Statement of Internal Controls 2026

Diamond Jubilee Lodge, Wood View Road, Hellesdon, Norwich, NR6 5QB
Tel: 01603 301751 www.hellesdon-pc.gov.uk email: Clerk@hellesdon-pc.gov.uk

STATEMENT OF INTERNAL CONTROLS

1. SCOPE OF RESPONSIBILITY

Hellesdon Parish Council (the Council) is responsible for ensuring that its business is conducted in
accordance with the law and proper standards, and that public money is safeguarded and properly
accounted for, and used economically, efficiently and effectively.

In discharging this overall responsibility, the Council is also responsible for ensuring that there is a sound
system of internal control which facilitates the effective exercise of the Council’s functions and which
includes arrangements for the management of risk.

2. THE PURPOSE OF THE SYSTEM OF INTERNAL CONTROL

The system of internal control is designed to ensure that the council’s activities are carried out
properly and as intended. Controls will include the checking of routine financial procedures; the
examination of financial comparisons; the recording of assets and liabilities; the identification of risk
and to evaluate the likelihood of those risks being realised and the impact should they be realised, and
to manage them efficiently, effectively and economically.

3. PERSONNEL INVOLVED WITH THE INTERNAL CONTROL ENVIRONMENT

3.1 The Council:

The Council has appointed a Chairman who is responsible for the smooth running of meetings and for
ensuring that all Council decisions are lawful. Decisions made should be within the Standing Orders
and Financial Regulations laid down and approved by the Council. The Council reviews its obligations
and objectives and approves budgets for the following year at its meetings during October to
December. The January meeting of the Council approves the level of precept for the following
financial year. The Council will receive reports and recommendations from the Effectiveness of
Internal Control Working Party. The Council receives a monthly summary financial statement which it
approves at its Council meetings. Payments are made in accordance with Standing Orders and
Financial Regulations.

3.2 Parish Clerk and Responsible Finance Officer:

The Council has appointed a Parish Clerk as the Council’s advisor and administrator who is also the
Responsible Finance Officer. The Council has also appointed a Finance Officer who is responsible for
administering the Council’s finances. The Parish Clerk and Finance Officer are responsible for the day-
to-day compliance with laws and regulations that the Council is subject to and for managing risks. The
Parish Clerk and Finance Officer also ensure that the Council’s procedures, control systems and

1 Hellesdon Parish Council
Statement Internal Controls Adopted May 2026
Next Review May 2027
 policies are maintained.

3.3 Internal Auditor:

The Council has appointed an Independent Internal Auditor who reports to the Council on the
adequacy of it’s:
• Proper bookkeeping arrangements
• Corporate governance, financial regulations and risk management procedures
• Payment, petty cash and salaries procedures
• Precept determination
• Budgetary control
• Income control
• Asset registers
• Investment and loans
• Bank reconciliation
• Financial statements
The Council appoints the Independent Internal Auditor on an annual basis. The Internal Auditor, who is
competent and independent, is advised of the scope of the work required by the Council.

4. Review of Effectiveness:

The Council has responsibility for conducting an annual review of the effectiveness of internal control.
The review of the effectiveness of internal control is informed by the work and any issues identified
by:
• Full Council – identification of new activities
• Parish Clerk and Finance Officer who have responsibility for the development and maintenance
of the internal control environment and managing risks
• Independent Internal Auditor who reviews the Council’s system of internal control. The
Independent Internal Auditor will make written reports to the Council (in addition to the report
contained in Section 4 of the Annual Governance and Accountability Return - AGAR)
• The Council’s External Auditors, who make the final check using the Annual Return, a form
completed and signed by the Responsible Finance Officer, the Parish Clerk, the Chairman and the
Internal Auditor. The External Auditor issues an annual audit certificate.

System of Internal Financial Control
Cash Book/Bank Reconciliations

• The cash book is kept electronically (in accounts software – RBS), maintained up to date from
original documents (cash received, invoices, payments and direct debits made and cheques as
they are prepared).
• The cash book is reconciled to the bank statement at least monthly.
• Reconciled accounts are presented at each Parish Council meeting for approval.
• The cash books, payments and receipts and bank reconciliation is reviewed and approved by
council appointed internal scrutineer as per Financial Regulations, with reference to the
underlying records (bank statements and minutes plus copies of accounts papers etc.) at least
annually.
• The bank reconciliation is reported to the full Parish Council and minuted as such.
2 Hellesdon Parish Council
Statement Internal Controls Adopted May 2026
Next Review May 2027
 • The latest financial position and movements on the Parish Council’s cash balances are reported
at each council meeting and can be traced back to the expenditure approved in the previous
meeting via the expenditure lists.

Financial Regulations
• The Parish Council has adopted financial regulations, based on the model version prepared by
NALC/SLCC. The regulations are reviewed annually for continued relevance and amended
where necessary by the Responsible Financial Officer with any proposed amendments subject to
approval by the Parish Council.
• The Financial Regulations list the number of estimates, quotes or full tenders that must be
invited depending on the value and nature of the work.
• Official orders/letters are sent to suppliers for services which are not regular in nature.

Payment Controls
• Purchase orders/emails/letters ordering the work are matched to purchase invoices where
applicable.
• Payments will be listed in voucher number order in the cash books and in accounts files.
• Every payment has a unique sequential transaction number which is matched to the payment
invoice and the corresponding transaction on the bank statement.
• All invoices for payment are listed and presented each week to two of the four nominated
councillors. The expenditure is authorised for payment.
• Payments made are listed, on a separate sheet & presented at the next meeting of the full
council to be noted and agreed.
• Original invoices are available to the Councillors signing the cheques or authorising BACS
payments.
• Cheques will be signed by two Councillors, who are authorised to sign on the council’s bank
mandate.
• The council has an online banking system in place, for the purpose of viewing statements,
transferring funds between accounts, and making Bacs Payments only once authorisation has
been made (as below)
• Bacs payments are authorised to be made by two councillors, who are authorised to sign on the
council’s bank mandate. Upon authorisation the payment is set up on the online banking
system by the finance officer, and is agreed/authorised by The RFO.
• The Finance Officer under the guidance of the RFO, is authorised to set up direct debit
payments.
• The Finance Officer under the guidance of the RFO maintains control of the cheque book at all
times.
• Every payment is identified by a sequential unique number. This number is used to identify the
transaction in the payments cashbook, the invoice and cross referenced on the bank statement.
• When invoices are paid by cheque, they are identified by the cheque number and referenced in
the cashbook by the cheques number, as well by the unique identifier. This is cross checked
with the bank statements.

VAT Repayment Claims
• The RFO along with the Finance Officer ensures that all invoices are addressed to the Parish
Council.

                                                        3                                     Hellesdon Parish Council
                                                                        Statement Internal Controls Adopted May 2026
                                                                                               Next Review May 2027
   •   The RFO along with the Finance Officer ensures that proper VAT invoices are received where
       VAT is payable.
   •   The RFO along with the Finance Officer maintains a VAT account to show that the correct
       amount of VAT is reclaimed in the year.

Income Controls
• The RFO ensures that amount of the precept received is correct in accordance with the precept
request sent to the District Council.
• The RFO along with the Finance Officer ensures that the precept instalments are received when
due.
• The RFO along with the Finance Officer ensures that other receipts (deposit interest, allotment
and land rents) are received when due and correctly calculated.
• Receipts are issued for all cash received. Receipt numbers are recorded against payments.
• Income is banked promptly.

Financial Reporting
• A Budget control, comparing actual receipts and payments to the budget and the previous year
is prepared monthly, and presented to Full Council in advance of the meeting and minuted
accordingly.
• The budget is prepared in consultation with the Parish Council, as evidenced by reports and
minutes in advance of the start of the year.
• The precept is set on the basis of the budget by the deadline set by Broadland District Council.

Payroll Controls
• The Clerk is paid under PAYE as an employee and the necessary system for HMRC RTI is in place.
• Other employees are paid under PAYE and the necessary system for HMRC RTI is in place.
• Salaries are set as per Contracts of Employment.
• Salary is paid by Bacs.
• The Clerk will ensure that all the necessary payroll returns are made to HMRC and will retain
evidence that this has been done.

Officers and Members Expenses
• Requests for reimbursement of monies owing by way of an expense incurred is made
immediately the purchase is paid and is authorised by the RFO or an appropriate official
independent of the claim.
• Expenses are paid by cash, cheque and Bacs and the expense is treated as an invoice for
accounting purposes.

Asset Control
• The RFO along with the Finance Officer maintains a full asset register.
• The existence and condition of assets is checked on a regular basis by Officers of the Parish
Council or as a need is identified.
• The adequacy of insurance of the Parish Council’s assets is considered annually in advance of the
insurance renewal

4 Hellesdon Parish Council
Statement Internal Controls Adopted May 2026
Next Review May 2027