Policies and procedures

Objective

Risk

Method used to Minimise Risk

Person(s)

Responsible

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

1. Lack of knowledge of regulations and codes.

2. Absence of standing orders

3. Actions by the PC outside its powers laid down by Parliament.

4. Lack of commitment to regulations and procedures.

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

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 relative Acts, Code of Conduct, and Standing Orders. Highlight essential parts and provide training where possible. Supply and update a manual of all policy documents etc. to Councillors.

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 for estimates and full tender procedures.

Introduce practice of estimates for all purchases over an agreed figure. Provide full audit trails and reports to Council at each meeting.

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

Keep cash payments to a minimum and avoid if possible.

Keep authorised signatories to a minimum consistent with practicalities.

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

Chair & RFO

Chair & RFO

Chair & RFO

Chair, Cllrs

Clerk/RFO

RFO

RFO

Chair & RFO

Chair & RFO

All Cllrs

Chair & RFO

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

1. Lack of knowledge of how to set objectives, set priorities, and identify 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

Ensure Councillors meet required Meeting Attendance

As at 2. above.

As at 2. above.

All Cllrs, Chair & Clerk

All Cllrs, Chair & Clerk

Chair & Clerk

All Cllrs, Chair & Clerk

Clerk & Cllrs

All Cllrs, Chair & Clerk

All Cllrs, Chair & Clerk

3. To ensure that all councillors are aware of their responsibilities, and possible liabilities, and to provide adequate insurance cover for all assessed 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 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 on agenda of PC meetings at least annually.

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

Clerk/All Cllrs

Chair/All Cllrs

Clerk/All Cllrs

Chair/Clerk

Chair

4. 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. Bank charges unnecessarily incurred

4. Failures and inaccuracies in recording amounts, totals in books of account, and bank reconciliations.

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 inadequate filing of invoices.

11. Clerk taken ill or leaves without replacement

Ensure that all councillors are familiar with current financial regulations and include them in standing orders.

Regularly review standing orders.

Appoint a councillor to take overall responsibility for regularly monitoring financial management.

As at 1. above. 

Financial Reports issued and reviewed against Budget at least quarterly. 

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

Nominated Councillor to carry out regular inspection of accounting records.

Internal audit to be undertaken periodically.

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

Regular internal audits.

Keep number of accounts to a minimum; ensure that 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.

Avoid cash payments and receipts if possible. Where cash transactions are unavoidable use a properly controlled petty cash account with a set maximum balance.

Regular checks by Nominated Councillor and internal auditor.

Accounts to date, pending payments, invoices and bank reconciliation to be presented at all Meetings.

Appoint a Nominated Councillor to be familiar with all aspects of financial matters.

As Above

All Cllrs & Clerk/RFO

All Cllrs

Chair

All Cllrs & RFO

RFO & Cllrs

Clerk/RFO & IA

Nominated Cllr/Clerk/RFO

Nominated

Cllr/ RFO

RFO/IA

RFO/IA

RFO/Chair

RFO/All Cllrs

RFO/IA

Clerk/RFO/IA Nominated Cllr

Nom. Cllr/RFO

RFO/Clerk/All Cllrs

Chair

Chair/All Cllrs

5. 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.

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

As at 3.2 & Ensure residents are consulted on all major financial issues.

Effective budget planning processes.

Appointment of Cllr to assist and oversee RFO to create effective financial management.

Internal audit checks to cover consultation process.

Effective financial management by RFO.

Internal audit checks.

All councillors to be aware of need to check regulations before commencing fund-raising activities.

Effective financial management by RFO.

Clerk/Chair

All Cllrs

RFO/IA

Clerk, Nominated Cllr.

IA & Cllrs

Clerk/RFO

RFO

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

1. Lack of knowledge of budgetary process, and 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.

Financial Regulations 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 and review at least quarterly.

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

Start consideration of calculation at least 4 months prior to submission date

Create annual and 2/3 year plans.

Checks by Nominated Cllr and Internal Auditor.

As 6.4 above.

Report on accounts to date at all Meetings. Review forecasts and budget progress at least quarterly.

Clerk

Clerk

Clerk/Chair

Clerk

Clerk

Clerk, Chair

Cllr/IA

Clerk/RFO/IA

Chair/RFO

7. To explore all possible sources of income, and to 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.

Regular checks by Nominated Councillor, Report on accounts to date at all Meetings and Internal audit checks.

As at 3. above.

Ensure RFO has appropriate and up-to-date VAT legislation. Submit VAT reclaim to HMRC at least annually

Chair

All Cllrs/RFO

/RFO/Cllr

Cllr, IA

RFO Chair IA

As above

RFO/Cllrs/IA

8. To ensure that salaries and amounts paid to contractors are paid in accordance with council regulations, and 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. Review NJC rates at least annually. Checks by nominated councillor and

Internal auditor

As at 1 above.

Invoices presented for approval at Meetings.

Checks of work carried out against contract by nominated councillor. Internal audit checks

Chair/All Cllrs

Cllr

IA/Cllr

RFO

Chair/RFO/IA

All Cllrs & RFO

Cllr & RFO

9.   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.

Issue Financial Regulations.

Attend training seminars where available.

Comply with Audit Timeline.

Nominated councillor to monitor progress against timetable and report to Meetings.

Checks by nominated councillor & Internal auditor

As at 3 above.

Clerk

RFO & All Cllrs

RFO/All Cllrs

Nominated Cllr/IA/Clerk

Nominated Cllr Chair RFO IA

Nominated Cllr Chair, RFO IA

10. To comply with appropriate Govt legislation regarding disability, racial equality, safeguarding children, Freedom of Information, and Data Protection.

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 and make available. Periodically review duties & responsibilities at meetings. Councillors to read circulated updates. Include, as appropriate, in any public consultations.

As at 1 above plus publish policies and statutory statements.

Prepare and Review Policy & Statutory Statements at least annually.

Chair/Cllrs Clerk

Clerk & Cllrs

Clerk & Cllrs

11. To ensure that adequate safety checks are carried out 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 info. and advice is held by Clerk.

Clerk to complete Display Screen Assessment and hold appropriate insurance for home working.

Include all properties, buildings and equipment in an asset register.

Ensure that all current legislation and advice is held by Clerk for Council reference and understood by councillors.

As at 2. above. Delegate responsibility for particular items to individual councillors.

Review Safety Policies at least annually

Clerk

Clerk

Clerk/All Cllrs

Chair & Cllrs

Clerk & Cllrs

12.To take all reasonable steps to ensure that the Council is aware of residents’ wishes with regard to all financial and policy decision and ensure that such wishes are taken into account in the short and long-term planning processes.

1. Poor communication systems with village residents.

2. Lack of contact with various sections of the community.

3. Poor financial and policy decisions made.

4. Loss of confidence in PC by village residents.

Ensure effective, regular and easily accessible communication systems in place.

Display agendas, minutes of meetings and policies on website. Make copies available on request.

Identify members of the Community with special needs or those who are vulnerable.

Ensure facilities exist to hear all possible views on policy decisions.

Ensure that all policy and important financial decisions are openly communicated to the residents, detailing reasons for making the decisions.

Clerk, Chair & Cllrs

Clerk

All Cllrs

Clerk, Chair

Clerk, Chair

13.To ensure that prompt and appropriate action is taken, in cases of emergency, to safeguard the welfare of residents.

1. Lack of knowledge of possible emergencies that could arise in the village.

2. Lack of an action plan to cover possible emergencies.

3. Lack of information as to assistance available from other authorities

4. Failure to communicate information to residents.

5. Failure to allocate responsibilities to councillors and other seconded persons.

All possible emergency scenarios and threats to safety of residents documented in Community Emergency Plan

Community Emergency Plan in place, for review following each event but at least annually

Emergency Plan available to all villagers to inform them of actions to be taken and limited emergency contacts

Full details of emergency contacts stored and published in accordance data protection legislation.

Review allocated responsibilities with changes in councillors or at least annually.

All Cllrs

Clerk, Chair

Clerk

Clerk