d. Responsible Financial Officer (RFO)

A council is required under s.151, Local Government Act 1972 to appoint an officer who is responsible for the administration of its financial affairs.    

This role is formally referred to in legislation as the Responsible Finance Officer (RFO).   The RFO is usually the clerk in smaller councils, whilst in larger councils it can be a separate post and officer.   There must always be a member of staff to undertake the work of the RFO.   It is common for councils to employ a deputy RFO or to nominate another member of staff who can undertake the RFO’s responsibilities if the RFO is absent.

Under Regulation 4 of the Accounts and Audit (England) Regulations 2011 (SI 2011/17), the Responsible Finance Officer (RFO) is tasked with overseeing the administration of the Council's financial affairs.  The RFO must determine the council’s accounting records, including the form of accounts and supporting accounting records and accounting control systems.   The RFO must ensure that the accounting control systems are observed, and the council’s accounting records are kept up to date. A council may delegate the role of safeguarding the use of public funds to the RFO, but the legal responsibility always remains with the council and the councillors.

The proper practices that councils must adhere to outline the additional responsibilities of the RFO.  The Joint Panel on Accountability and Governance Practitioner Guide (JPAG) is responsible for issuing proper practices about governance and accounts of smaller authorities.