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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