoices for work commissioned through Hampshire County Council to be paid by Hampshire County Council on confirmation by the TfSH Project Director (or nominated officer) that the work has been completed, using the TfSH `Claim for Re-imbursement of Expenditure' form (see Appendix 2).

12. Any staff time incurred by lead authorities/partners and related support costs (travel, accommodation, supplies etc) to be invoiced to Hampshire County Council as finance lead authority for reimbursement - if approved by TfSH Project Director (or nominated officer), using the TfSH `Claim for Re-imbursement of Expenditure' form (see Appendix 2).

13. Any directly procured services, where costs incurred by lead authorities are to be reimbursed via sending an invoice to Hampshire County Council as finance lead authority, and approved by TfSH Project Director or Lead Chief Officer (or their nominated officer), using the TfSH `Claim for Re-imbursement of Expenditure' form (see Appendix 2).

14. All contributions to be invoiced to partners and paid in line with agreed terms.

15. All grants payable to TfSH to be paid to Hampshire County Council or if paid to a partner directly, to be transferred to Hampshire County Council at the earliest opportunity.

16. All projects costing over £250,000 require a project approval form to be completed, using the standard TfSH Project Approval template.

C. Capital

17. The TfSH Joint Committee to set the capital allocation in line with the business plan. The Senior Management Board (or nominated Chief Officer) to allocate to specific projects.

18. All additional funding secured to be approved by Senior Management Board to specific projects, if no impact on overall TfSH budgets.

19. TfSH to act as capital grant administering body, but not incur capital expenditure directly (due to assets being created for partners needed to be in the relevant partner's accounts).

20. Lead partners to procure and account for capital expenditure and new assets created in line with their own financial protocols. Maintenance and other liabilities for capital assets created rest with the relevant lead partner, specifically including any liability for cost overruns for the scheme during the construction phases or at any other stage in the life of the project.

21. Claims are to be made by submission of invoice to Hampshire County Council for reimbursement by Treasurer, in line with project approvals and on the confirmation from the Chief Officer of the relevant lead authority that work has been completed satisfactorily, using the TfSH `Claim for Re-imbursement of Expenditure' form (see Appendix 2).

22. All projects seeking TfSH capital funding must complete a project approval form. These should be submitted using the TfSH project approval template (see Appendix), and endorsed by the Chief Officer (or their nominated officer). The Lead authority in respect of a specific major project should be able to follow its own governance arrangements in terms of capital funding/project appraisal. Costs submitted as part of the appraisal should be agreed with the Project manager's finance department, along with confirmation that any new asset will be maintained by the relevant partner, who will be responsible for ongoing revenue costs.

D. Project Approval

23. All capital projects over £5,000 and revenue projects over £250,000 require the completion of the TfSH Project Appraisal template attached as Appendix 1.

24. Projects over £5,000, but under £25,000 require only a partial Project Appraisal to be completed. The sections relating to Options, Implementation Plan and Risk can be omitted.

25. The table below sets out the process for approving of projects submitted.

Estimated Value

Revenue

Capital

Under £5,000

To be approved by Project Director

To be approved by Project Director

Over £5,000 and under £25,000

To be approved by Project Director

To be approved by Project Director

Over £25,000 and under £250,000

To be approved by Project Director

To be approved by Project Director

Over £250,000

To be approved by Chief Officer and Chairman and Vice Chair of Joint Committee

To be approved by Chief Officer and Chairman and Vice Chairman of Joint Committee

Additional requirement over budget allocation

To be approved by Chief Officer and Chairman of Joint Committee

To be approved by Chief Officer and Chairman of Joint Committee

E. Financial Reporting

26. Periodic reporting (quarterly) for both revenue and capital expenditure to go through the Senior Management Board to the Joint Committee.

27. Project Managers are to report on progress against the approved budget by means of the `Monitoring Progress Report' to the Project Director and TfSH Treasurer (see Appendix 3).

28. Final accounts to be reported to Senior Management Board and then Joint Committee.

29. Mainstream budgets to be fully and properly accounted for, including local authority contributions, New Growth Point funds, contributions from the South East England Development Agency (SEEDA) and any other resources payable to the accountable body on behalf of TfSH.

.

30. Aligned budgets and related expenditure to be reported as memorandum item.

31. "Sympathetic" spend (where authorities spend broadly in line with TfSH objectives, but not part of the Business Plan) are to be EXCLUDED, and remain the sole responsibility of the host authority.

F. Audit

32. The Treasurer will arrange for the audit of TfSH accounts by an appropriate approved auditor.

33. All TfSH Partners must retain all original documentation necessary to ensure audit compliance.

34. The Treasurer will liaise with the auditor to ensure the financial systems and procedures associated with TfSH are acceptable.

Project Details

Project Title:

Project Manager:

Contact Details:

Summary of Proposed Project:

Project Aims:

Link to TfSH objectives:

Key Outputs:

Anticipated Outcomes:

Expected start/finish dates:

Start date:

End date:

Summary of Expected Costs:

1) Revenue:

    · Fees

    · Expenses

    · Other

2) Capital:

    · Land

    · Construction

    · Fees

    · Other

3) Ongoing Revenue Consequences:

Total Project Costs

TfSH Contribution

Source of TfSH Funding:

(e.g. Core, NGP, SEEDA)

Planned Cash Flow: (£000s)

(TfSH Contribution only)

2008/09 2009/10 2010/11

Q1

Q2

Q3

Q4

Total

Appraisal of Options

Options identified:

Option 1

Option 2

Option 3

Option 4

Evaluation Criteria:

Summary of Indicative Costs

Anticipated Benefit

Preferred Option:

Implementation Plan

Key Milestone Dates:

(depending on project)

e.g.

· Tenders issued

· Tenders returned

· Contract awarded

· Contract commence

· Critical path dates

· Contract finish

Accountable Officer:

Reporting requirements:

    · Reporting to:

    · Frequency

Resources required:

eg Staff time, equipment, materials

Cost figures checked and agreed by Finance Department

Signed

Finance Dept.

Date

Agreement that ongoing asset maintenance and revenue costs will be met by host local authority

Signed

Finance Dept.

Date

Project Approved by TfSH Senior Management Board

Signed

Chairman

Date

Project Approved by TfSH Joint Committee

(if required)

Signed

Chairman

Date

Appendix 1 - Analysis of Risk

No.

Summary of Risk

Probability

Impact

Importance

Proposed Action

Scoring: High=3; Med=2; Low=1

High/ Medium/ Low

High/ Medium/ Low

Prob. X Impact

1

Funding

(Funding not received or less than expected)

2

Budget over/under

(Significant variations in spend against budget)

3

Missed milestones

4

Resources

(Staff, equipment etc. not being available)

5

Outputs/Outcomes

(Project objectives not being realised)

6

Other

TfSH - CLAIM FOR RE-IMBURSEMENT OF EXPENDITURE

Claiming Authority:

Project Name:

Project Manager:

Date of Joint Committee Approval

Total Approved Budget

Claim Number

Total claimed prior to this claim

Detail of Claim

Land

Construction

Fees

Other

(please specify)

TOTAL OF CLAIM

PROJECT MANAGER DECLARATION

I certify that this claim is correct and in accordance with the project approval and budget as approved by the TfSH Joint Committee.

Signed Date

Name (in capitals)

TfSH PROECT DIRECTOR DECALARATION

I authorise the payment of this claim is correct.

Signed Date

Name (in capitals)

FOR HAMPSHIRE COUNTY COUNCIL TREASURER'S DEPARTMENT

Date Received: Date Paid:

Cost Code

TfSH - MONITORING PROGRESS REPORT

Claiming Authority:

Project Name:

Project Manager:

Date of Joint Committee Approval

Total Approved Budget

Progress Report to end:

(month/year)

Approved Budget for current year:

Total Re-imbursement claimed for current year to date:

Details of Reimbursements received to date:

Details of Outstanding Orders Raised:

Total value of Outstanding Orders Raised:

Estimated cash flow:

Q1

Q2

Q3

Q4

Amount

Q1

Q2

Q3

Q4

Project Progress Update from Previous Month (Including explanation of Exceptions etc)