To conduct its business efficiently, a local authority needs to ensure that it has sound financial management policies in place and that they are strictly adhered to.

Part of this process is the establishment of financial regulations and procedures that set out the financial policies of the authority.

Financial regulations provide the framework for managing the authority's financial affairs. They apply to every member and officer of the authority and anyone acting on its behalf.

The regulations identify the financial responsibilities of the full council, Cabinet and scrutiny members, the head of paid service (chief executive), the monitoring officer, the chief financial officer and other chief officers. Cabinet members and chief officers should maintain a written record where decision making has been delegated to members of their staff, including seconded staff.