INTERNAL AUDIT FOR STANTON UNDER BARDON PARISH COUNCIL Date of Visit: 31st May 2016

INTERNAL CONTROL TEST UNDERTAKEN RESULT TEST DATE 1

Proper Bookkeeping

Is the cashbook maintained & up to date? Is the cashbook arithmetically conrect? Is the cashbook regularly balanced?

YES YES YES

31-May 31-May 31-May

2 Standing Orders & Financial Regulations

and Payment controls

Has the Council fomnally adopted SOs & FRs Has the RFC been appointed with specific duties Have items or services at)ove the de minimus amount been competetively purchased Are payments in Casht)ook supported by invoices, authorised & minuted Has VAT on payments been identified, recorded & reclaimed Is si 37 expenditure separetely recorded & within statutory limits

YES YES YES

YES YES YES

31-May 31-May 31-May

31-May 31-May 31-May

Risk 3. Management arrangements

Does a review of the minutes identify any unusual financial activity Do minutes record Council carrying out an annual risk assessment Is insurance cover appropriate & adequate Are internal financial controls documented and regularly reviewed

YES YES YES YES

See Over 31-May 31-May 31-May

Budgetary 4 Controls

Has the Council prepared an annual budget in support of its precept Is actual expenditure against ttie budget regularly reported to Council Are there any significant unexplained variances from the budget

YES YES NO

31-May 31-May 31-May

5 Income Controls

Is income properly recorded & promptly banked Does the precept recorded agree to the Council Tax Authority notification Are security controls over cash & near-cash adequate & effective

YES YES YES

31-May 31-May 31-May

6 Petty Cash Procedures

Is all petty cash spent recorded and supported by VAT invoice/receipt Is Petty Cash expenditure reported to each Council meeting Is Petty Cash reimbursement carried out regulariy

Y/N Y/N Y/N

No Petty C ash

7 Payroll Controls

Do all employees have contract of employment with clear terms & conditions Do salaries paid agree with those approved by the Council Are other payments to employees reasonable and appro, by Council Have PAYE/NIC been properly operated by Council as an employer

NO Y E S YES Not app

See Over 31-May 31-May

licable

8 Asset Controls

Does the Council maintain a Register of all assets owned or in its care Are the Assets and investment registers up to date Do asset insurance valuations agree with those in the assets register

Y E S Y E S Y E S

31-May 31-May 31-May

9 Bank Reconcilliation

Is there a bank reconciliation for each account Is a bank reconciliation earned out regularly and in a timely fashion Are ttiere any unexplained balancing entries in any reconciliation

Y E S Y E S NO

31-May 31-May 31-May

10 Year - end procedures

Are year end accounts prepared on the con'ect accounting basis (R & P or 1 & E) Do accourtts agree with ttie cash book Is there an audit trail from the undertying financial records to the accounts Where appropriate, have debtors & creditors been property recorded

Y E S Y E S

Y E S

Y E S

31-May 31-May

31-May

31-May

COMMENTS/RECOMMENDATIONS RESULTING FROM THE INTERNAL AUDIT

COMMENTS/NOTES

Section 3 = fairly complicated arrangement regarding the sale of a parcel of land and the construction of a new Village Hall and the subsequent VAT refund on the notional cost of the build element

Section 7 = The Clerk is classed as Self Employed, so no tax or Nl are deducted and the Clerk does not have a contract of employment.

I hereby declare that the Internal Audit has been carried out according to published guidelines and has been conducted in an independent and objective rpatfner

RECOIMMENDATIONS

NONE

Kevin Shaw Internal Auditor

Date: 31st May 2016

KEVIN AND ELAINE SHAW 2, MANOR FARM MEADOW, EAST LEAKE, LOUGHBOROUGH, LE12 6LL

TELEPHONE: 01509 559002: E-MAIL: Kevinashaw@ntlworld.com.uk

TO WHOM IT MAY CONCERN

TO CARRY OUT INTERNAL AUDIT FOR PARISH/TOWN COUNCILS

With effect from 1̂ * June 2016, my fee for carrying out the Intemal Audit requirements for Parish & Town Councils, in accordance with the Governance and Accountability for Smaller Authorities in England guide will be £20.00 per hour, to include travel time and the completion of the necessary paper work.

Kevin A. Shaw

21^'May 2016