Audit overview: Below are the actions that have all been undertaken following on from the observations of the auditor.
A1 Specialist advice has been sought on the VAT charged and this is being worked through with the Princess Manager and the RFO
B1 The Council has reviewed its Financial Regulations 13/20/TC 3rd Feb 2020
B2 A stamp has been purchased and is being used to authorise all invoices
C1 Full Council minuted a review of Risk on 14/20/TC 3rd Feb 2020
C6 Full Council minuted the External auditors report on 19/20/TC 3rd Feb 2020
F1 The cash is physically counted monthly and it is now being documented F2 The prepaid card is now being topped up on an imprest basis.
Report Date: 9th March 2020
A – Appropriate accounting records have been kept properly throughout the year.
|1||The Council is considering some changes to its accounting processes||Council is considering changing the way in which it accounts for income from the Princess (currently this is done through individual account codes on the Nominal Ledger). The proposal is that this is to be done in the future to one income code, with details of income being provided from the ticketing system. This chance would occur at the start of the next financial year.||New income recoding arrangements to be documented a subject to review by Council and Internal Audit prior to the new financial year.||High|
B – This smaller authority met is financial regulations, payments were supported by invoices, all expenditure was approved and VAT was appropriately accounted for.
|1||The Council is not using the latest Model Financial Regulations||The Council has not formally reviewed and adopted the latest model NALC Financial Regulations issued in July 2019.||The Council to review and update its Financial Regulations||Medium|
|2||Invoices have not been approved in accordance with the Councils Financial Regulations||A sample of bank payments was selected. In one instance a payment made under Direct Debit, the invoice had not been signed in accordance with Financial Regulation 5.3. It was noted that the current practice is for invoices to be installed by the RFO.||The Council must ensure that all invoices are approved as required by the Councils Financial Regulations.|
The Council should consider using a ink ‘goods received’ stamp
C – This smaller authority assessed the significant risks to achieving its objectives and reviewed the adequacy of arrangements to manage these.
|1||The Council has not formally Minuted a review of Risk||The Council has purchased LCRS software in order to assist in the management of risk – this has been reviewed by Finance & Resources, but not yet by Full Council.||The Council must ensure that it has conducted a review of Risk prior to the end of the financial year.||High|
|2||The Council has not formally minuted consideration of the points raised by the External Auditor in their report.||The External Auditors Report has been considered by Policy and Finance Committee, but not, as yet by Full Council (it is understood that this will be presented to the January meeting)||The Council MUST ensure that it minutes consideration reports of the External Auditor||High|
F – This smaller authority assessed the significant risks to achieving its objectives and reviewed the adequacy of arrangements to manage these.
|1||Cash book petty cash balances are not subject to regular reconciliation to cash on hand||A spreadsheet is maintained for office petty cash. This is then input into Omega and a bank reconciliation performed on Omega. It is not currently practice for physical cash balances to be formally recorded and reconciled to the cashbook balance stated in Omega. It is understood that regular counts and verification of the cash balance are carried out.||The Council must ensure that it has conducted a review of Risk prior to the end of the financial year.||High|
|2||The Council does not have a formal system for the reimbursement of petty cash, which is reimbursed on an ad hoc lump sum basis.||Due to no bank counter service, cash is withdrawn using the prepaid debit card and used for petty cash. Reimbursements to the prepaid debit card are made on a lump sum basis, rather than as a specific amount to reimburse payments made.||The Council should review the arrangements for the reimbursement of petty cash. The Council should consider operating the debit card on an Imprest basis whereby payments are reimbursed for the specific total payments made during the period, rather than as a lump sum amount.||Medium|