Parish Council
Town and Parish Councils are required to implement an independent examination of its accounts, accounting processes and internal controls.
This report aims to check whether Sticklepath Parish Council’s (SPC) systems of financial and other internal controls are adequate and effective.
Sampling testing has been undertaken and the Internal Audit has been undertaken in accordance with the requirements as detailed within the Joint Panel on Accountability and Governance (JPAG) Practitioners Guide. The report also provides recommendations for the
improvement of internal processes and a general summary for the consideration of SPC.
– SPC has tested internal control systems regularly
– The Financial Regulations were last amended in January 2021 and appear to be in order, which should be reviewed annually
– Standing Orders were last reviewed in February 2020 and are in order, which should be reviewed annually
– A Code of Conduct is in place and was last updated in September 2014 and should be reviewed annually
– The Transparency Code applies due to the Councils annual turnover being below £25,000
– A website is in place and documents are available in PDF. A reminder that documents added to the website should be WCAG 2.1 compliant. This has not been checked as part of the Internal Audit.
– Payment controls are in place and all payments are taken to SPC on a monthly basis
– Purchase and payment documentation has been checked with the accounts and were in order
– VAT reclaims have been undertaken in line with appropriate procedure
– There is no petty cash held
– There is no borrowing
– There are no trusts held
– The accounts are kept up to date and in order. A separate record is kept for Section 137 payments
– The accounts record the Receipts and Payments method as is required
– A Grant Policy is in place
– A Training Policy is not in place, and it is recommended that one is adopted to represent good practice. New councillors and new chairmen should attend training following any recent election or co-option
– All ‘other’ income has been correctly accounted for.
– A Financial Risk Assessment is in place and appears to be in order
– A Statement of Control is not in place, and it is recommended that this is adopted as soon as possible
– SPC’s insurance policy has been regularly reviewed and is in order
– The 2021/22 budget document is in good order and has been used to set the precept
– The precept has been set by a meeting of SPC and is adequately recorded within the minutes
– Reserves appear to be in order
– A check of whether IT and website backup has not been undertaken but it is recommended that this is dome regularly and overseen by SPC
– It is a legal requirement that the date when the agenda is published, to evidence that the statutory three clear days’ notice has been given. It is recommended that the date be added to future agendas, but otherwise they are in good order
– Minutes are in good order
– Annual membership of the Information Commissioners Office (ICO) has been confirmed
– The 2018 General Data Protection Regulations update has been adhered to and a Privacy Notice is in place. A Complaints Policy is also in place, which evidences good practice. However, I would recommend that a Publication Scheme and Anti-Fraud and Corruption Policy be adopted by SPC
– There are Sub-Committees in place, but no agendas or minutes were available on the website suggesting that they have not met during the 2021-2022. Agendas and minutes of Sub-Committees should be advertised as normal meetings.
– The Clerk is the only employee and there is a Contract of Employment in place
– PAYE is dealt with in house and no issues were identified with the records
– Staff appraisals and pay reviews should take place annually.
– SPC’s Asset Register is in order.
– Bank reconciliations are produced with checks made by SPC
– Most payments are made via internet banking, with two councillors authorising payments set up by the Clerk
– Some payments are made by cheque, with two councillors signing
– Authorised signatures should be reviewed annually.
– The completed 2020/2021 External Audit documents evidenced no issues of concern
– The year-end documents, to 31st March 222, have been prepared and the Parish Clerk has confirmed full understanding of the Audit requirements.
I confirm that I am satisfied that SPC has acceptable levels of internal control and are undertaking accounting procedures in an acceptable manner. There are some areas which require attention and these have been highlighted within this report.
Rachel Avery PSLCC CertHE