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Draft Financial Controls

 Bankers

 

  1. The Council’s bankers are Lloyds Bank.

  2. There are 2 bank accounts for the Parish Council;
     
    • a Treasurers account for day-to-day transactions, and 
    • a Business Bank Short Investment account to pay interest on funds and reserves at low risk.

      Roles, Authority and Authorisations

       
  3. The Clerk for the Parish Council is Responsible Financial Offer, herein referred to as RFO.

  4. All 10 members of the parish council are authorised signatories for cheques to the account.

  5. Six members of the parish council are authorised approvers for on-line banking, reviewed annually

    • Chair of the Parish Council 
    • Vice-Chair of the Parish Council 
    • Chair of the Finance Committee 
    • Member of the Finance Committee 
    • Chair of the Planning Committee 
    • Chair of the Playing Field Committee

  6. The RFO is a signatory for cheques but cannot approve on-line payments.

  7. The bank holds a mandate for each signatory.

  8. The RFO is authorised to communicate with the banks by e-mail, post, phone or person.  The RFO can deposit funds.

  9. The RFO is authorised to use the bank’s on-line payment system and can set them up but cannot authorise those on-line payments.
     
  10. On-line payments must be approved by three out of the six authorised on-line approvers. The Clerk notifies the Parish Council, and these are recorded in the minutes of the meetings.

    Payments & Controls 

  11. The Parish Council is advised at each Parish Council meeting of a list of payments for approval.  

  12. In support of all payments the RFO makes available at each meeting the details of payments for approval together with associated invoices.

  13. All requests for payment shall be accompanied by the appropriate paperwork as directed in this council’s Financial Risk Assessment.

    On-line Payments


  14. The RFO will only set up online payments which have been approved by the full Parish Council. These are circulated with the agenda for each meeting and minuted as approved, this shows a record of all outgoings.

  15. All on-line payments must be approved by three of those members of the Parish Council authorised for on-line approvals.

  16. On-line approval of payments are recorded by the banks system with the approvers details and the time and date of approval.

  17. On-line payments are only approved after the payment has been approved at a Parish Council meeting.

    Cheque Payments


  18. If paying by cheque, the cheque is signed and the cheque stub is also initialled.

  19. All cheques must be signed by three of the authorised members of the Parish Council.

  20. Cheques are signed at Parish Council meetings when the Clerk & Chairman or Vice Chairman are present.

  21. No authorised signatory will be asked to sign a blank cheque.

  22. Any expenditure that falls outside of budgeted items will be discussed at a full parish council meeting and approved accordingly if appropriate, before any payment is made.

    Monitoring & Reporting


  23. A Budget Forecast for the 12-month period of 1st April to 31st March is agreed by the Parish Council by November each year and used to set the parish precept. Quarterly budget comparisons (as agreed in the Financial Regs) are provided by the RFO to the Council at each quarterly meeting along with quarterly reports of bank reconciliations (30th June, 30th September, 31st December and 31st March).

  24. The RFO will prepare the Annual Statement of Accounts by 30th June at the latest (but will endeavour to provide as soon as possible after financial year end – first full parish council meeting after 31st March), to support the period of public inspection during the external audit.  

  25. The RFO produces a summary of the Parish Council’s annual accounts for presentation to the Parish Council as soon as practicable after the end of the financial year and in any case before 30th June.

  26. The Risk Assessment and Asset Register will be checked and reviewed annually.  

  27. The RFO meets at regular intervals with 2 members to inspect the accounts, checking payments are correct with the invoice and bank statements are reviewed.

    Auditing


  28. The Parish Council annually appoints a competent independent internal auditor to check its accounts and to ensure that its activities are properly carried out and recorded.  

  29. The RFO will prepare and collate all records, documents, papers etc. as directed by the External Auditor, for the period of public inspection.  

  30. The External Auditor, appointed by the sector-led body, will contact the Clerk annually. 


Draft not yet Adopted 

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