FINANCIAL RISKand

CORPORATE GOVERNANCECORPORATE GOVERNANCE

LEGAL

Inform HMRC – real time information

VAT submissions, exemptions, capital goods

Incur Expenditure without Legal Authority, delegated authorities to clerk

Fail to use appropriate powers – S137,GPC

Ultra Vires? Pension, councillor’s allowance

Bank Mandates - annual renewal

VARIANCES

Over or under – 5% allowance

But consider total sum of variance

Viring regulations and authorities

PROCESSES

Central versus Committee

Staff versus Councillors

Capex or Project Budgets

Frequency of review

Variance reporting

RESERVES & CONTINGENCY

Sink funds or earmark

Lack of contingency

Level of general reserve

FRAUD, CORRUPTION, THEFT, WASTAGE, CASH HOLDING, CASH HANDLING.

Procurement & PO’s - who can buy what?

- clerk’s/staff authorities? Material consideration

reporting.

Bad Debt policy

Wastage? Theft? Stationary, printer costs, utilities, cartridge costs, refuse, time.

Cash Holding? Safe, bank, receipts.

Fraud? Staff, councillors, public.

INSURANCE

All risks considered – not just physical

Higher insurance premiums due to excessive claims

Tender for insurance annually – or get benefit of long term

Business recovery insurance

Valuation of assets

Linking leases with insurance

Automatic increase clauses

Associated insurances – events management, etc

BUSINESS CONTINUITY and LONG TERM FINANCIAL PLANNING

Business Continuity Plan

Length of Recovery Process

IT recover

Costed top 10 risks to council – pension deficit, utility costs, strikes, water quality etc.

5 year financial forecast.

Business plans if income over 5% above precept

CORPORATE GOVERNANCE

It really means all councillors

Are all Councillors and all staff members financially literate

Standing order and financial regulations review, new transparency regs.

Payment schedules matched to invoices to cheques

Have policy – does anyone use it?

Who signs legal docs?

AUDIT

New Bill Audit and Accountability – appoint own external auditors on advice of audit panels

Who pays the piper on internal audits?

Who audits the auditor?

Objections costs

No FRSSE? Pay attention to audit reports

SERVICES

Excessive demand on services

Reduced service delivery

Failure to deliver service

Hazards/risks to service users, staff, public

Risk of missed opportunities

ASSETS

Up to date asset register – historical, dep’c? reinstatement

Small asset register – serial numbers and photographs

When last valued

Condition and structural surveys

Covenants, church registration, red line drawings

STOCK

What is stock?

In and out procedures

Stock Valuation

Stock in accounts

Cost of sales/managing margins

Vending or other options

INVESTMENTS

Change to legislation

Must have a policy

What is triple AAA?

Treasury Bonds versus equity

Property

Public Sector Deposit Fund

Be advised – get advice!