Risk management
This Risk Management policy was reviewed and approved on
INTRODUCTION
There is risk inherent in everything we do. They fall into several categories:
In this age of litigation, the Council must:
The Council’s previous Internal Auditor, Ian Fraser, proposed a schedule of controls and frequency of carrying out the control activity. This was used as the original basis for this paper in April 2006.
RISKS
OF ACTING ILLEGALLY
Members’
responsibilities
Clerk to
check at every NMPC meeting
The Council must have a list of actions necessary when a new councillor is elected or co-opted, including documents to be given to the person and documents/registers to be signed. Risk is minimised by:
Any vacancy on the Council must be filled in accordance with Statutory requirements.
Amenities chairman to check annually
The Council must have an Equal
Opportunities Ppolicy, and
a Ggrievance
Pprocedure a
Health & Safety Policy and Fire Risk Assessments,
all
of which should be reviewed annually or when legally required
to do so.
These which should
be made available to the public on request.
Health and Safety regulations should be kept up to date and displayed as required by law.
The Council’s Bye-laws should be displayed at suitable places, including all parish noticeboards.
Employees
and contractors
Clerk to check at start of employment then annually by Chairman
Every employee should have a Contract of Employment and job description. They should be reviewed annually to ensure that they remain up to date, and the review noted on a record. The contract and job description should be kept on the employee’s personal file.
Pay scales are published nationally. The Council employs a Clerk, a bookkeeper and three groundsmen. The pay of each employee should be reviewed annually by the Council. The employee should be notified in writing of the review and outcome, with the details entered on the employee’s file.
Records
Chairman
to check annually
Minutes of the full Council meetings and committee meetings should be properly numbered, and agreed and signed at the next Council meeting. They should be kept in a suitable binder and locked away for security. They must be available for inspection by the public during office hours.
An Asset Register should be maintained in accordance with Financial Regulations. This should include all land, equipment, leases over land and equipment, etc, showing the location of title deeds possibly with a copy held in the office filing system. It should only record assets over a certain value/acquisition cost (£500). This register should be updated whenever there is a change in the assets, noting what happened to any asset removed from the register. The record of the deleted asset should be kept in another file for a reasonable period (5 years)
The asset register should contain lists of checks to be made weekly, monthly, quarterly, six-monthly, and annually to simplify the check routines. These lists should be ticked and signed or initialled each time the checks are made.
Standing Orders, Financial Regulations, and Risk Management Procedures should be available for easy reference, and updated in accordance with national policies.
INSURABLE
RISKS
Clerk to check annually by Clerk, counter-signed by
Finance Chairman
Certain insurances are required to be covered by law, such as National Insurance and motor insurance. Other insurance risks depend on the activities of the Council. By means of the Asset Register the Council can assess what needs to be covered and the extent of cover. The Asset Register should state the insurer and cover for each asset.
Types of insurance normally expected include:
RISK
MINIMISED BY ACTION
Computer
records
Clerk to
check weekly action. Chairman to check every 6 months
Back-up copies should be taken weekly, and held away from the office at a known location in case the computer becomes unusable or unavailable. This action should be recorded on the asset register.
Orders
for work, goods and services
Clerk to check before every order issued, with random
checks every 6 months by Finance Chairman
They must be authorised and be in accordance with the Council’s Standing Orders and Financial Regulations.
Where required by Financial Regulations, the Council must ensure the contractor has the necessary Indemnity Insurance, and that the contract is in writing.
The order should be held on an outstanding contracts file until the work is paid for, and then transferred to an appropriate file i.e. the Burns Pavilion file for maintenance work on that property.
Routine
inspections
To be recorded
in minutes of the Amenities committee
These should be carried out by the Clerk, Councillors, groundsmen or suitably qualified people checking these items:
Annual:
Seats and benches - by groundsmen
Parish Notice Boards - by the Clerk
Gas and electric safety checks - certified by qualified inspectors
Six-monthly:
Playground equipment - by the insurance company
Weekly:
Goalpost bar-bolts - during playing season by groundsmen
Playground equipment - by groundsmen
Life belts at Gobions lake – by groundsmen
Periodically:
Trees on NMPC owned land – by groundsmen
Public
relations
To be recorded in minutes of Council meetings
The Clerk should be the first point of contact with the public. A book of press clippings should be maintained on items where the Council is mentioned or quoted. This should include items on the Internet, such as www.Brookmans.com
Financial
matters
Clerk and Finance Chairman to check, and recorded in
Finance Committee minutes
These checks are to ensure that laws are complied with and best value for money is being obtained.
Annually:
Banking facility – value for money
Insurance providers – value for money, and all insurable risks covered
External auditors and fee basis conforms to Audit Commission requirements
Internal auditor and fee basis – value for money
Precept required
Payments approval procedure
Clerk’s salary review
Groundsmen salaries
Part-time staff’s pay scale
Internal audit completed
External audit completed
Annual Financial return completed, signed, issued and publicised
Internal check of finance records by Finance Chairman
Rent and hire charges relating to facilities provided by NMPC
Annual donations to organisations (ask for a copy of their latest accounts?)
Quarterly:
VAT return completed and submitted
VAT refund received
Budget compared with actual Income and Expenditure, report to Finance Committee
Bank account reconciliation checked by Finance Chairman
Monthly:
Bank account reconciled by Clerk
Paperwork
and filing
Chairman to carry out six-monthly spot checks
Because there is only one person in the office, apart from part-time staff, it is essential that correspondence is dealt with promptly, and filing kept up to date. The filing system should be logical.
Training
and qualifications
Chairman to check annually to ensure
training/qualifications are up to date
All Councillors and staff should be given the opportunity to receive training and become qualified in relevant skills i.e. chain saw operation, chairing meetings, etc. The risk is that harm caused by inexperienced or unqualified people carrying out tasks.
Emergency
procedures
Chairman to check annually to ensure procedures are up
to date
Contingency plans are necessary for when the Clerk is not available through sickness of holidays. The Council must decide the minimum level of activities necessary for the Council to function.
Access to the office – Keys to the office and safe and knowledge of the alarm system, should be held by the Clerk, Bookkeeper, Chairman, Vice-chairman, and chairmen of the three main committees. The Head Groundsman should have a key to the office and knowledge of the alarm system.
The Clerk should endeavour to advise the Chairman in case of illness so that back-up routines can be carried out. In the absence of the Chairman, the Vice Chairman should be contacted.
Back-up routines should ensure that
Staff
recruitment and reviews
Annual by Chairman
The Council should have policies in place for reviewing staffing levels and procedures for recruiting new staff.
Staff may find it beneficial to engage in an annual review which should allow each party to discuss how well the person has performed during the past year and expectations for the next year, including any training needs which may be identified. A note should be put on the personnel file, and the Council given a summary under Part 2 of the Council’s next meeting.
ACCEPTABLE
RISKS
There is risk in everything we do. The above actions should ensure NMPC has taken reasonable and sensible action on most situations. The risk arising from other actions should be minimal. In addition, NMPC is kept informed and up-to-date on relevant issues by its membership of, or representation on, various bodies. These bodies are:
CONCLUSION
It is impossible to function without some degree of risk. By adoption of this Risk Management strategy, the Council will have demonstrated that it has considered all reasonable risks and taken action to minimise the potential damage.
This Paper has been reviewed and approved
at the Council Meeting on
Signed ____________________________ Council Chairman Date: