DAMERHAM PARISH COUNCIL – FINANCIAL RISK ASSESSMENT

Area of risk

Risk identified

Impact H/L/M

Frequency

H/M/L

Risk level 1-9

Management of risk

Action required

Property (& contents) owned by Council

See Assets register

Loss or damage

H

L

3

Keep Assets Register up to date

Review at need by Clerk + annually by Council

Damage to third party property or individuals

Public liability

L

L

1

Property maintenance + insurance cover

Provision of insurance reviewed annually by Council

Legal liability as a consequence of asset ownership

Public liability

L

L

1

Property maintenance + insurance cover

Level of cover; maintenance schedule; inspection regime; reviewed annually by Council

Section Two: Working with others to help manage Risk

Security for vulnerable buildings; amenities or equipment

Damage and unable to use

H

L

3

Inspection regime and reporting systems

Inspection by councillors; paid inspectors; volunteers

All banking arrangements

Possibility of fraud and corruption

L

L

1

Financial controls

Financial regulations & annual review by Council

Ad hoc provision of amenities/facilities for local community events

Public liability

L

Financial regulations

Council to ask for sight of Insurance docs

Trading units (PlayTrail; War memorial)

External contractors for maintenance

L

L

1

Only reputable contractors used

Budget monitoring

Professional services used

(architects; accountancy; design etc)

Fraud or incompetence

L

L

1

Standing orders & financial regulations to deal with award of contracts

Regular review – or based on best available advice.

Section Thee: Self Managed Risk

Proper financial records

Must comply with statutory requirements

L

M

4

All financial transactions fully recorded

Regular monthly monitoring by Clerk

Business activities

Must be within legal powers of Council

L

L

1

N/A

Review with regular reference to legislation and guidance

Employment law and Inland Revenue regulations

Must meet statutory requirements

L

M

4

Contracts / pensions and statutory requirements in place

Clerk to keep up to date with legislation

VAT

HMRC regulations must be met

L

L

1

Compliance with statutory requirements

Clerk to review annually

FINANCIAL RISK ASSESSMENT PAGE 2: Section Thee: Self Managed Risk continued

Precept

Must ensure adequacy within sound budgeting arrangements

L

L

1

Precept meets annual expenditure

Clerk to draw up annually for councillors. IA to review.

Monitoring of financial performance

Fraud / overspend

L

L

1

Proper financial procedures followed and audited

Clerk to present budget update to Council at least half yearly

Policy Review

Non-compliance

L

L

1

Standing orders; financial regulations; asset register and  financial risk assessment

Councillors to approve updates annually

Grants

Ensure proper use of funds granted to local community organisations under S137 powers

L

L

1

Proper processes followed

Grants based on approved form to be approved by PC and minuted by Clerk. LA review.

Council minutes

Ensure proper, timely, accurate recording of business

L

L

1

Minutes produced and published in timely manner

Posted on website for public to see and LA review

Rights of inspection

Must meet statutory requirements

L

L

1

Documents posted on web site

Clerk to ensure these sent to appropriate Cllr.

Document control

Proper systems must be in place

L

L

1

Documents published

Clerk to ensure review & publication

Register of members interests and  those of partners (Plus gifts & hospitality if applicable)

Must be in proper place; complete and up to date

L

L

1

Councillors comply with statutory requirements

Clerk to stay up to date with legislative changes

Compliance with Transparency Code

L

M

4

Council keeps up to date with statutory requirements

Clerk and Councillors to stay up to date with legislative changes

Date of initial review

Signed by Chairman

Date for review

November 2016

November 2017