Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

===

1.   To ensure compliance with Acts of Parliament, other legislation, the Council’s Standing Orders, Financial Regulations and Code of Conduct.

Including:

Freedom of Information

Data Protection

Local government legislation

Equality of opportunity

continues

a. Lack of knowledge of regulations and codes.

b. Absence of Standing Orders

c. Actions by the Council outside its powers as set out by Parliament.

d. Lack of commitment to regulations and procedures.

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

f. Payments made without prior approval and

    adequate control.

g. Lack of control of signatories to cheques/online payments.

Ensure that all Councillors have copies of or access to relevant information through LALC, copies of the adopted Code of Conduct, Financial Regulations and Standing Orders and a copy of the latest edition of the Good Councillors Guide.

Highlight essential parts and provide specific training where possible.

Ensure that Standing Orders are produced, understood by councillors, and reviewed at least once per year.

As at 1a above, but ensure that, as necessary, powers are highlighted or extracted into an effective summary.

Regular reference to appropriate regulations in agenda items.

Appropriate delegation of responsibilities to councillors and committees.  Compliance with appropriate procedures.

Ensure that all councillors are aware of regulations regarding estimates and full tender procedures.

Introduce practice of estimates for all purchases over an agreed figure.

Ensure all payments are approved in accordance with the Financial Regulations and properly recorded.

Keep cash payments to a minimum, and avoid if possible.

Keep authorised signatories to a minimum but consistent with practicalities.

Chair

Clerk

All councillors

LALC

Chair

Clerk

Chair

Clerk

Chair

All councillors

Clerk

Chair

Clerk

RFO/Facilities Mngr

Property Services Committee

Clerk

RFO/Facilities Mngr

Clerk

RFO

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Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

===

continued

1.   To ensure compliance with Acts of Parliament, other legislation, the Council’s Standing Orders, Financial Regulations and Code of Conduct.

h. VAT not properly accounted for, resulting in over-claims and large demands from HMRC.

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

Clerk

RFO

=

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

a. Lack of knowledge of setting objectives, setting priorities, and identifying risks to their achievement.

b. Lack of commitment by council members

c. No risk analysis carried out.

d. No steps taken to combat identified risks

e. An inadequate complement of councillors to

    manage the business of the council

All councillors to be made aware of need for objectives and identification of risk.

Attend training sessions and refresher training.

Add risk assessment to agenda at least quarterly, reviewing particular items, and results against those items.

As at 2a above. Ensure that completion of the risk assessment is given high priority, as a requirement of the Audit Commission

As at 2b above.

All councillors to strive to work in a constructive manner in accordance with the Code of Conduct and to welcome and encourage new councillors.  All councillors to cooperate to share the workload.

Chair

Clerk

All Councillors

Chair

Clerk

Chair

All Councillors

Clerk

Chair

All Councillors

Clerk

All Councillors

Clerk

ELDC

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3.   To influence others, such as Lincolnshire County Council, East Lindsey District Council and other Government organisations to recognise the requirements and interests of the local population.    continues

a. Lack of effective lines of communication with other organisations.

b. Lack of effective lines of communication with parishioners.

Note all communication lines which are essential or beneficial and

establish/maintain contacts by name and where possible face-to-face.

Take every opportunity to publicise role of Parish Council using the Earburn, notice boards, “flyers” and the Annual Parish Meeting.  Use key issues to raise the profile of PC and to test parishioners’ views.

Chair

Clerk

Chair

All Councillors

Clerk

=

=

Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

===

continued

3.   To influence others, such as Lincolnshire County Council, East Lindsey District Council and other Government organisations to recognise the requirements and interests of the local population.

c. Lack of preparation on subjects requiring influence.

d. Lack of confidence by Parish Councillors.

Ensure all councillors are aware of need for careful research and are guided as to where to obtain relevant information.

Experienced councillors and Clerk to assist newcomers to understand roles and responsibilities, to establish essential contacts and to gain procedural awareness.

Chair

Clerk

Chair

All Councillors

Clerk

=

=

4.   To ensure that all councillors are aware of their responsibilities, and possible liabilities, and to provide adequate insurance cover for all likely risks.

a. Lack of knowledge of possible culpability of councillors.

b. Lack of education of Councillors regarding culpability.

c. Inadequate insurance cover taken out – property, personal liability, employer’s liability.

d. Councillors fail to declare interests and participate in inappropriate decision making, which has a material impact upon the decisions taken and the public perception of the Council.

Creation of Standing Orders and Code of Conduct and familiarisation with those matters where greatest risk occurs.

Experienced councillors and Clerk to assist newcomers to understand culpability.  To attend training courses and refresher training as available (see LALC annual training scheme).

Review risk assessment by including on agenda at least quarterly.

Delegate responsibility for keeping up-to-date with insurance requirements to the Policy & Resources Committee.

All councillors to be reminded to abide by the Code of Conduct and the register of interests and to be alert to potential breaches of both.  As far as is possible, the Clerk to ensure the register of interests are complete and up to date.

Chair

Clerk

Chair

All Councillors

Clerk

Chair

Clerk

Policy & Resources Committee

Clerk

All Councillors

ELDC

=

=

=

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5.  To keep appropriate books of account accurately and up-to-date throughout the financial year.  To maintain secure banking facilities.

continues

a. Lack of knowledge of accounting requirements

b. Lack of commitment to accounting requirements.

Ensure all councillors are familiar with current Financial Regulations.

Regularly review Standing Orders and Financial Regulations.  Ensure all Councillors are aware of the lack of cover under the Financial Services Compensation Scheme.

As at 5a above. RFO to produce financial reports at all Council meetings.

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

Chair

All Councillors

Clerk

All Councillors

RFO

Internal Auditor

=

=

Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

===

continued

5.  To keep appropriate books of account accurately and up-to-date throughout the financial year.  To maintain secure banking facilities.

continues

c. Bank charges unnecessarily incurred

d. Inaccuracies in recording amounts and totals in books of account.

    Bank reconciliations not carried out.

e. Inaccuracies and interest losses caused by account transfers.

f. To ensure that the banking facilities of the Council are secure and offer value for money.

g. Inadequate control of cash receipts and payments.

h. Books of account not kept up to date/ invoices not posted promptly.

i. Internal controls not in place or not operated.

j. Payments missed or delayed.

RFO to carry out regular inspection of books of account.

Internal audit to be undertaken every six months.

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

Regular internal audits to advise on internal controls required.

Keep number of accounts to a minimum but ensure that any large credit balances are deposited in an interest bearing account.

Using information available in the public domain, the RFO to periodically review the Councils banking arrangements in respect of achieving both value for money and security, but noting that changing accounts may itself incur some risks.

Avoid cash payments and receipts if possible.

Where cash receipts are unavoidable to record each receipt into a cash book and to issue the payee with a paper receipt.

Cash payments, if unavoidable, shall be claimed as expenses by Officers and Councillors with receipts being presented as evidence.

Regular checks by RFO and internal auditor.

Financial reports at all Council meetings.

As at 5h above.

As at 5h above.

RFO

Internal Auditor

RFO

Internal Auditor

RFO

Full Council

All Councillors

RFO

Internal Auditor

RFO

All Councillors

RFO

Internal auditor

Finance Committee

RFO

Internal auditor

Finance Committee

As for 5i above

=

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=

=

=

=

=

Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

===

continued

5.  To keep appropriate books of account accurately and up-to-date throughout the financial year.  To maintain secure banking facilities.

k. RFO taken ill or leaves without replacement

The internal auditor can be called upon for advice.  Councillors to be familiar with all aspects of financial matters.  Local Procedures to exist to explain processes. 

Electronic payments will be available.

RFO

Finance Committee

=

6.  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.

a. Lack of knowledge of wishes of residents.

b. Use of funds not giving value for money.

c. Use of funds not in accordance with the wishes of the residents.

d. Charges for use of facilities inadequate or excessive.

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

As at 3b above

Ensure residents and other stakeholders (i.e. local organisations) are consulted on major financial issues, which impact upon them.

Effective budget planning processes and appropriate tendering.

Creation of a rolling plan for projects and maintenance expenditure.

As at 2a above.

As at 6a above.

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.

All Councillors

Clerk

Clerk

RFO

All Councillors

All Councillors

Clerk

All Councillors

All Councillors

Clerk

RFO

=

=

=

=

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

continues

a. Lack of knowledge of budgetary process, and of Council regulations.

b. Lack of commitment to budgetary process.

Ensure regulations are issued to all councillors.

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

Delegate responsibility for managing the initial budgetary process to the RFO.

As at 7a above

Involve all councillors in budgetary process, not solely the Clerk/RFO.

All Councillors

RFO

Clerk

All Councillors

Chair

=

=

Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

===

continued

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

c. Inadequate consideration of requirements for annual precept.

d. Calculation not in accordance with Council regulations.

e. Inadequate internal controls with regard to monitoring expenditure.

f. Reserves too low or too high

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

Delegate responsibility for managing the initial budgetary process to the RFO.

Start budget build in November well ahead of submission date.

Checks by RFO and Internal Auditor.

Checks by RFO and Internal Auditor.

Financial and budget progress reports to all Council meetings.

The general reserve (not earmarked) to be at least 25% of typical annual income or as otherwise advised by the RFO / Internal auditor.

The general reserve (not earmarked) not to exceed 75% of typical annual income or as otherwise advised by the RFO / Internal auditor.

All Councillors

RFO

Clerk

RFO

Internal auditor

RFO

Internal auditor

All Councillors

RFO

Clerk

All Councillors

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=

=

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8.   To explore all possible sources of income, and ensure that expected income is fully received.

continues

a. Lack of knowledge of possible sources of income e.g. grants.

b. Lack of commitment to pursue possible sources of income.

c. Receipts not banked or not banked promptly.

Encourage training and conference attendance to gain experience of all grants available and application procedures.

As at 8a above.

Regular checks by RFO and Council.

Internal audit checks.

Chair

Clerk

All Councillors

Clerk

RFO

Internal audit

=

=

=

Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

===

continued

8.   To explore all possible sources of income, and ensure that expected income is fully received.

d. VAT claims not made promptly or made incorrectly.

Ensure Clerk has appropriate and up-to-date VAT official publications.

Regular checks by RFO.

Internal audit checks.

RFO

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9.   To ensure that salaries paid to employees and amounts paid to contractors are paid in line with Council regulations and budget and statutory legislation.  Ensure payments are adequately monitored.

a. Inappropriate rate of pay to employees.

b. Tax and NI arrangements not in accordance with regulations.

c. Amounts paid to contractors not in accordance with contract and inadequately monitored.

Ensure employee regulations are available and understood by Clerk.

Checks by RFO.  Internal audit checks.

As at 1 above.

Checks by RFO and internal audit.

Monitoring of contract expenditure by the Property Services Committee.

RFO

Full Council

RFO

Internal audit

RFO

Internal audit

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10.   To ensure that year end accounts are prepared on the correct accounting basis, on time, and supported by an adequate audit trail.

a. Lack of knowledge of Council regulations and procedures.

b. Late or non- submission of annual accounts.

Compliance with Financial Regulations and Standing Orders.

Attend training seminars where available.

Compliance with the instructions of the External auditor.

RFO to monitor progress against timetable and report to Council meetings.

Clerk

RFO

All Councillors

Clerk

RFO

Internal auditor

All Councillors

=

=

10.   To ensure that year end accounts are prepared on the correct accounting basis, on time, and supported by an adequate audit trail.

c. Year end accounts not prepared, inaccurate, or not in accordance with Council requirements.

d. Inadequate audit trail from records to final accounts.

Checks by RFO.

Internal audit checks.

As at 10c above.

Clerk

RFO

Internal auditor

All Councillors

Clerk

RFO

Internal auditor

All Councillors

=

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11.   To identify, value, and maintain all the assets of the Parish Council, and ensure that asset and investment registers are complete, accurate and properly maintained.

a. Lack of knowledge of assets of Parish Council.

b. Assets lost or misappropriated

c. Inadequate or inaccurate valuation of the council’s assets.

d. Asset register not established or inadequately maintained.

Ascertain and record all significant assets for which Parish council is responsible.

Create and maintain a permanent asset register.

Establish who is responsible for security and maintenance of each asset.  Regular monitoring of location and use of assets by the Policy & Resources Committee.

Arrange for periodic review of valuations and arrange for professional valuation where necessary. Internal audit checks. [Note that the Annual Return now requires original asset values not current values.]

Create asset register in accordance with Audit Commission requirements.

RFO

RFO

RFO

All Councillors

RFO

All Councillors

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Aim

Risk

Method used to Minimise Risk

Person(s)

Responsible

Status

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12.   To carry out adequate safety checks on the public open space and street furniture owned by the Council.

a. The lack of or an inadequate programme of maintenance allows the persistence of safety hazards (e.g. trip hazards, dangerous trees, faulty gates, faulty seats, faulty bins etc).

Regular checks by the Facilities Manager, other Officers and Councillors.  Prompt attention to hazards/problems once identified.  Prompt attention to issues raised by all users.  Engagement of suitable contractors to conduct ongoing maintenance works (including the periodic professional checking of trees).

Clerk

All Councillors

Contractors

Public users

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