Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP
Tel: 07732 681125
Email: heather@heelis.eu
Heather Heelis Dip HE Local Policy FILCM
Lynne Lodge Dip HE Local Policy
1
HEELIS&LODGE
Local Council Services • Internal Audit
Year End Internal Audit Report for East Bergholt Parish Council – 2024/2025
The following Internal Audit was carried out on the adequacy of systems of control in accordance with the
requirements of the Audit and Accounts Regulations 2015 and the guidance and instruction in the
Practitioners Guide 2025 and should be read in conjunction with the Interim Internal Audit report dated
9/1/2025. The following recommendations/comments have been made:
Income: £776,556 Expenditure: £289,983 Reserves: £885,828
2025 AGAR Completion:
Section One: Yes – to be approved by council
Section Two: Yes (draft figures) – to be approved by council
Annual Internal Audit Report 2024/2025: Yes
Certificate of Exemption: No
Financial regulations Standing Orders and Financial Regulations
Tenders
Appropriate payment controls including acting within the legal framework with
reference to council minutes
Identifying VAT payments and reclamation
Cheque books, paying in books and other relevant documents
Standing Orders in place: Yes
Reviewed: 13/2/2025 (Ref: 147.24.25)
Financial Regulations in place: Yes
Reviewed: 12/12/2024 (Ref: 106.24.25)
VAT reclaimed during the year: Yes
Registered: No
Submission Period: Amount:
01/04/2024-31/03/2025 £22,876.00
There were no tenders during the year that exceeded the £30,000 Public
Contract Regulations threshold.
Risk Assessment Appropriate procedures in place for the activities of the council
Compliance with Data Protection regulations
Risk Assessment document in place: Yes
Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP
Tel: 07732 681125
Email: heather@heelis.eu
Heather Heelis Dip HE Local Policy FILCM
Lynne Lodge Dip HE Local Policy
2
Insurance was in place for the year of audit (valid 25/2/2025 – continuous
cover). The following was noted at a meeting held on 23/1/2025 (Ref: 7) in
relation to the annual review of the Risk Assessment:
7. RISK ASSESSMENTS
Authority was delegated to the Chairman to sign off amended risk assessments
for this committee.
The Council have good internal financial controls in place. The Clerk provides
financial reports to council meetings. Councillors are provided with information
to enable them to make informed decisions.
Fidelity Cover: £500,000
The level of Fidelity cover is below the recommended guidelines of year end
balances plus 50% of the precept ie £885,828 + £103,691 = £989,519.
Recommendation: To review the level of Fidelity cover.
Transparency Under the Transparency code for smaller authorities, smaller councils with
income/expenditure under £25,000 should publish on their website from 1 April
2015:
Smaller Council: No
Website: https://www.eastbergholt.org/
The Council is not subject to the requirements of the Transparency Code for
smaller Councils. The Transparency Code for Councils with a turnover exceeding
£200,000 is not covered as part of the Internal Audit.
Under The Accounts & Audit Regulations 2015 15 councils must publish on
their website:
External audit report
2024 Annual Return, Section One Published – Yes
2024 Annual Return, Section Two Published – Yes
2024 Annual Return, Section Three Published – Yes
Under The Accounts & Audit Regulations councils must publish on their
website:
Notice of period for the exercise of public rights
Published – Yes
Period of Exercise of Public Rights
Date of Approval of the AGAR: 13/6/2024
Publication Date: 6/6/2024 Start Date: 17/6/2024 End Date: 26/7/2024
Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP
Tel: 07732 681125
Email: heather@heelis.eu
Heather Heelis Dip HE Local Policy FILCM
Lynne Lodge Dip HE Local Policy
3
5.79. Proper practices and the flow charts in Section 6 include guidance for this
area but the key points are:
• a 30 working day inspection period (this excludes weekends and public
holidays), with accounts and supporting records being made available at
reasonable times;
• the notice period should commence as soon as possible after approval of the
accounts by the authority and must include the first 10 working days of July;
• the announcement of public rights should be as soon as practicable after the
approval of the AGAR;
The Council have not published the Notice of exercise of public rights in
accordance with proper practice as detailed in the Practitioners Guide 2025.
Recommendation: The Council should first approve the AGAR before
publishing the Notice.
Under the requirements of the Accounts and Audit Regulations 2015
13(2b) council are required to display AGARs for the five years 2019-20, 2020-
21, 2021-22, 2022-23 and 2023-24 on their website.
The Council have met the publication requirements.
Below is a table of the documents confirmed as published on the Council’s
website:
Year of Audit AGAR Section 1 AGAR Section 2 AGAR Section 3
2023-2024 Published Published Published
2022-2023 Published Published Published
2021-2022 Published Published Published
2020-2021 Published Published Published
2019-2020 Published Published Published
Budgetary controls Verifying the budgetary process with reference to council minutes and
supporting documents
Precept: £160,000 (2025-2026) Date: 9/1/2025 (Ref: 120.24.25)
Precept: £148,000 (2024-2025) Date: 11/1/2024 (Ref: 8.6)
Effective budgetary procedures are in place. The precept was agreed in full
council and the precept decision and amount has been clearly minuted. The
Clerk ensures the council are aware of responsibilities, commitments, forward
planning and the need for adequate reserves. Budget papers are prepared to
ensure councillors have sufficient information to make informed decisions.
Budgets are monitored during the year.
Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP
Tel: 07732 681125
Email: heather@heelis.eu
Heather Heelis Dip HE Local Policy FILCM
Lynne Lodge Dip HE Local Policy
4
Income controls Precept and other income, including credit control mechanisms
All were found to be in order. Income controls were checked and a sample of
income received and banked cross referenced with the Cash Book and bank
statements.
Payroll controls PAYE and NIC in place where necessary.
Compliance with Inland Revenue procedures
Records relating to contracts of employment and pensions
PAYE System in place: Yes
Employer’s Reference: 245/WZ84265
P60s issued: Yes
The Council continue to operate RTI in accordance with HMRC regulations.
Payroll is outsourced. Supporting paperwork is in place and a P60 has been
produced as part of the year end process.
It is noted that the Council undertook a review of salaries at a meeting held on
9/1/2025 (Ref: 120.24.25).
Asset control Inspection of asset register and checks on existence of assets
Cross checking on insurance cover
A separate asset register is in place. Values are recorded at cost value/insurance
value. The total value of assets are recorded at £540,061. The figure in the
asset register corresponds with the figure in Section 2, Box 9 of the AGAR.
Bank Reconciliation Regularly completed and cash books reconcile with bank statements
All were in order. Bank Reconciliations are carried out regularly. The bank
statements reconciled with the end of year accounts and bank reconciliations for
all accounts.
Bank Balances at 31 March were confirmed as:
Santander xxxx9806 £5,522.15
Santander xxxx5987 £694,816.70
Suffolk BS* xxxx3244 £91,913.31
The Cambridge xxxx6940 £93,575.66
*Annual interest in November
The Council had no outstanding loans at the year end.
Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP
Tel: 07732 681125
Email: heather@heelis.eu
Heather Heelis Dip HE Local Policy FILCM
Lynne Lodge Dip HE Local Policy
5
Reserves General Reserves are reasonable for the activities of the Council
Earmarked Reserves are identified
The Council have adequate general reserves (£74,000.00) and have identified
earmarked reserves of £811,827.82 in their year end accounts.
Year-end procedures Appropriate accounting procedures are used and can be followed through from
working papers to final documents
Verifying sample payments and income
Checking creditors and debtors where appropriate.
End of year accounts have been prepared on a Receipts & Payments basis.
However, it is noted that this is the third consecutive year that the Council’s
income/expenditure has exceeded £200,000. As a result, the Council is required
to prepare the 2024/2025 accounts on an Income and Expenditure basis. See
below an extract from the Practitioners Guide 2025:
Reporting on income and expenditure basis
5.129. Current rules require authorities where the gross income or expenditure for
the year (whichever is the higher) has exceeded the threshold of £200,000 for a
period of three continuous years, to report their financial details on an income and
expenditure (I&E) basis, from the third year onwards. Authorities operating
below the £200,000 threshold have the option to report either on an income and
expenditure basis or on a receipts and payments (R&P) basis.
For information:
2022/2023 Income £209,388
2023/2024 Income £261,528
2024/2025 Income £776,556
Recommendation: To prepare the 2024/2025 accounts on an Income and
Expenditure basis.
Internal Audit
Procedures The 2024/2025 Interim Internal Audit report was considered by the Council at a
meeting held on 13/2/2025 (Ref: 142.3).
External Audit The Council have published Section 3 of the 2023/2024 AGAR on the Council’s
website.
Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP
Tel: 07732 681125
Email: heather@heelis.eu
Heather Heelis Dip HE Local Policy FILCM
Lynne Lodge Dip HE Local Policy
6
The following matters were brought to the attention of the Council:
Additional Comments/Recommendations
There are no additional comments/recommendations to make in relation to this audit.
I would like to record my appreciation to the Clerk to the Council for their assistance during the
course of the audit work.
Heather Heelis
Heelis & Lodge
25 May 2025
Contact details : 1 Hembling Terrace, Mill Lane, Suffolk, IP13 0PP
Tel: 07732 681125
Email: heather@heelis.eu
Heather Heelis Dip HE Local Policy FILCM
Lynne Lodge Dip HE Local Policy
7
HEELIS&LODGE
Local Council Services • Internal Audit
www.heelisandlodge.co.uk
INVOICE
To:
Please make cheques payable to: Heelis & Lodge
Terms – 14 days
Bank Details: Account 02539349 Sort Code 09-01-50
NB Change to bank account details
Thank you.
HEELIS&LODGE
Invoice No: HL9591
Date: 25 May 2025
Details Quantity Amount (£) Total (£)
To carry out Year End Internal Audit for East
Bergholt Parish Council for the year ended 31
March 2025
Banding: £500,001 – £1,000,000
1
370.00
370.00
Total
370.00
East Bergholt Parish Council
Unit 4CD
The Gattinetts Business Centre
Hadleigh Road
East Bergholt
CO7 6QT