This document remains the intellectual property of Arrow Accounting and may not be copied, or used without their prior written approval Use of any material within this document must be accredited to Arrow Accounting. Internal Audit Report Goring Parish Council Oxfordshire. Internal Audit Final Report nd April 2015 PDate: Sept 2010 Page 1

Report Index 1.Introduction 2.Scope of the Internal Audit. 3.Findings, recommendations and action plan. 4.Internal Auditors summary report. Page 2 An internal audit review of Goring Parish Council’s Financial controls for 2014/15 has been undertaken by Arrow Accounting. The work covered was a key control review of the systems in place for ensuring an adequate level of Governance and Financial control. Previous recommendations were followed-up. Introduction

Scope of the Internal Audit The review included the following:- o Bookkeeping Arrangements. o Payments in relation to Financial Regulations. o Review of Internal Controls. o Budgetary Controls. o Expected Income fully received and properly recorded. o Petty Cash levels and payments supported and approved. o Payroll Controls, salaries & fees. o Asset Controls. o Bank Reconciliations. o Accounting Statements. o Trust Funds (If applicable). o Review and completeness of audit action plans. o Review of External Audit recommendations made in the previous year. o Review of Section 1 of the Annual Return and the Financial Statements. o Auditors Summary. Page 3

Findings, recommendations and action plan ProcessAnnual Return Section FindingsRecommendationsAction Planned Bookkeeping Arrangements AAppropriate books of account have been properly kept throughout the year. Well maintained with sound audit trails. NoneN/A Councils Financial Regulations have been met in regard to expenditure. BThe Councils Financial Regulations have been met in that appropriate authorisations have been given for each level of expenditure. Payments were supported by Invoices, expenditure was approved and VAT was appropriately accounted for. Recommend that the Council ensures the correct spending powers are used and not state Section 137 when not appropriate. Review of Internal Controls. CThe Council has assessed the significant risks to achieving its objectives and reviewed the adequacy of arrangements to manage these. Although this has been completed, I would recommend that it is undertaken in the format I have sent to the Parish Clerk. Page 4

ProcessAnnual Return Section FindingsRecommendationsAction Planned Budgetary Controls (Precept requirement) Budgetary Controls (Budget monitoring) The final Outturn is in line with expectations. DThe Annual precept requirement resulted from an adequate budgetary process. Progress against the Budget was regularly monitored. The final Outturn was materially in line with expectations. None N/A Income controlsEExpected Income was fully received and properly recorded. NoneN/A Petty cash controlsFPetty cash was not operated within the year. NoneN/A Page 5

ProcessAnnual Return Section FindingsRecommendationsAction Planned Payroll controlsGSalaries to employees and allowances to members were paid in accordance with council approvals. PAYE and NI requirements were properly applied. NoneN/A Asset ControlsHThe Asset register has correctly recorded all material Assets. The correct basis of valuation has been applied. NoneN/A Asset ControlsHAdditions in the year have been correctly recorded within the Cash Book and Register NoneN/A Asset ControlsHAll appropriate Deeds and Titles have been established and shown on the Register. NoneN/A Page 6

ProcessAnnual Return Section FindingsRecommendationsAction Planned Bank Reconciliations IPeriodic and year- end bank account reconciliations were properly carried out. NoneN/A Accounting Statements JCorrect accounting basis used and reconciled to the Cash Book. There is a rounding error of £1 brought forward in the Accounts from last year. I would recommend that these rounding errors are reconciled completely. Trust Funds (If applicable) KThe Parish Council operates as a Trustee for an external body. Charity No: & None The Council has met it’s responsibilities N/A Page 7

ProcessCriteriaFindingsRecommendationsAction Planned Review of Internal audit action plan has been considered and actioned? External Audit recommendations have been considered and actioned. Qualifications made, if any have been addressed in 2014/15. Good PracticeRecommendations made in the previous year 2013/14 have been actioned. 1)Vat Dispensation Confirmed. 2)Freedom of information appeals forming part of the Councils Agenda. There were no qualifications to address. None – All addressed Recommend that the Council considers registering for VAT. I recommend that the Council considers this and acts in future instances. None N/A Page 8

Review of Critical Financial & Governance Documents FindingsRecommendationsAction Planned Year End Accounts. Annual Return. Risk Assessment. Insurance Policy. Asset Register. Bank Reconciliation. Variance Analysis. External Audit Report. Vat Return (if applicable). Bank Mandates & cheques. PAYE Confirmations Complete & Accurate. Reviewed in the year. Fidelity Guarantee Insurance. Complete and Accurate. Completed and Accurate. Completed. Reviewed Issues covered. N/A – Section 33. Following best practice. Reviewed and in place. Rounding None See Recommendations None N/A Page 9

ProcessCriteriaFindingsRecommendationsAction Planned Accounting Statements agreed and reconciled to the Annual Return Section 1 of the Annual Return Part 1 of the Annual return is complete and accurate and reconciles to the statement of accounts. The accounting statements in this annual return present fairly the financial position of the council and its income and expenditure, or properly present receipts and payments, as the case may be. NoneN/A Page 10

Internal Auditors Summary Report Goring Parish Council has an electorate in the region of 2692 and the precept for 2014/15 was set at £85,713. Overall, the Council has sound arrangements in place to satisfy itself that its systems of internal financial control are both adequate and effective. There are approval and authorisation controls and there is a clear audit and management trail for financial transactions. Phil Hood Arrow Accounting (Internal Audit) 22 th April 2015 Page 11