S.P.C. Risk Assessment Sept 2020

S.P.C Logo

SHENSTONE PARISH COUNCIL

Serving Little Aston, Shenstone, Stonnall, Shenstone Wood End, Lynn, Parish Council Office 25C Main Street Shenstone WS14 OLZ
Tel: 01543 481 947
e-mail: <admin@shenstone-staffs.gov.uk >
web: www.shenstone-staffs.gov.uk

RISK ASSESSMENT

Table 1

Area where there may be scope to use insurance to help manage risk

Risk Identification

Insurance cover for risk is the most common approach to certain types of inherent risks:

The protection of physical assets owned by the council – buildings, furniture, equipment, etc. (loss or damage)

The risk of damage to third party property or individuals as a consequence of the council providing services or amenities to the public (public liability)

The risk of consequential loss of income or the need to provide essential services following critical damage, loss or non-performance by a third party (fidelity guarantee)

Legal liability as a consequence of asset ownership (public liability)

Council’s response

Internal controls

A council’s internal controls may include:

An up to date register of assets and investments

Regular maintenance arrangements for physical assets

Annual review of risk and adequacy of cover

Ensuring the robustness of insurance providers

Council’s response

Internal audit assurance

Internal audit testing may include:

Review of internal controls in place and their documentation

Review of management arrangements regarding insurance cover

Testing of specific internal controls and reporting findings to management

Council’s response

Reviewed – Alan Topliss

Cover checked

Table 2

Areas where there may be scope to work with others to help manage risk

Risk Identification

The limited nature of internal resources in most local councils means that councils wishing to provide services often buy them in from specialist external bodies, e.g.

Maintenance for vulnerable buildings, amenities or equipment

The provision of services being carried out under agency/partnership agreements with principal authorities

Banking arrangements, including borrowing or lending

Ad hoc provision of amenities/facilities for events to local community groups

Markets management

Vehicle or equipment lease or hire

Trading units (leisure centres, playing fields, burial grounds, etc.)

Professional services (planning, architects, accountancy, design etc.)

Council’s response

Advice been taken for the transfer of the land at Eastridge Croft

N/A

N/A

N/A

N/A

Internal controls

A council’s internal controls may include:

Standing orders and financial regulations dealing with the award of contracts for services or the purchase of capital equipment

Regular reporting on performance by suppliers, providers, contractors

Annual review of contracts

Clear statements of management responsibility for each service

Regular scrutiny of performance against targets

Adoption of and adherence to codes of practice for procurement and investment

Arrangements to detect and deter fraud and/or corruption

Regular bank reconciliations, independently reviewed

Council’s response

In place

Clerk Checked

Clerk Checked

Clerk checked

.

Monthly- checked by Auditor

Internal audit assurance

Internal audit testing may include:

Review of internal controls in place and their documentation

Review of minutes to ensure legal powers are available, and the basis of the powers recorded and correctly applied

Review and testing of arrangements to prevent and detect fraud and corruption

Review of adequacy of insurance cover provided by suppliers

Testing of specific internal controls and reporting findings to management

Council’s response

A comprehensive internal audit is provided by Alan Topliss

Yes

Yes

Yes

Yes

Table 3

Areas where there may be a need to self-manage

Risk identification

There are a number of activities that create business risks but do not fall easily into either of the above categories for a number of reasons, principally because they are either difficult to quantify or considered inefficient to have provided externally or just uninsurable.

Keeping proper financial records in accordance with statutory requirements`

Ensuring all business activities are within legal powers applicable to local councils

Complying with restrictions on borrowing

Ensuring that all requirements are met under employment law and Inland Revenue regulations

Ensuring all requirements are met under Customs and Excise regulations (especially VAT)

Ensuring the adequacy of the annual precept within sound budgeting arrangements

Monitoring of performance against agreed standards under partnership agreements

Ensuring the proper use of funds granted to local community bodies under specific powers or under section 137

Proper, timely and accurate reporting of council business in the minutes

Responding to electors wishing to exercise their rights of inspection

Meeting the laid down timetables when responding to consultation invitation

Meeting the requirements for Quality parish status or other accreditation

Proper document control

Register of members’ interests and gifts and hospitality in place, complete, accurate and up to date

Council’s response

No current borrowing

.

Correct

Done

Done

Clerk responsible for compliance and council calendar.

.

Well within guidelines

In place and revised annually

Yes

Yes

Yes

Yes

Table 4

Areas where there may be a need to self-manage risk

Internal controls

A council’s internal controls may include:

Regular scrutiny of financial records and proper arrangements for the approval of expenditure

Recording in the minutes the precise powers under which expenditure is being approved

Regular returns to the Inland Revenue; contracts of employment for all staff, annually reviewed by the council, systems of updating records for any changes in relevant legislation

Regular returns of VAT; training the responsible officer in matters of VAT and other taxation issues as necessary

Regular budget monitoring statements

Developing systems of performance measurement

Procedures for dealing with and monitoring grants or loans made or received

Minutes properly numbered and paginated with master copy kept in safekeeping

Documented procedures to deal with enquiries from the public

Documented procedures to deal with responses to consultation requests

Monitoring arrangements by the council regarding Quality Council status

Documented procedures for document receipt, circulation, response, handling and filing

Procedures in place for recording and monitoring members’ interests and gifts and hospitality received

Adoption of codes of conduct for members and employees

Council’s response

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Internal audit assurance

Internal audit testing may include:

Review of internal controls in place and their documentation

Review of minutes to ensure legal powers in place, recorded and correctly applied.

Testing of income and expenditure from minutes to cashbook, from bank statements to cashbook, from minutes to statements etc. including petty cash transactions

Review and testing of arrangements to prevent and detect fraud and corruption

Testing of disclosures

Testing of specific internal controls and reporting findings to management

Council’s response

Internal Audit process.

Chair of sub committees regularly checks & reviews procedure & detail.

Part of Alan Topliss review.

Table 5

Partnership

Ensure that proper safeguards exist when the Council works in partnership with another body

If the Council is working in Partnership with another body the Council should take a critical look at the situation with particular emphasis on:

  1. If the body is not a statutory body check if a constitution is in place and appropriate officers are in place.

  2. Review the financial position of the body.

  3. Where appropriate check for public liability insurance.

  4. Keep records of the relationship of the parties by a written agreement where appropriate or the use of regular notes and minutes

Approved by Council at Full Council Meeting Sept 2020 Item 46.