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Reed Parish Council Financial Risk Assessment

Reviewed 4 May 2022 Downloadable/printable version (opens as PDF file)
Risk
Procedures to address
Reassess/carry out

Lack of general financial control

1
Lack of responsible officer
Appointment of responsible finance officer (RFO)
When Clerk resigns or when separate RFO necessary due to workload
2
Lack of financial Standing Orders
Produce Financial Standing Orders for Council to review and adopt
Annually
3
Lack of overview
Chairman’s responsibility to check periodically Internal Auditor’s report Regular reporting of Budget v. Actual to Council
Ongoing Annually Each meeting
4
Lack of Power to spend
Clerk to check Council spending within powers
Ongoing
5
Loss/destruction of financial documentation
RFO & Clerk or assistant to hold RFO to lock away cheque book
Ongoing Ongoing
6
Loss of computerised records
Backup of computerised systems
Continually backed up to Cloud - Onedrive
7
Lack of skill in systems
Training for clerk
As needed

Accounting errors

1
Incorrect data entry
Clerk or Assistant to enter on spreadsheet or computer software RFO to examine entries on schedule before submission to Council
Ongoing Monthly
2
Incorrect entries by Bank/RFO
Clerk to do bank reconciliation through software or manually
Monthly
3
Discrepancies in report to Council
Statement of payments reported checked. Chairman signatory
Bi-monthly
4
VAT discrepancies
VAT reconciled to financial schedule VAT reclaimed annually
Monthly Ongoing

Budget overspend

1
Overspend against budget
RFO to check sufficient funds available when expenditure incurred Budget v actual examined
Bi-monthly

Misappropriation of public funds

1
Expenditure without authority
Prior approval for spending authorised by Council .
Ongoing
2
Invoice payment without authority
All cheques to be listed on a schedule and authorised for payment by Council
Bi-monthly
3
New cheque book misappropriation
Cheque books to be stored securely with clerk
Ongoing
4
Cheque misuse
Cheques agreed against the approved schedule to be signed by two councillors. All signatories must initial the cheque stubs.
Ongoing
5
Incoming cash and cheque misappropriation
All cash and cheques to be stored securely and banked within 2 working days.
Ongoing
6
Theft of funds
Bank statements to be reconciled and signed off by Clerk. Ensure Fidelity Insurance in place against theft of funds by staff, councillors and other persons.
Monthly Reviewed annually
7
Electronic Payments (BACS/CHAPS) made without Council approval Incorrect electronic payment or amount made / No monitor on actual electronic entry
All BACS/CHAPS payments to be approved by Council prior to the payment being made. If a payment needs to be made outside of the meeting, then approval is to be sought from the Chair, with the decision and payment ratified at the next available Council meeting. Council uses the Barclays Bank’s online “Dual Authorisation” facility, which requires that payments made from the account must be authorised by a second approver before being released to the payee. The inputter and the approver both check the electronic entry to ensure that it matches the approval list from the meeting.
Reviewed bi-annually

Under-insurance of Council assets

1
Level of cover inadequate
Reviewed by RFO in association with Council
Annually and as necessary
2
Inadequate record of possessions
Asset Register maintained by Clerk and listed in Notes to the Accounts at Audit. Deeds and other legal documents relating to assets stored securely by Council’s Solicitor.
Annually Ongoing
Chairman’s signature Ken Langley 4 May 2022
Clerk’s signature Catharine Toms 4 May 2022
© Reed Parish Council 2022 Website Accessibility Statement
Reed Village
The website of Reed Parish Council

Reed Parish Council Financial

Risk Assessment

Reviewed 4 May 2022 Unfortunately this table will not render in mobile format but you can download it as a PDF file.