Transcription
Bollington TownCouncilFinance & GrantsMeetingEnclosuresth14 March 2022
Enc 1 - F&G Minutes 14-03-2022Enc 2 - Grants 2021-2022Enc 2 - Grant Applications 2022Enc 3 - BTC Internal Audit ReportTable of Contents3579
Minutes of the Meeting of theFinance & Grants CommitteeCouncil Chamber, Bollington Town HallAt 10.00am on Monday 8th November 2021Those Present:Members with voting rights: Town Mayor Cllr Johanna Maitland (JM)Cllrs: Mark Fern (MF), John Stewart (JS), Amanda Stott (AS) and Angela Williams(AW).Chair: Cllr Amanda StottOfficer: Julie Mason Town ClerkDeclaration of Interest – Cllr JM – Bridgend Centre, Cllr AS – Senior Citizens Club andCllr AW – Senior Citizens Club.Public forum timeCouncillor K Edwards asked the Committee when considering next year's budget, theyconsidered the legal fees for Bollington Cross Youth Project and that there was a strongpossibility that Cheshire East would transfer land for allotments and would theCommittee still consider attributing 10,000 to this project.FG 16/21 To receive and approve apologies for absence: Cllr J Weston due toholidays.FG 17/21 To receive and confirm the Minutes of the meeting held 13th September.To receive and confirm the Minutes of the meeting held 13/09/21.The Committee RESOLVED to approve the minutes as a true record.FG18/19 To receive updates from the minutesThere were none.FG19/21 To review and confirm the Grants PolicyResolved the Committee accepted the policy subject to being approved by Full Council.FG 20/21 To revisit three grant applications from the previous meetingwhich submitted insufficient information.Canalside Radio application of 1,500 of 3,500 project.They had submitted more accounts for 2019 and companies house for 2020but no bank account statements.Resolved the grant was deferred again until more information was supplied.Transition BollingtonFinance and Grants Minutes 08/11/213
The Clerk had requested more details, but no more information had beensupplied.Boundary MarkerIt was noted alternative funding sources had been utilised.FG 21/21 To review the spend to date in 2021/22The budget for 2021/22 was presented to the committee and the spend todate. The cost headings were noted including where there were overspendspredicted by the year end. It was agreed the Personnel budget heading wasvery difficult to make predictions on the spend to the year end with theresignation and the long-term sickness and managing cover in the Town Hall.The points to noted were as follows.i)Some of the training budget to Councillors should be attributed tothe EDI budget.ii)To check the fee for Ellis Whitham for the year 2022/23iii)To check if the ratable value of the Town Hall & garage could bereviewed.iv)The Civic Dinner should be entered as Nil for 2022/23v)To check if the Mayoral allowance should be received as a salarypayment.Resolved the Clerk and the Chair would ensure a more accurate predictedclosing balance was presented to Full Council in December.FG 22/21 To review the budget prediction for 2022/23The draft budget was presented to the committee which resulted indiscussions under each heading.Resolved the Committees were requesting figures with little evidence ofgaining estimated costs beforehand and the Clerk was asked to requestmore supporting information.Resolved the Councillor training budget was reduced to 500.Resolved Brookbank House was reduced to 1,000 for repairs andmaintenance from 2,000.Resolved the ‘Pop up Garden’ budget was removed.The revenue from the Civic Hall was debated and it was agreed that thefigures from 2019/20 would be reviewed as a comparison as the figuresbeing used was influenced by Covid and maybe not as high as in the budget.The Clerk was asked to circulate the Cheshire East band D figures as acomparison.It was agreed the budget was a good starting point and the Clerk and theChair of Finance would complete some more work before it was presented toFull Council.FG23/21 Date of Next Meeting: 14/03/21 at 10.00am.Meeting closed at 11.35 amFinance and Grants Minutes 08/11/214
OrganisationBollington FestivalBollington Walkers are WelcomeBollington Photographic GroupThe Mayor of Bollington's SeniorCitizens' CommitteeBollington Civic SocietyPurposeOperations costs of putting a festival onthe ground i.e Tent hire, technicalequipment, safety equipment andmaintenance.Annual subscription to the nationalWalkers are Welcome network. Raisethe profile of Walkers are Welcome byproviding stickers, posters etc.Website upgrade.RequestedAwarded 1,000.00 1,000.00 114.00 100.00 114.00100.00A contribution towards the annual party. Hire of Bollington Community Centre for8 x public meetings. 200.00 200.00100.00 100.00 250.00 100.00 250 towards project plus 300 for250.00 road closure100.00 100.00 100.00Bollington District GuidesPublic Liability Insurance premium andPurchase of ClayArt and crafts resources.Sanitising/cleaning materials and PPE toensure face to face meetings canresume.Bollington Community Association(The Bridgend CentreRelaunch ‘Talk and Games’ project atBridgend and run it for the year periodOctober 2021 – September 2022. 1,349.28 1,349.28Bollington Town Football ClubTwo portable dug outs that can be rolledon and off the pitch when needed. 3,000.00 1,000.00Bollington Brass BandReplacement of aging instruments whichare now in a very poor state of repair. 2,000.00 2,000.00Kerridge War Memorial CommitteeGrant towards the compulsory annualpublic liability insurance to open up thememorial gardens to the public .250.00 250.00Bollington Well Dressers2nd Bollington Rainbow GuidesComments EvidenceReceived5
1st Bollington CrossReplenishing resources to follow COVIDguidelines, we have to provide separateindividual sets for each girl. 150.00 150.00St. Oswald'sTo assist in the maintenance and upkeepof the graveyard and columbarium. 2,000.00 2,000.00Bollington Initiative TrustBoundary Marker - Total 10,713.28 -Grant to be reviewed at nextcommittee meeting.8,713.286
BTC Grant Applications sted01 - Canalside RadioTo purchase DABcompatible transmittersYes 1,50020 – Bollington Health & LeisureTo purchase sensory itemsfor new soft play areaYes 1,00021 – Bollington Table Tennis Club22 – Bollington (St John’s) Brownies23 – Bollington Horticultural Society24 – Kerridge Ridge & Ingersley ValeVolunteers (KRIV)26 – Bollington Community Centre27 – The Reanella TrustTo purchase newequipment and towardsvenue hire costsTo provide resources fornew leader and purchasenew badge booksPrice money for childrenupto the age of 14entering a showWhite Nancy annualmaintenance and runningcosts contributionContribution towards legalfees to secure the leaseContribution towards aone-year on-lineprogrammeAmountAwardedComments 1,000 100Yes 100Yes 1,000(over 3 years)Yes 1,000Yes 10,0007
BTC Grant untRequested28 – Bollington Live!Contribution towardspublication and printingcostsYes 1,00029 – Macclesfield & District LionsBollington BikefestYes 700AmountAwardedComments8
Bollington TownCouncilInternal Audit 2021/22Interim ReportJDH BUSINESS SERVICES LTDRegistered to carry on audit work by the Institute of Chartered Accountants in England and Wales9
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCILThe internal audit of Bollington Town Council is carried out by undertaking the following tests as specified in the AGAR AnnualReturn for Local Councils in England: Checking that books of account have been properly kept throughout the year Checking a sample of payments to ensure that the Council’s financial regulations have been met, payments are supported byinvoices, expenditure is approved, and VAT is correctly accounted for Reviewing the Council’s risk assessment and ensuring that adequate arrangements are in place to manage all identified risks Verifying that the annual precept request is the result of a proper budgetary process; that budget progress has been regularlymonitored and that the council’s reserves are appropriate Checking income records to ensure that the correct price has been charged, income has been received, recorded and promptlybanked and VAT is correctly accounted for Reviewing petty cash records to ensure payments are supported by receipts, expenditure is approved and VAT is correctlyaccounted for Checking that salaries to employees have been paid in accordance with Council approvals and that PAYE and NI requirementshave been properly applied Checking the accuracy of the asset and investments registers Testing the accuracy and timeliness of periodic and year-end bank account reconciliation(s) Year end testing on the accuracy and completeness of the financial statementsThe interim internal audit provides evidence to support the annual internal audit conclusion in the AGAR Annual Return for localcouncils.ConclusionOn the basis of the internal audit work carried out, in our view the council’s system of internal controls is in place, adequate for thepurpose intended and effective, subject to the recommendations reported in the action plan overleaf. As part of next year’s internalaudit work we will follow up all recommendations included in the action plan.J D H Business Services Ltd10
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCIL1ISSUERECOMMENDATIONFOLLOW UPFor the period April to November 2020no budgetary control information withexplanation of material variances wasprovided to council. This is a breach ofthe following section of the FinancialRegulations:The council must comply with thebudgetary control requirements of theFinancial Regulations.The RFO has now left, and the Clerkhas been appointed the RFO.The Budget has been reconciled to FullCouncil on 7th December 2021 and 1stMarch 2022.It has been noted this was an oversightdue to staffing issues.The council must comply with thepayment authorisation requirements ofthe Financial Regulations.Since September 2021 the invoices forpayment have been printed off and takento Full Council for both the Chair ofFinance and the Chair to scrutinize andsign.4.7. The RFO shall regularly provide the councilwith a statement of receipts and payments to dateunder each head of the budgets, comparingactual expenditure to the appropriate dateagainst that planned as shown in the budget.These statements are to be prepared at least atthe end of each financial quarter and shall showexplanations of material variances. For thispurpose, “material” shall be in excess of 100or 15% of the budget.2No evidence was provided for the periodfrom April to August 2020 that twocouncillors had authorised each onlinepayment in advance as required by theFinancial Regulations as follows:‘If thought appropriate by the council paymentfor certain items may be made by internetbanking transfer provided evidence is retainedshowing which members approved the payments’111
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCILISSUERECOMMENDATIONFOLLOW UP3There has been no review by council ofsupplier online payments to verify thatthe correct supplier account was paid aspart of fraud prevention internalcontrols.Each quarter the Chair of the FinanceCommittee should select a randomsample of payments from the actionedpayment schedules and agree the onlinepayment bank details to the bankaccount details of the supplier on thepurchase invoice.This will be actioned in the last quarter.4No detailed checks of the monthlypayroll to source documentation wascarried out by a nominated councillorbetween April and November 2020.Periodic checks of payroll to sourcedocumentation should be carried out bya nominated councillor and evidencedby a dated signature.This has been actioned by the Chair inthe third quarter and fourth quarter5The council is currently paying anindividual gross on a temporarily basisto carry out invoicing for approximately4 hours per week.Should this temporary arrangementcontinue the council should apply theHMRC online self-employment toolkit todetermine whether the individual shouldbe taxed as an employee or classified asself-employed.This action has now ceased, and thetemporary Accounts AdministrationAssistant is on the Payroll.6Payroll processing has been outsourcedto a payroll agency but there is nointernal control in place to preventofficers notifying the agency of theirown salary changes.An internal control should beActionedestablished whereby the Chair notifiesthe payroll agency of all annual salarychanges, and the agency is informed thatonly these notifications should beaccepted as valid.7It is not clear where some equipmentitems in the fixed asset register are heldeg councillor and clerk laptops.The existence of fixed asset equipment needsto be reviewed in the next update of the fixedasset register.2The Fixed Asset Register has now beenupdated12
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCILISSUERECOMMENDATIONFOLLOW UPThe council should either establish a rollingthree year financial plan for revenue andcapital as required by the current FinancialRegulations (FRs) or update FRs to reflectthe current annual budget procedure.To be followed up at 2021/22 year endinternal auditThe risk assessment should be updatedto include supplier (procurement) fraudincluding the adequacy of supplieronboarding controls.To be followed up at 2021/22-year endinternal audit2020/21 year end internal audit1The council Financial Regulationsrequire the following with respect tomedium term financial planning :The FR have ben amended3.1. Each committee shall review itsthree year forecast of revenue andcapital receipts and payments.3.3. The council shall consider annualbudget proposals in relation to thecouncil’s three year forecast of revenueand capital receipts and paymentsHowever, there is currently no three yearrolling revenue and capital financial planin place.2The risk assessment does not address therisks of supplier (procurement) fraud.2020/21 interim internal audit313
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCIL1ISSUERECOMMENDATIONFOLLOW UPAdditional works were required to theoriginal contract for improvement of thefootball pitches. Although this isauthorised in the minutes of the councilthe Financial Regulation relied on toinstruct the incumbent contractor tocarry out additional works of 12300,without applying the standard councilprocurement requirements, was notrecorded in the council minutesWhere the council does not followTo be followed up at 2021/22 year endstandard procurement requirements ininternal auditthe Financial Regulations for contractsin excess of 2500, the regulations reliedupon should be stated in the councilminutes.2019/20 year end internal audit report12The income and expenditure accountsand AGAR accounts presented forinternal audit had not included the 56000 loan received from PWLB inincome, or the 56000 loan subsequentlyprovided to the Bridgend Centre Charityin expenditure. The year end accountsspreadsheet had incorrectly included the 56000 loan receivable and repayable inthe balance sheet.All loans received from and provided tothird parties should be included in theincome and expenditure accounts of alocal council.The Fixed Assets register and FixedAssets value disclosed in the AGARwere incorrect as the long term loan tothe Bridgend Centre Charity had notbeen included at the initial amount lessAll long term loans provided to thirdparties should be recorded in the fixedasset register, net of repayments.ImplementedThe income and expenditure accountsand balance sheet were amended by theRFO to reflect the loan transactions.4Implemented14
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCILISSUERECOMMENDATIONcapital repayments up to the end of thefinancial year.The fixed asset register was amended toinclude the long term loan receivablebalance as at March 31st 2020.FOLLOW UP2019/20 interim internal audit1The RFO noted that the Council will bemoving to paying the majority ofsupplier invoices through onlinepayments. This will also be the case forpayroll payments.The most effective internal controls overonline banking, where members are notdirectly logging in to the bank accountto authorise payments, and that wouldprovide equivalence with the currentauthorisation of cheque payments are asfollows:See 2021/22 interim internal auditissuesAppropriate staff would be set upas System Administrators for onlinebanking. Therefore, they alone will beable to make online payments.Each batch of proposedpayments should be analysed on apayment schedule, which will be signedand dated by two authorised membersignatories after comparison withinvoice details, or any two memberscould instead email authorisation of thepayment schedule.Each quarter the Chair ofFinance and Grants Committee willselect a random sample of paymentsfrom the actioned payment schedulesand agree the online payment bank515
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCILISSUERECOMMENDATIONFOLLOW UPdetails to the bank account details of thesupplier on the invoice. This would alsobe carried out for payroll BACSpayments with a sample check to sourcedocumentation such as bank accounts,timesheets, scale point authorisations etcAll payments made will continueto be presented to council and minutedas approvedInternal controls will need to be updatedto incorporate supplier fraud preventioncontrols. Procedures will need to beestablished to ensure members checkbank details for the first payment to asupplier to a signed confirmation letterfrom the supplier. The same procedureshould apply where a supplier haspurported to have changed bankaccounts (particularly if the request isvia email). In addition to a confirmationletter the supplier could also betelephoned to ensure their bank detailsare correct.2A 6071.69 retention of 5% of contractvalue was retained for the primaryBCYP contract but this had not beenrecorded in the Balance Sheet as adeferred liability.Contract retentions should be recordedin the Balance Sheet as a deferredliability to be cancelled when the actualliability has been paid6Implemented16
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCILISSUERECOMMENDATIONFOLLOW UP3For one of our income pricing checks thehall hire form had no indications as towhat the hiree requirements were interms of kitchen, bar and seating use andthe calendar did not show the detaileither. This information is necessary toensure the charges in the invoice arecomplete and accurate .A complete audit trail should beavailable for hall hire invoices to ensurecomplete and accurate invoices areissued and the charges are supported byevidence.Implemented4The Debit Card payment of 15.53 on03/09/2019 for SADPB Bollingtonionwas not supported by a voucher/invoice.Vouchers/invoices should be secured forall council expenditureImplemented2018/19 year end internal audit1Credit balances are included in Debtors.The amount is immaterial and noadjustment is proposed for the accounts.Where significant, credit balances inDebtors should be included withinCreditorsNoted2The Risk Assessment states that thethreshold for securing quotations is 2500. The current level is the FinancialRegulations is 3000.The Risk Assessment should be updatedImplementedAs part of the due diligence of thecharity we recommend analytical review2019/20 follow up – The loan has beenagreed and provide to the Bridgend2018/19 interim audit1A loan has been applied for from thePWLB and NALC will review the717
INTERNAL AUDIT REPORTBOLLINGTON TOWN COUNCILISSUERECOMMENDATIONFOLLOW UPapplication and make recommendationsto the PWLB in respect of the loan. Thereason for the application is to provide a 56k to loan a charity to buy a building.The council will have second charge onthe property. The accounts and reservesof the charity have been secured and anindependent ACA has produced one yearprojections to help the council assesswhether the loan and interest paymentsare affordable for the charity.procedures are applied to the currentand past two years accounts, and thatthe independent review certificates forthe last two years are secured to ensureno material qualifications or issues wereraised.Centre after the council carried outdue diligence, including a review ofthe security on the loan2 1980 was expended during the year topurchase CCTV at the civic hallCCTV cameras and infrastructureImplementedrepresent capital expenditure and shouldbe included in the asset register as anaddition in the next update of the assetregister3Income testing identified that wherecredit notes are issued against a saleinvoice, the credit note reference is notrecorded on the original invoice.To improve the audit trail the credit notereference should be recorded on theoriginal invoice8Implemented18
Resolved the 'Pop up Garden' budget was removed. The revenue from the Civic Hall was debated and it was agreed that the figures from 2019/20 would be reviewed as a comparison as the figures being used was influenced by Covid and maybe not as high as in the budget. The Clerk was asked to circulate the Cheshire East band D figures as a .
