Any major organisation requires a set of clearly understood rules and regulations for the management of its financial procedures.
Section 112 of the Local Government Finance Act 1988 places a duty on each Police Authority to make arrangements for the proper administration of its financial affairs and to ensure that the Treasurer to the Police Authority has responsibility for the administration of these affairs.
Additionally the Police Authority has to have due regard to the Code of Practice on Financial Management which has been issued by the Home Secretary under Section 39 of the Police Act 1996. Paragraph 3 of the Code recommends that “unless there are good reasons to the contrary police authorities should delegate financial management to the Chief Constable so that, as far as possible, the financial management of the Force takes place within that Force”.
These particular principles have been followed in developing the Authority’s Financial Regulations.