WARNING - By their nature, text files cannot include scanned images and tables. 
The process of converting documents to text only, can cause formatting changes and 
misinterpretation of the contents can sometimes result. Wherever possible you 
should refer to the pdf version of this document.


CAIRNGORMS NATIONAL PARK AUTHORITY 
Audit Committee Meeting 26 August 2005 Paper 5 

CAIRNGORMS NATIONAL PARK AUTHORITY 

FOR DECISION 

Title: FINANCIAL REGULATIONS 

Prepared by: David Cameron, Head of Corporate Services 


Purpose 

To update the Committee on progress made on developing financial regulations for the 
Authority. 


Recommendations 

The Committee is requested to: 

1. Approve the draft Financial Regulations set out in the Annex to this paper; and 

2. Delegate approval of operational financial procedures to the Chief Executive, as 
Accountable Officer, and to the Head of Corporate Services. Updates will be 
provided regularly to the Committee, to inform members of areas in which additional 
financial procedures have been put in place, or where revisions have been made. 


Executive Summary 

One aspect of the Committee’s remit is to monitor the adequacy of the CNPA’s internal 
control systems. The External Auditor’s Management Report on the audit of the accounts for 
2003/04 noted that there was no comprehensive set of written procedures covering the 
Authority’s financial operations. Draft Financial Regulations are presented with this paper, 
which seek to establish a set of relatively “static” principles of financial administration and 
stewardship. These regulations will be supplemented as required by more detailed financial 
procedures. 



Financial Regulations 

Background 

1. One aspect of the Committee’s remit is to monitor the adequacy of the CNPA’s internal 
control systems. 

2. In this regard, the External Auditor’s Management Report on the audit of the accounts 
for 2003/04, considered by the Committee at its meeting in December 2004, noted that 
there was no comprehensive set of written procedures covering the Authority’s 
financial operations. 


Draft Financial Regulations 

3. The Finance Manager and Head of Corporate Services have now developed draft 
Financial Regulations for the Authority. These set out relatively high level regulations 
and principles covering the use of financial resources within CNPA. A copy of the 
draft Financial Regulations is set out in the Annex to this paper. 

4. These draft regulations have been developed from the Chartered Institute of Public 
Finance and Accountancy (CIPFA) Model Financial Regulations for use in Further and 
Higher Education Institutions. While obviously developed within a different part of the 
public sector, the principles involved are sufficiently generic to enable their transfer to 
the CNPA’s circumstances. 

5. The intention is that the Regulations will form a set of relatively “static” principles of 
financial administration and stewardship. 

6. These regulations will be supplemented as required by more detailed financial 
procedures. The procedures will uphold the principles set out in the regulations but will 
be more liable to change in detail as the organisation develops and working practices 
change. When approved, individual procedures will be adopted as appendices to the 
Financial Regulations. 

7. The Committee is requested to approve the draft Regulations set out in the Annex 
to this paper for adoption within the Authority. 

8. The Committee is requested to delegate approval of operational financial 
procedures to the Chief Executive, as Accountable Officer, and to the Head of 
Corporate Services. Updates will be provided regularly to the Committee to 
inform members of areas in which additional financial procedures have been put 
in place, or where revisions have been made. 


Future Action 

9. As can be seen from the Annex, a few detailed procedures have already been 
incorporated as appendices to the financial regulations. There will be a requirement to 
supplement these over the next few months with a range of additional procedures, 
covering, for example, payroll processing, budget monitoring, and recording financial 
commitments. 

10. The financial regulations and procedures will, of course, be subject to the usual 
processes of internal and external audit review. The outcome of these reviews, and of 
reviews into other areas of financial operations, will also be used to inform future 
required developments. 


Statement of Internal Control 

11. Prior to finalising the external audit of the Authority’s accounts for the year ended 31 
March 2005, there is a requirement for the Committee to approve an Internal Control 
statement which forms part of the foreword to the financial reports for the year. A draft 
internal control statement is set out on page 7 of the Appendix. 

12. The Committee is requested to approve the Statement of Internal Control set out 
in the draft accounts for 2004/05. 


Future Action 

13. A verbal update of any matters arising from the external auditors’ fieldwork in August 
will be given to the Committee at its meeting. 

14. It is intended that the accounts will be signed by the Chief Executive and forwarded to 
Audit Scotland for inclusion of their audit certificate by 9 September. Certified 
accounts will be made available to the Sponsor Department and Auditor General by 30 
September. 

David Cameron 
August 2005 

davidcameron@cairngorms.co.uk