Finance

Can I see this Code? (Yes, 13 easy pages)

Transparency Code for Smaller Authorities

• see page 11-12 for Publication requirements

Milestones 

• Issued as a recommended practice (Dec 2014)
• Made a Regulation by Parliament (by end of March 2015)
• Compliance required by April 2015 – present

Keeping our community informed about the Parish Council’s financial matters is a priority. Every council meeting agenda includes a thorough review of our finances. Alongside the minutes available on this website, we also provide access to our Annual Returns and other pertinent financial reports right here.

In accordance with the Local Audit and Accountability Act 2014, a new audit framework was established for local public authorities. Since April 1, 2017, smaller authorities, such as parish councils, with an annual turnover not exceeding £25,000 have been exempt from routine external audits.

Instead, these smaller authorities must adhere to the transparency requirements outlined in The Smaller Authorities Transparency Code 2015. Our Parish Council ensures compliance with the Transparency Code by fulfilling its publication obligations.

At the close of each financial year, the Council prepares the Annual Return, subject to scrutiny by both an internal auditor and an external auditor appointed by the government.

Please be aware that should the council’s income or expenditure surpass £25,000 within a financial year, it is exempt from the Transparency Code. Nonetheless, we are committed to sharing as much financial information as possible with our community.

1. List of Councillor or Member responsibilities (Website)
2. Publish all items of expenditure above £100 (annually ok, but quarterly best.)
   (Website: part of regular budgeting or here under Finance)
3. Minutes, agendas and meeting papers of formal meetings. (Website: Meetings)
4. Bank Reconciliation throughout year, and FYE (Website: Meetings)
5. Quarter Budget Review throughout year (at Council Meetings)
6. Asset Register – the details of public land & building assets (Website: Spreadsheet created by us with required info)
7. Risk Register – risks identified, given priority, plans made to mitigate high risk items. (Website: Spreadsheet created by us with required info)
   
   *”AGAR” at FYE of 31 March, start process for Annual Governance & Accountability Return for Smaller Authorities and complete by 30 June.
   
   
8. Certificate of Exemption
   • • Where? AGAR Form 2, page 3 of 6
     • Exemption from what? a limited assurance review under Section 9 of the Local (Smaller Authorities) Audit Regulations 2015.
     • When?  Decided at a Council meeting after March 31, submit by June 30
     • How? Complete CoE and notifying the External Auditor (PKF Littlejohn LLP)
9. Annual Internal Audit Report (AGAR, Internal Audit Report)
   • (AGAR Form 2, page 4 of 6)
10. Annual Governance Statement (AGAR, Section 1)
    • (AGAR Form 2, Section 1, page 5 of 6)
11. Accounting Statements Income, Expense, ST/LT Assets, Borrowings
    • (AGAR Form 2, Section 2, page 6 of 6)
12. Analysis of Variances >10-15% for Acct Statements (vs Prior Year)

• Navigating financial accounting for parish councils <25,000 (ScribeAccts)
• Annual governance & accountability return made easy (ScribeAccts)
• Good Councillors Guide on Finance and Transparency (2017, Refer Pages 51-55)
• Our APC policies (see: 2 “Fin’l Regs” & 2a Practitioners’ Guide)

Comparing Top Council Accounting Software: Rialtas, EdgeIT, Easy PC Accounts and Scribe

Per Alkham 2022/23 AGAR (14k precept, 120 transactions, IT Budget, £730), we have a pretty small budget vs other councils.  Sandgate has a £100k+ budget, with much more complexity.

But, our reporting requirements are exactly the same. (see Financial Regulations, section 17c.)  Using the right software (ScribeAccounts), we saves money on IT, but saves much, much more money in time & labour

Tim Prater, Chairman of Sandgate Council, loves Scribe and so do the Council & Clerk. He says it pays for itself many, many times over for Sandgate, and it will for us... (EasyPC was not even on his list, so he could not comment…. but he said we need look no farther than Scribe)  He owns https://praterraines.co.uk/ that manages Sandgate web site. Software is his business.

• Review ScribeAccounts for Budgeting, VAT, & Reporting made easy
  • Testimonials via this link including Tim Prater.
  • Sandgate PC Quarterly report per their standing order (17c), ours too.
  • a 1 month (free) demo… can prove this software’s capability.

Using other Parish Councils as a guide, we strive to implement our own best practices and tools.

FYI: Alkham 2022/23 (120 transactions, IT Budget, £730)
  – Mail costs (Ionos) & Web hosting (HugoFox) are way too high.
  – EasyPC accounts, optimising it (but Scribe may still be far superior !)

Stinsford PC (5k precept, staff costs 2k, 30 trans./year, IT Budget, £255)

  Highlight 1 – Multi-year view of Agendas (with attachments), Minutes (by year)
  Highlight 2 – Internal Audit Letter & Recommendation (each year)

Bibury PC (16k precept, staff costs 5k, 70 trans/yr, IT Budget, £816)
  Highlight – FYE Reporting Clarity

Holybrook PC (130k precept, staff costs 70k, IT Budget, £2k)

  Highlight – Fixed Asset Register

Writtle PC (130k precept, staff costs 67k, x transactions a year, IT Budget, £5k)
  Highlight – Fixed Asset Register

With our Finance page, Alkham PC has provided ideas for other councils, too.