BROUGHTON COMMUNITY COUNCIL REPORT OF THE CLERK / RESPONSIBLE FINANCE OFFICER DOCUMENTATION OF INTERNAL FINANCIAL CONTROLS 2024

BROUGHTON COMMUNITY COUNCIL

REPORT OF THE CLERK / RESPONSIBLE FINANCE OFFICER

DOCUMENTATION OF INTERNAL FINANCIAL CONTROLS

February 2024           

• In accordance with audit and other associated requirements, there is a need for the Council to consider and approve annually the formal documentation of the authority’s financial controls.

• The following are recommended as being the relevant, current, and internal controls of the authority to legally and satisfactorily manage the financial business of the Council.

• DOCUMENTED INTERNAL FINANCIAL CONTROLS. 

• The Responsible Finance Officer (RFO) is to prepare annual estimates of income and expenditure for submission to the December / January meeting of the Council which, in addition to known and/or committed expenditure during the subsequent financial year, will make appropriate provision for expenditure on possible schemes/projects in that year as previously determined by the Council.

• As soon as a forthcoming financial year’s budget has been approved, it shall be the responsibility of the RFO to submit the precept required to the Wrexham County Borough Council within timescales laid down by that Council which, under the present arrangements agreed with that authority, is received in three instalments in April, August, and December and paid into the Council’s account at HSBC, Wrexham by means of transfer.

• The RFO shall submit to Council annually an Annual Investment Strategy and associated recommendations, in accordance with the statutory regulations governing such a Strategy.

• The Responsible Financial Officer (RFO) will report periodically to Council the financial position of the Council in relation to the actual income and expenditure incurred against the budget together, where appropriate, projections of income and expenditure for the rest of the financial year.

• The RFO shall record all expenditure and income on at least a monthly basis; reconcile half yearly and at year end with the bank statements; and prepare accounts in the receipts and payments format with the balance sheet and supporting statements for Council approval as soon as possible after the year end and in accordance with the Audit and Accounting Regulations.

• The RFO shall pay all invoices approved by the Council by means of a minute authority. Wherever possible, the payment shall be made by BACS transfer. Where payment is made by cheque one Member plus the RFO shall sign the cheque, as defined in the mandate held by HSBC.

Where payment is made by Visa Card, such payments shall be reported to the next council meeting.

A list of all payments made and income received shall be reported to council at each meeting

2.7       The RFO will ensure that all invoices are filed in date order and recorded on a spreadsheet.

2.8       The RFO will ensure monies (cheques, BACS payments etc.) are paid into the Council’s bank account promptly.

2.9       The RFO will keep the Council’s Business Money Manager Account (Reserve / Deposit account), held in the HSBC Wrexham branch under regular review (both in terms of security of funds and maximisation of interest). After each Annual Meeting of the Council the RFO will review and, if necessary, update the Bank Mandate as necessary.

2.10    The RFO will ensure that the salary due to the Clerk and the authority’s  Cemetery Assistant are in accordance with the amounts agreed by the Council and are paid through the AVOW payroll system as per the terms of the Payroll Contract. As part of this contract AVOW will ensure the relevant deductions of N.I. and tax and payment of these sums to the Inland Revenue. In addition any annual returns due to the Inland Revenue will be submitted, by the due date, by AVOW.

2.11    The RFO will reclaim VAT and check that this and any other income received – precept, bank interest, grants, cemetery fees, VAT claims etc  are credited to the appropriate bank account.

2,12    The RFO will keep records of postages, photocopying, stationery and publications for reimbursement on a periodic basis.

2.13    The RFO, as part of the annual risk assessment, will ensure that insurance cover is at the appropriate level and that the asset register is kept up to date.

2.14    The RFO will ensure that the Council appoints an Internal Auditor.

2.15    The Council, at present, does not receive any income in the form of cash. If cash were to be received it would be the responsibility of the RFO to ensure its prompt payment into the bank, together with the issue of an appropriate receipt and notification to the next meeting of the Council.