Financial Risk Assessment Form 2021

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.