HEELIS&LODGE
Local Council Services • Internal Audit
Interim 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 2024. The following recommendations/comments have been made:
Proper book-keeping Cash Book, regular reconciliation of books and bank statements. Supporting vouchers, invoices and receipts
All were found to be in order. VAT payments are tracked and identified within the accounts. The Council hold the General Power of Competence and LGAs137 does not apply. The cashbook is referenced providing a clear audit trail.
Supporting paperwork is in place and well referenced. The Council use the Rialtas Omega software package.
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
Standing Orders in place: Yes Reviewed: 8/5/2024 (Ref: 9) Financial Regulations in place: Yes
Reviewed: 8/5/2024 (Ref: 9) and 4/9/2024 (Ref: 143)
Terms of Reference are in place for all Council committees. These were reviewed at the Annual Council meeting held on 8/5/2024 (Ref: 5).
The Council have the following committees in place:
- Open Spaces Committee
- Finance & General Purposes Committee
- Highways Sub-Committee
- Personnel Sub-Committee
- Windmill Sub-Committee
- Emergency Planning Sub-Committee
- Policies Working Group
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
General Power of Competence: Yes Adopted: 10/5/2023 (Ref: 11)
The Council reviewed the following documents during the year:
10/4/2024
Fire Safety Policy – (Ref: 517)
Tree Management Policy – (Ref: 522) Investment Policy – (Ref: 525)
8/5/2024
Committee Terms of Reference – (Ref: 5) Schemes of Delegation – (Ref: 5)
3/7/2024
Biodiversity Policy – (Ref: 96)
There were no tenders during the year that exceeded the £30,000 Public Contract Regulations threshold.
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 registration: Yes Ref: ZA089299
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.
Privacy Policy published: Yes
Link: https://stanstedmountfitchet-pc.gov.uk/documents/general-privacy-notice- policy/
Insurance was in place for the year of audit (1/4/2024 – 31/3/2025).
The Risk Management Policy was reviewed at a meeting held on 22/5/2024 (Ref: 49). The Risk Assessment was reviewed with the Risk Management Policy, however the minutes do not reflect whether the Risk Register was reviewed at the same time.
Recommendation: To undertake a specific review of the Risk Register and minute the review.
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. Payment schedules are presented to meetings and approved, supporting paperwork is in place and referenced with date, cost centre and authorisation.
Fidelity Cover: £500,000
The level of Fidelity cover is below the recommended guidelines of year end balances plus 50% of the precept ie £515,000 + £238,883 = £753,883.
Recommendation: To review the level of Fidelity cover.
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/
The Council is not subject to the requirements of the Transparency Code for smaller Councils. The Transparency Code for Councils with a turnover exceeding
£200,000 is not covered as part of the Internal Audit.
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 – No
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
2019-2020
Section 1
https://stanstedmountfitch et-pc.gov.uk/wp- content/uploads/2023/02/Conclusion-of-Audit- 2019.pdf
Section 2
https://stanstedmountfitche t-pc.gov.uk/wp- content/uploads/2023/02/Conclusion-of-Audit-2019.pdf
Section 3
https://stanstedmountfitchet- pc.gov.uk/wp- content/uploads/2023/02/Conclusion-of-Audit-2019.pdf
2020–2021
Section 1
https://stanstedmountfitc et-pc.gov.uk/wp-content/uploads/2023/02/Completion_Notice_2020.pdf
Section 2
https://stanstedmountfitche t-pc.gov.uk/wp-content/uploads/2023/02/Completion_Notice_2020.pdf
Section 3
https://stanstedmountfitchet- pc.gov.uk/wp-content/uploads/2023/02/Completion_Notice_2020.pdf
2021–2022
Section 1
https://stanstedmountfitchet-pc.gov.uk/wp- content/uploads/2023/02/Annual_Governance_Annual_Return_2021.pdf
Section 2
https://stanstedmountfitchet-pc.gov.uk/wp- content/uploads/2023/02/Annual_Governance_Annual_Return_2021.pdf
Section 3
Not published
2022–2023
Section 1
https://stanstedmountfitchet-pc.gov.uk/wp- content/uploads/2023/06/Annual-Governance-and-Accountability-Statement- 2022_2023.pdf
Section 2
https://stanstedmountfitche t-pc.gov.uk/wp- content/uploads/2023/06/Annual-Governance-and-Accountability-Statement- 2022_2023.pdf
Section 3
https://stanstedmountfitchet- pc.gov.uk/wp- content/uploads/2023/09/Conclusion-of-Audit-2022-23-and-AGAR-SS1-3.pdf
2023–2024
Section 1
https://stanstedmountfitch et-pc.gov.uk/wp- content/uploads/2024/06/A nnual-Governance-and-Accountability-Return- 2024.pdf
Section 2
https://stanstedmountfitchet-pc.gov.uk/wp- content/uploads/2024/06/Annual-Governance-and-Accountability-Return- 2024.pdf
Section 3
Not published
The Council have not met the publication requirements.
Recommendation: To publish the External Auditor’s opinion (Section 3 of the AGAR) for the years 2023-2024 and 2021-2022 as soon as possible.
Budgetary controls Verifying the budgetary process with reference to council minutes and supporting documents
Precept: £477,766 (2024-2025) Date: 17/1/2023 (Ref: 336)
Effective budgetary procedures are in place. The Finance & General Purposes Committee prepare the draft budget and recommend a precept figure to full Council.
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 cross referenced with the Cash Book and bank statements.
Petty Cash Associated books and established system in place
A satisfactory expenses system is in place with supporting paperwork. No Petty Cash held.
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
The Council continue to operate RTI in accordance with HMRC regulations. Payroll is outsourced. Eligible employees have joined the nominated pension scheme. It is noted that the Council undertook a review of salaries at a meeting held on 20/3/2024 (Ref: 484). A further examination will take place at the year end.
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 both cost value (buildings and play area) and insurance value (other assets). It appears that some items have been depreciated as they are listed as having no resell value. Community assets have been valued at £1.
Recommendation: To identify a single valuation basis for all assets, either insurance value or cost value (purchase price).
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 bank reconciliations for all accounts.
Bank Balances at 30/9/2024 were confirmed as:
Barclays Current xxxx7168 £7,947.01
Barclays Premium #1 xxxx5213 £288,128.55
Barclays Premium #2 xxxx5786 £9,980.74
Barclays Premium #3 xxxx9724 £50,740.61
It is noted that the Council provided authorisation, as an exception to the Investment Policy, to invest £85,000 with a building society and £25,000 with the CCLA Public Sector Deposit Fund on 3/7/2024 (Ref: 94) in order to improve return on the reserves held by the Council.
Reserves General Reserves are reasonable for the activities of the Council Earmarked Reserves are identified
To be carried out at the year end.
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.
To be carried out at the year end.
Sole Trustee The Council has met its responsibilities as a trustee
The Council is not a sole trustee.
Internal Audit
Procedures The Year End 2024 Internal Audit report was considered by the Council at a meeting held on 12/6/2024 (Ref: 65).
A review of the effectiveness of the Internal Audit was carried out on 31/7/2024 (Ref: 120).
Heelis & Lodge were appointed as Internal Auditor at a meeting held on 31/7/2024 (Ref: 121).
External Audit The Council formally approved the 2024 AGAR at a meeting of the full Council held on 12/6/2024 (Ref: 67-68).
The External Auditor’s report was considered at a meeting held on 18/9/2024 (Ref: 167).
There were no matters arising from the External Audit.
Additional Comments/Recommendations
- The Annual Parish Council meeting was held on 8/5/2024. The first item of business was the Election of Chairman, in accordance with Standing The Declaration of Acceptance of Office was duly signed following the election.
- It is noted that minute pages and minute items are sequentially numbered and therefore comply with legislation.
- It is noted that the minutes for the full Council meeting held on 22/5/2024 are online, however, could not be found in the minutes folder. Recommendation: To add the signed minutes of the meeting held on 22/5/2024 to the minute folder.
- There are no additional comments/recommendations to make in relation to this
- 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 presented for the audit.