FINANCE COMMITTEE

Minutes of the meeting of the Finance Committee held at 7.30pm on Monday, 2 September 2002 at The Institute.

Councillor Lewis, Chair, presided over Councillors Chambers, Fisk and the clerk. There were no members of the public present.

006 APOLOGIES FOR ABSENCE were received from Councillors Anderson and Stevens.

007 DECLARATIONS OF INTEREST None.

008 MINUTES OF THE PREVIOUS MEETING

It was noted that the minutes of the meeting held on 15 May 2002 had been received at the Council Meeting held on 30 May 2002 and subsequently agreed as a true and correct record and signed at the Council meeting held on 27 June 2002. It was resolved to accept the minutes as read and adopted.

009 MATTERS ARISING None.

010 ANNUAL RETURN FOR THE YEAR ENDING 31 MARCH 2002

The Committee considered the various questions in the Annual Return and made responses accordingly, which were based on the accounts for the year ending 31 March 2002 adopted by the Council on 25 April 2002.

The only area for concern related to the report of the Internal Auditor. As an appointment had not been made by 31 March 2002, this could not be completed. An appointment is expected shortly and the clerk was instructed to send an explanatory note with the Annual Return to this effect

Having completed the various questions, the Committee resolved that it was a true representation of the Council’s financial position and the Chairman of the Council and clerk signed the Annual Return accordingly. The Chairman requested that a copy be provided for each member of the Council with the Minutes of the meeting.

The Committee resolved to instruct the clerk to submit the Annual Return to the External Auditor on the Parish Council’s behalf.

011 APPOINTMENT OF AN INTERNAL AUDITOR

The clerk reminded members that such an appointment was necessary following the Audit Commission’s introduction of the new system of audit notified on 28 March 2002 to take effect from 31 March 2002. It had clearly not been possible to make such an appointment in time for that financial year’s audit but one was now needed for the current financial year onwards. The Council had agreed that an honorarium of up to £100 per annum could be paid to the post holder and that the Finance Committee should make a recommendation for the appointment.

The role of the Internal Auditor is to confirm that the accounts balance and that the Council properly manages its finances by following its procedures, systems of control, budgeting processes and undertaking regular risk management assessments of its activities. The key requirements of such a person are to be independent of the Council (i.e. not an officer, employee or serving member), have an understanding of accounting processes and some knowledge of parish council legislation and procedures. It is anticipated that such a role at this Council will involve approximately ten hours per year. Current advice is that it is neither necessary nor desirable (in view of costs) to appoint a professional firm of accountants.

Having discussed the profile of the post, it was agreed to recommend to the Council that Carol Precey, a former Councillor with good experience in local affairs, be invited to undertake the role of Internal Auditor for Deeping St James Parish Council.

012 REVIEW OF THE COUNCIL’S STANDING ORDERS

The Committee noted the Council’s instruction that a full review of Standing Orders be undertaken by it in light of the various changes to Parish Council activity and procedure in recent months. It was agreed that the clerk should produce a draft document containing existing Orders, NALC recommendations, the Council’s current practice and the Orders which must be followed by law. The Committee will consider this document at the next meeting and a final version will then produced with a recommendation to the Council for its adoption.

013 DRAFTING OF A FINANCIAL REGULATIONS PROTOCOL

The clerk advised members of the internal systems of control with respect to financial management. These have always been found to be satisfactory for both Council and external audit purposes but have never been written into one document. Having noted the Council’s instruction that such a protocol be prepared by the Committee for adoption by the Council, it was agreed that the clerk should produce a draft document for review at the next meeting of the Committee.

014 DATE OF NEXT MEETING - Monday, 14 October at 7.30pm in the Institute.


The meeting closed at 8.40pm.