Sidlesham Parish Council.

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    Hand-drawn Sidlesham signpost with lapwing bird.

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    Sidlesham Parish Council Financial Risk Management Document 29 April 2010

    Risk assessment is a systematic general examination of working conditions, workplace activities and environmental factors that will enable the Council to identify any and all potential risks inherent in the place or practices. Based on a recorded assessment the Council should then take all practical and necessary steps to reduce or eliminate the risks, insofar as is practically possible. Making sure that all councillors are made aware of the results of the risk assessment.

    This document has been produced to enable the Parish Council to assess the risks that it faces and satisfy itself that it has taken adequate steps to minimise them. In conducting this exercise, the following plan was followed:

    ~ Identify the areas to be reviewed. ~ Identify what the risks may be.

    ~ Evaluate the management and control of the risks and record all findings. ~ Review, assess and revise if required.

    FINANCIAL RISK MANAGEMENT
    Subject Risk(s) Identified H/M/L Management / Control of Risk Review/Assess/Revise
    Business Continuity Risk of Council not  being able to continue its business due to an unexpected or tragic circumstance L Work to be re-allocated in such circumstances amongst councillors until such time as the person affected is fit to resume duties, or a replacement is elected/co-opted/ appointed. Review plan when necessary.  
    Precept Adequacy of precept L In November/December the Clerk to provide the Finance Work Group with expenditure to date for current year together with estimated expenditure for remainder of current year against budget figures. The Clerk to draw up an estimated budget for the following year, which the Finance Work Group will meet to discuss, agree or alter as required. These figures to be tabled at the Council January bi-monthly meeting for approval by the Council of precept for following financial year. Existing procedures adequate.
      Requirements not submitted to CDC   L The Precept figure to be submitted by the Clerk in writing to CDC before cut off date promptly after January bi-monthly council meeting. Existing procedures adequate.
      Amount not received from CDC L The Clerk informs Council when the monies are received (half yearly April & September). Existing procedures adequate.
    Financial  records Inadequate records L The member of the Council appointed as the Council’s Fidelity Compliance auditor to verify records bi-monthly to ensure they are up to date. Existing procedure adequate.
      Financial irregularities L The Clerk to produce the bank statements at each bi-monthly meeting so that councillors can verify that amounts held are in accord with reported income & expenditure. Review the Financial Regulations when necessary.

     

    FINANCIAL RISK MANAGEMENT cont
    Subject Risk(s) Identified H/M/L Management / Control of Risk Review/Assess/Revise
    Reporting and auditing Information communication L The Clerk to table all receipts, and expenditure made and/or to be made on bi-monthly agenda, with details recorded in minutes. Existing procedures adequate.
    Fidelity Compliance M Council annually to appoint a Councillor Auditor for Fidelity compliance. Nominated Councillor should regularly conduct internal audit to comply with the Fidelity Guarantee. See also Bank and Banking/Loss below re interim bi-monthly checks. Existing procedures adequate.
    Bank and banking Inadequate checks & Bank mistakes L The Clerk to reconcile council records against bank statements monthly to identify any possible bank errors, and query any such with Bank. Monthly. Existing procedures adequate.
      Loss L By reconciling bank statements monthly the Clerk will be able to identify if there is any misuse of Council accounts. Additionally the member of the Council appointed as the Council’s Fidelity Compliance auditor to verify records bi-monthly to ensure they are in line with figures revealed to councillors at bi-monthly meetings. Monthly/quarterly. Existing procedures adequate.
      Bank Charges L The Clerk will check monthly statements to confirm the bank are not levying any charges – there should be none in current circumstances. Monthly review. Existing procedures adequate.
      Signatories L The Clerk to review bank signatory list when necessary, particularly after Annual AGM and/or Elections. Cheques etc to be signed by Chairman and countersigned by Vice-Chairman. Existing procedures adequate.  
    Verification of Payments L Chairman and Vice-Chairman to initial the cheque book stub and the invoice/other payment docket. Existing procedures adequate.  
    Cash Loss through theft or dishonesty L Not applicable at present as the Council does not deal in cash. Existing procedures adequate.
    Stocks Loss of stock N/A The Council has no stocks. Review annually
    Grants & Donations payable Power to pay, coupled with Council approval L The Clerk to ensure that any grant/donation payable goes through the required Council process of approval is minuted and listed accordingly if a payment is made using the 8137 power of expenditure.   Existing procedures adequate.
    Grants receivable Receipts of Grants L The Parish Council does not presently receive any regular grants. The Clerk to check that one off grants received comply with terms and conditions. Existing procedures adequate.
    Charges – rentals payable Payments of charges, leases, rentals N/A There are no items falling under these headings currently in operation. Existing procedures adequate.
    Charges – rentals receivable Receipt of rental payments N/A There are no items falling under these headings currently in operation. Existing procedures adequate.
    Best value & Accountability Work awarded incorrectly L Normal Parish Council practice would be to seek, if possible, more than one quotation for any substantial work required to be undertaken or goods to be supplied, preferably a minimum of three. For major contract services, formal substantial work required to be undertaken or goods. For major contract services, formal competitive tenders would be sought. Existing procedures adequate.
      Overspend on services, and monitoring of contracts M The Clerk would investigate the situation, check the quotation/tender, research the problem and report to Council.  Existing procedures adequate.

     

    FINANCIAL RISK MANAGEMENT cont
    Subject Risk(s) Identified H/M/L Management / Control of Risk Review/Assess/Revise
             
             
    Salaries, wages and associated costs Salary paid incorrectly,  wrong hours paid,  wrong rate paid N/A The Council currently employs no people. Existing procedures adequate.
    False employee N/A The Council currently employs no people. Existing procedures adequate.
    Wrong deductions of NI or Tax N/A The Council currently employs no people. Existing procedures adequate.
    Unpaid Tax & NI contributions to the Inland Revenue N/A The Council currently employs no people. Existing procedures adequate.
    PAYE/NI Annual Return Submit within time limits N/A Currently not applicable as the council has no employees Existing procedures adequate.
    Parish Clerk Remuneration L The Clerk is paid an annual fee, at a rate agreed by Finance Work Group, and confirmed by Council as part of the Precept calculations. He is responsible for any tax and NI costs. Existing procedures adequate.
    Training L The Clerk should be provided with relevant training, reference books, access to assistance and legal advice, and affiliation to any professional body deemed necessary to enable him to undertake the role. Existing procedures adequate.
    Councillor allowances Councillors over-paid N/A Councillors currently receive no allowances. Existing procedures adequate.
    Income tax deduction N’A Councillors currently receive no allowances. Existing procedures adequate.
    Election costs Risk of an election cost L The risk is higher in an election year, but could occur at any time should a councillor resign or die. When an election is due the Clerk will obtain an estimate of costs from the District Council for a full election and an uncontested election. Existing procedures adequate.
    VAT Re-claiming/charging L The Clerk will submit a return at least annually to reclaim vat on items of expenditure. The council currently does not invoice for any items on which vat would be liable. Existing procedures adequate.
    Legal powers Illegal activity or payments L All activity and payments within the powers of the Parish Council to be resolved and minuted at Full Parish Council Meetings, including a reference to the power used.   Existing procedures adequate.

     

    FINANCIAL AND MANAGEMENT cont
    Subject Risk(s) Identified H/M/L Management / Control of Risk Review/Assess/Revise
    Minutes / Agendas / Notices / Statutory Documents Accuracy and legality L Minutes and agenda are produced in the prescribed method by the Clerk and adhere to the legal requirements. Minutes are approved and signed at the next Council meeting. Minutes and agenda are displayed according to the legal requirements. Statutory Documents are available for inspection by members of the public subject to a reasonable period of notice. Existing procedures adequate.
    Business Conduct Disorderly conduct L Business conducted at Council meetings should be managed by the Chair. Councillors must observe the Code of Conduct at all times. Existing procedures adequate.
    Members interests Conflict of interest L Although not a requirement, the declaring of interests by members at a meeting should be an obvious process to remind Councillors of their duty and should remain as an early item on the agenda. Existing procedures adequate.
      Register of Members’ interests M Register of Members Interest forms should be reviewed after the Annual Meeting by Councillors. Should the interests of any councillor change at any stage, he/she should be aware that these need to be declared, and the Register altered as appropriate. A new councillor is required to sign Register before he/she can participate in Council business. Existing procedures adequate.
    Insurance Employers & Public Liability H Employers and Public Liability Insurance is a necessity and must be paid for. Annually check adequacy of cover (currently £10,000,000). Existing procedures adequate.
      Assets – Adequacy / Cost M An annual review is undertaken (before the time of the policy renewal) of all parish amenities to ensure adequate cover is in place. Approach alternative insurance companies if renewal cost is considered too high. Existing procedures adequate.
      Compliance M Ensure compliance measures are in place. Existing procedures adequate.
      Fidelity Guarantee M Ensure Fidelity checks are in place. Existing procedures adequate.
    Data protection Policy Provision L The Council is currently not registered with the Data Protection Agency as no qualifying records are maintained. Ensure annual payment is made as and when the Council becomes liable to register.
    Freedom of Information Act Policy Provision L The Council has a model publication scheme for Local Councils in place. The Clerk is aware that in certain circumstances a fee can be charged to cover the work involved. The Council should take legal advice if there is any doubt as to the legality of a request (or parts of it). Existing procedures adequate.

     

    PHYSICAL EQUIPMENT OR AREAS
    Subject Risk(s) Identified H/M/L Management / Control of Risk Review/Assess/Revise
    Assets Loss or Damage including risk/damage to third party(ies)/property  M An annual review of assets is undertaken for insurance provision and maintenance provisions. Existing procedures adequate.
    Maintenance Poor performance of amenities and/or deterioration M All assets owned by the Parish Council are regularly reviewed and maintained. All repairs and relevant expenditure for these repairs are actioned/authorised in accordance with the correct procedures of the Parish Council. All assets are insured and reviewed annually. All public amenity land is inspected regularly by parish councillors and/or the Clerk. Existing procedures adequate.
    Notice boards Risk/damage/injury to clerk  and/or third parties, and road side safety when viewing notices L Parish Council has six notice boards sited around the parish. All locations have approval by relevant parties, insurance cover, inspected regularly by the Clerk – any repairs/maintenance requirements brought to the attention of the Parish Council. Keys held by the Clerk. Existing procedures adequate.
    Street furniture Risk/damage/injury to third parties L The Parish Council is responsible for fingerboards, bus shelters, and seats. These are regularly inspected, and any necessary repairs brought to the notice of the Council when repairs etc are required. All other street furniture is the responsibility of the Highways Authority, to whom damage etc is reported.  Existing procedures adequate.
    Council Meetings location Adequacy and Health & Safety L The Parish Council Meetings are held at the Church Hall. The premises and the facilities are considered to be adequate for the Clerk, Councillors and Public who attend from Health & Safety and comfort aspects. Existing location adequate.
    Council records – paper Loss through theft, fire or damage L The Parish Council current records are stored at the home of the Clerk, with some older records held in the CDC Records Office. Records include historical correspondence, minute books and copies, freehold for Recreation Ground and Football Club leases. Recent materials are in filing boxes (not fire proof).   Damage (apart from fire) and theft is unlikely, therefore existing procedures considered adequate, apart from Freehold Deeds which need to be registered, and originals placed in WSCC Record Office.
    Council records – electronic Loss through theft, fire or damage/corruption of council laptop computer M The Parish Council’s electronic records are stored on the Council laptop computer in the Clerk’s home. Back-ups of computer files to be taken regularly, with the discs held by the Chairman to minimise loss of records through fire or theft. A bi-monthly back-up of computer files to be taken and handed to Chairman.