CREWE TOWN COUNCIL
FINANCIAL & CORPORATE RISK ASSESSMENT
| Risk Area | Risk Identified | Mitigation | Notes |
| To provide and maintain standards for Town Council services to the residents of Crewe | The risk of legislative change which will have an impact on the Town Council’s powers, duties and funding | Town Clerk and staff keep appraised of developments | GDPR Training carried out 2020/2021
DPA Training to be carried out by all 2024/25 |
| The protection of physical assets owned by the Town Council including buildings and equipment (loss or damage) | All physical assets insured
All assets checked regularly Management Systems being put in place |
Stored in vault in Municipal Building | |
| The risk of damage to third party property or individuals as a consequence of the Town council providing services (public liability) | Public liability Insurance renewed annually | ||
| Insufficient staff or other resources to deliver the service needs | Staff have general awareness of other team members’ essential tasks and can provide cover when required.
Town Clerk to formally monitor and review staff and work levels. Any concerns regarding this to then be brought to Council |
Corporate Strategy and structure review 2024 | |
| To provide a safe and fulfilling working environment for staff | Employees contravene Health and Safety Regulations | Health and Safety and First Aid training, insurance, Risk Assessments regularly checked and updated | Staff trained in H&S and First Aid |
| Potential legal proceedings up to corporate manslaughter | Employers Liability insurance Employee training and awareness | ||
| Staff retention issues | Staff training where appropriate | ||
| To maintain financial records that are correct and comply with all recommended accounting practice | Adverse audit reports, legal action and loss of confidence in Town Council
Loss of income through error or fraud |
Clerk keeps up to date with legislative changes, discusses latest requirements with internal and external auditors
Fidelity Guarantee Insurance
Town Clerk continually review controls and current procedures |
Internal audit review recommendations actioned
Capacity in staffing structure for Finance Officer (currently dormant as Clerk fulfils this aspect) |
| To ensure that all actions taken by the Town Council comply with all current Legislation | Non-compliance with legislation or practice Council being
‘Ultra Vires’ |
Town Clerk to keep up to date with changes in legislation, seek advice from SLCC, ChALC, NALC and others as necessary | Town Clerk has not accessed training for some time |
| Employment Contract | Compensation claims from employee for contractual employment defects (including statutory failure) | Contract of employment in place
Matters relating to staff discussed in confidential session and discussed by personnel committee
Town Clerk to keep up to date with employment law and seek HR advice where appropriate Other policies in place
Supported and underwritten by Wirehouse Employer Services |
Town Clerk has not accessed training for some time |
| Staff | Loss of services of employee | By distributing knowledge and roles ensure, so far as reasonably practical, that loss of any one employee does not cause unrecoverable damage to business | |
| Loss of key staff trained in financial systems, process or rules | Staffing arrange so that knowledge is distributed between RFO and at least one other staff | External Accountancy support in place | |
| Financial Control | Inappropriate expenditure made | Payments reported to Finance committee for review and corrective action if necessary | Payment authorisation process |
| Financial Regulations become out of date with change in technology, regulation or business | Council to review financial regulations once a year
The RFO and Clerk react to any changes in legislation or other areas in order to ensure the regulations are fully compliant and also provide a strong framework compatible with Council`s practices |
Clerk has not accessed training for some time |
|
| Lack of budgetary overview/overspend against budget | Quarterly review of nominal ledger Monthly review of income and expenditure Seven week review by finance Committee | Committees review associated spend at each meeting | |
| Lack of finance to meet unbudgeted, urgent commitments ( with safety or other critical implications) | Contingency included in budget
Reserves equivalent to at least six month`s spend available |
||
| Financial Systems and Records | Accounts
The RBS Omega accounts system is used which is an accepted accounts package |
Accounts are saved off site on CITRIX
Hard copies linked to council reports are held on file together with bank reconciliation reports, invoices/receipts/payments and cheques issued
Documents are retained for 12 years |
|
| VAT
The RBS Omega system incorporates a VAT schedule which is an accepted package which allows differentiation between tax rates etc. which is itemised in a full report relating back to the original item within the accounts |
VAT is applied to all mileage payments at the rate applicable at the time as advise by HMRC
VAT returns are lodged on a quarterly basis in line with accepted procedures
|
||
| Payroll
John Greenall and Co Ltd provide payroll services and carry out payroll function |
The Clerk authorises any overtime, mileage or special duty payments, on a monthly basis
Backups are made to the server
Hard copies linked to pay roll reports are held on file together with payslips, BACs payments issued to the pension fund and IR Greenall payroll service and fund invoices are retained on file with a record of payment. Payments can only be issued for the nominated employees, which must be authorised in advance of the payment Documents are retained for 12 years
Annual pension and year end payroll returns are issued in a timely manner to the appropriate bodies that inspect the information and highlight any discrepancies |
||
| Banking Arrangements and Procedures
Banking Security/Access to Finances |
Co-op Bank is used Accounts | one bank account used on a daily basis
Reviewing how much is placed into a higher rate deposit account |
|
| Cheques | Each cheque from the main account must be signed by 2 Councillors and the Town Clerk as detailed on the bank mandates (which are amended when required to ensure that sufficient signatories are available at all times) | Cheques are not currently in use, with no cheques having been issued for some years | |
| Transfers | Monies may be transferred between the Councils accounts by the Clerk | ||
| Bank Reconciliation | All accounts are reconciled using the RBS Omega system within 5 days of receipt of any statement
Any discrepancies are immediately reported to the bank for investigation
All petty cash accounts which do not have statements are reconciled on a monthly basis by the Accounts Assistant against the cash held and any discrepancies are immediately reported to the Clerk |
No petty cash held or operated since 2020 |
|
| Separation of Duties | The Town Clerk is responsible for the cash security in the Town Council offices | No cash held in the council offices since 2020 | |
| Access to the main bank accounts | As detailed under Banking arrangements and Procedures above, no one person has access to monies held in the main accounts | ||
| Cheques | All invoices are checked by the Clerk in advance of
payment and if related to an order, this has passed through the ordering procedure. |
Cheques not currently in use | |
| Access to petty cash accounts | The Financial Regulations specify maximum balances to ensure that individuals do not have access to large amounts of money | No petty cash system in operation | |
| Payments | All payments must be authorised by the RFO before any payment is issued. The RFO is to sign the invoice/Purchase Order to confirm and record that the payments have been authorised.
All payments are reported to Finance & Governance Committee |
||
| Petty Cash – Cash Payments | All payments made in cash must be substantiated by an invoice etc. which has been authorised by the Clerk
All payments are reported to Finance with a full reconciliation report for sign-off |
No petty cash system in operation | |
| Hire Charges | Finance & Governance Committee agrees the charges
The office must abide by these rates and any requests for preferential rates must be made by the hirer to the Finance & Governance Committee for its approval
All bookings must be paid for in advance to avoid bad debts other block bookers are invoiced or given the option of paying the sites on a weekly basis |
||
| Cash collected from community events | All cash collected at events is collected by appointed staff and a receipt is always issued (e.g. markets income)
At the office the cash is emptied and counted manually within one working day by at least two members of staff |
No cash accepted since 2020 | |
| Processing and banking | When the money is received it is balanced within the office against any receipts/invoices and any discrepancies are followed up
When the monies have been balanced, it is input onto the RBS Omega system and all entry references are printed out and retained
The hire charges are banked when received The cash element is usually below £500
A unique pay in reference is applied to each batch of banking which is loaded onto the RBS Omega system which is then checked against the bank reconciliation
Payment by BACS in advance is required
This is a strict routine that ensures that any booked hire cannot proceed without receiving the payments and guarantees that all monies are accounted for |
No cash accepted since 2020 | |
| Financial Administration | Records non-compliant or inadequate | Internal auditor reviews record keeping bi-annually
Advice taken from internal auditor, external auditor, accountant, SLCC and NALC on changes in regulation |
|
| Expenditure/income coded incorrectly | Town Clerk checks nominal ledger every quarter Items are coded | Errors corrected routinely | |
| Standing Orders
Standing orders are reviewed and approved by Town Council on an annual basis at the AGM |
The Clerk reacts to any changes in legislation, requests from Town Council or other areas in order to ensure the regulations are fully compliant and also provide a strong framework compatible with Council practices | ||
| Non-compliance with statutory deadlines for the completion/approval/submission of accounts and other financial returns | Programme of meetings to meet statutory deadlines | ||
| Invoice payment without authority | All payments reviewed
Daybook created and circulated to chairs of council and committees with the associated invoices. Minimum of 2 authorising responses required, those having checked invoices against the day book (payment schedule) prior to BACS payment
Town Clerk authorises two councillors sign cheques and Administration personnel review
|
Cheques not in use for some years |
|
| Incoming cash and cheque misappropriation | Individual receipts to be issued for all cash payments and for cheque payments on request | Cash not accepted | |
| Theft of funds | Bank statements reconciled monthly, Fidelity Insurance in place against theft of funds by staff, Councillors and other persons
Cash and cheques stored securely and banked within 5 working days of receipt |
Cash not accepted. |
|
| Incorrect entries by bank | Bank statements reconciled monthly | ||
| Annual Budget and Precept Calculations | The annual budget and precept calculations | The annual budget and precept calculations are initially calculated in October/November based upon the performance of the prior year and incorporating projected requirements which have been lodged by the office and council members
The Town Clerk also completes a mid-year review in October for the current year to calculate possible year end surpluses which may be incorporated within the future budget. The actual precept level is then calculated from the balance sheet assuming that the remainder of the current year’s budget will be utilised in order to estimate the year end bank balance
The new budgeted income, expenditure and reserves are then set against this balance in order to calculate a budget shortfall on which the future precept is based
The new budget is discussed and fine-tuned through the October, November and December Council and Committee meetings after the up to date number of band D properties have been confirmed by CEC discuss and amend any highlighted budget levels in order to best achieve, an acceptable precept level
Comprehensive minutes are recorded at each stage to substantiate the budget development
The final budget is approved in December and CEC is immediately advised of the precept |
|
| Monitoring of Budgets | Comprehensive budgets | Comprehensive budgets are set for each committee and these are loaded onto RBS Omega accounts system at the start of the new financial year | |
| Monitoring | On-going daily expenditures have already been incorporated within the budget and the RFO monitors invoices, etc. against the budget schedule to confirm that they are within the limits
All orders are checked against the accounts system to verify expenditure within the account code to date and the remaining budget
Any over expenditure is highlighted and brought to the attention of the Clerk |
||
| Reporting | A full report of expenditures against budget is lodged with council at each Finance and Governance Committee meeting
This incorporates a print out of the income and expenditure against each annual budget and the cashbook extract
Any that do not meet the budget levels are highlighted by member if needed along with committed expenditure |
||
| Insurable Risks | Public Liability | Insurance cover
In addition, weekly, annual checks of play equipment |
Limit of cover £12,000,000
Reviewed annually. No Play equipment owned |
| Employers Liability | Insurance cover | Limit cover £10,000,000
Reviewed annually |
|
| Theft of money by third party | Insurance cover | Cover varies depending on the situation
Reviewed annually |
|
| Theft of money by employee or member | Fidelity Guarantee cover | Limit of cover £2,000,000 | |
| Property | Cover for buildings and contents All risks cover for selected items | ||
| Officials Indemnity | Continue with existing cover (£250k) | ||
| Libel and Slander | Continued existing cover (£250k) | Limit of cover £250,000 | |
| Personal Accident | Continue with existing cover (scale benefits) | Limit of cover £2,000,000 | |
| Legal disputes | Cover for specified legal disputes | Limit of cover £100,000 | |
| Long term sickness of employee | Not covered
Liability limited by contract |
||
| Business interruption | Potential alternative premises, IT back-up off site and ability to restore onto hired equipment etc.
Cover in place for excess costs |
Limit of cover £50,000 | |
| Loss/destruction of financial records | Key financial data held electronically and backed up off site All electronic documents backed up daily offsite | Residual risk considered acceptable | |
| Loss of Records | Loss of documentation | Deeds and other legal documents relating to real estate stored in the office | |
| Asset List | Purchased | An asset list is maintained by the Town Council Office on RBS System
This is updated throughout the year from new assets which are in addition, a schedule of road furniture/bins/dog bins/bus shelters play area equipment etc., will be kept on a secondary list
The asset list is circulated to staff on an annual basis to ensure that all items are correct |
|
| Internal Audit | Internal Audit | The Internal Auditor is approved annually by Council at the AGM and attends the office to complete the internal audit in May of each year
The report is presented to Council for acceptance |
|
| Annual Audit | Annual Audit | The annual auditor is appointed and directs the format and structure of the audit in line with current legislation and requirements
Audit costs and levels of requirement are determined by government legislation based upon the annual income or expenditure levels
The Town Clerk and Finance and Engagement Manager completes the year end accounts to audit trial level and prepares any additional reports required by the external auditor
The Town Clerk presents the completed Annual Return, Financial Statement and other documentation required to Council in line with the timescales provided by the external auditor Once these have been formally adopted and signed by Council, they are lodged with external auditors Any queries raised by the auditors are dealt with by the Town Clerk in the first instance
Final sign-off by the external auditor is presented to Council |
|
| Insurance | Fidelity Insurance | Fidelity insurance levels have been set after taking into account the possibility of fraudulent activities gaining access to the bank accounts
Procedures in place (as previously detailed) have been established incorporating separation of duties, cross referenced receipts of income
These provisions have ensured that no individual is able to gain access to withdraw funds without due process |
£2,000,000 |
| Insurance | Zurich has been used as a recognised Town Council provider
Annual reviews are carried out to ensure sufficient cover is in place |
||
| ICT | IT Security, safety of information/risk of loss of data | Microsoft Office 360 installed on all PCs Allows for cloud back up of information
Allows for cloud storage of all council data – more secure than onsite storage. |
|
Reviews will take place yearly unless clearly stated differently within each section.
