RPC Policies and Procedures

Risk Management and Assessment

Reviewed with several changes and adopted at the Parish Meeting on 15 May 2024

RAUCEBY PARISH COUNCIL

Mission Statement of Rauceby Parish Council:

To provide services for, and manage and maintain the assets of, the villages of North and South Rauceby, within the resources provided by the annual precept and other incomes, taking into account the wishes of the residents and obtaining value for money.
The level of the management of identified risk is carried out taking into account the designation of the Parish Council as a “smaller authority” i.e. having an income less than £25,000 per annum, in terms of the Governance and Accountability assessment.

Aim	Risk	Standard Methods used to Minimise Risk	Risk Management for Rauceby Parish Council
1. To ensure compliance with the Acts of Parliament, Council’s financial regulations and code of conduct.	1.1 Lack of knowledge of regulations and codes.	Ensure that all Councillors have copies of relevant Acts, Code of Conduct, and Standing Orders. Highlight essential parts and provide training where possible.	* Code of Conduct and Standing Orders are published on the Parish website. * Legislation will be obtained when requested and/or required. * Appropriate training carried out on request.
	1.2 Absence of standing orders	Ensure that Standing Orders are produced, understood by councillors, and reviewed at least once per year.	* Standing Orders are reviewed and re-adopted at the May meeting every year.
	1.3 Actions by the PC outside its powers as set out by Parliament.	As at 1.1 above, but ensure that powers are highlighted or extracted into effective summary.	* All decisions taken in Parish Meetings. * Clerk to minute decisions and seek advice from LALC in the event of potentially legal issues.
	1.4 Lack of commitment to regulations and procedures.	Regular reference to appropriate regulations in agenda items. Delegation of responsibilities to individual councillors.	* Clerk to minute decisions, referencing legislation where appropriate and seek advice from LALC in the event of potentially legal issues. * Specific Councillors may be invited to be Champions of certain elements of legislation depending on the needs of the Council.
	1.5 Items purchased without proper tendering procedures, resulting in accusations of commercial favouritism.	Ensure that all councillors are aware of regulations re estimates and full tender procedures. Introduce practice of estimates for all purchases over an agreed figure.	* All financial transactions, including tendering and obtaining estimates, are carried out in accordance with the Council’s Financial Regulations. * All purchases are agreed at the Ordinary Meetings and proper tendering processes are agreed on a case by case basis.
	1.6 Payments made without prior approval and adequate control.	Ensure all payments are approved in Council meetings and recorded in minutes. Keep cash payments to a minimum, and avoid if possible.	* All payments agreed in Council meetings and minuted. * There are no cash payments.
	1.7 Lack of control of signatories to cheques.	Keep authorised signatories to a minimum but consistent with practicalities.	* There are currently six authorised signatories for the bank account. This may change where practicalities dictate.
	1.8 VAT not properly accounted for, resulting in over-claims and large demands from HMRC.	Ensure appropriate publications held and that Clerk has good knowledge of regulations.	* There is usually an annual claim for VAT reimbursement. The amount claimed is ratified by the internal auditor, annually. A claim may be made on an ad-hoc basis if a large payment is made that carries a VAT element. HMRC procedures are used.
2. To identify and regularly review the Council’s priorities.	2.1 Lack of knowledge of setting objectives, setting priorities, and identifying risks to their achievement.	All councillors to be made aware of need for objectives and identification of risk. Attend training sessions if practicable.	* There is currently no structured means of setting objectives or priorities. Events are addressed as they arise.
	2.2 Lack of commitment by council members	Add risk assessment to agenda at least quarterly, reviewing particular items, and results against those items.	* Risk assessment review is carried out annually and is considered adequate. The review is minuted. * Events are risk assessed as they arise and the results filed. * The fact that a risk assessment has been carried out for an event is minuted.
	2.3 No risk analysis carried out	As at 2.1 above. Ensure that completion of the risk assessment is given high priority, as a requirement of the Audit Commission
	2.4 No steps taken to combat identified risks	As at 2.2 above.
3. To influence other council departments and Government organisations to fulfil the requirements of the Parish population.	3.1 Lack of effective lines of communication with other organisations.	Note all communication lines which are essential or beneficial and make information available to all councillors. Establish contacts by name and where possible face-to-face. Take every opportunity to publicise role of Parish Council. Create Parish newsletter if none exists. Use Notice Boards and “flyers”.	* Clerk maintains a list of named appropriate contacts at LCC and NKDC (and elsewhere where necessary) * Face to face contact is not considered necessary. * The Parish owns two public noticeboards and has access to two others in the village if required. * It also operates a website that can be updated at short notice to publicise newsworthy information. * The Council distributes flyers to every household in the village to notify items of importance to the village. * The Council can access a village newsletter (operated by a separate organisation in the village).
	3.2 Lack of effective lines of communication with parishioners.	Use key issues to raise profile of PC and to test parishioners’ views. Add social event to occasional meeting. Create Annual PC plan and put to parishioners for comment.	. * Parishioners views are sought at the annual Open meeting, usually held in May. * Parishioners are able to contact the Chairman and Clerk by telephone and email which are published on the website. * There is no formal Annual Parish Council Plan for parishioners to comment on.
	3.3 Lack of preparation on subjects requiring influence.	Ensure all councillors are aware of need for careful research and are guided as to where to obtain relevant information.	* On any new initiative, the council meeting will nominate a councillor to champion the cause and will give guidance on how to proceed.
	3.4 Lack of confidence by Parish Councillors	As at 3.1 above. Experienced councillors to assist newcomers to establish essential contacts. Delegate responsibility for specific contacts to individual councillors	* On any new initiative, the council meeting will nominate a councillor to champion the cause and will give guidance on how to proceed.
4. To ensure that all councillors are aware of their responsibilities, and possible liabilities, and to provide adequate insurance cover for all possible risks.	4.1 Lack of knowledge of possible culpability of councillors.	Creation of standing orders and familiarisation with those where greatest risk occurs.	* Code of Conduct and Standing Orders are published on the Parish website. * Legislation will be obtained when requested and/or required. * Appropriate training carried out on request.
	4.2 Lack of education of Councillors regarding culpability.	As at 4.1 above. Delegate responsibility to one or two councillors to assist newcomers to understand culpability. Attend any training courses available.
	4.3 Inadequate insurance cover taken out – property, personal liability, employer’s liability.	Review risk assessment by including on agenda at least quarterly. Delegate responsibility for keeping up-to-date with insurance requirements to an individual councillor.	* Risk assessment review is carried out annually and is considered adequate. * Clerk maintains insurance requirements up to date.
5. To keep appropriate books of account accurately and up-to-date throughout the financial year.	5.1 Lack of knowledge of accounting requirements	Ensure all councillors are familiar with current financial regulations and include them in the council’s Standing Orders. Regularly review Standing Orders. Appoint separate RFO (perhaps a councillor) to ensure another line of responsibility for financial management.	* Council Financial Regulations are available on the Council website and are reviewed annually. * Standing Orders reviewed annually. * Clerk is the RFO and all financial decisions are taken at the ordinary meetings. This is considered adequate.
	5.2 Lack of commitment to accounting requirements.	As at 1 above. RFO to produce financial reports at all meetings. Internal audit reports to be made available to all councillors and any recommendations to be acted upon promptly.	* The Clerk produces a financial report for every meeting. * Internal audit reports are prepared annually and available to the councillors.
	5.3 Bank charges unnecessarily incurred	RFO to carry out regular inspection of books of account. Internal audit to be undertaken periodically during the current financial year.	* Currently the bank account does not carry charges. * An internal audit is carried out annually and available to the councillors.
	5.4 Inaccuracies in recording amounts and totals in books of account. Bank reconciliations not carried out.	RFO to ensure that books of account are formatted in such a way that internal controls are included and activated. Regular internal audits to advise on internal controls required.	* A financial statement is prepared for every meeting * A spreadsheet covering year to date income and expenditure is kept up to date and prepared for every meeting. * Recommendations from the internal auditor are followed through by the Clerk.
	5.5 Inaccuracies and interest losses caused by account transfers.	Keep number of accounts to a minimum but ensure that any large credit balances are deposited in an interest bearing account.	* There is one bank chequing account and one bank savings account. At this stage it is not considered necessary to hold multiple accounts beyond this.
	5.6 The most beneficial interest terms not being employed.	Ensure that favourable interest rate is obtained in deposit accounts and review against alternatives, but bearing in mind the risks in changing accounts.	* There is one bank chequing account and one bank savings account. At this stage it is not considered necessary to hold multiple accounts beyond this. * This state is reviewed in the Parish meetings as necessary if interest rates should rise significantly.
	5.7 Inadequate control of cash receipts and payments.	Avoid cash payments and receipts if possible. Where cash payments and receipts are unavoidable use a properly controlled petty cash account with a set maximum balance.	* No payments are made by cash. * No receipts of payment are made in cash.
	5.8 Books of account not kept up to date/ invoices not posted promptly.	Regular checks by RFO and internal auditor. Financial reports at all PC meetings.	* The transactions sheet is examined at every meeting by the council and signed off by the Chair of the council.
	5.9 Internal controls not in place or not operated.	As at 5.8 above.
	5.10 Payments missed for various reasons	As at 5.8 above.
	5.11 Clerk taken ill or leaves without replacement	Appointing separate RFO allows a further individual to be familiar with all aspects of financial matters	* There is no separate RFO. The Chair of the council has a good understanding of the financial management of the council.
6. To ensure that payments made from council funds and the use of assets, represent value for money, are adequately managed, and comply generally with the wishes of the residents.	6.1 Lack of knowledge of wishes of residents.	As at 3.2 Ensure residents are consulted on all major financial issues	* The Parish Council does not normally undertake major financial projects; such matters are referred to the higher authorities: LCC or NKDC. * Should there be high expenditure work required in the village not under the auspices of the higher authorities, this would be unusual so an extraordinary open meeting may be called to consult with the parishioners. * Parishioners are notified of less critical expenditure at the annual open meeting in May.
	6.2 Use of funds not giving value for money	Effective budget planning processes. Creation of annual plan after consultation process. Creation of outline 2/3 year plan.	* An annual budget is prepared by the clerk and Chair and ratified by the council every year. * If, after consulting the parishioners, a further plan is required, this will be prepared as necessary. * A 2/3 year plan will be prepared as and when considered necessary – i.e. for longer term expenditure projects. * The annual internal audit process is considered adequate for control purposes
	6.3 Use of funds not in accordance with the wishes of the residents	As at 6.2 above. RFO to create effective financial management. Internal audit checks to cover consultation process.
	6.4 Charges for use of facilities inadequate.	Effective financial management by RFO. Internal audit checks.	* There are no facilities under the control of the Council to be charged for.
	6.5 Fund raising not properly controlled or not in accordance with regulations.	All councillors to be aware of need to check regulations before commencing fund-raising activities. Effective financial management by RFO.	* Fund raising outside the precept demand is not normally carried out (but see section 8 below)
7. To ensure that the annual precept requirement results from an adequate budgetary process; progress against the budget is regularly monitored; and reserves are appropriate	7.1 Lack of knowledge of budgetary process and of Council regulations.	Include regulations in Standing Orders issued to all councillors. Place item on agenda early in year to remind councillors of budget process and actions required. Delegate responsibility for managing initial budgetary process to a council committee or to RFO.	* Guidance is given by LCC on preparing for the following year’s precept demand. * Current financial control procedures by the Clerk are sufficient to enable a realistic precept demand.
	7.2 Lack of commitment to budgetary process.	As at 7.1 above Involve all councillors in budgetary process, not solely the clerk.	* An annual budget is prepared by the clerk and Chair and ratified after discussion at the meeting by the council every year.
	7.3 Inadequate consideration of requirements for annual precept.	Place item on agenda early in year to remind councillors of budget process and actions required. Delegate responsibility for managing initial budgetary process to council committee or RFO. Start consideration of need at least 4 months prior to submission date. Create annual and 2/3 plans to assist in process.	* Guidance is given by LCC on preparing for the following year’s precept demand. * Current financial control procedures by the Clerk are sufficient to enable a realistic precept demand. * For longer term expenditure proposals a longer term budgetary plan shall be prepared by the Clerk and Chair.
	7.4 Calculation not in accordance with Council regulations.	Checks by RFO and Internal Auditor.	* Guidance is given by LCC on preparing for the following year’s precept demand. * Current financial control procedures by the Clerk and overseen by the internal auditor, annually, are sufficient to enable a realistic precept demand.
	7.5 Inadequate internal controls with regard to monitoring expenditure.	Checks by RFO and Internal Auditor. Financial and budget progress reports to all PC meetings.	* A financial statement is prepared for every meeting * A spreadsheet covering year to date income and expenditure is kept up to date and prepared for every meeting. * Recommendations from the internal auditor are followed through by the Clerk.
	7.6 Reserves too low.	As at 7.5 above	* There is no trigger to say what may be a too low reserve. With current levels of expenditure this is not considered necessary at this stage. * The level of reserve is presented at every meeting.
8. To explore all possible sources of income, and ensure that expected income is fully received.	8.1 Lack of knowledge of possible sources of income e.g. grants.	Appoint a councillor as Grants Officer to gain experience of all grants available and application procedures.	* Grants are applied for when opportunities arise and published via various official newsletters from LCC, NKDC and elsewhere. * Opportunities are suggested by the Clerk (who receives the emails) and any other councillor at the meetings when they are discussed and a decision made on whether to proceed. * Individual grants are applied for in accordance with the rules laid down by the owner of the grant and a councillor shall be nominated to be a champion for that grant. 1.
	8.2 Lack of commitment to pursue possible sources of income.	As at 8.1.
	8.3 Receipts not banked or not banked promptly.	Regular checks by councillor appointed as RFO. Internal audit checks.	* The Clerk produces a financial report for every meeting. * Internal audit reports are prepared annually and available to the councillors.
	8.4 Debts not pursued promptly.	As at 8.3 above.
	8.5 VAT claims not made promptly or made incorrectly.	Ensure Clerk has appropriate and up-to-date VAT official publications. Regular checks by RFO. Internal audit checks.	* There is usually an annual claim for VAT reimbursement. The amount claimed is ratified by the internal auditor, annually. A claim may be made on an ad-hoc basis if a large payment is made that carries a VAT element. HMRC procedures are used.
9. To ensure that salaries paid to employees and amounts paid to contractors are paid in line with council regulations, and are adequately monitored.	9.1 Inappropriate rate of pay to employees.	Ensure employee regulations are available and understood by Clerk. Checks by RFO. Internal audit checks.	* Clerk is the only employee at this stage. * Rate of pay in accordance with Government employment pay scales and reviewed annually by the council. * Internal audit reports are prepared annually and available to the councillors.
	9.2 Tax and NI arrangements not in accordance with regulations	As at 9.1 above	* Tax and NI considerations controlled by an independent qualified accountant.
	9.3 Amounts paid to contractors not in accordance with contract and inadequately monitored.	Internal audit checks. Checks by RFO. Appoint councillor to monitor contract work carried out.	* The Clerk produces a financial report for every meeting. * Contract rates are decided at the meeting in accordance with quotations submitted for the jobs required. * The nature of the contract work required in the village (occasional maintenance, ground keeping etc) indicates that only ad-hoc checks are necessary by councillors to monitor the standard of work carried out. * Internal audit reports are prepared annually and available to the councillors.
10. To ensure that year end accounts are prepared on the correct accounting basis, on time, and supported by an adequate audit trail.	10.1 Lack of knowledge of Council regulations and procedures.	Include financial regulations in Standing Orders. Attend training seminars where available.	* Financial Regulations and Standing Orders are published on the website. * LCC provides guidance with a timetable, annually on the completion and submission of the Annual Governance and Accountability Return (AGAR). * There is plenty of willing advice within other Parish Councils to assist in compiling the return. * The annual financial information generated for the annual meeting (section 5 above) is used to populate the AGAR forms * Internal audit ensures the accuracy of this information
	10.2 Late or non- submission of annual accounts.	Include a time table in Standing Orders. RFO to monitor progress against timetable and report to PC meetings
	10.3 Year-end accounts not prepared, inaccurate, or not in accordance with Council requirements.	Checks by RFO. Internal audit checks.
	10.4 Inadequate audit trail from records to final accounts	As at 10.3 above.
11. To identify, value, and maintain all the assets of the Parish Council, and ensure that asset and investment registers are complete, accurate and properly maintained.	11.1 Lack of knowledge of assets of Parish Council.	Ascertain and record all assets for which Parish council is responsible. Create permanent asset register.	* The assets register is permanent, kept up to date and reviewed at the annual meeting.
	11.2 Assets lost or misappropriated	Establish who is responsible for security and maintenance of each asset. Appoint councillor responsible for regular monitoring of location and use of assets.	* The Clerk monitors and checks the Defibrillator as being fit for purpose every two months and reports back to the service monitor (The National Defibrillator Network; “The Circuit”). * The computer and printer is held by the Clerk who continuously monitors for operability. * The SID vehicle speed monitor is monitored and checked by the Chair of the council. * Other items on the register are checked annually. * Mid-year, any problems are reported immediately to the Clerk or at the next meeting for repair.
	11.3 Inadequate or inaccurate valuation of the council’s assets.	Arrange for periodic review of valuations and arrange for professional valuation where necessary. Internal audit checks.	* The assets on the register are not routinely re-valued. The purchase price (including installation costs) are normally considered adequate for this information. Calculation of depreciation is not required.
	11.4 Asset register not established or inadequately maintained.	Create asset register in accordance with Audit Commission requirements.	* The assets register is permanent, kept up to date and reviewed at the annual meeting.
12. To comply with appropriate Government legislation regarding disability, racial equality, safeguarding children etc.	12.1 Lack of knowledge of applicable legislation	Clerk to have all appropriate legislation available. Review liabilities and responsibilities periodically at PC meetings.	* The council has several policies on these matters published on the website * Should any matter arise that suggests these legislative aspects are being inadvertently overlooked, LCC will be asked for guidance by the Clerk or the Chair of the council
	12.2 Lack of public awareness of applicable legislation.	Include, as appropriate, in any public consultations.
	12.3 Failure to comply with applicable legislation.	As at 12.1 above
13. To carry out adequate safety checks on all buildings, properties, and equipment for which the council is responsible.	13.1 Lack of information on properties, buildings and equipment.	Ensure that all current legislation and advice is held by Clerk. Include in asset register all properties for which PC responsible.	* The assets register is kept up to date and reviewed annually. * The Council does not own any buildings. * Structures the council owns or is responsible for are: bus shelters, notice boards and the Buttercross Monument. A safety inspection for these items is carried out annually and reported at the annual meeting as an agenda item.
	13.2 Lack of knowledge of safety requirements.	Ensure that all current legislation and advice is held by Clerk. Place subject as item on PC meeting agenda at regular intervals.	* Safety legislation is held by LCC and they can be used to advise on particular issues that may arise. * Safety issues are discussed on an exceptional basis, and at least annually as an agenda item, in the annual meeting.
	13.3 Lack of commitment to carrying out safety checks.	As at 13.2 above. Delegate responsibility for supervision of particular properties to individual councillors, reporting back to council for any action.	* There are no designated responsibilities for the assets held by the council. Should an issue arise with one of them a councillor shall be designated to resolve the issue.