Policies

A. Financial Management:

B. Internal Audit:

C. External Audit:

The Council is responsible in law for ensuring that its financial management is adequate and effective and that there is a sound system of control which facilitates the effective exercise of the council’s functions, including arrangements for the management of risk.

This policy is created to support the above and also relates to MDTC Financial Regulations (adopted February 2017).

A. The process for Financial Management is:

1. A Purchase Order is raised for the purchase of goods and services, this is recorded in the Purchase Order book located in the Administration Office. Using a reference system, suppliers are recorded. The Purchase Order is given to the supplier to deliver goods/services.

2. Every month the council will settle its bills after Full Council approval, members are presented with a list of payments required for the relevant month.

3. Each invoice is assessed for accuracy and receipt of goods/services, is date stamped, stamped with the two signatories stamp and validated by the Clerk (RFO) for payment.

4. Payment of invoices is actioned after the meeting of Full Council (payment by cheque/Bac’s), unless the supplier is on a Direct Debit arrangement.

5. The Council will be asked to review those suppliers who are paid by Direct Debit annually.

6. Control sheets are produced by the Clerk for payments to be made to; HMRC, Pensions (WYPF & B & CE), Salaries, Bacs payments.

7. Timesheets are collated monthly (month end date) are assessed by the Clerk and sent to the Councils pay roll provider for processing.

8. All documents relating to processing as Salaries/HMRC/Pensions/Direct Debit/Bac’s/Timesheets are located in the Shared Drive [Salaries].

9. At the end of every month, once the bank statements have been produced (usually after the 7th day) the Council’s bank accounts are to be reconciled for the month,

10. Where a cheque is raised in order to pay suppliers, the cheque is made out by the Clerk. Two signatories sign the cheque and initial the cheque stub.

11. Omega Accounting System: When inputting Income & Expenditure into the Omega system a unique reference code is assigned (Prefix – INTF XXX), unless payment is made by cheque, in that case the cheque number is used.

B. The process for Internal Audit is:

1. Checklist of areas to be assessed for Internal Audit is given to the Auditor prior to starting, areas include; financial process/banking/salaries/invoices/purchase orders/vat reclaim/agendas/minutes.

2. The Internal Auditor is scheduled to attend at least once per quarter.

3. The Internal Auditor will assess the criteria and evidence for the Annual Return and will complete the compliance processes on the Annual Return.

4. Full council will be kept informed of the Internal Auditors findings, via a submission of a written report and once year invited to a meeting of Full Council.

C. The process for the External Auditor is:

1. Towards the end of March the Council will be contacted by the External Auditor. Documents to be completed from the External Auditor include; Statutory Notices, Annual Return (completion document) and Intermediate Assertions.

2. Statutory Notices to be displayed as required by law.

3. Annual Return (completed) to be sent to the External Auditor by the date given in the initial correspondence.

4. Completed results to be published.

5. Full Council to be updated of External Auditor findings.

End.