Statement of Internal Control
Scope of Responsibility
Mareham le Fen Parish Council (the Council) is a local authority funded by public money and is responsible for ensuring its business is conducted in accordance with the law and proper standards and that public money is safeguarded, properly accounted for, used economically, efficiently and effectively.
In meeting this responsibility assurance is required that there is a sound system of internal control and that the Council’s accountability framework is ‘risk’ based; proportionate to that risk and to the amounts of public money involved and to the stakeholders’ need for assurance.
The Purpose of the System of Internal Control.
The system of internal control is designed to ensure that risks are managed to a reasonable and acceptable level forming part of an ongoing process designed to identify and prioritise the risks to the authority’s policies, aims and objectives and to evaluate and manage those risks accordingly.
The Internal Control Environment
The Council:
• appoints a Chairman to be responsible for the smooth running of meetings and for ensuring that all Council decisions are lawful with the clerk’s advice.
• reviews its obligations and objectives and approves budgets for the following year at its January meeting. This meeting also approves the level of precept for the following financial year.
• meets 11 times each year and monitors progress against its aims and objectives.
- The Council holds extraordinary meetings when important matters or urgency requires it.
The Council Clerk to the Council/Responsible Financial Officer:
• is appointed by the Council to act as the Council’s advisor and administrator
• is the Council’s Responsible Financial Officer and is responsible for administering the council’s finances
• is responsible for the day to day compliance with laws and regulations that the Council is subject to and for managing risks
• ensures that the council’s procedures, control system and policies are adhered to.
• a Staffing/ Employment Committee has been formed which meets at least annually with the Clerk.
Payroll Controls.
• the clerk has a contract of employment with clear terms and conditions.
• Salary paid to agree with that approved by the Council. Additional hours are approved by the Council.
• PAYE is being properly operated by the Council as an employer and monthly submission is made to HMRC under the Real Time Initiative.
Payments
• are reported to the Council for approval
• are made by cheque and signed by any three authorised signatories (who also sign the cheque counterfoil.)
Income
• is banked in the Council’s name in a timely manner and reported to the Council
Risk Management
• A risk register will be maintained and risk assessments are carried out in respect of actions, systems and controls. Risks are regularly reviewed.
The Internal Audit
• is carried out by an independent competent Internal Auditor provided from the LALC panel who reports to the Council on the adequacy of its records, procedures, systems, internal controls, regulations and risk management reviews.
- The Council will consider changes to internal controls that are identified during the audit and on the advice of the RFO.
Standing Orders
• the Council has adopted the Model Standing Orders as recommended by N.A.L.C.
Financial Regulations
• the Council has adopted the NALC model and reviews updates as necessary each year.
V.A.T.
• V.A.T. payments are identified, recorded and reclaimed.
Asset Register
• the Council maintains a register of all material assets owned or in its care. The Clerk will update as and when necessary and to be approved annually.
Insurance
• The Council’s insurance provision is reviewed annually both in relation to its schedule of cover and also its value for money.
Code of Conduct
• Members sign the Acceptance of Office and the Chair signs annually an Acceptance of Office
- The Parish Council has adopted a Code of Conduct which is published on the website and all Members must complete a Register of Pecuniary Interests and other Interests form. Members to consider every item on the agenda and ensure that any interest is declared at the beginning of the meeting or before the matter is discussed.
• an item ‘Declarations of Interest’ will be placed on every agenda.
This internal control statement has been reviewed in February 2022 and will be reviewed by Mareham le Fen Parish Council at least once per financial year.