Parish Council
During the financial year ended 31 March 2023, this authority’s internal auditor acting independently and on the basis of an assessment of risk, carried out a selective assessment of compliance with the relevant procedures and controls in operation and obtained appropriate evidence from the authority.
The internal audit for 2022/23 has been carried out in accordance with this authority’s needs and planned coverage. On the basis of the findings in the areas examined, the internal audit conclusions are summarised in this table. Set out below are the objectives of internal control and alongside are the internal audit conclusions on whether, in all significant respects, the control objectives were being achieved throughout the financial year to a standard adequate to meet the needs of this authority.
| Internal control objective | Yes | No* | Not covered** |
| A. Appropriate accounting records have been properly kept throughout the financial year. | Yes | ||
| B. This authority complied with its financial regulations, payments were supported by invoices, all expenditure was approved and VAT was appropriately accounted for. | Yes | ||
| C. This authority assessed the significant risks to achieving its objectives and reviewed the adequacy of arrangements to manage these. | Yes | ||
| D. The precept or rates requirement resulted from an adequate budgetary process; progress against the budget was regularly monitored; and reserves were appropriate. | Yes | ||
| E. Expected income was fully received, based on correct prices, properly recorded and promptly banked; and VAT was appropriately accounted for. | Yes | ||
| F. Petty cash payments were properly supported by receipts, all petty cash expenditure was approved and VAT appropriately accounted for. | Yes | ||
| G. Salaries to employees and allowances to members were paid in accordance with this authority’s approvals, and PAYE and NI requirements were properly applied. | Yes | ||
| H. Asset and investments registers were complete and accurate and properly maintained. | Yes | ||
| I. Periodic bank account reconciliations were properly carried out during the year. | Yes | ||
| J. Accounting statements prepared during the year were prepared on the correct accounting basis (receipts and payments or income and expenditure), agreed to the cash book, supported by an adequate audit trail from underlying records and where appropriate debtors and creditors were properly recorded. | Yes | ||
| K. If the authority certified itself as exempt from a limited assurance review in 2021/22, it met the exemption criteria and correctly declared itself exempt. (If the authority had a limited assurance review of its 2021/22 AGAR tick “not covered”) | Yes | ||
| L. The authority published the required information on a website/webpage up to date at the time of the internal audit in accordance with the relevant legislation. | Yes | ||
| M. In the year covered by this AGAR, the authority correctly provided for a period for the exercise of public rights as required by the Accounts and Audit Regulations (during the 2022-23 AGAR period, were public rights in relation to the 2021-22 AGAR evidenced by a notice on the website and/or authority approved minutes confirming the dates set). | Yes | ||
| N. The authority has complied with the publication requirements for 2021/22 AGAR (see AGAR Page 1 Guidance Notes). | Yes | ||
| O. (For local councils only) Trust funds (including charitable) – The council met its responsibilities as a trustee. | Not applicable |
For any other risk areas identified by this authority adequate controls existed (list any other risk areas on separate sheets if needed).
Date internal audit undertaken: 23/05/23
Name of person who carried out the internal audit: Rachel Avery
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 reviewed in September 2022 and appear to be in order
– Standing Orders were last reviewed in March 2023 and appear to be in order
– A Code of Conduct is in place and was last reviewed in March 2023
– 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 and was adopted in March 2023, noting that this policy will be reviewed every three years
– Further to last year’s audit, a Training Policy is in place and was adopted in December 2022
– All ‘other’ income has been correctly accounted for.
– A Financial Risk Assessment is in place and appears to be in order
– Further to last year’s audit, a Statement of Control was adopted in July 2022
– SPC’s insurance policy has been regularly reviewed and is in order
– The 2022/23 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 done regularly and overseen by SPC
– Further to last years audit, it is noted that all agendas now have a publication date
– 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 AND Publication Scheme are also in place, which evidences good practice. However, I would recommend that an 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 2022-23. 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.
Asset Control
– SPC’s Asset Register is in order.
Banking and Bank Reconciliations
– Bank reconciliations are produced with checks made by SPC
– Payments are made via internet banking, with one councillor and the clerk authorising payments. It is recommended that the clerk arranges payments for two councillors to authorise to aid transparency
– Authorised signatures should be reviewed annually.
– The completed 2021/22 External Audit documents evidenced no issues of concern
– The year-end documents, to 31st March 2023, 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. I would like to thank the Parish Clerk for enacting many of the advisory items highlighted in the 2021/22 internal audit.
Rachel Avery PSLCC FdA, CertHE