Minutes of the Annual meeting of Choppington Parish Council on 10 May 2023

MINUTES OF THE ANNUAL MEETING OF CHOPPINGTON PARISH COUNCIL HELD ON WEDNESDAY 10 MAY 2023 AT STAKEFORD AND BOMARSUND SPORT AND SOCIAL WELFARE CENTRE

 

 

MEMBERS PRESENT:

 

Cllr H Allsopp

Cllr K Burns (part meeting only)

Cllr J Foster

Cllr A Hart

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 Assistant

 

C001/23         1.         ELECTION OF A CHAIRMAN FOR THE ENSUING YEAR.

 

The Parish Clerk reported that 4 nominations had been received for Councillor P S Vaughan for the position of Chairman. As the sole nominee Cllr P Vaughan was duly elected to serve as Chairman for council year 2023/24.

 

C002/23         2.         TO RECEIVE THE CHAIRMAN’S DECLARATION OF

ACCEPTANCE OF OFFICE.

 

Cllr P S Vaughan duly signed the declaration.

 

C003/23         3.         THOSE ATTENDING AND APOLOGIES FOR ABSENCE.

 

Apologies were received from Cllr G Huntley for a prior engagement.

The meeting accepted this as a valid reason for absence.

 

Cllr A Iley joined the meeting at this point.

 

C004/23         4.         DECLARATIONS OF DISCLOSABLE PECUNIARY AND OTHER

REGISTERABLE PERSONAL INTEREST(S).

 

No declarations were made.

 

C005/23         5.         PUBLIC QUESTIONS.

 

The Parish Clerk presented a question submitted by a member of the public, seeking support.

 

Question submitted for consideration: “Over the past two years the speed of the traffic along the stretch of the A196 from the roundabout with the A1068 and the end of the 30mph zone on Morpeth Road has increased considerably and with this increase there have been one fatality and two serious RTI’s within the past nine months that have impacted greatly on the local community. Sadly, we feel it is only a matter of time before we witness another event. I live in East Farm Park and there are three junctions and two bus stops within 150 metres of our entrance with the A196 and vehicles drive past in both directions well above the 30mph statutory limit. The recent reduction of the speed limit from 50 to 40 mph has for the majority had no effect on speed reduction, we need a more pragmatic approach with the introduction physical installations (eg speed cushions) that will force the law breakers to drive within the statutory speed limits. Another consideration would be to reduce the speed limit from Johnson Villas from the current 40 to 30mph as the 30mph zone extends from East Farm Park all the way to Bedlington Golf Course along semi rural areas.”

Resolved: Members whilst minded to support the proposal for additional safety measures. And in consideration of standing orders, agreed the matter should be considered at a future meeting.

C006/23         6.         TO RECEIVE THE MINUTES OF THE ANNUAL MEETING OF

11 MAY 2022 (reported previously to the Parish Council meeting of 25 May 2022 p3-5).

 

The minutes were received by the Parish Council.

 

C007/23         7.         THE ELECTION OF A VICE-CHAIRMAN FOR THE ENSUING

YEAR.

 

The Parish Clerk reported that 3 nominations had been received for Councillor J Rowell for the position of Vice Chairman. As the sole nominee Cllr J Rowell was duly elected to serve as Vice-Chairman for Council year 2023/24.

 

C008/23         8.         TO APPOINT MEMBERS TO SERVE ON COMMITTEES OF THE

PARISH COUNCIL.

 

The Parish Council and agreed the following committee memberships:

 

Committee                Allotment Committee

 

Membership             Cllr H Allsopp

Cllr J Foster

Cllr A Hart

Cllr K Burns

Cllr G Huntley

Cllr A Iley

Cllr J Rowell

Cllr P Vaughan

Cllr L Watson

 

Committee                Community Development and Environment Committee

 

Membership             Cllr H Allsopp

Cllr J Foster

Cllr A Hart

Cllr K Burns

Cllr G Huntley

Cllr A Iley

Cllr J Rowell

Cllr P Vaughan

Cllr L Watson

 

Committee                Finance Committee

 

Membership             Cllr H Allsopp

Cllr J Foster

Cllr K Burns

Cllr G Huntley

Cllr A Iley

Cllr J Rowell

Cllr P Vaughan

Cllr L Watson

 

Committee                Planning Committee

 

Membership             Cllr H Allsopp

Cllr K Burns

Cllr A Hart

Cllr G Huntley

Cllr A Iley

Cllr J Rowell

Cllr P Vaughan

Cllr L Watson

 

To avoid a possible conflict of interest with her County Council duties, Cllr J Foster will not serve as a member of the planning committee.

 

Committee                Staffing and Policy Development Committee

 

Membership             Cllr H Allsopp

Cllr J Foster

Cllr K Burns

Cllr G Huntley

Cllr A Iley

Cllr J Rowell

Cllr P Vaughan

Cllr L Watson

 

 

Cllr K Burns joined the meeting at this point.

 

C009/23         9.         TO APPOINT REPRESENTATIVES TO OUTSIDE BODIES.

 

RESOLVED: Members agreed the following appointments:

 

  1. Cllr P S Vaughan appointed to the executive of Northumberland Association of Local Councils.
  2. Cllrs H Allsopp and G Huntley appointed to serve on the committee of Choppington Disability Group.
  3. Cllrs H Allsopp, G Huntley, A Iley and P S Vaughan appointed as trustees to Stakeford and Bomarsund Sport and Social Welfare Centre.
  4. Cllrs H Allsopp, L Watson and K Burns appointed to serve on the committee of West Sleekburn Community Trust.
  5. Members confirmed the Deputy Parish Clerk to serve on the National Association of Councillors management group.

 

Members agreed that consideration of any other vacancies arising during the year will be delegated to the Parish Clerk in consultation with the Chair and Vice-Chair of the Council.

 

 

C010/23         10.       CYCLE OF MEETINGS FOR 2023/24.

 

Members received a draft schedule of meetings dated 11 May prepared by the Parish Clerk, Cllr K Burn requested a 6.30 pm start for all evening meetings and the Clerk indicated that Cllr G Huntley had requested that the 8 November CD&E could be moved to 1 November 2023.  These amendments were agreed and the new schedule will be available at the next meeting

 

C011/23         11.       PAYROLL SERVICES.

 

Members confirmed Northumberland County Council as the payroll services provider for 2023/24.

 

C012/23         12.       APPOINTMENT OF INTERNAL AUDITOR FOR 2023/24.

 

The Parish Clerk advised that our internal auditor Gillian Turner, was retiring.  This is a difficult position to fill as in addition to financial experience the internal auditor should have knowledge of the work of a local council.  The Northumberland Branch of the Society of Local Council Clerks had circulated a short list of available auditors, and the Parish Clerk recommended that members consider the application from Susan Coulthard.  Susan is currently the Clerk at Haltwhistle, is AAT qualified and runs her own accountancy business.

 

RESOLVED: Members approved the appointment of Susan Coulthard and asked the Clerk to put in writing their thanks to Gillian Turner.

 

C013/23         13.       APPOINTMENT OF EXTERNAL AUDITOR FOR 2023/24.

 

Under the Local Audit (Smaller Authorities) Regulations 2015, the Smaller Authorities Audit Appointments (SAAA) is responsible for appointing external auditors to all opted-in smaller authorities.  The SAAA has appointed Mazars as the Council’s external auditor for the next 5 years.  Any member with a personal conflict with this appointment should advise the SAAA.

 

RESOLVED: Members acknowledged the appointment of Mazars accountancy firm as the authority’s external auditor.

 

C014/23         14.       REVIEW OF INVESTMENT POLICY.

 

The Parish Clerk/Responsible Finance Officer presented the councils investment policy (Addendum Three), explaining that the policy informs the Parish Councils annual investment strategy. The policy informs the investment strategy for the year to come. The policy concentrates on low-risk investments that spread risk and affords protection for Parish Council funds.

The PC/RFO stated that transfers to and from the ‘investment’ account will be reported to the Finance Committee.

 

RESOLVED: Members confirmed the investment policy attached as appendix 1 to these minutes.

 

 

CO15/23        15.      REVIEW OF INVESTMENT STRATEGY.

 

Because of the special and confidential nature of the business to be discussed, this item was placed on part 2 of the agenda.

 

C016/23         15.       ANNUAL STATEMENT OF RISK 2023/24.

 

The Deputy Parish Clerk presented the annual statement of risk for 2023/24 to members for consideration and approval (attached as Appendix 2).

 

                        Resolved: The meeting accepted the statement as presented.

 

C017/23         16.       ASSET REGISTER.

 

The parish Clerk/Responsible Finance Officer presented the list of fixed assets for inclusion in the year end accounts.

 

Resolved: Members reviewed the list of fixed assets approving their inclusion in the year end accounts.

 

C018/23         17.       BOUNDARY SUBMISSION.

 

The Parish Clerk summarised the latest recommendations from the boundary commission for county divisions. The commission had accepted the recommendations of the Council to match the parish boundary and include the Willows within the Stakeford boundary Members were of the opinion that the Boundary Commission be asked to recognise the natural boundary of the railway line between West Sleekburn and the trading estate as the boundary for the Stakeford division with the Sleekburn division, so transferring West Sleekburn Village into Stakeford division. Members made no comment on proposed changes to the western boundary of Choppington division or the boundary between Choppington and Stakeford.

 

RESOLVED: Members asked the Parish Clerk to take into account the comments made and prepare in consultation with the Chair and Vice-Chair of the Parish Council a final submission to the commission.

 

Agenda, Part 2.

 

Members in consideration of Standing Order 3 and the special and confidential nature of the business to be transacted, resolved the press and public be excluded and asked to withdraw.

 

CO19/23        Consideration of any matters referred from Agenda Part 1.

 

CO15/23 REVIEW OF INVESTMENT STRATEGY.

RESOLVED: Members reviewed the investment strategy, and in consideration of the funding that is required for Cleaswell Park, resolved that the Finance committee considers any transfers from our higher yield account.

 

There was no further business to be considered under Agenda Part 2

 

On conclusion of this item the meeting closed at 7.30 pm

 

 

 

 

 

Signed by the Chairman:                                                                         Date

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPENDIX ONE

Item 14                                                                                                         

 

                                                                                                                       

 

 

 

 

 

 

 

 

Choppington Parish Council

 

Investment Policy

 

 

 

 

 

 

 

 

 

Investment Policy for Choppington Parish Council

 

Adopted 4 November 2015

Reviewed 27 January 2018

Reviewed 20 April 2021

Reviewed 13 April 2022

Reviewed 5 May 2023

 

 

 

  1. Context

 

  • This document establishes policy, and reporting arrangements for the management and control of the Council’s funds.

 

1.2       This policy informs how the Council develops its investment strategy.  This document uses as guidance the Department for Communities and local Government ‘Guidance on Local Government Investments’ issued under section 15(1)(a) of the Local Government Act 2003 effective on or after 1 April 2018. It applies where a parish council expects its total investments exceed £100,000 in the financial year. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/678866/Guidance_on_local_government_investments.pdf

 

1.3       The policy was approved by the Parish Council on 4 November 2015 and is reviewed and if necessary revised on a three-year basis.

 

  • The Council acknowledges the importance of openness and accountability for the prudent management of public funds.

 

  • The Parish Council will determine each year an investment strategy:
  1. The type, purpose, and extent of any investment.
  2. The levels of investment that can be made in each category (Specified, loans and non-specified Investments)
  3. The overall sums available for investment
  4. Maximum terms of investment and rate of return
  5. How it benefits the core activities of the Council

 

  1. 2. Risk

 

2.1      The Council’s risk procedures consider the current Guidance on Local Government Investments.

 

2.2      The Council’s investment priorities are the security of reserves and liquidity of its investments with the generation of income only after security and liquidity has been assured.

 

2.3       The Parish Council will review risk on an annual basis.

 

  1. External Management of Funds

 

Where external investment managers are employed, they will be contractually required to comply with the strategy.

 

  1. Specified Investment

 

4.1       An investment is a specified investment if all the following apply:

 

  1. The investment is denominated in sterling and any payments or repayments in respect of the investment are payable only in sterling.

 

  1. The investment is not a long-term investment (is an investment other than one which is due to be repaid within 12 months of the date on which the investment was made, or one which the authority may require to be repaid within that period).

 

  1. The making of the investment is not defined as capital expenditure by regulation 25(1)(d) of the Local Authorities (Capital Finance and Accounting) (England) Regulations 2003 [SI 3146 as amended].

 

  1. The investment is made with a body or in an investment scheme of high credit quality, or with one of the following public-sector bodies:
  2. The United Kingdom Government
  3. A local authority in England and Wales
  • A Parish Council or Community Council

 

4.2       For the purposes of this policy high credit quality is measured through credit rating, which is an evaluation of the credit worthiness of a debtor, especially a business (company) or a government, but not individual consumers.  The evaluation is made by a credit rating agency of the debtor’s ability to pay back the debt and the likelihood of default.  Evaluations of individuals’ credit worthiness are known as credit reporting and done by credit bureaus, or consumer credit reporting agencies, which issue credit scores.

 

4.3       Credit assessment and evaluation for companies and governments is generally done by a credit rating agency such as Standard & Poor’s, Moody’s or Fitch. These rating agencies are paid by the entity that is seeking a credit rating for itself or for one of its debt issues.

 

 

  1. Loans

 

            5.1  The Parish Council may choose to make a loan to a local enterprise if it satisfies the Council’s strategy for local economic growth, however it must demonstrate

  1. a) total financial exposure is proportionate
  2. b) An assessment of the impact on a balanced budget if the loan value is at risk
  3. c) Appropriate credit control measures are in place to recover overdue repayments
  4. d) The Council has agreed the loan level

 

  1. Non-specified Investment

 

6.1   With regard to non-specified investments (i.e., those not meeting the definition for specified investments or loans) Parish Councils are recommended:

 

  1.          Set out procedures for determining which categories of such investments may prudently be used.  Choppington Parish Council will take full account of credit rating (see paragraphs 4.2 and 4.3 above).

 

  1. Identify which categories of such investments are to be prudently used in the financial year.

 

  1. State the upper limits for the amounts which, at any time during the financial year, may be held in each identified category and for the overall amount which may be held in non-specified investments (the limits being defined by reference to a sum of money or a percentage of the authority’s overall investments or both).  This will be determined as part of the budget process and confirmed by the Parish Council at its April meeting.

 

  1. Borrowing

 

7.1      The Council recognises that there are other methods of raising resources for capital financing, other than borrowing including use of Council Reserves, revenue financing, Government and EC grants, Lottery funding, leases and capital contributions from other partners and stakeholders.

 

7.2      Wherever possible the Council will seek external funding towards capital

programme projects.

 

7.3       Local Council borrowing is governed by Schedule 1 of the Local Government Act 2003.  Borrowing may only be entered into for a purpose that would be capital expenditure as defined in S16 of the Local Government Act 2003 and the decision must be made by the full Council.

 

7.4       The requirement to borrow will be reviewed annually as part of the Investment Strategy and the budget process.  The Council is only likely to borrow if it is felt the benefits of borrowing outweigh any risks and where the benefit of the investment matches the period of repayment.

 

  1. Borrowing in advance of need

 

Borrowing to invest in a yield bearing opportunity is borrowing in advance of need. To borrow under these circumstances, the Council must include in the investment strategy the management of risk including the non-achievement of yield or borrowing costs increasing.

 

  1. Reporting on investment performance

 

Reporting will be included in the Finance report given by the RFO to the Parish Council/Finance committee on a quarterly cycle.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Parish Council Risk Assessment and Management

Annual Review May 2023

 

 

1          Legal Implications

 

Each Parish and Town Council should have in place a system to help it to manage risk. This system will be simple for the smallest parishes and more complex for larger parish and town councils.  A council’s internal auditor may use this risk management system to help to identify what tests to carry out as part of the audit.

 

 

2          Cost Implications

 

The financial costs associated with the identified measures for the management of risk is contained within the Parish Council budget for 2023/2024.

 

 

3          Resource Implications

 

The costs associated with the management of risk in terms of the human resource required for assessment and management are contained within the Parish Council work programme.

 

 

4          Background

 

Good practice requires the Parish Clerk to assess and manage risk and the Authority to consider ways to improve and document existing practices.  The Parish Council has previously recognised the importance of risk management and has adopted procedures for risk assessment and management.  The failure to manage risks effectively can be expensive in financial terms and, also in terms of service delivery and reputation.

 

Members are ultimately responsible for risk management because risks threaten a council’s ability to achieve its objectives. The Clerk should therefore ensure that members:

 

  • Identify the key risks facing the council
  • Evaluate the potential to the council of one of these risks taking place; and
  • Agree measures to; avoid, reduce, or control the risk or its consequence.

 

Every council is different and there is no such thing as a standard list of risks. There are however common themes that are likely to emerge. These might include:

  • Physical assets – buildings, equipment, IT hardware etc.
  • Finance – banking, loss of income, petty cash etc.
  • Injury to the public – in playgrounds and recreation grounds, community buildings etc
  • Complying with legal requirements – agendas and minutes, records, etc
  • Councillor propriety – declarations of interest, gifts, and hospitality etc

 

The Clerk needs to consider each of the possible risks under each of the identified schemes. For example, physicals assets could be lost as a result of fire or flood, damage by vandals, theft, or deterioration through lack of maintenance.  All these risks can be minimised or transferred by various means such as taking out insurance, securing alarms or by regular inspection and maintenance.  In addition to identifying risk, it is a good idea to make a judgement about likelihood of the risk occurring and its potential impact.  Classification need be no more complicated than high, medium, or low.  Members have received training and will be aware that specific training to address areas of concern will be arranged.

There are three main ways of managing risk:

  • Take out insurance
  • Work with another party to reduce the risk; or
  • Manage the risk yourself.

 

During 2018/19 the Parish Clerk/Responsible Finance Officer conducted a comprehensive review of insurance and risk, meeting with representatives of Came Insurance and attending seminars run through the SLCC.  Insurance is reviewed on a 3-year cycle.  Staff receive regular training on risk through the Society of Local Council Clerks and members review the authorities risk statement each year.

 

5          Action Required

 

1          Members are asked to consider those items contained in Annexe 1 and to agree any required control actions.

 

2          Instruct the Parish Clerk to take any/all actions identified by members.

 

 

 

 

Angela Brindley

Parish Clerk/Responsible Finance Officer

09 May 2023

 

 

 

 

 

 

 

 

Annexe One

CHOPPINGTON PARISH COUNCIL

RISK ASSESSMENT AND MANAGEMENT 2023/2024

 

AreaRiskLevelControl (and agreed improvements)
Assets

 

Protection of physical assetsLThe Parish Council owns physical assets such as bus shelters, notice boards, planters, play equipment, portable staging, grass cutters, public seating, waste bins, War memorials, gardening equipment, security equipment, equipment for snow clearance, equipment required for the maintenance of sports surfaces, computers and related equipment, a modular building, mobile sports court and specialist container and office equipment. Insurance exists in relation to 3rd party liability.

Each asset together with their purchase price is contained in the Parish Council Asset Register.  The combined replacement cost of these is in excess of £500,000.  To insure for replacement will be in the region of £3,500/annum (£250 to £750 excess in respect of any claim).  The Parish Council has previously resolved to make financial provision for the replacement of these assets on a cyclical basis of between 5 and 25 years, dependant on the economic life of each asset.  The Parish Council considers that this earmarked fund gives the most cost-effective solution for cyclical and other required replacements.  The necessary financial contribution to this fund is calculated on an annual basis each January and the required provision is identified in the Parish Council budget.

Although formal transfer of Allotments from NCC has not yet taken place.  Allotments are regularly inspected.

From 1 April 2013 Northumberland County Council transferred the responsibility for play areas to the Parish Council.  The replacement cost of equipment located in these play areas is in the region of £225,000.00. The Parish Council has previously agreed to make provision for the replacement of all play equipment on a cyclical basis (15 to 20 years).  It is considered that this fund is adequate for replacement of equipment through damage/vandalism. The liability for play areas and any land when transferred to the Parish Council will be automatically covered under the existing Public Liability insurance.

It is anticipated that on completion of a substantial refurbishment responsibility for Cleaswell Park will be transferred from the principal authority to the parish council (likely transfer date 2024/2025. A full risk assessment will be undertaken this year in relation to the proposed transfer.

 

 

Security of buildings, equipment etcLThe Parish Council owns one building, which is subject to a long term (peppercorn community lease) lease, with the tenant being responsible for security, maintenance, and repair.  The Parish Council offices are located within premises owned by a local charity. Office equipment is contained within a secure environment.  It is anticipated that the Parish Council will own or have purview of additional community buildings in the future.  A separate consideration of risk will be undertaken for each building. The Parish Council owns a modular sports facility (MSF) that can be transported from area to area in a secure trailer. When not in use the MSF and trailer are stored in a secure area.  Replacement of this facility is provided for through earmarked funds.
 

 

Maintenance of buildings, equipment etcL

 

A full maintenance contract exists in respect of photocopying equipment (2 machines), with IT equipment being self-managed. Both machines are replaced on a 5-year cycle.  Financial provision has been made for their future replacement through earmarked funds.
FinanceBankingMIt is anticipated that not more than £750,000 will be held in accounts at any one time during 2023/2024. The budget set by the authority for 2023/2024 does not anticipate excessive interest/charges on our principal account. Funds held will reduce during the financial year as earmarked expenditure for the development of community facilities is made. Fidelity insurance will be regularly reviewed, and initially set at £750,000. Members will review the level of fidelity insurance required on a quarterly basis and to direct adjustments to ensure value for money.

Currently all funds are held in 2 accounts, main account Unity Trust and risk spreading through utilisation of a public sector deposit fund. Parish Council funds are excluded from the Financial Services Compensation Scheme and deposits through the public sector deposit fund is made to mitigate risk. These investments will be made in accordance with the Parish Council’s Investment Strategy in April 2022 CO75/21 and to be reviewed at the Parish Council meeting 10 May 2023.

 Risk of consequential loss of incomeLProjects are funded, in part through investment from partner organisations, with grants sought to reduce any precept requirement. All activity beyond this is funded through precept income. The Parish Council does not utilise grants to support revenue/core budget requirement.
 Loss of cash through theft or dishonestyHOnly small amounts of cash are handled.  However, in the age of electronic banking it is considered that a Fidelity Guarantee of £750,000.00 is required (see recommendation contained in Financial Banking above).
 Financial controls and recordsMFinancial Regulations are reviewed regularly. Monthly bank reconciliation and quarterly budgetary control reports prepared by Clerk are reported to Council. Two signatures from four signatories on cheques. Members perform scrutiny/probity checks by rota each month. Parish Council accounts are subject to scrutiny by internal and external audit. All financial procedures and processes are reviewed annually. The Parish Council has adopted an Investment Policy.
 Comply with Customs and Excise RegulationsMVAT payments are reviewed regularly, and claims made by the Parish Clerk/Responsible Finance Officer. VAT claims are reported to members and scrutinised through audit.

The Parish Clerk and Deputy Parish Clerk undertake VAT training on a regular basis to maintain knowledge and realisation of financial benefit.  The Parish Council has retained the services of an external VAT adviser to support the council when required.

 Sound budgeting to underpin annual preceptMReports to Council contain examination of Financial and Resource implications. Council receives and considers detailed budgets as part of its annual consideration December/January, with required precept being calculated in January. Income & Expenditure against budget reported to Council every quarter.
 Complying with borrowing restrictionsLNo borrowing has been made by the Parish Council to date.
    
LiabilityRisk to third party, property, or individualsMPublic Liability insurance in place.  Existing cover of up to £10m.
 Legal liability as consequence of asset ownershipMAssets owned are contained in the Asset Register and include street furniture.  The mobile court is owned by the Parish Council and will be operated on our behalf by a third party with all necessary liability insurance.
 Libel and SlanderMMembers and clerk – standard cover up to £250,000 (This cover extends to the Deputy Parish Clerk and other staff).
 Officials IndemnityMCover for members and clerk for any negligent act, accidental error or omission committed – standard cover up to £500,000 (This cover extends to other members of staff).

 

Employer LiabilityCompliance with Employment LawMAdvice sought from National Association of Local Councils, National Association of Councillors, and the Society of Local Council Clerks when required.  Existing insurance cover up to £10m in respect of most aspects. Potential cover in respect of Tribunals is limited to £50k. The Parish Council is classed as a Larger Local Council and has made budget provision to obtain, when required, legal advice to support the authority in respect of legislative changes, increased responsibility/liability and to protect the authority from any legal actions mounted against the authority.  Provision has also been made to support the development of each member of staff.
 

 

Comply with Inland Revenue requirementsMNorthumberland County Council undertakes all payroll functions on behalf of the Parish Council. Internal and external auditors carry out annual checks.
 Compliance with Pension Fund requirementsMThe Parish Council has 4 employees, all being members of the Local Government Scheme. Necessary policy reviews and statements are prepared under the direction Tyne and Wear Pension Fund, which administers the scheme.

 

 Safety of Staff and VisitorsMThe Parish Office is located within Stakeford and Bomarsund Sports and Social Welfare Centre, a community building. The Parish Council is becoming engaged on an increasing basis in organising events where health and safety process and procedures are required in both planning and delivery. Risk grows with activity and the Parish Council has commissioned legal and technical support in consideration of legislative change and increased regulatory requirements from an external provider.

Training in respect of risk assessment has been undertaken by all members of staff.

Legal

Liability

Ensuring activities are within legal powersHClerk clarifies legal position on any new proposal ensuring legal authority. Legal advice is sought when required.
 Proper and timely reporting via the MinutesMCouncil meets quarterly and receives committee meetings minutes held in interim. Minutes made available through website.
 Proper document controlLDocuments are held in secure locations with authority for particularly sensitive documents to be deposited at bank or solicitors. The Parish Council is compliant with the requirements of GDPR, FoIA and other requirements are observed.    
    
Councillor

Propriety

Registers of Interests and gifts and hospitality in placeMRegister of interest completed.  The acceptance of gifts and hospitality is not encouraged and there is a requirement to declare any gifts or hospitality (over £50 in value) as and when received.  This requirement extends to members and employees and is reviewed annually.

 

 

 

 

Angela Brindley

Parish Clerk/Responsible Finance Officer

09 May 2023

 

 

 

Item 16                                                                                                                                   Appendix 2

Parish Council Risk Assessment and Management

Annual Review May 2023

 

 

1          Legal Implications

 

Each Parish and Town Council should have in place a system to help it to manage risk. This system will be simple for the smallest parishes and more complex for larger parish and town councils.  A council’s internal auditor may use this risk management system to help to identify what tests to carry out as part of the audit.

 

 

2          Cost Implications

 

The financial costs associated with the identified measures for the management of risk is contained within the Parish Council budget for 2023/2024.

 

 

3          Resource Implications

 

The costs associated with the management of risk in terms of the human resource required for assessment and management are contained within the Parish Council work programme.

 

 

4          Background

 

Good practice requires the Parish Clerk to assess and manage risk and the Authority to consider ways to improve and document existing practices.  The Parish Council has previously recognised the importance of risk management and has adopted procedures for risk assessment and management.  The failure to manage risks effectively can be expensive in financial terms and, also in terms of service delivery and reputation.

 

Members are ultimately responsible for risk management because risks threaten a council’s ability to achieve its objectives. The Clerk should therefore ensure that members:

 

  • Identify the key risks facing the council
  • Evaluate the potential to the council of one of these risks taking place; and
  • Agree measures to; avoid, reduce, or control the risk or its consequence.

 

Every council is different and there is no such thing as a standard list of risks. There are however common themes that are likely to emerge. These might include:

  • Physical assets – buildings, equipment, IT hardware etc.
  • Finance – banking, loss of income, petty cash etc.
  • Injury to the public – in playgrounds and recreation grounds, community buildings etc
  • Complying with legal requirements – agendas and minutes, records, etc
  • Councillor propriety – declarations of interest, gifts, and hospitality etc

 

The Clerk needs to consider each of the possible risks under each of the identified schemes. For example, physicals assets could be lost as a result of fire or flood, damage by vandals, theft, or deterioration through lack of maintenance.  All these risks can be minimised or transferred by various means such as taking out insurance, securing alarms or by regular inspection and maintenance.  In addition to identifying risk, it is a good idea to make a judgement about likelihood of the risk occurring and its potential impact.  Classification need be no more complicated than high, medium, or low.  Members have received training and will be aware that specific training to address areas of concern will be arranged.

There are three main ways of managing risk:

  • Take out insurance
  • Work with another party to reduce the risk; or
  • Manage the risk yourself.

 

During 2018/19 the Parish Clerk/Responsible Finance Officer conducted a comprehensive review of insurance and risk, meeting with representatives of Came Insurance and attending seminars run through the SLCC.  Insurance is reviewed on a 3-year cycle.  Staff receive regular training on risk through the Society of Local Council Clerks and members review the authorities risk statement each year.

 

5          Action Required

 

1          Members are asked to consider those items contained in Annexe 1 and to agree any required control actions.

 

2          Instruct the Parish Clerk to take any/all actions identified by members.

 

 

 

 

Angela Brindley

Parish Clerk/Responsible Finance Officer

09 May 2023

 

 

 

 

 

 

 

 

Annexe One

CHOPPINGTON PARISH COUNCIL

RISK ASSESSMENT AND MANAGEMENT 2023/2024

 

AreaRiskLevelControl (and agreed improvements)
Assets

 

Protection of physical assetsLThe Parish Council owns physical assets such as bus shelters, notice boards, planters, play equipment, portable staging, grass cutters, public seating, waste bins, War memorials, gardening equipment, security equipment, equipment for snow clearance, equipment required for the maintenance of sports surfaces, computers and related equipment, a modular building, mobile sports court and specialist container and office equipment. Insurance exists in relation to 3rd party liability.

Each asset together with their purchase price is contained in the Parish Council Asset Register.  The combined replacement cost of these is in excess of £500,000.  To insure for replacement will be in the region of £3,500/annum (£250 to £750 excess in respect of any claim).  The Parish Council has previously resolved to make financial provision for the replacement of these assets on a cyclical basis of between 5 and 25 years, dependant on the economic life of each asset.  The Parish Council considers that this earmarked fund gives the most cost-effective solution for cyclical and other required replacements.  The necessary financial contribution to this fund is calculated on an annual basis each January and the required provision is identified in the Parish Council budget.

Although formal transfer of Allotments from NCC has not yet taken place.  Allotments are regularly inspected.

From 1 April 2013 Northumberland County Council transferred the responsibility for play areas to the Parish Council.  The replacement cost of equipment located in these play areas is in the region of £225,000.00. The Parish Council has previously agreed to make provision for the replacement of all play equipment on a cyclical basis (15 to 20 years).  It is considered that this fund is adequate for replacement of equipment through damage/vandalism. The liability for play areas and any land when transferred to the Parish Council will be automatically covered under the existing Public Liability insurance.

It is anticipated that on completion of a substantial refurbishment responsibility for Cleaswell Park will be transferred from the principal authority to the parish council (likely transfer date 2024/2025. A full risk assessment will be undertaken this year in relation to the proposed transfer.

 

 

Security of buildings, equipment etcLThe Parish Council owns one building, which is subject to a long term (peppercorn community lease) lease, with the tenant being responsible for security, maintenance, and repair.  The Parish Council offices are located within premises owned by a local charity. Office equipment is contained within a secure environment.  It is anticipated that the Parish Council will own or have purview of additional community buildings in the future.  A separate consideration of risk will be undertaken for each building. The Parish Council owns a modular sports facility (MSF) that can be transported from area to area in a secure trailer. When not in use the MSF and trailer are stored in a secure area.  Replacement of this facility is provided for through earmarked funds.
 

 

Maintenance of buildings, equipment etcL

 

A full maintenance contract exists in respect of photocopying equipment (2 machines), with IT equipment being self-managed. Both machines are replaced on a 5-year cycle.  Financial provision has been made for their future replacement through earmarked funds.
FinanceBankingMIt is anticipated that not more than £750,000 will be held in accounts at any one time during 2023/2024. The budget set by the authority for 2023/2024 does not anticipate excessive interest/charges on our principal account. Funds held will reduce during the financial year as earmarked expenditure for the development of community facilities is made. Fidelity insurance will be regularly reviewed, and initially set at £750,000. Members will review the level of fidelity insurance required on a quarterly basis and to direct adjustments to ensure value for money.

Currently all funds are held in 2 accounts, main account Unity Trust and risk spreading through utilisation of a public sector deposit fund. Parish Council funds are excluded from the Financial Services Compensation Scheme and deposits through the public sector deposit fund is made to mitigate risk. These investments will be made in accordance with the Parish Council’s Investment Strategy in April 2022 CO75/21 and to be reviewed at the Parish Council meeting 10 May 2023.

 Risk of consequential loss of incomeLProjects are funded, in part through investment from partner organisations, with grants sought to reduce any precept requirement. All activity beyond this is funded through precept income. The Parish Council does not utilise grants to support revenue/core budget requirement.
 Loss of cash through theft or dishonestyHOnly small amounts of cash are handled.  However, in the age of electronic banking it is considered that a Fidelity Guarantee of £750,000.00 is required (see recommendation contained in Financial Banking above).
 Financial controls and recordsMFinancial Regulations are reviewed regularly. Monthly bank reconciliation and quarterly budgetary control reports prepared by Clerk are reported to Council. Two signatures from four signatories on cheques. Members perform scrutiny/probity checks by rota each month. Parish Council accounts are subject to scrutiny by internal and external audit. All financial procedures and processes are reviewed annually. The Parish Council has adopted an Investment Policy.
 Comply with Customs and Excise RegulationsMVAT payments are reviewed regularly, and claims made by the Parish Clerk/Responsible Finance Officer. VAT claims are reported to members and scrutinised through audit.

The Parish Clerk and Deputy Parish Clerk undertake VAT training on a regular basis to maintain knowledge and realisation of financial benefit.  The Parish Council has retained the services of an external VAT adviser to support the council when required.

 Sound budgeting to underpin annual preceptMReports to Council contain examination of Financial and Resource implications. Council receives and considers detailed budgets as part of its annual consideration December/January, with required precept being calculated in January. Income & Expenditure against budget reported to Council every quarter.
 Complying with borrowing restrictionsLNo borrowing has been made by the Parish Council to date.
    
LiabilityRisk to third party, property, or individualsMPublic Liability insurance in place.  Existing cover of up to £10m.
 Legal liability as consequence of asset ownershipMAssets owned are contained in the Asset Register and include street furniture.  The mobile court is owned by the Parish Council and will be operated on our behalf by a third party with all necessary liability insurance.
 Libel and SlanderMMembers and clerk – standard cover up to £250,000 (This cover extends to the Deputy Parish Clerk and other staff).
 Officials IndemnityMCover for members and clerk for any negligent act, accidental error or omission committed – standard cover up to £500,000 (This cover extends to other members of staff).

 

Employer LiabilityCompliance with Employment LawMAdvice sought from National Association of Local Councils, National Association of Councillors, and the Society of Local Council Clerks when required.  Existing insurance cover up to £10m in respect of most aspects. Potential cover in respect of Tribunals is limited to £50k. The Parish Council is classed as a Larger Local Council and has made budget provision to obtain, when required, legal advice to support the authority in respect of legislative changes, increased responsibility/liability and to protect the authority from any legal actions mounted against the authority.  Provision has also been made to support the development of each member of staff.
 

 

Comply with Inland Revenue requirementsMNorthumberland County Council undertakes all payroll functions on behalf of the Parish Council. Internal and external auditors carry out annual checks.
 Compliance with Pension Fund requirementsMThe Parish Council has 4 employees, all being members of the Local Government Scheme. Necessary policy reviews and statements are prepared under the direction Tyne and Wear Pension Fund, which administers the scheme.

 

 Safety of Staff and VisitorsMThe Parish Office is located within Stakeford and Bomarsund Sports and Social Welfare Centre, a community building. The Parish Council is becoming engaged on an increasing basis in organising events where health and safety process and procedures are required in both planning and delivery. Risk grows with activity and the Parish Council has commissioned legal and technical support in consideration of legislative change and increased regulatory requirements from an external provider.

Training in respect of risk assessment has been undertaken by all members of staff.

Legal

Liability

Ensuring activities are within legal powersHClerk clarifies legal position on any new proposal ensuring legal authority. Legal advice is sought when required.
 Proper and timely reporting via the MinutesMCouncil meets quarterly and receives committee meetings minutes held in interim. Minutes made available through website.
 Proper document controlLDocuments are held in secure locations with authority for particularly sensitive documents to be deposited at bank or solicitors. The Parish Council is compliant with the requirements of GDPR, FoIA and other requirements are observed.    
    
Councillor

Propriety

Registers of Interests and gifts and hospitality in placeMRegister of interest completed.  The acceptance of gifts and hospitality is not encouraged and there is a requirement to declare any gifts or hospitality (over £50 in value) as and when received.  This requirement extends to members and employees and is reviewed annually.

 

 

 

 

Angela Brindley

Parish Clerk/Responsible Finance Officer

09 May 2023