Financial Risk Assessment form
BARDNEY GROUP PARISH COUNCIL - RISK ASSESSMENT FORM | |||||||
RISK ASSESSMENT OF | FINANCIAL RISKS | ||||||
CARRIED OUT BY | Responsible Finance Officer/Clerk | ||||||
DATE | 05-03-21 | ||||||
REVIEW DATE | 03-03-22 | ||||||
HAZARD | CONTROLS | RISK LEVEL | FUTURE | COMPLETION | RESPONSIBLE | DATE | |
ACTIVITY | IDENTIFIED. | IN PLACE | L/M/H | ACTIONS | DATE | PERSON | ACTIONED |
UNEXPECTED | Election costs not | No elections held for 5 years. | L | Existing procedure | |||
ELECTION | budgeted for. | Money held in contigency to cover | adequate. | ||||
Expenditure on | |||||||
other items | |||||||
stopped to cover. | |||||||
VAT RECLAIMING | Not reclaimed | VAT reclaimed every 3 months. | L | Procedures adequate | |||
or reclaimed | All o/s VAT receipts chased by | Now reclaim more often | |||||
incorrectly. | RFO monthly. | ||||||
Audit enquiry. | VAT paid recorded for each transaction | ||||||
ANNUAL RETURN | Not submitted | RFO completes annual return correctly | |||||
(ACCOUNTS) | with time limits. | and within timescales. | |||||
Audit enquiry. | All paperwork kept upto date to ensure | L | Records updated on a monthly | ||||
Lack of public | accuracy of data and annual return | basis | |||||
confidence. | Information read on Annual Return to be | ||||||
Disciplinary | read carefully | ||||||
proceedings. | If timescale cannot be met - extension is | ||||||
requested. | |||||||
Annual return open for public | |||||||
inspection. | |||||||
ANNUAL RETURN | Not submitted within | Sage Instant Payroll used | Paying HMRC later in month | ||||
(PAYE/NI ETC) | time limits. Fine/penalty | HMRC contacted regularly to address any | L | appears to have addressed | |||
for Parish Council. | queries/check upto date | the problem as well as | |||||
Due to 2 signatories and | amending SAGE Pay set up | ||||||
RFO only 1 day per week | |||||||
wages to be actioned for | |||||||
payment by BACS on 24th | |||||||
requires Sage instruction, | |||||||
HMRC tax month after 22nd | |||||||
HAZARD | CONTROLS | RISK LEVEL | FUTURE | COMPLETION | RESPONSIBLE | DATE | |
ACTIVITY | IDENTIFIED. | IN PLACE | L/M/H | ACTIONS | DATE | PERSON | ACTIONED |
BUDGET | Incorrect financial | Monthly budget reported to Council and | |||||
PRECEPT | information given to | minuted. Any discrepancies noted/rectified | L | Existing procedure | |||
Cllrs/public. | Accuracy of invoicing and payments made. | adequate. | |||||
Projects stopped. | Accurate costings. | ||||||
Lack of morale/public | RFO & clerk has authority to vire between budget | ||||||
confidence. | heads as necessary to avoid over spending. | ||||||
Resignations. | Precept meeting held annually to discuss | ||||||
Audit enquiry. | detailed budget/amounts required. | ||||||
Disciplinary | Documents available for public inspection. | ||||||
proceedings. | Expenditure monitored against budget | ||||||
CASH HANDLING | Theft of money/ | Cheques banked weekly. | |||||
PETTY CASH | dishonesty. | Paying In book stubbs completed correctly | |||||
MASTERCARDS | Lack of morale. | Internal & external audits undertaken | |||||
Lack of public | annually. | L | No longer use FX card | ||||
confidence. | Receipts for all cash payments made. | Petty cash also reduced due to | |||||
Resignations. | Financial regulations in place, reviewed | COVID | |||||
Audit enquiry. | annually. | ||||||
Disciplinary | All cash counted together by Clerk and RFO | ||||||
proceedings. | Cash then immediately banked and slip | ||||||
returned and shown to the other party. | |||||||
Cash book to be completed each time | |||||||
payment received or monies banked | |||||||
Minimum petty cash to retained - £20 - £30 | |||||||
PAYMENT OF | Theft of money/ | Orders for payments must be signed by at | |||||
INVOICES | dishonesty. | least 2 signatories. | |||||
Lack of morale. | The RFO/Clerk can not be a signatory. | L | Procedures adequate | ||||
Lack of public | Record all invoices received. | Procedures require double | |||||
confidence. | Note date of payments to ensure no | checking by Clerk and Deputy | |||||
Resignations. | duplications. | Clerk prior to processing and | |||||
Audit enquiry. | All invoices to be attributed to relevant | payment made by two signatories | |||||
Disciplinary | budget headings. Cheque book stubbs to | ||||||
proceedings. | be completed and signed | ||||||
HAZARD | CONTROLS | RISK LEVEL | FUTURE | COMPLETION | RESPONSIBLE | DATE | |
ACTIVITY | IDENTIFIED. | IN PLACE | L/M/H | ACTIONS | DATE | PERSON | ACTIONED |
ACCUSATION OF | Tribunal claims | Signed receipt given for all cash | |||||
THEFT | if falsely accused. | payments. | |||||
Lack of morale | Financial regulations in place, | L | Existing procedure | ||||
Resignations. | detailing expenditure procedures | adequate. | |||||
Grievance | reviewed at least annually. | ||||||
proceedings. | LALC/SLCC advisory services for | ||||||
any queries/issues. | |||||||
Bank reconcilliation with cheque book and | |||||||
BANKING | Loss of money. | Paying in book and statement | |||||
Bank mistakes. | Monthly bank reconciliation | ||||||
Inadequate checks. | reports to council and minuted. | L | Existing procedure | ||||
Any discrepancies reported to bank | adequate. | ||||||
immediately. | |||||||
Bank reconciliation statements | |||||||
available for public inspection. | |||||||
Threat to personal | Cash banking times varied. | ||||||
THEFT | safety. | Different banks used. | L | Only Clerk and RFO have keys | |||
Low morale. | Cash stored in fire safe. | ||||||
Resignations. | Key to safe removed when not in use. | ||||||
Grievance | Employees trained to hand over | ||||||
procedures. | cash if approached. | ||||||
Tribunal claims. | Max £50 petty cash kept on site. | ||||||
EL Claims. | All large amounts of cash in excess of £100 | ||||||
banked the same day. | |||||||
DATA PROTECTION | Non-compliance. | Parish Council registered for Data | L | ||||
Protection with the Information | Procedures adequate | ||||||
Commissioner. | |||||||
Passwords on computer. | |||||||
Minimum access RFO & Clerk only | |||||||
FREEDOM OF | Non-compliance. | Model Publication scheme adopted. | L | Existing procedure | |||
INFORMATION | Reviewed annually. | adequate. | |||||
HAZARD | CONTROLS | RISK LEVEL | FUTURE | COMPLETION | RESPONSIBLE | DATE | |
ACTIVITY | IDENTIFIED. | IN PLACE | L/M/H | ACTIONS | DATE | PERSON | ACTIONED |
SALARIES | Wrong salary/hours/ | RFO inputs salary payment requests for all | |||||
rate paid. False | employees. Two councillors have to | L | Existing procedures | ||||
employee. Wrong | authorise each payment online (checking | adequate. | |||||
PAYE/NI deductions. | accompanying documentation first) and | ||||||
are ratified via the payment schedule at | |||||||
each parish council meeting. | |||||||
All hours of work and rates of pay are | |||||||
agreed by full council. | |||||||
INSURANCE | Items not covered/not | Insurance reviewed anually and alternative | |||||
adequately covered. | quotes sought by RFO as appropriate. | L | Existing procedures | ||||
Items under insured. | New items added to policy as purchased. | adequate. | |||||
Not able to claim. | Old items removed from policy when | ||||||
Loss of money. | disposed of/sold. | ||||||
COUNCILLORS/ | Councillors' overpaid. | Standing Orders/Financial Regulations | |||||
EMPLOYEES | Incorrect mileage rate | Driving on council business policy. | |||||
ALLOWANCES/ | paid. | Mileage rates agreed by full council. | L | Existing procedures | |||
EXPENSES | Mileage over claimed/ | No Councillors allowances paid other than | adequate. | ||||
not due. | Chairman's allowance - receipts/invoices | ||||||
must be forwarded to RFO prior to being | |||||||
authorised by full council. | |||||||
RFO to check and approve prior to | |||||||
being authorised by full council | |||||||
HAZARD | CONTROLS | RISK LEVEL | FUTURE | COMPLETION | RESPONSIBLE | DATE | |
ACTIVITY | IDENTIFIED. | IN PLACE | L/M/H | ACTIONS | DATE | PERSON | ACTIONED |
ACQUISITION | Goods billed but not | To comply with standards outlined in | |||||
OF GOODS | received. | Standing Orders/Financial Regulations | |||||
AND SERVICES | Invoices incorrect. | Financial Regulations & Procurement. | |||||
Unpaid invoices. | Includes delegation arrangements for items | L | Procedures adequate | ||||
Items ordered | for administration, parish office and | recently improved | |||||
incorrectly. | delegated arrangements for authorising | ||||||
items for other members of staff. | |||||||
All other items authorised by full council. | |||||||
Invoices checked for accuracy upon receipt | |||||||
and any discrepancies notifed and | |||||||
replacement invoices/credit notes | |||||||
requested. | |||||||
RFO to check all invoices/payment | |||||||
documentation prior to authorising. | |||||||
All payments listed and authorised by full | |||||||
council monthly. | |||||||
All invoices to pay internally numbered and | |||||||
monitored. Cross referenced on Bank Reconcilliation | |||||||
RISK | |||||||
L = LOW | No Action - Risk acceptable. Possible future action. | ||||||
M = MEDUIM | Moderate Risk - Reduce risk if reasonably practicable. | ||||||
H = HIGH | High Risk - Action required urgently. | ||||||
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