DRYBROOK PARISH COUNCIL
INTERNAL FINANCIAL CONTROLS POLICY
BACKGROUND
The Responsible Financial Officer (RFO) is responsible for ensuring that the Council’s day to day finances are run properly, but it falls to the Council members to exercise a proper and reasonable degree of control over financial matters.
THE INTERNAL FINANCIAL CONTROLS
Drybrook Parish Council carries out the following internal control procedures:
Monthly:
- The Clerk/RFO forwards a bank reconciliation to the Council members, showing agreement between the bank account balances and the cashbook amounts before each Full Council Meeting.
- The Clerk/RFO forwards a Budget versus Spend Report to the Council members before each meeting. This shows the year to date expenditure against budget (net position).
- The Clerk forwards to the Council members a Payment Schedule before each meeting, showing the list of payments already paid since the last meeting and those due to be paid and receipts received.
- All the documents above are approved at the Full Council Meeting.
- At each Full Council Meeting the Clerk/RFO will present the bank statements to the Councillor who is completing the Monthly Internal Financial Checklist, so that the balances can be agreed with the figures shown on the Bank Reconciliation Form, and the statements initialled once agreed.
- The Monthly Internal Financial Checklist will be completed by a Council member monthly and noted at the Full Council Meeting.
Annually:
- The VAT is claimed.
- The budget and Precept request are considered and agreed for the following year in line with anticipated expenditure.
- The Financial Regulations and Risk Assessments are reviewed, updated as required and approved at a Full Council Meeting.
- The Council appoints and uses the internal audit services of a competent and independent auditor, who checks the Council’s internal controls are adequate and work effectively.
GENERAL:
- The Clerk/RFO is the main bank account administrator, keeps the cheque and paying in books, but cannot authorise payments independently.
- Cheques are signed by two Councillors and the counterfoil initialled.
- Online payments made by the Clerk/RFO as administrator are subject to authorisation by one, although all paid invoices are checked and initialled by two Councillors.
- The relevant AGAR forms are added to the Finances page of the Parish Council website.