Policies & Procedures

BIGBY PARISH COUNCIL

INTERNAL AUDIT CONTROL

Bigby Parish Council must have an adequate and effective internal audit system1.

Internal Audit

The aim of Internal Audit is to minimise the risk of fraud/mis-management, and at the Annual Meeting the Council appoints the independent Internal Auditor whose role is to review, inspect, and verify the council’s:

•   financial management systems/accounting records.
•   bank reconciliation system.
•   asset management and risk assessments procedures.

and to provide

•   a report to council, including any recommendations for change.
•   the Internal Auditor report within the Annual Return.

In order to assist with the verification procedures, the Internal Auditor also has access to relevant council records e.g. Minute Books.

Internal Control

The proper management of council assets is essential.  

The Parish Council must : 

•   undertake budgetary control through quarterly comparison of income/expenditure against budget.
•   review risk assessments for council assets/functions
•   review the schedule of insurance (at least annually)
•   consider audit reports.
•   appoint two, fiscally aware, members to scrutinise the accounts on quarterly basis

The Personnel Committee is delegated to manage staff and salaries, which are paid in accordance with the following internal control procedures.

The Parish Council also operates the following, additional, robust internal control procedures in accordance with its Financial Regulations:-

•   bank reconciliations are prepared monthly (as at the end of each calendar month) by Clerk and verified, which are signed and dated by the Clerk
•   members are provided with a copy of the financial report, balanced to bank at the end of each month, at the Council meetings; the financial reports are also verified to the bank statements (monthly), signed and dated by the Chairman.
•   all authorities to make a payment by cheque or via direct banking, are verified with the invoice received and signed by two members in accordance with the council’s instructions and the bank mandate. 
•   access to on-line banking is controlled by the Clerk.
•   two fiscally aware councillors review the accounts on a quarterly basis.

Management of Petty Cash, Income Received and blank cheque books.

The petty cash book, receipts, blank cheques, paying in books are stored by the Clerk

Bank Instructions.

The bank mandate of signatories is reviewed every four years, following the council elections.

Any two members from those listed on the mandate can authorise a payment out of the accounts or sign a cheque.

Staff are not authorised signatories for the purpose of withdrawals i.e. cheque/payment signatories; but the Town Clerk is authorised to transfer funds between bank accounts.

Every effort is made to vary the signatories used, without delaying payment of accounts due.

Reviewed 10 July, 2018

1 Section 4 of Accounts and Audit Regulations 1996, as amended 2003 and 2006.