INTERNAL AUDIT SERVICE FOR  HARTINGTON NETHER QUARTER PARISH COUNCIL 2014/15

Further to the Internal Audit of Accounts I carried out on 14 May I confirm that the audit was carried out in accordance with the suggested approach contained in the “Governance and Accountability for Local Councils – A Practitioners Guide    (England )  March 2014″ and Page 5 of the Annual Return has been signed off accordingly.

Signed     Brian Wood DMA                          Date 14 May 2015

1
Internal Control
2
Tests
3
Yes/No
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Comments
Previous internal Audit Report Do the minutes record that council has considered the Internal Audit Report for the previous year and the matters arising addressed? Yes May-2015
Proper bookkeeping Is the ledger/database maintained with up to date -payment date, payee and amount.(and backed-up) Yes
Is the ledger/database arithmetically correct? Yes
Is the cashbook regularly balanced? Yes
Bank Statement check.
Standing Orders and Financial Regulations Has the Council formally adopted Standing Orders and Financial Regulations? Yes May-2015
When reviewed?
Has a responsible Financial Officer been appointed? Yes
Have items or services above a de minimis amount been competitively purchased? Yes
Are payments in the cashbook supported by invoices and have they been authorised and minuted?  Income vouchers. Yes
Has VAT on payments been identified, recorded and reclaimed? Yes
Is Section 137 expenditure separately recorded and within statutory limits? Yes
Other legal powers identified. Yes
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Internal Control
2
Tests
3
Yes/No
4
Comments
Risk Management Arrangements Do the minutes identify any unusual activity? No
Do the minutes record the Council carrying out an annual risk assessment? Yes
Is insurance cover appropriate and adequate? Yes
Are internal financial controls documented and regularly reviewed? Yes
Budgetary Controls Has the Council prepared an annual budget in support of its precept? Yes
Is the actual expenditure against the budget regularly reported to Council? Yes
Are there any significant unexplained variances from budget? No
Income Controls Is income properly recorded and promptly banked? Yes
Does the precept recorded in the cashbook agree to the District council’s notification? Yes
Are security controls over cash adequate and effective? Yes
Petty Cash Procedures Is all petty cash spent recorded and supported by VAT invoices/receipts? N/A No Petty Cash
Is petty cash expenditure reported to Council? N/A
Is petty cash reimbursement carried out regularly? N/A
1
Internal Control
2
Tests
3
Yes/No
4
Comments
Payroll Controls Do salaries paid agree with those approved by Council? Yes
Are other payments to the Clerk reasonable and approved by council? Yes
Has PAYE/NIC been properly operated by the Council as an employer? Yes
Assets Controls Does the Council keep an Assets Register of all material assets owned? Yes
Is the Register up to date? Yes
Do asset insurance valuations agree with those in the Register? Yes
Bank Reconciliation Is there a bank reconciliation for each bank account? Yes
Is the bank reconciliation carried out regularly on the receipt of statements? Yes
Are there any unexplained balancing entries in any reconciliation? No
Year End Procedures Are the year end accounts prepared on the correct accounting basis? Yes
Do accounts agree with the ledger/database? Yes
Is there an audit trail from underlying financial records to the accounts? Yes
Where appropriate, have debtors and creditors been properly recorded? Yes