MINUTES OF THE MEETING OF CHOPPINGTON PARISH COUNCIL HELD ON WEDNESDAY 24 MAY 2023 AT STAKEFORD AND BOMARSUND SPORT AND SOCIAL WELFARE CENTRE
MEMBERS PRESENT:
Cllr H Allsopp
Cllr K Burn (part meeting only)
Cllr A Iley (part meeting only)
Cllr J Rowell
Cllr P S Vaughan (Chair)
Cllr L Watson
IN ATTENDANCE:
Ms A Brindley Parish Clerk/Responsible Finance Officer, Mr D L Nicholson Deputy Parish Clerk and Mr D Iley Finance Officer
C020/23 1. APOLOGIES FOR ABSENCE.
Apologies of absence were received from Cllr J Foster (prior commitment), G Huntley (prior commitment) and Cllr A Hart (prior commitment).
C021/23 2. DECLARATIONS OF DISCLOSABLE PECUNIARY AND OTHER DISCLOSABLE INTERESTS.
Cllr H Allsopp, Cllr A Iley and Cllr P S Vaughan declared an interest in agenda item 8 as Parish Council appointees as trustees to the Welfare.
C022/23 3. PUBLIC QUESTIONS.
The Clerk advised no questions had been submitted.
C023/23 4. PLANNING MATTERS FOR CONSIDERATION.
The Parish Clerk informed members that she is seeking a meeting with the developers of Willow Farm (Advance Northumberland) to discuss measures required to reduce the impact of the development on local habitat. The meeting follows an incident when nesting birds were disturbed. Advance Northumberland have stated the environmental impact statement had failed to identify nesting bird sites, and that they had suspended hedge removal as soon as they had been made aware.
C024/23 5. TO RECEIVE AND NOTE THE MINUTES OF THE ANNUAL MEETING HELD ON 10 MAY 2023.
The minutes were received and noted as a true record.
C025/23 6. TO RECEIVE THE MINUTES OF THE FINANCE COMMITTEE HELD ON 19 APRIL 2023.
The minutes were received by the Parish Council.
C026/23 7. TO NOTE THE MINUTES OF THE ALLOTMENT COMMITTEE (TENANTS MEETING) HELD ON 26 APRIL 2023.
The minutes were received by the Parish Council.
C027/23 8. TO CONSIDER A FINANCIAL ADDENDUM TO PARTNERSHIP(S) MEMORANDUM(S) OF UNDERSTANDING (DEFERRED FROM THE FINANCE COMMITTEE).
The Parish Clerk advised members appointed as trustees to the Welfare that they might wish to withdraw at this point as the Welfare will be used as an example to illustrate how the principles governing financial would apply. Cllr H Allsopp, Cllr A Iley and Cllr P S Vaughan withdrew.
The Parish Clerk reported that since 2020 the Council has budgeted an annual sum to maintain community infrastructure. This budget was set initially to support partner community organisations to emerge from enforced closedowns during the pandemic and has continued as a fund to support these organisations in developing community activities and maintain sustainability.
Funding to each organisation is based on community benefit and the needs of the organisation. Support is not given in the form of a grant automatically allocated to our community partners, rather it is directed towards activities that add value to our community.
This report considers the financial addendum to the Memorandum of Understanding between Choppington Parish Council and Stakeford and Bomarsund Sports and Social Welfare Centre and to consider the financial principles underpinning access to the community infrastructure budget.
The Memorandum of Understanding of 2021 described the bilateral agreement, detailing the various responsibilities of both parties in relation to the occupation, usage, hiring and management of the external sports surfaces and the Welfare building.
The addendum is in essence a financial agreement to govern the Welfare and CPC. The previous practice of CPC and the Welfare sharing the running costs of the building splitting bills by estimating percentage usage and responsibility was a complicated process.
Last year a new practice was trialled. The Parish Council pays an annual rent to the Welfare and for that receives the shared use of the parish offices, meeting rooms and community rooms in the Welfare. All building costs, internal and external repairs, heating and lighting, the security system and cleaning costs are made by the Welfare. Two exceptions are paid by the Parish Council, the maintenance of the lift which is solely used by the Parish Council and the new communications contract which enables internet coverage throughout the building. For its part the Welfare can access funding from the Community Infrastructure budget.
To guide members when considering appropriate access to the fund, the following principles are suggested:
1 Community Partners are organisations whose purpose, ambitions and ethos match the strategic objectives of the Parish Council. The partnership is governed through a Memorandum of Understanding
2 Support will be directed towards projects which will improve accessible community facilities.
3 In the current environment it is recognised that community organisations face particular financial pressures. The Parish Council considers that best value is achieved through investment to make community buildings and organisations more efficient and sustainable.
4 The Parish Council recognises the need to protect cashflow, but this can only be applied where it is evidenced that the financial disciplines conform to sound financial standards, meeting the requirements of the appropriate regulator.
Members discussed the report, expressing general support for the valuable contribution to local life and wellbeing made by community organisations, and understanding of the particular difficulties of the sector since local government reorganisation.
Members considered that strategic partnerships were important and needed to be nurtured and supported for the benefit of the community.
RESOLVED:
1. Members noted their previous approval of the details of working relationship with Stakeford and Bomarsund Sport and Social Welfare Centre as expressed in the report and recorded in MoU.
2. Members accepted the agreed the principles contained in the report as principles to govern to financial principles with all strategic partners.
3. Instructed the Parish Clerk/Responsible Finance Officer in consultation with the Parish Council Chair and Vice Chair to prepare a financial addendum for attachment to the CPC/Welfare MoU. (Report as presented attached as Addendum One).
C028/23 9. TO RECEIVE AND APPROVE ADDITIONS TO THE FIXED ASSET REGISTER FOR 2022/23.
The Parish Clerk/Responsible Finance Officer presented the fixed asset register for 2022/23, and explained that once approved by members the assets held will be reported to the external auditor through accounting statement box 9 of the AGAR return.
RESOLVED: Members approved the fixed assets register as
presented.
C029/23 10. TO RECEIVE THE END OF YEAR REPORT FROM THE INTERNAL AUDITOR.
The year end report from the internal auditor Gillian Turner, was presented for consideration. The internal audit included examination of evidence relevant to the amounts and disclosures in the summary accounts and notes, sufficient to give reasonable assurance that the summary accounts and notes are free from material misstatement. The auditor expressed the opinion that the accounts present fairly the income and expenditure of Choppington Parish Council for the year ended 31 March 2023.
Gillian Turner included in her report particular thanks to Angela Brindley and David Iley for their work in preparing accounts.
Members noted there were no issues raised by the internal auditor requiring further consideration by the Parish Council.
The Annual Internal Audit Report is attached as Addendum Two to these minutes.
C030/23 11. TO RECEIVE AND APPROVE THE YEAR END STATEMENTS AND ACCOUNTS FOR PRESENTATION TO EXTERNAL AUDIT.
11.1 The Parish Clerk/Responsible Finance Officer reported that as a smaller authority with a gross income exceeding £25,000 the Parish Council must complete part 3 of the Annual Governance and Accountability Return at the end of each financial year.
11.2 The Annual Governance and Accountability Return (AGAR) comprises 4 sections.
1. Annual Governance Statement,
2. Accounting Statements,
3. Annual Internal Audit Report, and
4. External Auditor Report and Certificate.
It was explained that the Parish Council completes 1 and 2 at this meeting. Our internal auditor completes no.3 (see agenda item 10) and the external auditor no.4.
11.3 The annual governance statement is a public report affirming that the Council is being conducted in accordance with the law, regulations and proper practices and that public money is safeguarded and properly accounted for. The Council responds to statements known as assertions. Guidance is issued by the Joint Panel on Accountability and Governance (JPAG). The Parish Clerk asked members to consider each assertion by turn.
Assertion 1 – Financial management and preparation of accounting statements
‘We have put in place arrangements for effective financial management during the year, and for the preparation of the accounting statements.’
Members agreed that the Parish Council has taken all required steps to satisfy the assertion; a RFO has been appointed; financial procedures are in place to record financial transactions; bank reconciliations are completed on a monthly basis and reviewed by members; a budget has been prepared and approved; arrangements are in place to manage investments and earmarked reserves appropriately; and, annual accounts are prepared in an accurate and timely manner.
Assertion 2 – Internal Control
‘We maintained an adequate system of internal control, including measures designed to prevent and detect fraud and corruption and reviewed its effectiveness.’
Members asserted the Parish Council has in place and follows Standing orders and Financial Regulations. These documents identify how the Council operates to safeguard public money, how the Council makes its financial transactions, how it manages risk, how it pays staff, and how fixed assets are maintained and secured. Members review these procedures and undertake regular internal examination of finances.
Assertion 3 – Compliance with laws regulations and proper practices
‘We took all reasonable steps to assure ourselves that there are no matters of actual or potential noncompliance with laws, regulations, and proper practices that could have a significant financial effect on the ability of this smaller authority to conduct its business or on its finances.’
Members asserted the Council has acted lawfully. When making decisions members receive advice from the proper officer who confirms legal authority and power to act.
Assertion 4 – Exercise of Public Rights
‘We provided proper opportunity during the year for the exercise of electors rights in accordance with the requirements of the Accounts and Audit Regulations.’
Section 25-27 of Local Government Accountability Act 2014 contain provisions giving interested person rights of inspection of accounts and records. In making this assertion members noted the Council makes its accounts accessible for 30 working days during which time there is a mandatory full 10-day period from beginning of July (although this has been extended for 2019/20 accounts), and throughout the year by arrangement.
The accounting statement is published on the website.
Assertion 5 – Risk Management
‘We carried out an assessment of the risks facing this smaller authority and took appropriate steps to manage those risks, including the introduction of internal controls and/or external insurance cover where required.’
Members asserted the Council has compiled and reviewed the assessment of risk, and maintains a risk register which records the identification of risk e.g. financial loss of money/damage to property, and management of risk e.g. through insurance, added security measures, internal controls
Assertion 6 – Internal Audit
‘We maintained throughout the year an adequate and effective system of internal audit of the accounting records and control systems.’
In making this assertion members noted the appointment of an internal auditor who undertakes an effective audit. The Responsible Finance Officer gives the internal auditor access to all documents and records, supplying any all required information and explanations.
Assertion 7 – Reports from Auditors
‘We took appropriate action on all matters raised in reports from internal and external audit.’
Members consider all reports from the internal and external auditors and resolve any actions that might be required.
Assertion 8 – significant events
‘We considered whether any litigation, liabilities or commitments, events or transactions, occurring either during or after the year-end, have a financial impact on this smaller authority and, where appropriate have included them in
the accounting statements.’
In setting the budget and when authorising year end statements, the council consider any events occurring during the financial year (or after the year-end), that have consequences, or potential consequences, on the authority’s finances.
Assertion 9 – Trust Funds
Not applicable
11.4 Members considered the accounting statement for the year ended 31 March 2021
RESOLVED:
1. Having noted the completion of the annual internal report from the internal Auditor, members considered the annual governance statement and accounts.
2. Members considered annual governance statement and determined that to the best of their knowledge and belief that they have satisfied their responsibilities in relation to assertions 1 to 8 inclusive.
3. Members noted that section 9 of the statement was not applicable as the council does not act as the sole managing trustee of any local trust or similar body.
4. Members received and approved the accounting statement and supporting documentation for the year ended 31 March 2022.
5. The Chairman of the meeting and the Parish Clerk/Responsible Finance Officer were authorised to sign the statements contained in the Parish Council’s annual return for the financial year ended 31 March 2022.
6. The signed AGAR to be displayed on the Council’s website before 5th June 2023.
Agenda – Part 2. There were no matters referred for consideration from part 1 of the agenda.
There being no further business the meeting concluded at 19.10.
Chairman Dated
Parish Council 24 May 2023
Item 8
Memorandum of Understanding
Introduction
Since 2020 the Council has budgeted an annual sum to maintain community infrastructure. This budget was set initially to support partner community organisations to emerge from enforced closedowns during the pandemic and has continued as a fund to support these organisations in developing community activities and maintain sustainability.
Funding to each organisation is based on community benefit and the needs of the organisation. Support is not given in the form of a grant automatically allocated to our community partners, rather it is directed towards activities that add value to our community.
The purpose of this report is to inform members of the financial addendum to the Memorandum of Understanding between Choppington Parish Council and Stakeford and Bomarsund Sports and Social Welfare Centre and to consider the financial principles underpinning access to the community infrastructure budget.
Background
The Memorandum of Understanding of 2021 described the bilateral agreement between Choppington Parish Council and Stakeford and Bomarsund Sport and Social Welfare Centre detailing the various responsibilities of both parties in relation to the occupation, usage, hiring and management of the external sports surfaces and the Welfare building.
It included the provision of a financial framework to the document and this addendum is in preparation.
Discussion
Prior to the MoU, CPC and the Welfare shared the running costs of the building splitting bills by estimating % of usage and responsibility. This was a complicated process which has been revised and strengthened.
The financial arrangement is a simpler one. The Parish Council pays an annual rent to the Welfare and for that receives the shared use of the parish offices, meeting rooms and community rooms in the Welfare. All building costs, internal and external repairs, heating and lighting, the security system and cleaning costs are made by the Welfare. Two exceptions are paid by the Parish Council, the maintenance of the lift which is solely used by the Parish Council and the new communications contract which enables internet coverage throughout the building.
In exchange the Welfare can access funding from the Community Infrastructure budget.
Recommendation
To guide members when considering appropriate access to the fund, the following principles are presented for consideration.
Principles
1 Community Partners are organisations whose purpose, ambitions and ethos match the strategic objectives of the Parish Council. The partnership is governed through a Memorandum of Understanding
2 Support will be directed towards projects which will improve accessible community facilities.
3 In the current environment it is recognised that community organisations face particular financial pressures. The Parish Council considers that best value is achieved through investment to make community buildings and organisations more efficient and sustainable.
4 The Parish Council recognises the need to protect cashflow, but this can only be applied where it is evidenced that the financial disciplines conform to sound financial standards, meeting the requirements of the appropriate regulator.
GILLIAN TURNER — LOCAL COUNCIL AUDIT SERVICES
19th May 2023
Angela Brindley
Parish Clerk
Choppington Parish Council
Dear Angela,
Choppinqton Parish Council —Internal Audit of 2022123 & Final Accounts
I have completed the internal audit of the Council’s accounts for the 2022/23 financial year.
My audit consisted of a comprehensive examination of the Parish Council’s income and expenditure and financial statements to the end of March including:
100% check of all payments/invoices made and that VAT was correctly accounted for where appropriate. The cheque book was also examined and verified to cheque number 302349
• Risk Assessment — Minute C074 confirming members endorsement verified and Review of Internal Controls C052/22 on 23rd November 2022
• Budget process inspected and Minutes for the request of Precept received C057/22
• Income receipts and supporting vouchers were verified to the end of March payin slip 000170
• Salaries and Wages are paid through Northumberland County Council Payroll system
• The Asset Register was inspected noting that it had been updated for those assets purchased/disposed of during 2022/23 The Insurance Policy was also examined
• Bank statements to 31 st March, 2023 were examined and reconciled, noting regular monthly reconciliations throughout the year
The bank reconciliation of both accounts was agreed as at the 31 st March and unpresented cheques and outstanding income verified
• The journals for year end debtors/creditors, prepayments/accruals were verified The AGAR and supporting statements were reviewed and verified
• The website was inspected (www.choppingtonparishcouncil.org) to ensure regular posting of minutes and accounts
The website also confirmed the previous years AGAR and Public Rights were presented correctly (under Governance/Annual Accounts/2021-22) — the External Audit report being presented to Council 5th October 2022.
The audit included examination of evidence relevant to the amounts and disclosures in the summary accounts and notes, sufficient to give reasonable assurance that the summary accounts and notes are free from material misstatement. In my opinion the accounts present fairly the income and expenditure of Choppington Parish Council for the year ended 31 st March, 2023. The Annual Internal Audit Report (page 3) has been duly completed.
Minor queries arising from the audit have been answered to my satisfaction and where, considered necessary, adjustments have been made. There are no matters to draw to the attention of the members of the Parish Council.
My thanks go to Angela and David for their assistance and helpfulness during my audit.
Please find attached my invoice for the internal audit and examination of accounts.
Yours sincerely,