INTERNAL AUDIT REPORT
GREAT SANKEY PARISH COUNCIL
2024/2025
The internal audit of Great Sankey Parish Council was carried out by undertaking the following tests as specified on the Annual
Return 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 by
invoices, 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 regularly
monitored 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 promptly
banked and VAT is correctly accounted for
Reviewing petty cash records to ensure payments are supported by receipts, expenditure is approved and VAT is correctly
accounted for
Checking that salaries to employees have been paid in accordance with Council approvals and that PAYE and NI requirements
have 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 statements
Conclusion
On the basis of the internal audit work carried out, which was limited to the tests indicated above, in our view the council’s system of
internal controls is in place, adequate for the purpose intended and effective, subject to the recommendations reported in the action
plan overleaf.
As part of the internal audit work for the next financial year we will follow up all recommendations included in the action plan.
JDH Business Services Limited
1
INTERNAL AUDIT REPORT
GREAT SANKEY PARISH COUNCIL
2024/2025
ACTION PLAN
ISSUE RECOMMENDATION FOLLOW UP
1 The financial regulations require that the Contracts should be awarded as per the
Clerk shall obtain 3 formal written financial regulations of the Council.
quotations for the Council/Finance
Committee to consider for contracts over When three quotes can’t be obtained, the Reasons are recorded in the minutes of
£3000. reasons for this should be recorded in the the Finance Committee meeting which
council minutes when the contract is considers quotes before making
For the following contracts, we did not see awarded. recommendations to Council.
evidence that three quotes were obtained
before the contract was awarded: Resolved: to ensure reasons for
• Plastic panelling contract at Whittle considering less than 3 quotes is recorded
Hall Community Centre £3,535 in the minutes of the Finance Committee
• BB Stairwell contract – evidence Minutes if it has not been possible to
seen that two quotes were obtained. obtain 3.
• Mass bulb planting contract £23,616.
Other quotes were not obtained
because the style of mass planting is
done with a specialist machine, only
offered by this Company.
2 It is difficult to follow through from the The council should consider utilising a Resolved: to investigate options & costs
monthly cash books to the figures entered in parish council bespoke accounts package for accounts software.
the ETB and therefore the resulting income which would have a clearer audit trail and
and expenditure accounts. would assist in monthly budgetary
The balances used for both receipts and reporting.
payments are £2867.81 lower than the
balances in the monthly cash book.
Currently balances are transferred from the
2
INTERNAL AUDIT REPORT
GREAT SANKEY PARISH COUNCIL
2024/2025
monthly cash book spreadsheets to budget
monitoring sheets and the ETB spreadsheet.
3 Budgetary Control: The council should ensure that appropriate Resolved: To review the Financial
The newly adopted Financial Regulations do internal controls over virements and Regulations regarding virements and
not contain any controls over budget budgetary control reporting are budgetary control reporting as clauses
virements or budgetary control reporting as incorporated into the adopted Financial appear to have been missed from the
currently the new FRs state only the Regulations. most recent update.
following:
4.9. The agreed budget provides a basis for
monitoring progress during the year by
comparing actual spending and income
against what was planned.
The previous model Financial Regulations
contained both detailed controls for
virement authorisations and budgetary
control reporting as follows:
4.2. No expenditure may be authorised that
will exceed the amount provided in the
revenue budget for that class of expenditure
other than by resolution of the council, or
duly delegated committee. During the
budget year and with the approval of
council having considered fully the
implications for public services, unspent and
available amounts may be moved to other
budget headings or to an earmarked reserve
as appropriate (‘virement’).
3
INTERNAL AUDIT REPORT
GREAT SANKEY PARISH COUNCIL
2024/2025
4.8. The RFO shall provide quarterly the
council with a statement of receipts and
payments to date under each head of the
budgets, comparing actual expenditure to
the appropriate date against that planned as
shown in the budget. These statements are to
be prepared at least at the end of each
financial quarter and shall show
explanations of material variances. For this
purpose “material” shall be in excess of
£xxx or xx% of the budget.
Follow up of 2022/23 internal audit recommendations
1 There is no current adopted Investment The council should consider establishing Implemented
Strategy and Treasury Management strategy. an Investment Strategy and Treasury
Management strategy with reference to the
Guidance on Local Government Investments requirements of the Local Government Act
is issued under section 15(1)(a) of the Local 2003.
Government Act 2003. The guidance applies
to all local authorities in England and
applies to Town & Parish Councils
providing their total investments exceed or
are expected to exceed £100,000 at any time
during the financial year.
2 Included within reconciling items in the The bank reconciliation should be Restated on the 24/25 annual return
bank reconciliation is a payment of £1977. amended to remove this reconciling item.
This is a final payment for a contract which This would amend the the total cash &
hasn’t been paid because the work is not investments on the annual return to
4
INTERNAL AUDIT REPORT
GREAT SANKEY PARISH COUNCIL
2024/2025
completed. 395,338.
This should not appear in the bank The balance sheet should be amended so
reconciliation as a reconciling item. This that this item is a creditor and not a
amount should appear in the accounts as a reconciling item in the cash book.
creditor.
The Council were unable to provide Year-end balances should be requested
statements verifying the balances at the from Equals.
year-end on individual Equals Cards due to
staff absences at the year -end and
difficulties obtaining historic information.
3 Testing of a sample of payments identified: Receipts should be obtained for all Receipts available for items tested in
• A receipt was not available for a transactions using the Equals card. 24/25.
£230 skip hire payment made with Payments should be reported to Council. Card payments are not recorded
the Equals card. We also could not separately in the minutes.
locate approval for this payment in
the minutes (although top up of the
Equals card was approved).
4 We could not locate on the Council website The Council must ensure that the council Implemented
the following information required by The website meets the requirements of The
Transparency code for larger councils: Local Government Transparency Code.
• Details of contracts over £5000 2015
• Information about land and building
assets
5