Newmarket Town Council Interim Audit Report 2022-2023 by Heelis & Lodge

HEELIS&LODGE

Local Council Services • Internal Audit

Interim Internal Audit Report for Newmarket Town Council – 2022/2023

The following Internal Audit was carried out on the adequacy of systems of control. The following recommendations/comments have been made:

Proper book-keeping Cash Book, regular reconciliation of books and bank statements. Supporting vouchers, invoices and receipts

All were found to be in order. The Council hold the General Power of Competence and LGAs137 does not apply.

The Council operate the RBS Omega accounting software. The cashbook is referenced providing a clear audit trail. Supporting paperwork is in place and well referenced.

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: 23/5/2022 (Ref: 22/05/18)

Financial Regulations in place: Yes
Reviewed: 22/11/2021 (Ref: 21/11/12.07) F&P (Ref: F/21/11/13)

VAT reclaimed during the year: Yes Registered: Yes

Submissions: 1/4/2022 – 30/6/2022 £18,742.12
1/7/2022 – 30/9/2022 £20,533.74

General Power of Competence: Yes

The Council adopted the new LGA Code of Conduct at the Annual meeting held on 23/5/2022 (Ref: 22/05/26).

There were no tenders during the year that exceeded the £25,000 Public Contract Regulations threshold.

The Council have a comprehensive suite of policies in place. Policies are published on the 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

Risk Assessment Appropriate procedures in place for the activities of the council
Compliance with Data Protection regulations

Risk Assessment document in place: Yes
Data Protection registration: Yes (Ref: ZA090217)

Insurance was in place for the year of audit and a review undertaken on 23/5/2022 (22/05/23). The Risk Management document including was reviewed at a meeting held on 25/4/2022 (Ref: 22/04/10.04). A further examination will be undertaken at the year end.

The Council have effective 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.

Bank signatories were reviewed at a meeting held on 25/7/2022 (Ref: F/22/07/14).

Fidelity Cover: £500,000

The level of Fidelity cover is below the recommended guidelines of year end balances plus 50% of the precept (£465,431 + £357,000 = £822,431).

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: www.newmarket.gov.uk

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
2022 Annual Return, Section One Published – Yes
2022 Annual Return, Section Two Published – Yes
2022 Annual Return, Section Three Published – Received, published on the notice board and due to be uploaded to the 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

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

Start Date 1/7/2022 End Date 11/8/2022

Budgetary controls Verifying the budgetary process with reference to council minutes and supporting documents
Precept: £715,210 (2022-2023) Date: 31/1/2022 (Ref: 22/01/20.01)

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.

Income controls Precept and other income, including credit control mechanisms

All were found to be in order. Income controls were checked and income received and banked cross referenced with the Cash Book and bank statements. A clear audit trail is in place.

Venue hire fees were reviewed at a meeting held on 3/5/2022 (Ref: CL/22/05/10) where it was resolved to existing charges and Terms and Conditions remain unchanged for 2022/2023.

Petty Cash Associated books and established system in place

A satisfactory petty cash system is in place with supporting paperwork. A sample of receipts were examined from April 2022 to October 2022 and cross referenced with vouchers and the cash book. Regular reconciliations are undertaken. VAT is recorded on petty cash payments. A clear audit trail is in place.

Payroll controls PAYE and NIC in place where necessary.
Compliance with Inland Revenue procedures
Records relating to contracts of employment

PAYE System in place: Yes
Employer’s Reference: 126/N254

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

The Council continue to operate RTI in accordance with HMRC regulations. The 2022-2023 salary award has been received and will be implemented with the November salaries.

Asset control Inspection of asset register and checks on existence of assets
Cross checking on insurance cover

A separate asset register is in place. A review was undertaken at a meeting held on 23/5/2022 (Ref: 22/05/22). A further examination will take place at the year end audit.

Bank Reconciliation Regularly completed and cash books reconcile with bank statements
All were in order. Bank Reconciliations are carried out regularly.
Bank Balances at were confirmed as:
Unity Trust Current #1 xxxx4770 £724,134.56 (31/10/2022)
Petty Cash £150.00 (31/10/2022)
Barclaycard (£892.91) (31/10/2022)
Unity Trust Current #2 xxxx9458 £20,311.90 (31/10/2022)

Reserves General Reserves are reasonable for the activities of the Council
Earmarked Reserves are identified

To be carried out at the year end.

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.
To be carried out at the year end.

Sole Trustee The Council has met its responsibilities as a trustee

The Council is not a sole trustee.

Internal Audit
Procedures

The 2022 Year End Internal Audit report was considered by the Council at a meeting held on 27/6/2022 (Ref: 22/06/11).

External Audit The Council formally approved the 2022 AGAR at a meeting of the full Council held on 27/6/2022 (Ref: 22/06/12).
The 2022 External Auditor’s report was considered at a meeting held on24/10/2022 (Ref: 22/10/14).

There were no matters arising from the External Audit.

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

Additional Comments/Recommendations

The Annual Town Council meeting was held on 23/5/2022. The first item of business was the Election of Chairman, in accordance with Standing Orders.

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 her assistance during the course of the audit work and the quality of documentation presented for the audit.

Heather Heelis
Heelis & Lodge
10 November 2022
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