Managing Community Council Money Self-assessment Tool

Transcription

1 Managing Community Council Money Self-assessment Tool This self-assessment tool is divided into key areas for the effective management of community council money: 1. Members 2. Council meetings and minutes 3. Internal rules and financial control 4. Using the Council s powers 5. Budgets 6. Risk assessment 7. Internal audit 8. Income and payments 9. The external audit 10. Preparing for and publishing the accounts Further guidance: Welsh Government, The Good Councillor s Guide for Community and Town Councillors, Practitioners' Guide on Governance and Accountability for Local Councils, issued jointly by One Voice Wales and the Society of Local Council Clerks

2 1. Members Councillors fully understand their responsibilities and the legal duties placed on them. The Council has adopted a code of conduct. All members have signed up to adhere to the members' code of conduct. All councillors are aware of their obligations under the members' code of conduct. The Council has a clear procedure for when interests are declared. The minutes of Council meetings record declarations of interests. The Council keeps an up-to-date Register of Members' Interests. The Register is reviewed periodically to ensure all declarations made are included in the Register. 2. Council meetings and minutes The Council has maintained a schedule of its meetings throughout the year. Agenda papers set out the business to be completed at the meeting. The Council prepares and approves minutes for all meetings held. Minutes are single-line spaced, sequential and signed by the chair where the minutes are approved. The minutes comply with statutory requirements e.g. a specific item for approval of accounts.

3 3. Internal rules and financial control systems The Council adopted standing orders and financial regulations. The standing orders and financial regulations are reviewed periodically to ensure they remain relevant and fit for purpose. All councillors have been given a copy of the standing orders and financial regulations on election/co-option and when the standing orders and financial regulations are updated or amended. The Council considers the requirements of the standing orders and financial regulations before making decisions. The Council monitors compliance with its standing orders and financial regulations. The Council documents the system of internal financial control so that compliance with the system can be checked. The Council has considered where it is possible to separate duties. The Council ensures that compliance with the system of internal financial control is reviewed. The Council carries out an annual review of the system of internal financial control before completing the Annual Return. The annual review of the system of internal financial control is carried out by someone not involved in the day-to-day operation of the internal controls. The outcome of the review including recommendations for further developments is presented to and approved by the Council.

4 4. Using the Council s powers Before making decisions, the Council ensures it has a specific statutory power under which it can act. The Council has arrangements to refer unusual or contentious issues to the local monitoring officer for advice. The Council keeps a separate account of all s137 payments. When considering making a grant under s137 of the Local Government Act 1972, the Council considers if it has an alternative specific statutory power. Before making payments under s137, the Council considers if the direct benefits arising represent value for money and will benefit some or all of the community. 5. Budgets The Council prepares a budget for the year. The budget considers all classes of estimated income and planned expenditure, working balances, balances held in reserves and any need for contingencies. The budget and the precept requirement are approved by the Council. At each meeting, the Council receives a detailed report setting out actual income and expenditure compared with the budget and previous years' results. Where there are significant differences between the actual and budget figures, the Council ensures that it receives detailed explanations of the differences. The Council considers the explanations provided against other information available to check for consistency.

5 6. Risk assessment The Council prepares and approves a formal risk assessment for the year. The risk assessment sets out the potential impact and likelihood of the risk event occurring and how the risks identified will be managed e.g. through maintenance work, insurance etc. The Council periodically reviews and updates the key risks recorded in its risk assessment. 7. Internal audit The Council has appointed an internal auditor who is independent of the Clerk and of the Council's internal procedures. The Council agrees the scope of the internal auditor's work for the year. The Council has arrangements with the internal auditor to report significant findings directly to the Council. The internal auditor provides a detailed report of his/her work and his/her findings.

6 8. Income and payments The Council issues consecutive pre-numbered receipts for all sources of income. The Council has and operates arrangements to ensure that all income received is banked in full as soon as it is received. The Council receives a list of payments for approval at each meeting. The payments are approved supported by original invoices etc. Individual councillors only sign cheques that have been fully completed before signing. The Council's procedures ensure that at least two councillors sign all cheques and other orders for payment. The Clerk makes up the cash book from source documents e.g. cheque payments and not by entering transactions appearing on the bank statements. The cash book is balanced and checked periodically. The Council reviews the cash book periodically to check it has been properly kept. The Council prepares a bank reconciliation on receipt of every bank statement. The bank reconciliation is checked by someone other than the preparer to make sure it is accurate and complete. The reconciliation provides explanations for all reconciling entries. The reconciliation is presented to the Council as part of the regular financial reports.

7 9. The external audit The internal auditor reviews the preparation of the Annual Return, completes section 4 of the Annual Return and reports their findings to the Council. The Council receives the notice of audit from the external auditor. The Council advertises the audit as required by the Accounts and Audit Regulations. The Council makes arrangements for members of the public to exercise their rights in respect of the accounts and the external audit. The Council approves the year-end bank reconciliation, the explanation of variances and any other information requested in the notice of audit. The Council sends to the auditor the Annual Return and all information requested. The Council updates on progress of the audit and considers if there is a need to contact the auditor where there are unexpected delays. The Council receives the Annual Return and the external auditor's certificate before 31 December. 10. Preparing and publishing the accounts The clerk prepares the annual financial accounts using the correct basis of accounts required by the Accounts and Audit Regulations. The Council reviews its system of internal control in order to complete the annual governance statement set out in the Annual Return. The Council approves the accounts and the Annual Return by the date set out in the Accounts and Audit Regulations. The Council advertises that the audit has been completed and that the accounts are available for inspection. The Council publishes the accounts in accordance with the Accounts and Audit Regulations.