HEELIS&LODGE
Local Council Services • Internal Audit
Year End Internal Audit Report for Stansted Mountfitchet Parish Council – 2024/2025
The following Internal Audit was carried out on the adequacy of systems of control in accordance with the requirements of the Audit and Accounts Regulations 2015 and the guidance and instruction in the Practitioners Guide 2025 and should be read in conjunction with the Interim Internal Audit Report dated 12/11/2024. The following recommendations/comments have been made:
Income: £492,348 Expenditure: £592,344 Reserves: £549,004
2025 AGAR Completion:
Section One: Not yet completed
Section Two: Not yet completed
Annual Internal Audit Report 2024/2025: Yes
Certificate of Exemption: No
Financial regulations
Standing Orders and Financial Regulations
Tenders
Appropriate payment controls including acting within the legal framework with reference to council minutes
Identifying VAT payments and reclamation
Cheque books, paying in books and other relevant documents
VAT reclaimed during the year: Yes
Registered: Yes
Submission Period: Amount:
01/04/2024-30/06/2024 £17,846.89
01/07/2024-30/09/2024 £11,780.23
01/10/2024-31/12/2024 £20,074.96
01/01/2025-31/03/2025 £7,418.90
There were 2 tenders during the year that exceeded the £30,000 Public Contract Regulations threshold. It is noted that on these occasions the Council followed NALC Financial Regulation No. 5.6. It is recommended in future that the Council follow FR.5.7, the mandatory requirement.
The Council reviewed the following documents during the year of audit:
11/12/2024
- Sexual Harassment Policy (Ref: 264.a)
- Performance Improvement Policy (Ref: 264.b)
- Community Engagement Policy (Ref: 265.a)
- Cemetery Regulations (Ref: 265.b)
- Access to Information Policy (Ref: 265.c)
- Code of Conduct (Ref: 265.d)
Risk Assessment
Appropriate procedures in place for the activities of the council Compliance with Data Protection regulations
Risk Assessment document in place: Yes
Data Protection
The General Data Protection Regulations have changed and the new Regulations came into force on 25 May 2018. It is likely that this will affect the way in which the Council handles its data. Due to the financial risk associated with the General Data Protection Regulations, the Council have included this in their Risk Assessment.
The Risk Register was reviewed at a meeting held on 4/12/2024 (Ref: 250).
The Council have effective internal financial controls in place. The Clerk provides financial reports to council meetings. Councillors are provided with information to enable them to make informed decisions.
Fidelity Cover: £750,000
The Council reviewed the level of Fidelity cover and resolved to increase the level from £500,000 to £750,000 (Ref: 4/12/2024 – 247).
The level of Fidelity cover is within the recommended guidelines of year end balances plus 50% of the precept.
Transparency
Under the Transparency code for smaller authorities, smaller councils with income/expenditure under £25,000 should publish on their website from 1 April 2015:
Smaller Council: No
Website: https://stanstedmountfitchet-pc.gov.uk/
Under The Accounts & Audit Regulations 2015 15 councils must publish on their website:
External audit report
2024 Annual Return, Section One Published – Yes
2024 Annual Return, Section Two Published – Yes
2024 Annual Return, Section Three Published – Yes
Under The Accounts & Audit Regulations councils must publish on their website:
Notice of period for the exercise of public rights
Published – Yes
Period of Exercise of Public Rights
Publication Date: 17/6/2024 Start Date: 18/6/2024 End Date: 29/7/2024
Under the requirements of the Accounts and Audit Regulations 2015 13(2b) council are required to display AGARs for the five years 2019-20, 2020- 21, 2021-22, 2022-23 and 2023-24 on their website.
The Council have met the publication requirements.
Budgetary controls
Verifying the budgetary process with reference to council minutes and supporting documents
Precept: £499,900 (2025-2026) Date: 15/1/2025 (Ref: 293)
Precept: £477,766 (2024-2025) Date: 17/1/2023 (Ref: 336)
Effective budgetary procedures are in place. The precept was agreed in full council and the precept decision and amount has been clearly minuted. The Clerk ensures the council are aware of responsibilities, commitments, forward planning and the need for adequate reserves. Budget papers are prepared to ensure councillors have sufficient information to make informed decisions. Budgets are monitored during the year.
Income controls
Precept and other income, including credit control mechanisms
All were found to be in order. Income controls were checked and a sample of income received and banked cross referenced with the Cash Book and bank statements.
Payroll controls
PAYE and NIC in place where necessary.
Compliance with Inland Revenue procedures
Records relating to contracts of employment and pensions
PAYE System in place: Yes
Employer’s Reference: 083/BS771
P60s issued: Yes
The Council continue to operate RTI in accordance with HMRC regulations.
Payroll is outsourced. Supporting paperwork is in place and P60s have been produced as part of the year end process. An examination was undertaken on a sample of payroll records from Month 1 to Month 12. No irregularities were found.
It is noted that the Council undertook a review of salaries at a meeting held on 31/3/2025 (Ref: 360).
Asset control
Inspection of asset register and checks on existence of assets
Cross checking on insurance cover
A separate asset register is in place. Values are recorded at cost value. The total value of assets are recorded at £2,157,328. The figure in the asset register corresponds with the figure in Section 2, Box 9 of the AGAR.
Bank Reconciliation
Regularly completed and cash books reconcile with bank statements
All were in order. Bank Reconciliations are carried out regularly. The bank statements reconciled with the end of year accounts and bank reconciliations for all accounts.
Bank Balances at 31 March were confirmed as:
Barclays Current xxxx7168 £7,061.49
Barclays Premium #1 xxxx5213 £104,215.11
Barclays Premium #2 xxxx5786 £12,048.92
Barclays Premium #3 xxxx9724 £22,104.64
CCLA PSDF xxxx6901 £125,000.00
Cambridge and Counties* £85,000.00
Redwood Bank* £85,000.00
*Annual statements
The Council had no outstanding loans at the year end.
It is noted that the Council hold an account for the Windmill.
Recommendation: To seek written confirmation of the VAT arrangements in relation to the Windmill.
Reserves
General Reserves are reasonable for the activities of the Council
Earmarked Reserves are identified
The Council have adequate general reserves (£207,908) and have identified earmarked reserves of £341,096 in their year end accounts.
Year-end procedures
Appropriate accounting procedures are used and can be followed through from working papers to final documents
Verifying sample payments and income
Checking creditors and debtors where appropriate.
End of year accounts are prepared on an Income & Expenditure basis. Creditors and Debtors are identified within the year end accounts.
Local Council Tax Support Grant is excluded from Box 2: NA
Balance Sheet is correct: Yes
Trial Balance is correct: Yes
Internal Audit Procedures
The Interim 2024-2025 Internal Audit report was considered by the Council at a meeting held on 4/12/2024 (Ref: 246).
Additional Comments/Recommendations
- There are no additional comments/recommendations to make in relation to this audit.
- I would like to record my appreciation to the Clerk to the Council for their assistance during the course of the audit work and the quality of documentation provided for the audit.
Heather Heelis
Heelis & Lodge, 4 June 2025
Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP Tel: 07732 681125 Email: heather@heelis.eu Heather Heelis Dip HE Local Policy FILCM Lynne Lodge Dip HE Local Policy