Skip to main content

Council Documents

Internal Controls Policy & Procedure

Internal Controls

Under the Accounts and Audits Regulations 2011, it is the Responsible Financial Officer’s (RFO’s) responsibility to ensure that the Council’s day-to-day finances are run properly, but it falls to Council members to exercise a proper and reasonable degree of control over financial matters.  This task is delegated to the Internal Controls Councillor (ICC).

The ICC checks, by regular sampling that:

  • all anticipated income is received
  • expenses are properly authorised before payment is made, with the exception of agreed direct debits, and contractual payments such as salaries
  • the record of receipts and payments is kept up to date
  • a bank reconciliation is carried out monthly on all cashbook accounts
  • that wages are paid in accordance with pay scales and that tax and pension contributions re correctly accounted for with HMRC/the pension provider (if applicable).

Any anomalies are resolved with the Clerk / RFO and the ICC then presents a financial report to members, once a quarter at the council meeting.

An ICC checklist is appended.

Internal Audit

In addition to these internal control systems, there is a further legal requirement, that sits above the internal controls, for the Council to put in place an adequate and effective system of internal audit of its accounting and internal control systems. This is achieved through the appointment of an independent internal auditor (IA) who must be both competent and conversant with the regime of local government finance. The IA checks, by sampling that the internal controls are adequate and working. The IA visits at least once per year – more frequently if the Council requests – and the Annual Internal Audit Report forms part of the Annual Governance and Accountability Return (AGAR).


Is this page useful?