Policies & Procedures

EAST STOCKWITH PARISH COUNCIL RISK ASSESSMENT

Mission Statement of East Stockwith Parish Council

To provide services for, and manage and maintain the assets of, the village of East Stockwith, within the resources provided by the annual precept and other incomes, taking into account the wishes of the residents and obtaining value for money.

AIM

1.   To ensure compliance with the Acts of Parliament, Council’s financial regulations and code of conduct.

RISK

1. Lack of knowledge of regulations and codes.

2. Absence of standing orders

3. Actions by the PC outside its powers laid down by Parliament.

4. Lack of commitment to regulations and procedures.

5. Items purchased without proper tendering procedures, resulting in accusations of commercial favouritism.

6. Payments made without prior approval and adequate control.

7. Lack of control of signatories to cheques.

8. VAT not properly accounted for, resulting in over claims and large demands from C&E.

METHOD USED TO MINIMISE RISK

1.             Ensure that all Councillors have copies of relative Acts, Code of Conduct, and Standing Orders. Highlight essential parts

            and provide training where possible.      Responsibility  Chair/Clerk

2. Ensure that Standing Orders are produced, understood by councillors, and reviewed at least once per year.                                              Responsibility  Chair/Clerk
3. As at 1 above, but ensure that powers are highlighted or extracted into effective summary                                                                         Responsibility  Chair/Clerk        
4. Regular reference to appropriate regulations in agenda items.   
4.  Delegation of responsibilities to individual councillors.                 Responsibility  Clerk/All Councillors         
5. Ensure that all councillors are aware of regulations re estimates and full tender procedures.
5.  Introduce practice of estimates for all purchases over an agreed figure.      Responsibility Chair/Clerk
6. Ensure all payments are approved in Council meetings and recorded in minutes.
6.   Keep cash payments to a minimum, and avoid if possible.          Responsibility Chair/Clerk
7. Keep authorised signatories to a minimum consistent with practicalities.     Responsibility  Clerk/All Councillors         
8. Ensure appropriate publications held and that Clerk has good knowledge of regulations.Responsibility Chair

AIM

To identify and regularly review the Council’s priorities

RISK

1. Lack of knowledge of  how to set objectives, set priorities, and identify risks to their achievement.
2. Lack of commitment by council members
3. No risk analysis carried out.
4. No steps taken to combat identified risks

 METHOD USED TO MINIMISE RISK

1. All councillors to be made aware of need for objectives and identification of risk.
2. Attend training sessions if practicable.
3. Add risk assessment to agenda at least quarterly, reviewing particular items, and results against those items.  
4. Ensure that completion of the risk assessment is given high priority, as a requirement of the Audit Commission

        AIM

To influence other council departments and Government organisations to fulfil the requirements of the Parish population

       RISK

1. Lack of effective lines of communication with other organisations.
2. Lack of effective lines of communication with parishioners
3. Lack of preparation on subjects requiring influence.
4. Lack of confidence by Parish Councillors

           METHOD USED TO MINIMISE RISK

1. Note all communication lines which are essential or beneficial and make information available to all councillors
2.  Establish contacts by name and where possible face-to-face. Responsibility  Chair/Clerk
2. Take every opportunity to publicise role of Parish Council.

Create Parish newsletter if none exists.

Effective use of Notice Boards and “fliers”.

Use key issues to raise profile of PC and to test parishioners views.

Add social event to occasional meeting.

Create Annual PC plan and put to parishioners for comment.Responsibility  All Councillors/Clerk

3. Ensure that all councillors are aware of need for careful research and are guided as to where to obtain relevant   information on issues under discussion. Responsibility  All Councillors/Clerk
4. As at 1. above. 

Experienced councillors to assist newcomers to establish essential contacts.

Delegate responsibility for specific contacts to individual councillors.Responsibility  Clerk

         AIM

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

         RISK

1. Lack of knowledge of possible culpability of councillors.
2. Lack of education of Councillors regarding culpability.
3. Inadequate insurance cover taken out – property, personal liability, employers liability

METHOD USED TO MINIMISE RISK

1. Creation of standing orders and familiarisation with those where greatest risk occurs.
2. As at 1. above.

Delegate responsibility to one or two councillors to assist newcomers to understand culpability.

Attend any training courses available.

3. Review risk assessment by including on agenda of PC meetings at least quarterly.

Delegate responsibility for keeping up-to-date with insurance requirements to an individual councillor.

AIM

To keep appropriate books of account accurately and up-to-date through out the financial year.

RISK

1. Lack of knowledge of accounting requirements
2. Lack of commitment to accounting requirements.
3. Bank charges unnecessarily incurred
4. Inaccuracies in recording amounts, totals in books of account, and bank reconciliations.
5. Inaccuracies and interest losses caused by account transfers.
6. The most beneficial interest terms not being employed.
7. Books of account not kept up to date/ invoices not posted promptly.
8. Internal controls not in place or not operated.
9. Payments missed or delayed due to inadequate filing of invoices.
10. Clerk taken ill or leaves without replacement

METHOD USED TO MINIMISE RISK

1. Ensure that all councillors are familiar with current financial regulations and include them in standing orders.

Regularly review standing orders.

Appoint a councillor as the RFO to take overall responsibility for financial management. Responsibility Chair/Clerk

2. As at 1. above.

RFO to produce financial reports at all meetings.

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

3. RFO to carry out regular inspection of books of account.

Internal audit to be undertaken periodically during the current financial year.

4. 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.

5. Keep number of accounts to a minimum but ensure that any large credit balances are deposited in an interest bearing account.  Responsibility Chair/Clerk
6. Ensure that favourable interest rate  is obtained in deposit accounts and review against alternatives, but bearing in mind the risks in changing accounts.  Responsibility Chair/Clerk
7. Avoid cash payments and receipts if possible.
8. Where cash payments and receipts are unavoidable use a properly controlled petty cash account with a set maximum balance.
9. Regular checks by RFO and internal auditor.
10. Financial reports at all PC meetings

 11.  Chair to be familiar with all aspects of financial matters.

       AIM

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

        RISK

1. Lack of knowledge of wishes of residents.
2. Use of funds not giving value for money.
3. Use of funds not in accordance with the wishes of the residents
4. Charges for use of facilities inadequate.
5. Fund raising not properly controlled or not in accordance with regulations.

METHOD USED TO MINIMISE RISK

1. As at 3.2

Ensure residents are consulted on all major financial issues. Responsibility Chair/All Councillors

2. Effective budget planning processes.

Creation of annual plan after consultation process.

Creation of outline 5 year plan.Responsibility  All Councillors

3. As at 2 above

create effective financial management.

Internal audit checks to cover consultation process.

4. Effective financial management by RFO.                               Responsibility Chair / All Councillors

Internal audit checks.

5. All councillors to be aware of need to check regulations before commencing fund-raising activities.

Effective financial management by RFO Responsibility Chair /ALL Councillors

AIM

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

           RISK

1. Lack of knowledge of  budgetary process, and Council regulations
2. Lack of commitment to budgetary process.
3. Inadequate consideration of requirements for annual precept.
4. Calculation not in accordance with Council regulations.
5. Inadequate internal controls with regard to monitoring expenditure.
6. Reserves too low.

METHOD USED TO MINIMISE RISK

1. Include regulations in Standing Orders issued to all councillors.

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

Delegate responsibility for managing budgetary process to Chair.Responsibility Chair/Clerk

2. As at 1. above

Involve all councillors in budgetary process not solely the clerk.

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

Delegate responsibility for managing budgetary process to Chair

Start consideration of calculation at least 4 months prior to submission date

Create annual and 2/3 plans to assist in process.Responsibility Chair/ Clerk

4. Checks by RFO and Internal Auditor.
5. Checks by RFO and Internal Auditor.

Financial and budget progress reports to all PC meetings.Responsibility Clerk

6. As at 5 above.

            AIM

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

RISK

1. Lack of knowledge of possible sources of income e.g. grants.
2. Lack of commitment to pursue possible sources of income.
3. Receipts not banked or not banked promptly.
4. Debts not pursued promptly.
5. VAT claims not made promptly or made

METHOD USED TO MINIMISE RISK

1. Appoint a councillor as Grants Officer to gain experience of all grants available and application procedures.
2. As at 1.                                                   Responsibility Nominated Councillor
3. Regular checks by Chair.Internal audit checks.           
4. As at 3. above.
5. Ensure Clerk has appropriate and up-to-date VAT official

                 AIM

      To ensure that salaries paid to employees and amounts paid to contractors are paid in accordance with council regulations, and adequately monitored.

RISK

1. Inappropriate rate of pay to employees.
2. Tax and NI arrangements not in accordance with regulations.
3. Amounts paid to contractors not in accordance with contract and inadequately monitored.

METHOD USED TO MINIMISE RISK

1. Ensure employee regulations are available and understood by Clerk.  Responsibility Chair
2. Internal audit checks.                                   Responsibility Chair
3. As at 1 above.
4. Internal audit checks

Checks by Chair

Appoint councillor to monitor contract work carried out.

            AIM

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

              RISK

1. Lack of knowledge of Council regulations and procedures.
2. Late or  non- submission of annual accounts.
3. Year end accounts not prepared, inaccurate, or not in accordance with Council requirements.
4. Inadequate audit trail from records to final accounts.

METHOD TO MINIMISE RISK

1. Include financial regulations in Standing Orders.  Responsibility Clerk / Chair

Attend training seminars where available.

2. Include a time table in Standing Orders.                 Responsibility Clerk

Chair to monitor progress against timetable and report to PC meetings.

3. Checks by Chair

Internal audit checks

4. As at 3 above.

             AIM

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 

          RISK

1. Lack of knowledge of assets of Parish Council.
2. Assets lost or misappropriated
3. Inadequate or inaccurate valuation of the council’s assets
4. Asset register not established or inadequately maintained.

 METHOD TO MINIMISE RISK

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

Create permanent asset register.               Responsibility Clerk

2. Establish who is responsible for security and maintenance of each asset.   Responsibility Nominated  Councillor

Appoint councillor responsible for regular monitoring of location and use of assets.

3. Arrange for periodic review of valuations and arrange for professional valuation where necessary.

Internal audit checks.                               Responsibility Clerk / Chair

4. Create asset register in accordance with Audit Commission requirements. Responsibility Clerk

AIM

To comply with appropriate Government legislation regarding disability, racial equality, safeguarding children etc.

RISK

1. Lack of knowledge of applicable legislation
2. Lack of public awareness of applicable legislation.
3. Failure to comply with applicable legislation.

METHOD TO MINIMISE RISK

Clerk to have all appropriate legislation available.           Responsibility Clerk / Chair

Review liabilities and responsibilities periodically at PC meetings.    Responsibility Clerk / Chair

Include, as appropriate, in any public consultations

As at 1 above

AIM

To carry out adequate safety checks on all buildings, properties, and equipment for which the council is responsible

RISK

1. Lack of information on properties, buildings and equipment.
2. Lack of knowledge of safety requirements.
3. Lack of commitment to carrying out safety checks

METHOD TO MINIMISE RISK

1. Ensure that all current legislation and advice is held by Clerk.

Include in asset register all properties for which PC responsible. Responsibility Clerk / Chair

2. Ensure that all current legislation and advice is held by Clerk.

Place subject as item on PC meeting agenda at regular intervals. Responsibility Clerk / Chair

3. As at 2. above.

Delegate responsibility for particular priorities to individual councillors. Responsibility Nominated Councillor

AIM

To work in accordance with all directives of Data Protection and to ensure that all sensitive documents held by the

Council are secure and not available for public perusal.

TO BE REVIEWED ANNUALLY IN MAY