Policies and Procedures

Aim

Risk

Method used to Minimise Risk

Person(s) Responsible

1.   To ensure compliance with the Acts of Parliament, Council’s financial regulations and code of conduct.

1. Lack of knowledge of regulations and codes.

2. Absence of standing orders

3. Actions by the PC outside its powers as set out by Parliament.

4. Lack of commitment to regulations and procedures.

5. Items purchased without proper tendering procedures, resulting in accusations of commercial favouritism.

6. Payments made without prior approval and

    adequate control.

7. Lack of control of signatories to cheques.

8. VAT not properly accounted for, resulting in over-claims and large demands from HMRC.

Ensure that all Councillors have copies of relevant Acts, Code of Conduct, and Standing Orders.

Highlight essential parts and provide training where possible.

Ensure that Standing Orders are produced, understood by councillors, and reviewed at least once per year.

As at 1 above, but ensure that powers are highlighted or extracted into effective summary.

Regular reference to appropriate regulations in agenda items.

Delegation of responsibilities to individual councillors.

Ensure that all councillors are aware of regulations re estimates and full tender procedures.

Introduce practice of estimates for all purchases over an agreed figure.

Ensure all payments are approved in Council meetings and recorded in minutes.

No payments made in cash.

Keep authorised signatories to a minimum but consistent with practicalities.

Ensure appropriate publications held and that Clerk has good knowledge of regulations.

Chair

Clerk

Chair

Clerk

Chair

Clerk

Chair

All Councillors

Clerk

Chair

All Councillors

Clerk

Clerk/RFO

Clerk/RFO

Clerk/RFO

2.   To identify and regularly review the Council’s priorities.

1. Lack of knowledge of setting objectives, setting priorities, and identifying risks to their achievement.

2. Lack of commitment by council members

3. No risk analysis carried out.

4. No steps taken to combat identified risks

All councillors to be made aware of need for objectives and identification of risk.

Attend training sessions if practicable.

Add risk assessment to agenda at least annually reviewing particular items, and results against those items.

As at 1 above. Ensure that completion of the risk assessment is given high priority, as a requirement of the Audit Commission

As at 2 above.

Chair

All Councillors

Clerk

Chair

Clerk

Chair

Clerk

Chair

Clerk

3.   To influence other council departments and Government organisations to fulfil the requirements of the Parish population.

1. Lack of effective lines of communication with other organisations.

2. Lack of effective lines of communication with parishioners.

3. Lack of preparation on subjects requiring influence.

4. Lack of confidence by Parish Councillors.

Note all communication lines which are essential or beneficial and make information available to all councillors.

Establish contacts by name and where possible face-to-face.

Take every opportunity to publicise role of Parish Council.  Create Parish newsletter if none exists.  Use Notice Boards, website and “flyers”.

Use key issues to raise profile of PC and to test parishioners’ views.

Add social event to occasional meeting.  Create Annual PC plan

Ensure all councillors are aware of need for careful research and are guided as to where to obtain relevant information.

As at 1 above.  Experienced councillors to assist newcomers to establish essential contacts.  Delegate responsibility for specific contacts to individual councillors

Chair

Clerk

Chair

Clerk

Chair

Clerk

Clerk/RFO

Chair

Clerk

4.   To ensure that all councillors are aware of their responsibilities, and possible liabilities, and to provide adequate insurance cover for all possible risks.

1. Lack of knowledge of possible culpability of councillors.

2. Lack of education of Councillors regarding culpability.

3. Inadequate insurance cover taken out – property, personal liability, employer’s liability.

Creation of standing orders and familiarisation of councillors with those where greatest risk occurs.

As at 1 above. 

Attend any training courses available.

Review risk assessment by including on agenda annually.

Insurance cover to be reviewed annually

Chair

Clerk

Clerk

Chair

Clerk

5.  To keep appropriate books of accounts accurately and up to date throughout the financial year.

1. Lack of knowledge of accounting requirements

2. Lack of commitment to accounting requirements.

3. Bank charges unnecessarily incurred

4. Inaccuracies in recording amounts and totals in books of account.

    Bank reconciliations not carried out.

5. Inaccuracies and interest losses caused by account transfers.

6. The most beneficial interest terms not being employed.

7. Inadequate control of cash receipts and payments.

8. Books of account not kept up to date/ invoices not posted promptly.

9. Internal controls not in place or not operated.

10. Payments missed or delayed due to Clerk taken ill or leaves without replacement

Ensure all councillors are familiar with current financial regulations and include them in the council’s Standing Orders.

Regularly review Standing Orders.

Appoint separate RFO (perhaps a councillor) to ensure another line of responsibility for financial management.

As at 1 above. RFO to produce financial reports at all meetings.

Internal audit reports to be made available to all councillors and any recommendations to be acted upon promptly.

RFO to carry out regular inspection of books of account.

Internal audit to be undertaken quarterly during the current financial year.

RFO to ensure that books of account are formatted in such a way that internal controls are included and activated.

Internal audit to be undertaken quarterly during the current financial year.

Keep number of accounts to a minimum but ensure that any large credit balances are deposited in an interest-bearing account.

Ensure that favourable interest rate is obtained in deposit accounts and review against alternatives, but bearing in mind the risks in changing accounts.  Review annually.

No petty cash or cash payments made.

Regular checks by RFO and internal auditor.

Financial reports at all PC meetings.

As at 7 above.

As at 7 above.

Accounts kept up to date and clear for temporary staff to take over.  Store records in cloud storage.  Appoint councillor other than the Chairman to have access to cloud storage facility.

Clerk/RFO

Clerk/RFO

Clerk/RFO

Clerk/RFO

Clerk/RFO

Clerk/RFO

Chair

Clerk

Clerk/RFO

Clerk/RFO

6.  To ensure that payments made from council funds and the use of assets, represent value for money, are adequately managed, and comply generally with the wishes of the residents.

1. Lack of knowledge of wishes of residents.

2. Use of funds not giving value for money.

3. Use of funds not in accordance with the wishes of the residents.

4. Charges for use of facilities inadequate.

As at 3.2

Ensure residents are consulted on all major financial issues.

Effective budget planning processes.

Creation of annual plan after consultation process.

Creation of outline 2/3 year plan.

As at 1 above.

RFO to create effective financial management.

Internal audit checks to cover consultation process.

Effective financial management by RFO.

Internal audit checks. 

Chair

All Councillors

Chair

Clerk

Chair

All Councillors

Clerk/RFO

Chair

Clerk

7.   To ensure that the annual precept requirement results from an adequate budgetary process; progress against the budget is regularly monitored; and reserves are appropriate.

1. Lack of knowledge of budgetary process, and of Council regulations.

2. Lack of commitment to budgetary process.

3. Inadequate consideration of requirements for annual precept.

4. Calculation not in accordance with Council regulations.

5. Inadequate internal controls with regard to monitoring expenditure.

6. Reserves too low.

Include regulations in Standing Orders issued to all councillors.

Place item on agenda early in year to remind councillors of budget process and actions required.

As at 1 above

Involve all councillors in budgetary process, not solely the clerk.

Place item on agenda early in year to remind councillors of budget process and actions required.

Start consideration of need at least 4 months prior to submission date.

Create annual and 2/3 year plans to assist in process.

Checks by RFO and Internal Auditor.

Checks by RFO and Internal Auditor.

Financial reports to all PC meetings; budget reports quarterly.

As at 5 above.

Clerk/RFO

Chair

All Councillors

Clerk/RFO

Chair

Clerk/RFO

Chair

Clerk/RFO

Chair

Clerk/RFO

Chair

All Councillors

Clerk/RFO

8.   To explore all possible sources of income and ensure that expected income is fully received.

1. Lack of knowledge of possible sources of income e.g. grants.

2. Lack of commitment to pursue possible sources of income.

3. Receipts not banked or not banked promptly.

4. Debts not pursued promptly.

5. VAT claims not made promptly or made incorrectly.

Ensure LALC and the Rural Services Network are read for possible extra sources of income.

As above.

Internal audit checks.

As at 3 above.

Ensure Clerk/RFO has appropriate and up-to-date VAT official publications.

Internal audit checks.

Clerk/RFO

Clerk/RFO

Clerk/RFO

Clerk/RFO

Clerk/RFO

9.To ensure that salaries paid to

 employees and amounts paid to

 contractors are paid in line with

 council regulations, and are

 adequately monitored.

1. Inappropriate rate of pay to employees.

2. Tax and NI arrangements not in accordance with regulations.

3. Amounts paid to contractors not in accordance with contract and inadequately monitored.

Ensure employee regulations are available and understood by Clerk/RFO.

Internal audit checks.

As at 1 above.

Internal audit checks.

Appoint councillor to monitor contract work carried out.

Clerk/RFO

Chair

Clerk/RFO

Chair

Clerk/RFO

10.   To ensure that year end accounts are prepared on the correct accounting basis, on time, and supported by an adequate audit trail.

1. Lack of knowledge of Council regulations and procedures.

2. Late or non- submission of annual accounts.

3. Year-end accounts not prepared, inaccurate, or not in accordance with Council requirements.

4. Inadequate audit trail from records to final accounts.

Include financial regulations in Standing Orders.

Attend training seminars where available.

Include a timetable in Standing Orders.

Clerk/RFO to monitor progress against timetable and report to PC meetings.

Internal audit checks.

As at 3 above.

Chair

Clerk/RFO

Chair

Clerk/RFO

Chair

Clerk/RFO

Chair

Clerk/RFO

11.   To identify, value, and maintain all the assets of the Parish Council, and ensure that asset and investment registers are complete, accurate and properly maintained.

1. Lack of knowledge of assets of Parish Council.

2. Assets lost or misappropriated

3. Inadequate or inaccurate valuation of the council’s assets.

4. Asset register not established or inadequately maintained.

Ascertain and record all assets for which Parish council is responsible.

Create and maintain asset register.

Establish who is responsible for security and maintenance of each asset.

Appoint councillor responsible for regular monitoring of location and use of assets.

Arrange for periodic review of valuations and arrange for professional valuation where necessary.

Internal audit checks.

Create asset register in accordance with Audit Commission requirements.

Chair

All Councillors

Clerk/RFO

Chair

All Councillors

Clerk/RFO

Chair

All Councillors

Clerk/RFO

Clerk/RFO

12.   To comply with appropriate Government legislation regarding disability, racial equality, safeguarding children etc.

1. Lack of knowledge of applicable legislation

2. Lack of public awareness of applicable legislation.

3. Failure to comply with applicable legislation.

We endeavour to remain aware of the changing state of relevant legislation and we will attempt to ensure all the Councillors are kept updated.
 

As above.

As above.

Clerk/RFO

13.   To carry out adequate safety checks on all buildings, properties, and equipment for which the council is responsible.

1. Lack of information on properties, buildings and equipment.

2. Lack of knowledge of safety requirements.

3. Lack of commitment to carrying out safety checks.

Ensure that all current legislation and advice is held by Clerk.

Include in asset register all properties for which PC responsible.

Ensure that all current legislation and advice is held by Clerk.

Place subject as item on PC meeting agenda at regular intervals.

As at 2 above.

Delegate responsibility for supervision of particular properties to individual councillors, reporting back to council for any action.

Clerk/RFO

14.  To carry out adequate measures to ensure safety of financial and cemetery records

1. Lack of adequate maintenance of cemetery records

2. Lack of safe storage of cemetery records.

3. Lack of safe storage of financial records.

4. Lack of safe storage of correspondence etc.

Ensure cemetery record books maintained up to date.

Arrange cemetery record books duplicated in computer record, backed-up on memory sticks and placed in cloud storage suitable for remote access.  Appoint Chair and Vice-Chair to have access to cloud storage.

Ensure financial records are backed up and stored in cloud storage suitable for remote access.  Appoint Chair and Vice-Chair to have access to cloud storage.

Ensure records are backed up and stored in cloud storage suitable for remote access.  Appoint Chair and Vice-Chair to have access to cloud storage.

Clerk

Chair

Vice-Chair

Clerk

Chair

Vice-Chair

Clerk

Chair

Vice-Chair

Clerk