COUNCIL MEETING 13 JUNE 2024
INTERNAL AUDIT 2023/24
RECOMMENDATIONS FROM THE INTERNAL AUDITOR.
1. The Council’s accounts have been audited by the Internal Auditor for the
financial year 2023/24. The report is document 8.3.1 on this agenda. In its
opening paragraph it is stated that the year end report should be read in
conjunction with the Interim Internal Audit report dated 1 December 2023 and
covering the first half of the financial year. The interim report was reported to
Council on 11 January 2024 and is attached as document 8.3.2 on this
agenda together with the Clerk’s covering report. This report addresses the
recommendations of the Internal Auditor in both audit reports.

2. Interim Report
The report for the first half of the financial year contained a number of
recommendations which have been addressed as follows:

1. Data Protection – To ensure reference to GDPR in the Council’s risk
assessment when reviewed.
The Council is currently undertaking reviews of all its risk assessments
and this issue will form part of the relevant review.

2. Risk Assessment – To review the level of Fidelity cover.
This is insurance cover for losses arising from corrupt actions of
employees and trusted third parties. The policy cover is £300,000 but
recommended guidelines are for year end balances plus 50% of the
precept which for 2023/24 amounted to £387,450. For 2024/25 the
guideline figure is £473,254 and the cover on the policy has been
increased to £500,000.

3. Transparency – To publish the audited Annual Governance and
Accountability Returns for the last five years on the Council’s website prior
to 31/01/24.
Four years AGARs were already published and the fifth for 2018/19 was
added by the deadline date.

4. Other – Minutes kept in a loose-leaf format be consecutively numbered.
This has been implemented with effect from the Annual Council Meeting
on 9 May 2024.

3.Year End report
The report for the Year End contained a number of recommendations which
have been addressed as follows:

1. Financial Regulations – For grants the Council should not use Section
137 of the Local Government Act 1972 whilst they hold the general power
of competence which becomes the power of first resort.
It is not unlawful to rely on the provision in the Local Government Act nor
mandatory to use the general power of competence as statutory authority
for grant awards. Both are available and can properly be relied upon.
Notwithstanding for 2024/25 the general power of competence will be
used which will avoid reference in the next internal audit report.

2. Risk Assessment – The review of Risk Assessments was not conducted
within the scope of the 2023/24 audit and the AGAR Return must reflect
that.
Whilst the review of Risk Assessments was scheduled for within the
municipal year it was outside the financial year. The AGAR Return
submitted to Council reflects this. In future years the Council must ensure
that its review of Risk Assessment is conducted within each financial
year.

3. Risk Assessment – To highlight in the insurance schedule the level of
fidelity cover held by the Council.
This was addressed following the interim report (see note 2.2 above) and
upon renewal of the policy the insurers were requested to increase the
cover. However, they overlooked this. The matter has now been rectified
and the fidelity cover increased to £500,000.

4. Reserves – (i)General reserves currently stand at twice the level of
precept. The Council should explain the high level of reserves or allocate
some to earmarked reserves. It is noted that the Council will be using
reserves to offset the 2024/2025 budget. It is noted that the Council
adopted a Reserves Policy at a meeting held on 8/2/2024. The Policy
provides a very good overview of the definition of reserves. To give the
policy more relevance it would benefit from additional information such as
what level of general reserves the Parish Council will aim to keep
e.g.50%,75% of the precept or 6 months running costs.
(ii)To provide additional information in the Reserves policy.
These recommendations will be referred to the Strategy, Policy and
Finance Committee at its next meeting.

It is RECOMMENDED that the Council approves the responses to the Internal
Auditor’s recommendations as set-out in the report.

Graham White
Parish Clerk
6 May 2024