Madeley Town Council D White (Vice-Chair), S Biles, R Coates, D...

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Madeley Town Council

Minutes of the Meeting of Madeley Town Council held on Monday, 27th June 2016, at Jubilee House, High Street, Madeley

commencing at 7.00 p.m. ___________________________________________________________________________

Councillors

Present:

D White (Vice-Chair), S Biles, R Coates, D Edwards, A R England, R Evans, G Green, S Harrington, P Taylor, S Taylor, P Watling Clerk to the Council Responsible Finance Officer Committee Secretary

In the absence of the Chair of Council, the Vice-Chair of Council, Councillor D White presided.

16/21 Apologies Councillor S Chadwick - Out of Area - Accepted Councillor A A England - Working - Accepted Councillor J Jones - Working - Accepted Absent Councillor K Guy Councillor N Leeper Councillor A MacKenzie

16/22 Remarks from the Chair There were none.

16/23 Public Discussion There were no members of the public present.

16/24 Declarations of Interest There were none.

24.1 Mazars LLP – External Audit Declaration of Interest Councillors were advised of the need to identify any potential conflict of interest that may arise if the Audit Commission appointed external auditor (Mazars LLP) provided personal accountancy services to members – this may affect independence and is notifiable. No conflict of interest was reported.

16/25 Madeley Outreach Service Lyn Brayne, Service Director, Citizens Advice Telford & Wrekin, gave a presentation about the Madeley Outreach Service. She thanked Madeley Town Council for continuing the funding for 2016/17 (this was agreed at the Finance & General Purposes Committee on 25th April 2016).

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The Madeley Outreach Service takes place once a week in Madeley Library. The funding from Madeley Town Council pays the advisor’s salary and travel costs. The advice provided by the Madeley Outreach Service is generic, but the advisor can refer clients to specialised Citizens Advice services such as debt advice, financial capability advice and energy advice. The following statistics for the Madeley Outreach Service in 2015/16 were noted: There were 118 clients (some of these attended more than once) 17% were over 65 44% had a disability or a long term illness Around 40% of issues were about welfare benefits, especially relating to disability. Demand for Citizens Advice services is going up. Councillors acknowledged the need for an Outreach Service in Madeley and affirmed that Madeley Town Council should continue to support it. The Chair thanked Lyn Brayne for attending the meeting.

16/26 Minutes

26.1 Minutes of the Annual General Meeting of Council held on 9th May 2016 Resolved: That the minutes of the Annual General Meeting of Madeley Town Council held on Monday, 9th May 2016 be confirmed and approved for signature.

26.2 Shropshire Association of Local Councils (SALC) – to consider affiliation At the previous Full Council meeting the Clerk was asked to provide further information about the benefits of re-joining SALC, compared with other support or networking bodies, so that Councillors could make an informed decision. A paper was received. The conclusion stated that “From a purely value for money perspective, Madeley Town Council may feel that there is inadequate benefit to be gained from subscribing to SALC.” There was a discussion about the potential benefits of joining SALC, in terms of advice for the Clerk and training opportunities. It was noted that the Clerk was able to access advice from the Society of Local Council Clerks (SLCC) and that SALC training is open to all, although the cost is slightly higher for non-members. Resolved: That Madeley Town Council will not join the Shropshire Association of Local Councils at this time, but that the decision would be reconsidered in the future if a new less experienced Clerk was appointed.

16/27 Committee Reports

27.1 Leisure & Community Committee The report of the meeting held on Monday 23rd May 2016 was presented for information. Noted.

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27.2 Environment Committee The report of the meeting held on Monday 13th June 2016 was presented for information. Noted There was a discussion about the monthly Councillor Walkabouts, which have not been well attended so far. Resolved: To change the day for the walkabouts to the first Thursday of the month from August 2016 onwards.

27.3 Finance & General Purposes Committee - Vacancy It was proposed, seconded and Resolved: That Councillor S Biles be appointed as a member of the Finance & General Purposes Committee.

16/28 Budget and Finance

28.1 Expenditure Approval & Financial Reports Expenditure Approval to approve expenditure transactions The Responsible Finance Officer had prepared the Expenditure Transactions Approval List report for the period to June 2016. Resolved: That the expenditure transactions recorded be confirmed and approved for payment. Financial Summary – Cashbook To note Financial Status report The Responsible Finance Officer had prepared the Financial Summary – Cashbook report for the period April – June 2016 for information. Noted. Financial Comparison Report To note actual monies received and spent compared to 2015/16 budget. The Responsible Finance Officer had prepared the Financial Comparison Report for the period to June 2016 for information. Noted

28.2 External Audit Programme 2016

1. Statutory deadline for approval of 2015/16 Annual Return by Council 30.06.2016

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2. Notice of Appointment of date for exercise of Electors’ rights. The Local Audit and Accountability Act 2014 and The Accounts and Audit (England) Regulations 2015 require that the inspection period is advertised at least two full calendar weeks before its start date. 16.06.2016

3. Period of Inspection (30 working days) There is a statutory requirement for Council to provide interested parties and local electors with the opportunity to inspect the accounts (the Annual Return) and supporting documentation. 30.06.2016 to 10.08.2016

4. Appointed Date Under the provisions of the Local Audit and Accountability Act 2014, the Accounts and Audit (England) Regulations 2015 and the National Audit Office Code of Audit Practice, the appointed date after the inspection period has ended, when local electors and their representatives have the right to question the Auditor or make an objection to the accounts. 15.08.2016

28.3 28.3.1 Annual Governance Statement

The Responsible Finance Officer (RFO) had prepared the Annual Governance Statement for the year ended 31st March 2016 (Appendix A) Resolved: That Madeley Town Council approves the Annual Governance Statement. 28.3.1.1 System of Internal Control

Accounts and Audit Regulations require an audited body to conduct an annual review of the effectiveness of its system of internal control and to publish a statement on internal control (statement of assurance) each year with the financial statements. The RFO had prepared a description of the System of Internal Control (Appendix B) Resolved: That the System of Internal Control be approved.

28.3.1.2 Statement of Internal Control The RFO had prepared a draft Statement of Internal Control for consideration (Appendix C). Resolved: That the Statement of Internal Control be endorsed and incorporated into the year-end accounts.

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28.3.2 Statement of Accounts 2015/16 The RFO had prepared the Annual Return – Accounting Statement for the year ended 31st March 2016 (Appendix D) Resolved: That Madeley Town Council approves the Accounting Statement for the Year ended 31st March 2016.

28.3.2.1 Consolidated Balance Sheet and Income & Expenditure Account The RFO had prepared the Consolidated Balance Sheet (Appendix E) and Income & Expenditure Account (Appendix F) for the year ended 31st March 2016. Resolved: That the Accounting Statements be confirmed and approved as a proper representation of the financial position of Madeley Town Council.

28.3.2.2 Bank Reconciliation The RFO had prepared Bank Statements and Financial Summary (Cash Book) for approval of reconciliation to financial year-end 31st March 2016 (Appendix G) Resolved: That the Bank Reconciliation for 2015/16 be approved and signed by the Chair of the Meeting.

28.3.2.3 Significant Variances In addition to the Annual Return, Madeley Town Council is required to provide an explanation of significant variances in income and expenditure in 2015/16 compared to the previous financial year. The RFO had prepared a report of significant variances (Appendix H). This included an explanation of variances of more than 15% between 2015 and 2016 and a reconciliation between closing balances started in the Annual Return accounting statement Box 7 (Balances carried forward) and Box 8 (Cash) due to the production of the accounts on an income and expenditure basis. Resolved: That the explanation of Significant Variances in income and expenditure in 2015/16 to the previous year and the reconciliation between closing balances is confirmed and approved.

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28.4 Independent Internal Audit Internal audit was carried out in accordance with the Audit Plan. The Annual Internal Audit Report for the financial year-end 31st March 2016 confirmed that control objectives were being achieved throughout the financial year to a standard adequate to meet needs. The Annual Return was signed by the independent internal auditor. Noted.

28.4.1 Internal Audit Report 2015/16 The internal audit was carried out by Auditors from Telford & Wrekin Council, under a Service Level Agreement in place until 31st March 2017. The Clerk and RFO will be asking Telford & Wrekin Council for costs for providing and Internal Audit Service for further three year term. The RFO presented the draft Internal Audit Report for 2015/16. The report states that “On the basis of our review, in our opinion the information contained in the annual return is in accordance with proper practice and no matters have come to our attention giving cause for significant concern that relevant legislation and regulatory requirements have not been met.” The report contains recommendations for issues to be addressed by nominated officers, but these do not affect the above opinion. The independent internal auditor also examined year-end Financial Statements to ensure correct preparation. There were no material matters arising. The report was noted.

28.4.2 Audit Plan 2016/17 The Audit Plan (Appendix I) provides for a comprehensive assessment of internal controls and procedures and effectiveness. The RFO had agreed the Audit Plan for 2016/17 with the independent internal auditor and attested its rigour and effectiveness. A schedule for the review of systems of audit was included with the Audit Plan. Resolved: That the Audit Plan and Schedule for 2016/17 be approved.

28.5 Annual Review of the Effectiveness of Internal Audit and System of Internal Control The RFO had prepared a checklist based on compliance with internal audit standards and overall effectiveness (Appendix J)

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Resolved: That the review of Effectiveness of Internal Audit is endorsed and that the System of Internal Audit is considered effective and that the System of Internal Control is approved.

28.6 Accounts 28.6.1 Fixed Asset Register 2016

The RFO had prepared the Fixed Asset Register (Appendix K). It was considered that the Asset Register properly records acquisitions and disposals, and confirms an adequate level of insurance cover at the present time. Noted.

28.6.2 Reserves and Balances An Advice Note on Reserves and a Schedule of Earmarked Reserves for 2015/16 were presented for information (Appendix L) Noted.

16/29 Anstice To upgrade the building to modern standards, while retaining the character of the building, and to develop it into a building that the local community will want to use.

29.1 Revenue Appraisal A Revenue Appraisal had been produced as part of the Options Appraisal for the Anstice. Councillors had been given the summary sheet, which predicted a deficit in the early years and a surplus from Year Three onwards. This is based on various assumptions. The Clerk pointed out that there would be a need to subsidise the Anstice for the first few years – the options for funding had not yet been looked at. Noted.

29.2 Representation on the Anstice Community Trust Board It was proposed, seconded and Resolved: That Councillor G Green be appointed to represent Madeley Town Council on the Anstice Community Trust Board.

16/30 Correspondence Invitation to the Ironbridge Brass Band Festival Concert An invitation to the Ironbridge Brass Band Festival Concert on Saturday 9th July 2016, accompanied by two free tickets, was received.

16/31 Information The Responsible Finance Officer reported that all the accounting statements have been published on the Madeley Town Council website, together with the documents which the Local Council Transparency Code requires to be published.

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16/32 Date of Next Meetings The next meeting of Madeley Town Council will be on Monday 25th July 2016, at Jubilee House, High Street, Madeley, commencing at 7.00 p.m.

There being no further business, the Chair declared the meeting closed at 8.00 p.m. Signed

Dated:

(Chair)

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APPENDIX A

ANNUAL GOVERNANCE STATEMENT 2016 This first statement covers the accounts of the local council. Through the act of formally approving the statement of accounts the Council asserts that it has prepared those accounts in the way prescribed by law and in accordance with proper practices (Accounts and Audit Regulations). This second statement covers the council’s responsibility to ensure that its affairs are managed in accordance with proper standards of financial conduct and arrangements exist to prevent and detect fraud and corruption. The council also asserts that it has tested those arrangements at least once in the year to make sure they are working in an adequate and effective way. The third and fourth statements cover the local council’s responsibility to act within the law and to put in place proper arrangements to ensure that its financial affairs are conducted in accordance with the law and relevant regulations, including providing the opportunity for electors to exercise their rights to inspect the financial records and ask questions about the authority’s accounts. The third statement confirms that the council has only done things that it has the legal power to do, and, at the fourth statement, confirms that it has during the year allowed all persons who may be interested the opportunity to exercise their rights. A positive response confirms that the council has also complied with the codes of practice which it has endorsed and adopted to regulate the way in which it carries out its business.

1. ‘We have put in place arrangements for effective financial management during the year

and for the preparation of the accounting statements.’

2. ‘We maintained an adequate system of internal control, including measures designed to

prevent and detect fraud and corruption and reviewed its effectiveness.’

3. ‘We took all reasonable steps to assure ourselves that there are no matters of actual or

potential non-compliance with laws, regulations and proper practices that could have a

significant financial effect on the ability of the council to conduct its business or on its

finances.’

4. ‘We have provided proper opportunity during the year for the exercise of electors’ rights

in accordance with the requirements of the Accounts and Audit Regulations.’

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The fifth, sixth and seventh representations cover a local council’s responsibility to develop, implement and regularly monitor the effectiveness of systems of internal control covering:-

the overall control environment, including internal audit;

the identification, evaluation and management of operational and financial risks;

budgetary control and monitoring arrangements; and

the documentation and application of control procedures The eighth statement covers the local council’s responsibility to conduct its financial affairs and to put in place proper arrangements to ensure that its financial standing is soundly based. This statement provides assurance that the council has considered and disclosed in the annual return all matters relevant to its business, including any relevant events which have taken place in the period between the end of the financial year being reported and the date of the annual return, which could have an impact on its ability to continue its work. JMM 13.06.2016

5. ‘We carried out an assessment of the risks facing the council and took appropriate steps

to manage those risks, including the introduction of internal controls and/or external

insurance cover where required.’

6. ‘We maintained throughout the year an adequate and effective system of internal audit of

the council’s accounting records and control systems’

7. ‘We took appropriate action on all matters raised in reports from internal and external

audit.’

8. ‘We considered whether any litigation, liabilities or commitments, events or transactions,

occurring either during or after the year-end, have a financial impact on the council and,

where appropriate have included them in the accounting statements.’

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APPENDIX B SYSTEM OF INTERNAL CONTROL The Accounts and Audit Regulations (2003) require audited bodies to conduct an annual review of the effectiveness of its system of internal control and publish a statement on internal control (statement of assurance) each year with the financial statements. The Accounts and Audit (Amendment)(England) Regulations 2006 require that the findings of the review of the system of internal control be considered by Council/Committee Council is tasked to review the effectiveness of the system of internal control and to agree a statement of internal control (see below) Regulations do not specify how this should be achieved. Measures of effectiveness are: - Completion of annual audit plan - Issue of final audit reports - Implementation of audit recommendations Audit Plan Audit Plan, a comprehensive assessment of the effectiveness of internal controls and procedures, originally approved by Finance & General Purposes Committee 15.06.2009 and presented to Council 27.06.2016 Audit Reports End of Year Internal Audit report presented to Council 27.06.2016 Audit Recommendations Report of Internal Auditor presented to Council 27.06.2016. Action plan agreed, showing actions that will be taken to implement the recommendations, by what date and identifying officer responsible for the implementation

Recommended: that the System of Internal Control be approved JMM 13.06.2016

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APPENDIX C STATEMENT OF INTERNAL CONTROL 1. Scope and Responsibility Madeley Town Council (the Council) is responsible for ensuring that its business is conducted

in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically and effectively. In discharging this overall responsibility, the Council is also responsible for ensuring that there is a sound system of internal control which facilitates the effective exercise of the Council’s functions and which includes arrangements for the management of risk.

2. The Purposes of the system of Internal Control The system of internal control is designed to manage risk to a reasonable level rather than to

eliminate all risk of failure to achieve policies, aims and objectives – it can, therefore, only provide reasonable and not absolute assurances of effectiveness.

The system of internal control is based on an on-going process designed to identify and prioritise the risks to the Council’s policies, aims and objectives, to evaluate the likelihood of those risks being realised and the impact should they be realised, and to manage them effectively and economically.

The system of internal control has been in place at the Council for the financial year ending 31st March and up to the date of approval of the annual report and accounts and accords with proper practice (except for recorded details of significant internal control issues)

3. The Internal Control Environment The Council:

The Council has appointed a Chair who is responsible for the conduct of meetings and for ensuring that all Council decisions are lawful.

The Council reviews its obligations and objectives annually, and approves budgets and the

level of precept for the following financial year at its January meeting. The Council (and Committees) met 25 times in 2015/16 and monitors progress against aims

and objectives (Business Plans), performs budgetary control and carries out regular reviews of financial matters.

Minutes of meetings are circulated to all members of Council.

Committees have Terms of Reference and delegated powers to incur expenditure within their budgetary provision.

Clerk to the Council/Responsible Finance Officer The Council has appointed a Clerk to the Council who acts as the Council’s advisor and

administrator.

The Clerk is responsible for compliance with law and regulations, the management of risks, and ensuring that the Council’s procedures, control systems and policies are followed. The Council has appointed a Responsible Finance Officer who is responsible for administering the Council’s finances.

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Payments All payments must be authorised by the Council or by a Committee having delegated

authority, or (in cases of emergency for amounts not exceeding £1,000) by the Clerk after consultation with the appropriate Chair.

All payments are reported to the Council for approval. A minimum of two of the nominated and approved signatories of the Council must sign every cheque

Risk Assessment/Risk Management The Council carries out regular risk assessments in respect of activities and regularly reviews

its systems and controls. Internal Audit The Council has appointed an independent, CIPFA qualified, internal auditor who reports to

the Council on the adequacy of:

Records

Procedures

Systems

Internal Control

Risk Management The effectiveness of internal audit is reviewed annually. External Audit The Council’s external auditor, Mazars LLP, is appointed by the Audit Commission and

provides a Certificate and Opinion based on the Annual Return – Statement of Accounts, Statement of Assurance – and Intermediate Audit assurances.

4. Review of Effectiveness The Council has responsibility for conducting an annual review of the effectiveness of the

system of internal control. The review of the effectiveness of the system of internal control is informed by the work of:

the Council and its Committees

the Clerk to the Council and the Responsible Finance Officer (who have responsibility for the development and maintenance of the internal control environment and managing risks)

the independent internal auditor (who reviews the Council’s system of Internal Control)

the external auditor (through the Annual Return – a form completed and signed by the Clerk to the Council, the Responsible Finance Officer, Chair and Internal Auditor)

the number of significant issues that are raised during the financial year 5. Significant Internal Control Issues The Council strives for the continuous improvement of the system it has adopted for internal

control and addresses all issues and weaknesses raised and reported during the review process.

Recommended: that the Statement of Internal Control be endorsed and incorporated into the year-end Accounts JMM 13.06.2016

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APPENDIX D ACCOUNTING STATEMENT for

MADELEY TOWN COUNCIL

Box Year ending Notes and Guidance

31 March 2015

£

31 March 2016

£

All figures must agree with underlying records

1 Balances brought forward

404,642 389,933

Total balances and reserves at the beginning of the year as recorded in the financial records. Value must agree to Box 7 of previous year

2 (+) Annual precept 252,690 259,490

Total amount of precept received in the year

3 (+) Total other receipts

230,669 144,784

Total income as recorded in the cashbook less the precept received. Includes support, discretionary and revenue grants

4 (-) Staff Costs

188,225 206,263

Total expenditure made to and on behalf of all employees. Includes salaries and wages, PAYE and NI (employees and employers), pension contributions and employment expenses

5 (-) Loan interest/capital repayments

Nil Nil Total expenditure of capital and interest made during the year on borrowings

6 (-) Total other costs 309,843 230,875

Total expenditure as recorded in the cashbook less staff costs and loan interest/capital repayments

7 (=) Balances carried forward

389,933 357,069 Total balances and reserves at the end of the year. Must equal (1+2+3) – (4+5+6)

8 Total cash and short term investments

429,249 391,770

The sum of all current and deposit bank accounts, cash holdings and short term investments held as at 31 March – to agree with bank reconciliation

9 Total fixed assets and long term assets 329,932 334,526

The recorded book value at 31 March of all fixed assets owned by the council and any other long term investments

10 Total borrowings Nil Nil

The outstanding capital balance as at 31 March of all loans from third parties (including PWLB)

11 Trust funds (including charitable) disclosure note

n/a n/a The council acts as sole trustee for and is responsible for managing trust funds or assets

I certify that the accounting statements in this annual return present fairly the financial position of the council and its income and expenditure for the year ended 31 March 2016

I confirm that these accounting statements were approved by council and recorded as minute reference dated

Responsible Finance Officer J.M. Morris Chair of Council

Cllr J Jones

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APPENDIX E MADELEY TOWN COUNCIL

Consolidated Balance Sheet 31/03/15 31/03/16

£ £

Long Term assets

0.00 Investments 0.00 0.00 Long Term Debts 0.00

0.00 TOTAL LONG TERM 0.00

Current assets

0.00 Investments 162,500.00

0.00 Loans Made 0.00

0.00 Investments 0.00

1,299.20 Stocks 1,452.75

9,527.46 VAT Recoverable 2,972.13

13,121.12 Debtors 10,401.29

2,454.54 Payment in Advance 1,892.79

590,466.66 Cash in Hand & at Bank 229,270.42

616,868.98 TOTAL CURRENT ASSETS 408,489.38

616,868.98 TOTAL ASSETS 408,489.38

Current liabilities

0.00 Loans Received 0.00

0.00 Temporary Borrowing 0.00

0.00 VAT Payable 0.00

65,522.89 Creditors 51,351.74

161,412.50 Receipts in Advance 68.20

226,935.39 TOTAL CURRENT LIABILITIES 357,069.44

389,933.59 TOTAL ASSETS LESS CURRENT LIABILITIES 357,069.44

0.00 Long Term Borrowing 0.00

0.00 Deferred Liabilities 0.00

0.00 Deferred Credits 0.00

0.00 0.00

389,933.59 NET ASSETS 357,069.44

Represented by

169,188.59 General Fund 106,994.44

Earmarked Reserves

11,895.00 Capital Reserve 11,535.00

1,270.00 Properties 3,270.00

10,950.00 Replacements Reserve 15,265.00

43,890.00 Community Projects 76,815.00

18,050.00 Contingency 20,650.00

134,690.00 Restricted Funds 122,540.00

389,933.59 357,069.44

Chair of Council Cllr J Jones Responsible Finance Officer J M Morris

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APPENDIX F

MADELEY TOWN COUNCIL

Income and Expenditure Account

31/03/15 31/03/16 £ £

INCOME

1,904.17 Budget & Finance 2,617.03

364.25 Events 364.05

9,891.03 Grants 3,017.53

813.45 Income 2,232.40

0.00 LHP 726.38

76,431.00 Partnerships 35,876.46

14,710.48 Payroll-Agency 17,366.46

252,690.00 Precept 290,962.50

796.24 Profile 1,005.60

125,643.03 Properties 49,952.35

483,243.65 INCOME TOTAL 404,120.76

EXPENDITURE

195,506.32 Budget & Finance 211,158.44

6,475.54 Community Services 10,123.77

23,743.60 Events 28,185.52

5,089.22 LHP 1,373.33

9,914.26 Member Services 8,416.11

6,304.85 Natural Environment 5,903.47

144,471.16 Partnerships 51,883.47

10,459.95 Profile 13,927.10

43,599.01 Properties 60,527.63

2,120.23 Representation 1,788.46

14,697.00 S. 137 Payments 11,585.00

457.50 Terms & Conditions 1,440.00

335.75 Training 783.00

498,068.16 EXPENDITURE TOTAL 437,138.46

170,707.87 Balance as at 01/04/14 169,188.59

483,243.65 Add Total Income 404,120.76

653,951.52 573,309.35

498,068.16 Deduct Total Expenditure 437,138.46

115.23 Stock Adjustment 153.55

13,190.00 Transfer to/ from reserves -29,330.00

169,188.59 Balance as at 31/03/15 106,994.44

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APPENDIX G BANK RECONCILIATION

Year ended 31 March 2016 The reconciliation includes all bank and imprest accounts. It must agree to Box 8 of the Annual Return column headed “Year ending 31 March 2016” Madeley Town Council Financial year ending 31 March 2016 - Prepared by J.M. Morris – Responsible Finance Officer Petty Cash – Imprest Account £ 250.00 Community Direct Plus – Current Account £ 10,000.00 Guaranteed Investment Account £ 162,500.00 Payroll Account – online £ 20,011.81 Current – Interest account £ 205,421.72 £ 398,183.53 (Current Account balance as per Bank Statement 220 as at 31.03.2016) Less: unpresented Cheques at 31 March 2016 Cheque number 208710 £ ( 75.00) 208985 £ ( 16.20) 209274 £ ( 102.00) 209294 £ ( 96.00) 209547 £ ( 55.00) 209580 £ ( 500.00) 209604 £ ( 15.00) 209614 £ ( 15.00) 209630 £ (1,309.98) 209653 £ ( 106.56) 209662 £ ( 17.92) 209663 £ ( 76.80) 209664 £ ( 85.61) 209665 £ ( 153.60) 209666 £ ( 39.02) 209667 £ ( 136.84) 209668 £ ( 29.64) 209669 £ ( 98.48) 209670 £ ( 393.60) 209671 £ ( 39.15) 209672 £ ( 30.00) 209673 £ ( 124.27) 209674 £ ( 168.00) 209675 £ ( 165.60) 209676 £ ( 108.00) 209677 £ (2,050.00) 209678 £ ( 405.84) £ 6,413.11 Add: un-banked income at 31 March 2016 £ 0.00 £ 0.00 Net balances as at 31 March 2016 £ 391,770.42

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Net balances reconcile to Financial Summary – Cash Book for the year as follows:

Opening balance 1 April 2015 £ 590,466.66 Add: Receipts in the year £ 270,476.50 Less: Payments in the year £ (469,172.74) Closing balance as per cash summary as at 31 March 2016 £ 391,770.42 Signed: Dated: (Chair of Council)

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APPENDIX H Madeley Town Council 2015/16 Annual Return - Significant Variances

Explanation of variances of more than 15% between totals for individual boxes

ITEM DESCRIPTION 2014/15 £

2015/16 £

VARIANCE (+/-) £

REASON

1. Balances brought forward 404,642 389,933 -

2. Annual Precept 252,690 259,490 +£6,800 (+2.7%)

See Precept Supporting Notes and Committee Budgets 2015/16

3. Receipts 230,669 144,784 -£85,885 (-37.23%)

Reduction in Local Council Tax Support grant (-£10,665) Significant reduction in external funding received for Grants (local environmental schemes -£6,875), and Properties (Local Authority grant for purchase of Grade II* listed building for use as local community centre -£76,000). Partially offset by increased income generated from existing property (Jubilee House =£7,720)

4. Staff Costs 188,225 206,263 +£18,038 (+9.58%)

5. Loan/Capital - - There were no loan interest or capital repayments

6. Payments 309,843 230,875 -£78,968 (+25.48%)

2014/15 figures note conclusion of projects under Partnerships (Community Projects - acquisition of Anstice Memorial Hall plus associated costs -£92,000) and Public Realm (Street Furniture -£3,000 – Neighbourhood Planning -£2,000) Increased revenue expenditure on Anstice Memorial Hall (+£27,000) is offset by costs reductions in R&M for existing properties (-£10,200) Additional costs incurred through staff changes (recruitment and training) and triennial Investors in People accreditation 2015/16 (+£1,430)

7. Balances carried forward 389,933 357,069 -

8. Cash 429,249 391,770 -£37,479 (-8.73%)

9. Fixed Assets 329,932 334,526 +£4,594 (+1.39%)

10. Borrowings - - There were no loans from third parties (including PWLB)

Box7/8 difference £34,701 Accounts produced on I/E basis –– see reconciliation

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MADELEY TOWN COUNCIL Income & Expenditure Accounts 2014/15 Year-end adjustments for debtors/prepayments and creditors/receipts in advance £ £ Balances carried forward Deduct Debtors 10,401 Deduct Payments in advance 1,893 Deduct Stocks 1,453 Deduct VAT Recoverable 2,972 Total Deductions Add Creditors 51,352 Add Receipts in advance 68 Total Additions Total Cash & Investments (agreed to bank reconciliation)

357,069

16,719

51,420

16,719

51,420

391,770

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APPENDIX I AUDIT PLAN The Review of Effectiveness of Internal Control, supported by the Review of Effectiveness of System of Internal Audit, recommends that Madeley Town Council, Responsible Finance Officer, should agree an annual Audit Plan with the independent Internal Auditor. It is for the Council to determine the scope and coverage of the work carried out by internal audit in accordance with proper practice (Governance and Accountability for Local Councils, Practitioners Guide 2014) Internal Audit Standards have been agreed and approved:

Standard Terms of Reference

Scope of internal audit Scope of audit takes into account the Risk Management process and Internal Control

Independence Internal Auditor has direct access to those charged with governance and does not have any other role within the Council Reports are made in own name to Council

Competence No evidence that internal audit work has not been carried out ethically, with integrity and objectivity

Relationships Responsible officers (Clerk, RFO) are consulted on the internal audit plan and on the scope of each audit Responsibilities for officers and internal audit are defined in relation to internal control, and risk management The responsibilities of Council members are understood; training of members is carried out as necessary

Audit Planning and Reporting The audit plan properly takes account of corporate risk The audit plan has been approved by Council Internal Audit has reported in accordance with the plan

Governance and Accountability for Local Councils, Practitioners Guide 2014, notes 10 key control tests for assurance testing to all areas of audit of internal controls for a minor local authority:

Books of Account

Payment Controls

Risk Management

Procedures for Budgetary Control

Income Controls

Petty Cash procedures

Payroll Controls

Assets Controls

Bank Reconciliation

Year-End Procedures The extent of testing of internal controls required to ensure an adequate level of assurance and completion of the Annual Report has been agreed and approved. Any areas of financial and control weakness would be identified, reported and be subject to remedial action. Recommended: that the internal audit continues to be a comprehensive assessment of the effectiveness of internal controls and accords with proper practice

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AUDIT PLAN 2016/17

Task June July Aug Sept Oct Nov Dec Jan Feb March Apr May

Review Risk Management

Review Insurance

Review Assets Register Approve Annual Return

Review Internal Auditor Terms of Reference

Review Effectiveness of Internal Audit

Confirm appointment of Internal Auditor

Review Standing Orders

Review Financial Regulations

Review Staff Pay scales (NJC)

Prepare Annual Budget

Monitor budgets

Review Effectiveness of Internal (Financial) Control

Review Audit Plan

Receive interim Internal Audit report

Receive Year-end Internal Audit report

Review issues raised by Internal Auditor

Complete Bank Reconciliations

Recommended: that the Audit Plan 2016/2017 be approved JMM 13.06.2016

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APPENDIX J EFFECTIVENESS OF INTERNAL AUDIT Annual Review 2016 The Council should maintain an adequate and effective system of internal audit of its accounting records and its system of internal control. The Accounts and Audit Regulations (2003) and (2006) require an annual review of the system of internal audit and for the findings of the review to be considered. The system of internal audit is “The framework of assurances available to satisfy Council that the risks to its objectives, and the risks inherent in undertaking its work, have been properly identified and are being managed by controls that are effective” The review is an assessment of adequacy against internal audit standards (Any areas for development or change should be identified and reported. An action plan, setting out proposed remedial actions, should be prepared if necessary.)

Standard Evidence of Achievement Yes/No Areas for development

Scope of internal audit

Appointment of independent Internal Auditor agreed Terms of reference for internal audit approved by Council Internal audit work takes into account both the Council’s Risk Assessment and wider internal controls arrangements Internal Audit testing – nominated Member (periodic) Financial Regulations reviewed annually

Yes – 24.06.2013 Yes – 23.06.2014 Yes Yes – 03.03.2016 No – last review January 2015

- Term appointment to 2017 - - - - To be arranged

Independence Internal audit has unrestricted access to those charged with governance Reports are made in own name to Council Internal audit does not have any other role within the Council

Yes Yes –14.06.2016 Yes

- - -

Competence There is no evidence of a failure to carry out internal audit work ethically, with integrity and objectivity Internal Auditor is professionally (CIPFA) qualified

Yes – see Report Yes

- -

Relationships All responsible officers (Clerk and RFO) are consulted on the internal audit plan Respective responsibilities for officers and internal audit are defined in relation to internal control, and risk management

Yes Yes – see Financial Regulations

- -

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Audit Planning and Reporting

The annual internal audit plan properly takes account of all the risks facing the Council and has been approved by Council Internal audit has reported in accordance with the plan

Yes Yes – 14.06.2016

- To be confirmed 27.06.2016

-

Characteristics Evidence of Achievement Yes/No Areas for development

Internal audit work is planned

Planned internal audit work is based on risk assessment and designed to meet the Council’s governance needs Risk Management is subject to annual review Internal Audit co-ordinated with Budget/Precept process and Year-end Accounting

Yes No – Risk Register adopted March 2015 Yes

- - To be arranged - Inclusion on F&GP Business Plan to

ensure management

Understanding the whole organisation, its needs and objectives

The annual audit plan demonstrates how audit work will provide assurance for the Council’s Annual Governance Statement Conformity with NALC/SLCC ‘Governance and Accountability for Smaller Authorities in England (2016) – Practitioners’ Guide for proper practices

Yes Yes

- - Guide published March 2016

Preparation of statutory annual accounts and governance statements

Be seen as a catalyst for change

Internal audit supports the Council’s work in delivering improved services to the community Risk Management Policy Statement (rev2013) Annual review of Local Council Insurance policy

Yes Yes No – last review April 2015

- - - Fixed term agreement ends 2017

To be arranged

Add value and assist Council in achieving its objectives

The Council makes positive responses to internal audit’s recommendations and follows up with action where this is called for

Yes – see Report - Action plan agreed

Be forward looking In formulating the annual audit plan, national agenda changes are considered Internal audit maintains awareness of new developments in the services, risk management and corporate governance

Yes Yes

- -

25


Be challenging Internal audit focuses on the risks facing Council Internal audit encourages managers/members to develop their own responses to risks, rather than relying solely on audit recommendations

Yes Yes – see Policy documents

- -

Ensure the right resources are available

Adequate resource is made available for internal audit to complete its work Internal audit understands the Council and the legal and corporate framework in which it operates

Yes Yes – CIPFA qualification

- -

Responsible Finance Officer considers that the system of Internal Audit is adequate. Areas identified for development will be subject of action plan. Recommended: that the report on the Effectiveness of System of Internal Audit is confirmed and approved. JMM 13.06.2016

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APPENDIX K FIXED ASSET REGISTER 2016

Classification Description Asset No Supplier Date

Original Cost Value 2015 Value + Value -

Value

2015/16 2015/16

Property Jubilee House 1 Wrekin District Council 1992 150,000.00 150,000.00

150,000.00

Allotments 2 T&WC Lease 1995 1.00 1.00

War Memorial 3 T&WC Lease 1992 1.00 1.00

1.00

Beech Road Green 4 T&WC Lease 2001 0.00 1.00

1.00

Public Conveniences 5 T&WC 2002 1.00 1.00

1.00

Anstice Memorial Hall 105

Anstice Working Men's Club 2015 88,000.00 88,000.00

88,000.00

Premises Fire Control 7 Central Fire Control 1997 400.00 400.00

400.00

Fire Alarm System 8 Kendall Electrical 1997 incl 1.00

1.00

Intruder Alarm System 9 Kendall Electrical 1997 incl 1.00

1.00

Access Control 10 Security Wise Ltd 2001 900.00 1,900.00

1,900.00

Automatic External Door 96 Security Wise Ltd 2013

2,000.00

2,000.00

Internal Access Control 11 Security Wise Ltd 1997 560.00 560.00

560.00

Lighting Controls 12 Ex-Orr 2001 2,000.00 2,000.00

2,000.00

Telephone System 72 Telford & Wrekin Council 2007/2008 3,300.00 3,500.00

3,500.00

Car Park Barrier 56 Parking Facilities Ltd 2002 1,170.00 1,170.00

1,170.00

CCTV 77 ADT 2010 4,440.00 4,440.00

4,440.00

Fixtures/Fittings Hall/Room Furniture 24

Chrisbeon Office Supplies 1997 4,000.00 1,600.00

1,600.00

Hall/Room Furniture 80

Chrisbeon Office Supplies 2010 3,600.00 3,600.00

3,600.00

Reception Furniture 97 West Mercia Supplies 2013 180.00 180.00

180.00

Blinds 25 Telford Window Blinds 1997 750.00 0.00

0.00

Blinds 101 Blinds4Less 2014 690.00 690.00

690.00

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Classification Description Asset

No Supplier Date Original

Cost Value 2015 Value + Value - Value

2015/16 2015/16

Blackout Blinds 102 Broseley Blinds 2014 190.00 190.00

190.00

Hearing Loop 26 AVT Communication 1997 1,300.00 1,300.00

1,300.00

Evac-Chair 82 Evac-Chair Int 2012 675.00 675.00

675.00

Interview Room Furniture 106 Ikea 2015 275.00

275.00

275.00

Art Work Weather Vane £1500 31 National Lottery 1997 incl 1,825.00

1,825.00

Chandelier £5,000 32 National Lottery 1997 incl 1.00

1.00

Mosaic £1,000 33 National Lottery 1997 incl 1.00

1.00

Notice Boards £500 34 National Lottery 1997 incl 1.00

1.00

Reception Furniture £5,000 35 National Lottery 1997 incl 1.00

1.00

Clock £8,500 36 National Lottery 1997 incl 1.00

1.00

Material Designs £4,000 37 National Lottery 1997 incl 1.00

1.00

Signs £2,000 38 National Lottery 1997 incl 2,430.00

2,430.00

Madeley Wood Banner 100

Wendy Toulson + Ironbridge Fine Arts 2014 990.00 990.00

990.00

Office Equipment

Computer Hardware 76 Midland Computers 2014 10,000.00 10,000.00

10,000.00

Portable Computer 61 Midland Computers 2009 780.00 780.00

780.00

Furniture 43

Chrisbeon Office Supplies + Lyreco 1997 2,175.00 2,400.00

2,400.00

Miscellaneous Chair's Insignia 45 K Cadman

200.00 200.00

200.00

Christmas Lights 47 MK Illuminations 2009 8,500.00 23,400.00 1,490.00

24,890.00

Ornamental Gates 59 Tel-Weld 2004 3,250.00 3,250.00

3,250.00

Gazebo Display Stands (2) 81 Pitzbitz 2010 360.00 360.00

360.00

MTC Website 107 Yarrington 2015 2,800.00

2,800.00

2,800.00

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Classification Description Asset

No Supplier Date Original

Cost Value 2015 Value + Value - Value

2015/16 2015/16

Street Furniture Hanging Baskets 75 Limetree Nurseries 2008 1,470.00 1,760.00

1,760.00

Heritage Trail Plaques 87 Leander Architectural 2012 3,590.00 3,590.00

3,590.00

Madeley Markers 95 Leander Architectural 2013 9,820.00 9,820.00

9,820.00

Madeley Markers 99 Leander + Telford Signs 2014 800.00 800.00

800.00

9Men Trail Plaques 104 Leander 2014 2,680.00 2,680.00

2,680.00

LHP Furniture 53

Chrisbeon Office Supplies

250.00 250.00

250.00

Artwork 67 M Humphry 2005 1,500.00 1,500.00

1,500.00

Machinery Blower/Vac 74 TFM 2011 150.00 150.00

150.00

Strimmer 89 TFM 2009 100.00 100.00

100.00 0.00

Strimmer 89 TFM 2015 160.00

130.00

130.00

Mower 90 TFM 2010 175.00 0.00

0.00

Mower 91 Oakleys Groundcare 2012 420.00 420.00

420.00

Mower 103 Telford Farm Machinery 2014 200.00 200.00

200.00

Stihl Brushcutter 92 Oakleys Groundcare 2012 480.00 480.00

480.00

Stihl Hedgecutter 93 Telford Farm Machinery 2013 330.00 330.00

330.00

Asset Total

329,932.00 4,695.00 100.00 334,526.00

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APPENDIX L RESERVES 2016 Advice Note s32 and s43 of the Local Government Finance Act 1992 require billing and precepting authorities to have the level of reserves needed to meet estimated future expenditure when calculating the budget requirement. When reviewing financial plans and preparing the annual budget it is necessary to consider Reserves. These are held for three main purposes:

A working balance (to cushion the impact of uneven cash flows and avoid unnecessary borrowing) – this forms part of general reserves.

A contingency (to cushion the impact of unexpected events) – this forms part of general reserves.

A means of building up funds (to meet known or predicted liabilities) – this is earmarked reserves.

Revenue Reserve (General Fund) Local Councils have no legal powers to hold revenue reserves other than those for reasonable working capital needs External auditors advise that general revenue reserves lie within the range of three to twelve months gross expenditure. The amount should be risk assessed and approved by Council.

Madeley Town Council, Gross Expenditure in 2015/16 was £437,138.

The General Reserve at the commencement of the 2016/17 financial year was £106,994 – budgeted expenditure 2016/17 is £454,330 Earmarked Reserves Earmarked Reserves are entirely different to the General Reserve and are established to create funds for expected and significant future expenditure. Funding is spread over a number of years to cushion the total financial burden. The Earmarked Reserve at the commencement of the 2016/17 financial year was £250,075 JMM 13.06.2016

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2015/16 Earmarked Reserves

In Out

Replacements £12,220.00

£18,535.00

IT System £3,100.00 £3,000.00 To accumulate for replacement IT equipment

Equipment £6,600.00 £1,650.00 IP Telephone contract maintenance

Machinery £550.00 £150.00 £135.00 Garden Equipment

Jubilee House £1,270.00 £2,000.00 Building R&M

Personnel £700.00 £350.00 £700.00 IIP

Community Projects

£43,890.00 £76,815.00

Election £7,000.00 £1,750.00 Parish Elections due 2015

Community Fund £2,190.00 £810.00 Ward Co-operative Fund match

Madeley Markers £1,090.00 £1,090.00 Notice Boards/Information Points - xfer Highway works

Allotments £3,000.00 Site development

Christmas Lights £22,500.00 £6,000.00 Replacement & Development programme

War Memorial £4,400.00 £1,900.00 £255.00 Renovation fund

Community Orchard £1,000.00 Capital - Maintenance

Highways £4,710.00 £7,290.00

Partnership project - TC Highway works

Environment £0.00 £1,260.00

Russell Green - Mowing

Grounds Maintenance £0.00 £2,000.00

Rough Park BMX

Public Realm £1,500.00

ROW

Parish Environmental Team £2,500.00 £880.00 PET Project Budget

Neighbourhood Plan £650.00 Adopted 2015 - Monitoring

Madeley LNR £670.00 Management Plan

Music Project £2,750.00 Refurbishment fund

Playschemes £0.00 £1,500.00 T&WC Summer Playschemes

Anstice Memorial Hall -£10,070.00 £14,000.00 £1,480.00 Community Pride Funding

Madeley Charity Market £0.00 £600.00 £480.00 Community Event

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Restricted Funds

£134,690.00 £122,540.00

Madeley Partnership - Portas

£840.00 Madeley Town Centre - Visitor Signage

Madeley Partnership - Regeneration

£133,850.00 £12,150.00 Madeley Town Centre - Regeneration Fund

Capital Anstice Memorial Hall £11,895.00 £11,895.00 £360.00 £11,535.00 Capital Projects

Contingency £18,050.00 £18,050.00 £3,200.00 £600.00 £20,650.00

Sub-totals

£220,745.00 £47,460.00 £18,130.00 £250,075.00

Madeley Town Council D White (Vice-Chair), S Biles, R Coates, D...

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