The General Dental Council (Finance) Rules 2003 Explanatory Note: These rules replace Parts 10 and 11 of the “GDC Rules & Regulations”. They are based closely on those provisions, although paragraph numbering and cross- references have had to change. References to the Finance and Services Director have been updated to “Head of Finance”. The General Dental Council, in exercise of the powers conferred upon them by paragraph 8(1) of Schedule 1 to the Dentists Act 1984, and all other powers enabling them in that behalf, hereby make the following rules. 1. Financial Management 1.1 As Chief Executive and Accounting Officer, the Registrar is responsible for day to day management of the Council's finances in accordance with these Rules. The Registrar may delegate financial management functions to a member of staff, designated for that purpose Head of Finance. The Head of Finance shall compile written policies and procedures, for the approval of the Registrar, in accordance with the framework established by these Rules. 1.2 If the Registrar and the Head of Finance are both absent, any other Assistant Registrar may exercise any financial management function in accordance with these rules. 1.3 The Registrar may, in exceptional circumstances, waive the procedural requirements specified in these Rules. If the Registrar makes use of this power, he or she must report the exercise of the power and the exceptional circumstances in writing to the Chairman of the Finance Committee. 1.4 The Registrar and the Head of Finance will receive and monitor monthly management information and will receive and consider year-end accounts within two months of the year-end. 1.5 The Finance Committee will receive and monitor half-yearly management accounts and will receive and consider year-end accounts within two months of the year-end. 2. Financial Planning 2.1 The Registrar shall draw up annually a Business Plan and financial plan including the predicted 5 year spend. The Registrar may draw up long-term financial plans if necessary to obtain long-term finance. 2.2 The Registrar shall review and update the Business Plan periodically in the light of decisions taken by the Council. When an amendment to the Business Plan is required, the Registrar shall ensure that the financial plan is amended if necessary in the light of the resource implications of the proposed amendment. 3. Budgetary Control 3.1 Having regard to the annual budgets for capital and revenue expenditure, the Registrar may allocate individual budgets to Assistant Registrars, who shall be known for that purpose as Budget Holders. 3.2 As part of the budget setting process, the Registrar may identify Budget Holders, who will be expected to bid for their annual budget. Budget Holders will be informed of their budgets and are expected to ensure expenditure budgets are not overspent and income budgets are fully met. 3.3 If a Budget Holder believes that an individual budget may be overspent or underspent, the Budget Holder shall inform the Head of Finance so that any appropriate action can be taken. 3.4 No person other than the Registrar and the Head of Finance may vire between budgets. Virement by the Registrar and the Head of Finance may only take place within agreed procedures and shall be reported to the Finance Committee as part of regular monitoring information. 3.5 Budget Holders are responsible to the Registrar for the control of their budgets. Each Budget Holder shall prepare plans and estimates of the costs of the activities of his or her department and shall submit them to the Registrar for approval in connection with the Business Plan. 3.6 A Budget Holder may incur expenditure within the limits of the plans approved by the Registrar. Budget Holders should not make commitments that would lead to their budgets being exceeded, without the prior approval of the Registrar. 3.7 Budget Holders shall use the Council's accounting systems to enable effective monitoring of their budgets and shall ensure that expenditure and income are allocated to the appropriate activity in the accounts. 4. Accounting 4.1 The Head of Finance is responsible to the Registrar for all accounting procedures and records. 4.2 The Head of Finance shall compile all necessary accounts and accounting records within the time required by law. 4.3 The accounts of the Council shall be compiled in accordance with accounting policies approved by the Finance Committee. In reviewing and amending accounting policies, the Finance Committee shall (a) have regard to recommended best accounting practice as defined by legislation, applicable accounting standards and external auditors; (b) ensure that such practice is applied so that the accounts provide a true and fair view of the Council's financial position. 4.4 The Head of Finance shall ensure that the functions of providing information regarding sums due to or from the Council and calculating, checking and recording these sums shall be carried out as separately as is reasonably practicable from the functions of collecting and disbursing such sums. The Head of Finance shall ensure that staff charged with the duty of examining and checking the accounts of cash transactions shall not themselves be engaged in any of those transactions 5. Banking Arrangements 5.1 The Head of Finance shall ensure that banking procedures are carried out in accordance with arrangements approved by the Finance Committee. 5.2 Mandates for the bank accounts of the Council and the GDC Charitable Trust shall be as follows: (a) Council main account, used for all Council transactions except refunds: for amounts up to £20,000 two signatories who shall be Assistant Registrars; for amounts in excess of £20,000 two signatories of whom one shall be an Assistant Registrar and one shall be the Registrar. (b) GDC Charitable Trust main account: two signatories from the Registrar, the Head of Finance and the Deputy Registrar. 6. Purchasing 6.1 All purchases must be authorised by the relevant Budget Holder or by a member of staff to whom a Budget Holder has delegated budgetary control of certain specified levels of expenditure. A Budget Holder may delegate this function to a member of staff for this purpose. 6.2 Purchases from a single supplier made at one time for a value of over £10,000 shall be subject to tender in accordance with the procedure specified in Rule 6.3. 6.3 The tender process is as follows: (a) The Registrar approves a specification for the goods or services required. (b) The Head of Finance shall assess potential suppliers' capacity to provide the goods and services and the specification shall be sent to at least three suppliers. (c) On receipt of tenders the Head of Finance shall provide a financial assessment of each tender and of the suppliers' financial status. (d) If the Budget Holder proposes to accept a tender which is not the lowest price tender, he or she shall not do so without the prior approval of the Registrar. 6.4 Purchases from a single supplier for a value of between £5,000 and £10,000 shall not be made until at least three written quotations have been obtained from suppliers. A quotation which is not the lowest price quotation shall not be accepted without the prior approval of the Registrar. 6.5 The tender procedure specified in Rule 6.3 does not apply where services are acquired over a period of time. In order to ensure best value is obtained, such services shall be reviewed and put out to tender in accordance with the timetable specified in Rule 6.6 below. 6.6 SERVICE REVIEW TENDER At least every 3 At least every 7 Legal Services years years Audit At least every 3 At least every 7 years years Insurance, Investment and Pension Advice At least every 3 At least every 5 years years Other Consultancy/Financial At least every 3 At least every 5 years years Services At least every 3 At least every 5 years years Banking At least every 2 At least every 5 years years Printing, Stationery, Catering and other At least every 5 At least every 10 Office Services years years 6.7 Purchases valued at under £5,000 may be authorised by the Budget Holder or by a member of staff to whom the Budget Holder has delegated authority for that purpose, with due regard to the need to obtain good value. 6.8 All orders under a particular budget heading must be authorised by the Budget Holder who will consider: (a) Whether the order is necessary to provide or improve the service; (b) Whether the order is under the correct budget heading; (c) Whether the expenditure is within the budget (only in the case of emergency or statutory obligation may expenditure be made outside budget). 6.9 The Budget Holder shall inform the Head of Finance of orders made. When the invoice is received and matched to the order the Budget Holder will check that: (a) Works, goods or services are received, examined and correct; (b) Prices, extensions and calculations are correct; (c) The order is matched in terms of coding; (d) The account has not been previously passed for payment; (e) Where appropriate inventories and other such records have been updated. 6.10 Where the Budget Holder is not able to follow any of the above steps the invoice should either be returned for correction or the Budget Holder should provide a written explanation as to why the invoice should still be passed for payment. 6.11 The Head of Finance will pay the invoice ensuring that: • all certified payment vouchers are accompanied by supporting documentation; • the invoice is matched to an order (where relevant), calculation and coding checked and VAT code inserted. 6.12 Payment for goods or services shall not be made in advance of delivery without the written approval of the Head of Finance, with the exception of low value purchases where it is normal practice to pay in advance. 6.13 The Registrar or the Head of Finance shall sign all contracts for the regular supply of goods or services. 7. Expenses 7.1 Members' expenses and non-member expenses can only be claimed on submission of a pre-printed expense claim form. Expense claims must be supported by documentation (claims for tube fares excepted). Payment of claims made without supporting documentation will only be made at the Registrar's discretion. 8. Income Collection 8.1 The Head of Finance is responsible for ensuring that appropriate procedures are in operation to facilitate the prompt collection and banking of all monies due to the Council. 9. Investments 9.1 Funds invested shall be controlled and the performance of investments monitored by the Head of Finance. Funds may only be invested in the name of the Council or the name(s) of any nominee(s) approved by the Finance Committee. 10. Borrowing and Lending 10.1 Should the Council wish to borrow funds the Finance Committee must receive details of the name and credit rating of the proposed lender, the sums involved, security provided, interest charges and all borrowing costs and repayment terms. All borrowing must be approved by the Finance Committee. 10.2 The Council may not lend funds. The Council may only deposit funds with its own bank or a bank/building society approved by the Finance Committee. 11. Assets and Property 11.1 The Head of Finance shall keep a record of all fixed assets of the Council and shall ensure safe custody of title deeds. 12. Stores 12.1 The Head of Finance shall keep appropriate records of all stores owned by the Council and ensure that the issue of stores is properly authorised. 13. Audit 13.1 The auditors of the accounts of the Council shall be appointed by the Finance Committee. They shall audit the financial statements prepared by the Head of Finance on an annual basis and report their opinion to the Council. 14. Security and Fraud 14.1 The Head of Finance shall ensure procedures are in place to control entry to the building and ensure all important documents and valuable assets are kept in a secure location. 14.2 The risk of fraud shall be minimised by the segregation of duties where possible particularly in respect of the receipt and recording of cash; and by due observance of the financial regulations. 14.3 Any fraud or suspected fraud shall be notified to the Registrar promptly and in writing. 15. Insurance 15.1 The Head of Finance shall ensure adequate insurance cover is carried by the Council, in consultation with the Registrar. 15.2 The Head of Finance should be notified of any circumstances that may give rise to an insurance claim. 16. Salaries and Staff Benefits 16.1 All members of staff of the Council shall be paid in accordance with approved salary scales. The Finance Committee's approval is required for any changes in salary scales. The Registrar's approval is required to any changes in salary levels (within an approved scale). 17. Taxation 17.1 Each financial year the Head of Finance shall prepare appropriate tax returns and submit them to the Inland Revenue. 18. Petty Cash 18.1 Petty cash claims should be made by submitting a petty cash voucher, together with supporting invoices, to the relevant Budget Holder who should authorise the claim and submit it to the Head of Finance for payment. 18.2 Cash reconciliation of petty cash kept on the premises shall be carried out by the Head of Finance on a regular basis. 19. Companies and Commercial Activities 19.1 No company or commercial enterprise of any kind intended to exploit any activity carried on by the Council or on the Council's premises or to exploit any rights belonging to the Council may be established by any member of staff without the prior written approval of Council. 20. The General Dental Council Charitable Trust 20.1 The Charitable Trust was formed for the advancement of dental education and research in general. It was constituted by a Trust Deed dated 15 December 1969 and is a registered charity. 21. The GDC 1970 Pension and Life Assurance Scheme 21.1 The 1970 Pension Scheme was set up to provide pension benefits for the staff of the General Dental Council. Its constitution and management is separate from that of the Council. 22. Disclosure of Interest 22.1 A member of staff of the Council shall immediately disclose to the Head of Finance (who shall report as appropriate to the Registrar): (a) any family or close relationship they have with any other member of Council's staff, any Council member or any provider of goods or services to the Council; (b) any financial or other interest of benefit to the member of staff from a transaction or financial arrangement of the Council, including any interest in a business trading with the Council. 22.2 The Council has approved a code of conduct for Council members covering issues such as disclosure of interest, to which members are required to adhere. 22.3 The Head of Finance shall monitor any related party transactions and the Registrar shall determine whether any such transaction should be considered material. 23. Hospitality 23.1 No member of staff should accept anything other than minor gifts or basic hospitality (for example, a lunch as part of a meeting) from any supplier or potential supplier of goods/services to the Council. If any member of staff is in any doubt about accepting hospitality they should seek clearance from the Registrar. 24. Extent and Review of Rules 24.1 If these Rules do not cover a particular situation or there is uncertainty as to their application the advice of the Head of Finance or the Registrar or other appropriate member of staff should be sought. 24.2 These Rules shall be reviewed annually by the Registrar in consultation with the Assistant Registrars and any recommendations for change shall be reported to the Finance Committee.