Finance

Parish Council Finance

RISK ASSESMENT

Risk is the threat that an event or action will adversely affect an organisation's ability to achieve its objectives and to successfully execute its strategies. Risk management is the process by which risks are identified, evaluated and controlled. It is a key element of the framework of governance together with community focus, structures and processes, standards of conduct and service delivery arrangements.

This document has been produced to enable the Parish Council to assess the risks that it faces and satisfy itself that it has taken adequate steps to minimise them. The Council is aware although some risks can never be eliminated fully, it has in place a strategy that provides a structured, systematic and focused approach to managing risk which:

• Identifies the key risks facing the Council
• Identifies what the risk may be
• Identifies the level of risk
• Evaluates the management and control of the risk and records findings
• Reviews, assesses and revises procedures if required.

FINANCIAL REGULATIONS

Financial regulations are a legal requirement for all Parish Councils and set the foundations upon how the council manages their finances, A model is set by NALC and is reviewed and amended to each individual councils requirements

RESERVES

Parish councils need to hold an amount in reserves to meet unexpected expenditure, otherwise they could run out of money before the end of the financial year. A council should typically hold between 3 and 12 months expenditure as a general reserve but may also hold a detailed 'earmarked' reserves if they are building deposits for projects, or have projects that are carried over several years.

BUDGETS

• The parish council discuss their annual budget for teh following year in November, to enabel them to set the precept. The current budget is reviewed every meeting, with payments being listed against the budget headings to ensure all expenditure is authorised.
• When setting the budget for next year the council reviews what it has spent to date, what it expects to spend in the rest of the months to the end of the financial year, and include any expected costs for the following year, as well as projects and asset replacements. This is offset with any guaranteed income.
• The Cemetery, Allotments and sports facilities are the only income streams, and cannot be guaranteed, only assumed

ASSETS

The assets the Council owns are listed on an asset register along with the purchase date and price. Assets are inspected yearly and the condition noted so that maintenance work can be scheduled

ANNUAL RETURNS

The Local Audit & Accountability Act 2014 and the Accounts & Audit Regulations 2015 set out the responsibilities of all local councils in respect of their accounting and auditing procedures. The parish council in accordance with the Accounts and Audit Regulations, complete an Annual Return (AGAR) setting out Accounting Statements and an Annual Governance Statement for each financial year. These statements and their supporting documentation are completed by the Responsible Finance Officer and reviewed by the parish council and are then audited by the Council's appointed Internal Auditor and an External Auditor.