financial risk and corporate governance. legal inform hmrc – real time information vat...
TRANSCRIPT
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!