Polices & Regulations

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 council 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.

Clerk, as Proper Officer (PO), to ensure that all Councillors have copies of relative 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 relating to estimates and full tender procedures. Introduce practice of estimates for all purchases over an agreed figure, as detailed in the Financial Regulations.

Clerk and Responsible Financial Officer (RFO) to ensure all payments are approved in Council meetings and recorded in minutes. All payments require two signatories.

Keep cash payments to a minimum and avoid where possible.

Keep authorised signatories to a minimum but consistent with adequate controls and practicalities.

Ensure appropriate publications held and that Clerk and RFO have a good knowledge of regulations.

PO

All Councillors

PO

All Councillors

PO

PO

All Councillors

PO

All Councillors

PO and RFO

PO and RFO

PO and 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 and necessary.

Add risk assessment to agenda at least quarterly, 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.

PO

All Councillors

PO

All Councillors

PO

All Councillors

PO

All Councillors

3.  To influence County and District Councils, 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 using word of mouth, Parish Newsletter, website, Notice boards and flyers, where necessary.

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

Create Annual Parish Plan and put to parishioners for comment.

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

PO

All Councillors

PO

All Councillors

PO

All Councillors

PO

All Councillors

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 – property, personal liability, employer’s liability.

Creation of Standing Orders and familiarisation with those where greatest risk occurs.

As at 1 above.  Delegate responsibility to one or two councillors to assist newcomers to understand culpability.

Attend any training courses available.

Review risk assessment by including item on the agenda at least quarterly.

Delegate responsibility for keeping up-to-date with insurance requirements to an individual councillor.

PO

All Councillors

PO

All Councillors

PO

Chair

PO

All Councillors

5.  To keep appropriate books of account accurately and up-to-date through out the financial year.

1. Lack of knowledge of accounting requirements

2. Lack of commitment to accounting requirements.

3. Inaccuracies in recording amounts and totals in books of account. Bank reconciliations not carried out.

4. Inaccuracies, leading to overpayments and underpayments, and interest losses caused by account transfers.

5. Inadequate control of cash receipts and payments.

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

7. Bank charges unnecessarily incurred or delayed or missed payments.

8. Internal controls not in place or not operated.

9. Clerk (PO) taken ill or leaves without replacement.

Ensure all councillors are familiar with the current Financial Regulations, include them in the council’s Standing Orders and review regularly, at least annually.

Appoint a separate RFO (or a non-authorising independent councillor if PO is RFO) to ensure another line of responsibility and checks for financial management.

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.

Ensure minimum of two signatories for all banking transactions.

As at 2 and 3 above. RFO to carry out regular inspection of books of account.

Internal audit to be undertaken periodically during the current financial year. Independent spot checks to be carried out by nominated Councillor between meetings.

Regular bank reconciliations.

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

As at 4 above. Avoid cash payments and receipts where possible. Where they are unavoidable, use a properly controlled petty cash account with a set maximum balance.

As at 3 and 4 above. RFO to ensure that books of account are formatted in such a way that internal controls are included and activated. Regular internal audits to advise on internal controls required.

Regular checks by RFO and internal auditor.

Financial reports at all PC meetings.

As at 3 and 4 above.

As at 3 and 4 above.

Appointing separate RFO allows a further individual to be familiar with all aspects of financial matters.

PO

All Councillors

PO

All Councillors

PO

All Councillors

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

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. Non-cost effective use of funds without giving value for money.

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

4. Charges for use of facilities inadequate.

5. Fund raising not properly controlled or not in accordance with regulations.

As at Aim 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 4, and 2 above. RFO to create effective financial management. Internal audit checks to cover consultation process.

Effective financial management by RFO. Internal audit checks and regular review, at least annually.

All councillors to be aware of need to check regulations before commencing fund-raising activities. Effective financial management by RFO.

All Councillors

PO

All Councillors

RFO

RFO

All Councillors

RFO

All Councillors

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, leading to potential financial difficulty.

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.

Delegate responsibility for managing initial budgetary process to RFO.

As at 1 above

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

Place item on agenda early enough to remind councillors of budget process and actions required. Delegate responsibility for managing initial budgetary process to RFO. Start consideration of need at least 2 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 and budget progress reports to all PC meetings.

As at 5 above.

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

RFO

RFO

All Councillors

RFO

All Councillors

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.

Appoint a councillor as Grants Officer to gain experience of all grants available and application procedures.

As at 1 above.

As at Aim 5. Regular checks by RFO or appointed councillor, and regular bank reconciliations. Internal audit checks.

As at 3 above.

Ensure Clerk has appropriate and up-to-date VAT official publications. Regular checks by RFO or nominated councillor.

Internal audit checks.

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

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.

As at Aim 5. Ensure employee regulations are available and understood by Clerk and Council. Checks by RFO or nominated councillors. Internal audit checks.

As at 1 above.

Internal audit checks. Checks by RFO and nominated councillor. Dual authorisation on all payments. Payments reviewed at meetings.

Appoint councillor to monitor contract work carried out.

RFO

All Councillors

RFO

All Councillors

RFO

All Councillors

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. Ensure all councillors and RFO are aware and the requirements adhered to by all members.

Attend training seminars where necessary and available.

Include a time table in financial regulations in Standing Orders. RFO to monitor progress against timetable and provide regular reports to council meetings.

As at 1 above. Regular checks and bank reconciliations by RFO and council. Appoint independent non-authorising councillor to monitor Internal audit checks.

As at Aim 5. Detailed and accurate record checks by RFO, full council and internal audit, in conjunction with bank reconciliations throughout the year.

RFO

All Councillors

RFO

All Councillors

RFO
All Councillors

RFO
All Councillors

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 permanent 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. Review regularly, at least annually.

PO

All Councillors

PO
All Councillors

PO

All Councillors

PO

All Councillors

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.

Clerk to have all appropriate legislation available and ensure councillors understand their responsibilities.

Council to have Equal Opportunities policy which is agreed and adhered to by all members.

Liabilities and responsibilities to be reviewed regularly at council meetings, at least annually.

Include relevant legislation, as appropriate, in any public consultations.

As at 1 above.

PO

All Councillors

PO

All Councillors

PO

All Councillors

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 building information, current legislation and advice is held by Clerk. Include in asset register all properties for which the council is responsible.

Ensure all property, buildings and equipment is adequately maintained and insured.

As at 1 above.

As at 1 above. Delegate responsibility for supervision of particular properties to individual councillors, reporting back to council for any action.

PO

All Councillors

PO

All Councillors

PO

All Councillors