3
Petty cash procedures
Is all petty cash spent recorded and supported by VAT invoices/receipts? N/A Is petty cash expenditure reported to each council meeting? N/A Is petty cash reimbursement carried out regularly? N/A
As the Parish Council’s Internal Auditor, I have a good understanding of Parish Council Accounts. This has not been a normal year due to Covid 19 and the Council has had to work hard to operate effectively whilst maintaining good control accountability of its finances. I note that at Sect 3 of the Annual Return for FY 16/17 the External Auditor drew attention to the fact that my predecessor had answered yes to Objective F in relation to Petty Cash and stated that this should state "not covered" as the Council does not operate a petty cash system. To that end I have attached a letter to the Council's AGAR for 2020/2021 which confirms that my reason for ticking the "not covered" box at Section F of the Internal Control objective on page 4 of Collingbourne Ducis Parish Council's AGAR for 2020/21 is that no Petty Cash is held. The RFO continues to keep the account in good order. Although I note that the balance carried forward into FY21/22 is £8K lower that that carried forward into 20/21 which was mainly due to the completion of both a Footpath & Book Exchange project. The Council can take pride in its efforts to ensure that every penny spent was spent wisely. With regards to the budget, I note that there are funding lines of £7.5 K for a Bus Shelter Project and £2K for a Speed Indicator Project (also budgeted for in FY 19/20). I remind the Council that it needs to be sure that if it has major funding lines in the budget then every effort should be made to use those in that FY. I also note that as recommended in the last report the Council set its General Reserves as a minimum of 100% of the annual precept however the Council has reduced the reserves to 65% of the annual precept for FY 21/22 in order to the keep rise in the precept to 1.1%. I note that the significant variances are included with the Annual Governance and Accountability Return documentation and that a review of the effectiveness of this Internal Audit is on the agenda for the 17 May 2021 Meeting I confirm that during summer 2020 the Council had correctly provided the proper assurance for the exercise of public rights in accordance the requirements of the Accounts and Audit Regulations. I also note that the Council has income and expenditure in excess of £25K and as such there is a requirement for a limited review. I advise the Council that its current internal controls and accounting practices combined with its Financial Regulations and Risk Assessment meet the standard required to allow the Council safely to sign off the Annual Governance Statement and Accounts Statements as required at Sect 1 & 2 of the Annual Governance and Accountability Return Part 3. Yours sincerely Michael Cox Internal Auditor to Collingbourne Ducis PC