Committee Report Checklist
Stage 1
Report checklist – responsibility of report owner
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ITEM |
Yes / No |
Date |
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Councillor engagement / input from Chair prior to briefing |
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Relevant Group Head review |
Yes |
16/3/2026 |
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MAT+ review (to have been circulated at least 5 working days before Stage 2) |
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This item is on the Forward Plan for the relevant committee |
Yes |
10/03/2026 |
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Reviewed by |
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Finance comments (circulate to Finance) |
Yes |
25/03/2026 |
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Risk comments (circulate to Lee O’Neil) |
LO |
01/04/26 |
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Legal comments (circulate to Legal team) |
LH |
26/03/26 |
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HR comments (if applicable) |
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For reports with material financial or legal implications the author should engage with the respective teams at the outset and receive input to their reports prior to asking for MO or s151 comments.
Do not forward to stage 2 unless all the above have been completed.
Stage 2
Report checklist – responsibility of report owner
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ITEM |
Completed by |
Date rec’d |
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Monitoring Officer commentary – at least 5 working days before MAT |
L Heron |
26/03/2026 |
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S151 Officer commentary – at least 5 working days before MAT |
T.Collier |
20/03/2026 |
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Commissioner engagement |
J. Kingston |
20/03/2026 |
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Delete as applicable: |
No issues |
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Confirm final report cleared by MAT |
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Title |
Amendments to the Financial Regulations |
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Purpose of the report |
To make a decision |
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Report Author |
Nina Diton Project Management Officer |
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Ward(s) Affected |
All Wards |
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Exempt |
No |
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Corporate Priority |
Services Resilience |
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Recommendations
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Council is asked to:
1. Approve the proposed amendments to the Financial Regulations (Part 4d of the Constitution) as detailed in Appendix A; and
2. To adopt the revised Financial Regulations and for the Constitution to be amended accordingly. |
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Reason for Recommendation |
Internal Audit highlighted some limitations within our current operational debt processes. To address these, a number of processes driven updates are required to the Financial Regulations. These refinements do not represent fundamental policy changes, but rather practical adjustments designed to strengthen financial controls, promote consistency across services, and further reduce risks associated with income recovery. |
1. Executive summary of the report (expand detail in Key Issues section below)
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What is the situation |
Why we want to do something |
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• Internal Audit findings showed some inconsistencies in credit note approval, reminder letter timeframes, hold case monitoring, debt ownership, payment plans, invoice cancellation documentation, and write-off‑ records. |
• The Council must ensure strong internal controls to manage income effectively, reduce financial risk, and comply with audit expectations. |
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This is what we want to do about it |
These are the next steps |
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• Update the Financial Regulations in line with the recommendation from Corporate Policy & Resources Committee, Internal Audit recommendations, and confirmed operational practice. |
• Once approved by Council, the updated documents will be issued, staff guidance provided, and processes updated across all service areas. |
2. Key issues
2.1 In 2025 an internal audit of sundry debt processes identified several areas requiring further improvement. While resourcing enhancements and improved engagement with services had strengthened overall performance certain financial control issues remained. Addressing these require formal amendments to the Corporate Debt Policy and Financial Regulations.
2.2 The amendments to the Corporate Debt Policy were approved by the Corporate Policy & Resources Committee at their meeting on 20 April 2026, but it is for Council to approve the amendments to the Financial Regulations as they form part of the Constitution.
2.3 Appendix A shows the full schedule of all recommended amendments mapped directly against each Internal Audit recommendation as required for the Financial Regulations. Appendix A shows the audit observation, previous wording, required change, and the revised policy or regulation text.
2.4 The principal changes to the Financial Regulations are summarised below:
· Credit notes must now be approved by a manager who is independent from the original decision, with a clear record showing who approved what and why.
· Reminder letters for unpaid invoices will follow the same standard timescales everywhere based on a 28-day payment cycle.
· Debt reports will now clearly show how old debts are, including whether any are close to, or have reached, the legal time limit for recovery.
· Accounts that been put on hold (for example due to disputes) will be formally reviewed each month.
· Invoice requests must follow clearer steps, so it is easy to track who requested them and when they were confirmed.
· Responsibility for debts is now clearer: the service that raised the invoice keeps overall responsibility, supported by central teams who help recover the debt.
· Payment plans must now be based on what the customer can realistically afford, using the same affordability form across all services.
· Cancelled invoices must be properly justified, fully documented and recorded so the decision can be checked later.
· Write offs will use a standard digital form, with regular checks to make sure decisions are correct and consistent.
2.5 The revised financial regulations (Part4d of the Constitution) showing all amendments in tracked changes (in red) accompanies this report in Appendix B.
2.6 The report was considered by the Corporate Policy & Resources Committee at their meeting on 20 April 2026.
2.7 The Corporate Policy & Resources Committee resolved to:
(a) Approve the amendments to the Corporate Debt Policy required following the Southern Internal Audit Partnership audit conducted in October 2025.
(b) Approve the proposed amendments to the Financial Regulations (Part 4d of the Constitution) as detailed in Appendix A; and
(c) Subject to the comments from the Committee System Working Group, to recommend to Council to adopt the revised Financial Regulations and for the Constitution to be amended accordingly.
2.8 The amendments have been circulated to the Committee System Working Group for comment, and no issues or comments have been raised.
2.9 The Council is now asked to consider adopting the revised Financial Regulations to be included in the Constitution.
3. Options appraisal and proposal
3.1Option 1: Approve all amendments
This option involves approving: All amendments to the Financial Regulations (as set out in Appendix A), noting that Financial Regulations form part of the Constitution and adopting amendments to the Constitution is a function reserved to Council.
Financial Regulations – Benefits
Embeds strengthened financial governance controls into the Constitution, including segregation of duties, age‑banded debt reporting, monitoring of held accounts, and defined approval thresholds.
Ensures corporate consistency by aligning Financial Regulations with the updated Corporate Debt Policy.
Improves audit compliance and provides stronger assurance through enhanced documentation and mandatory digital processes.
Financial Regulations – Disbenefits
Approximately eight members of staff will require time to review and familiarise themselves with the amendments. As the changes mainly formalise and standardise existing practice, significant training is not expected. Limited adjustments to local workflows may be required to ensure alignment with the updated processes.
3.2Option 3: Approve no amendments
Benefits
No immediate staff time or operational change required.
Existing processes and workflows remain unaffected.
Disbenefits
Audit findings remain unaddressed, and known weaknesses persist.
Income management, documentation standards, and compliance controls remain at risk.
Processes such as invoice cancellations, payment plans, or write‑offs would continue.
This is against the recommendation of the Corporate Policy & Resources Committee that the suggested amendments be adopted.
4. Risk implications
4.1 Operational Risk: Without the changes, delays, errors, and inconsistent practices may continue across services Mitigation: Updated processes introduce clearer controls, standardised procedures, and defined monitoring requirements to reduce these risks.
4.2 Financial Risk: Weak segregation, incomplete tracking, and inadequate write‑off controls increase the risk of income loss. Mitigation: Strengthened approval processes, improved audit trails, and digital forms provide better oversight and protect income.
4.3 Compliance Risk: Without amendments the Council would not be able to demonstrate assurance against the audit findings Mitigation: The proposed changes address the issues identified and help ensure alignment with required standards across all services.
4.4 Reputational Risk: Non‑compliance with financial regulations may undermine governance credibility. Mitigation: More consistent, processes, better documentation, and greater transparency help reinforce assurance.
4.5 Overall Mitigation: The controls introduced through the amendments would collectively reduce operational, financial, compliance, and reputational risks for all services, improving governance assurance.
5. Financial implications
5.1 The strengthened controls for services (credit notes, write-offs, tracking, monitoring, reporting) ensure:
· Better protection of income streams
· Reduced risk of uncollected debt
· Improved accuracy of financial monitoring and reporting
5.2 All improvements relate to existing operational processes and do not create new budget pressures.
6. Legal comments
6.1 The Council is required to recover outstanding debt where possible. Subject to existing legislation, the method of enforcement is at the discretion of the Council. Up to date and robust policies and regulations assist the Council in discharging this responsibility.
Corporate implications
7. Commissioners’ comments
7.1 Commissioner’s content with this report overall.
8. S151 Officer comments
8.1 The S151 Officer confirm that all financial implications have been taken into account and that the recommendations are fully funded from within the 2026-27 budget. The S151 Officer fully supports the proposed improvements.
9. Monitoring Officer comments
9.1 The Monitoring Officer confirms that the relevant legal implications have been taken into account.
10. Procurement comments
10.1 Not required — no procurement activity involved.
11. Equality and Diversity
11.1 No negative impact identified. Improved consistency may enhance fairness in the recovery process.
12. Sustainability/Climate Change Implications
12.1 No direct implications.
13. Other considerations
13.1 None identified
14. Timetable for implementation
14.1 As the Financial Regulations form part of the Council’s Constitution, once Council approves the suggested amendments, the Constitution will be updated and published on the Council’s website.
15. Contact
15.1 Nina Diton n.diton@spelthorne.gov.uk / Sandy Muirhead s.muirhead@spelthorne.gov.uk
Please submit any material questions to the Committee Chair and Officer Contact by two days in advance of the meeting.
Background papers: Decision - Amendments to the Corporate Debt Policy and Financial Regulations - Spelthorne Borough Council
Appendices:
Appendix A - Audit findings and Financial Regulation Amendments
Appendix B - Revised Part 4d Financial Regulations (Amendments to Section D)