Local Councils, lnternal Drainage Boards and otherSmaller Authorities in EnglandAnnual Governance and Accountability Return 2017118 Part 2

To be completed only by smaller authorities* where the higher ofgro$s income or gross expenditure was f25,000 or less, that meetthe qualifying criteria, and that wish to certify themselves as exemptfrom a limited assurance reviewGuidance notes on completing PartZ of the Annual Governance andAccountabilily Return 2017 118

1. Every smaller authority in England where the higher of gross income or gross expenditure was f25,000or less must following the end of each financial year, complete Part 2 of the Annual Governance andAccountability Return in accordance with Proper Pracfibes, unless the authority:a) does not meet the qualifying criteria;

b) does not wish to certifu itself as exempt

2. Smaller authorities where the higher of gross annual income or gross annual expenditure does notexceed €25,000 and meet the qualifiTing criteria as set out in the Certificate of Exemption are exemptfrom sending the completed Annual Governance and Accountability Retum to the external auditor for alimited assurance review provided the authority completes both thea) Certificate of Exemption, page 3 and returns it to the external auditorb) dnnual Governance and Accountability Return (Part 2) which is made up of:

'Anngal lnternal Audit Report {page 4} to be completed by the authority's internal auditor.. Section I - Annual Governance Statement {page 5} to be completed by the authority.. $ection 2 - Accounting Statements {page 6} to be completed by the authority.

3. The authority must approve Section 1 Annual Governance Statement before approving Section 2Accounting Statements and both must be approved before 2 July 2018.

Publication Req uirementsSmaller authorities must publish various documents on a public website as required by the Accounts andAudit Regulations 2015, the LocalAudit (SmallerAuthorities) Regulations 2015 and the Transparency Codefor Smaller Authorities. These include:. Certificate af Exemption, page 3. Annual lnternal Audit Report 2017118, page 4. Section I -AnnualGovernance Statement2017l18, page 5' Section 2 * Accounting Statements 2017118, page 6. Analysis of variances. Bank reconciliation ,' Notice of the period for the exercise of public rights and other information required by Regulation 15 (2),

Accounts and Audit Regulations 2A15.

Limited Assurance ReviewProviding the authority certifies itself 6s exempt, and completes and publishes the Annual Governanceand Accountabili$ Return, there is no\requirement for the authority to have a limited assurance review.

Any smaller authority may, however, request a limited assurance review ln these circumstances the authorityshould not certify itself as exempt, ie not complete Certificate of Exemption, but complete Part 3 of theAnnual Governance and Accountability Return 2A17hB and return it to the external auditor for reviewThe cost to the smaller authority for the review will be e200 +VAT.

*for a complete /isf of bodrbs that may be smaller autharities refer to schedule 2 to Lacal Audit and Accaunlability Act 2014.

Annual Governance and Accountability Return 2A17n8 Part 2 Page 1 of6

Guidance notes on completing Part 2 of the Annual Governance andAccountability Return 2017118, Sections 1 and 2

. Where an authority is exempt from the requirement for a limited assurance review, it need not submit

its Annual Governance and Accountability Return to the external auditor. However, as part of a more

proportionate regime, the authority must comply with the requirements of the Transparency Code

for Smaller Authorities.. The authority must comply with Proper Practices in completing this Annual Governance and

Accountability Return and the Certificate of Exemption. Proper Practices are found in the Practifioners'Guide* which is updated from time to time and contains everything needed to prepare successfully

for the financial year-end.

. The authority should receive and note the annual internal audit report prior to approving the annual

governance statement and before approving the accounts.

. Make sure that the Annual Governance and Accountability Return is complete (i.e. no empty highlighted

boxes), and is properly signed and dated. Avoid mhking amendments to the completed annual return.

Any amendments must be approved by the authority and properly initialled.

. Use the checklist provided below to review the Annual Governance and Accountability Return forcompleteness at the meeting at which it is signed off.

. You should inform your external auditor about any change of Clerk, Responsible Financial Officer or

Chairman, and provide relevant email addresses and telephone numbers.

. lt is recommended that the authority has numerical and narrative explanations for significantvariances in the accounting statements on page 4, should a question be raised by a local elector.There is guidance provided inthe Practitioners'Guide* that may assist.

. Make sure that the accounting statements add up and the balance carried forward from the previousyear (Box 7 of 2017) equals the balance brought forward in the current year (Box 1 of 2018).

. The Responsible Financial Officer (RFO), on behalf of the authority, must set the commencement datefor the exercise of public rights. From the commencement date for a single period of 30 consecutiveworking days, the accounts and accounting records can be inspected. Whatever period the RFO setsmust include a common inspection period - during which the accounts and accounting records of all

smaller authorities must be available for public inspection - of the first ten working days of July.

. The authority must publish the information required by Regulation 15 (2), Accounts and AuditRegulations 2015, including the period forthe exercise of public rights and the name and addressof the external auditor.

All sections Have allhighlighted boxes have been completed?,#i:t;

Have the dates set for the period for the exercise of public.rights been published? {:.

lnternal Audit Report Have all highlighted boxes have been completed by the internal auditor andexplanations provided? f,:n

Section 1 For any statement to which the response is 'no', is an explanation available shoulta question be raised by a local elector andior an interested party?

Section 2 Has the authority's approval of the accounting statements been confirmed by thesignature of the Chairman of the approval meeting? "Iils an explanation of significant variations from last year to this year available,should a question be raised by a local eleclor and/or an interested party?

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ls an explanatioqof any difference between Box 7 and Box 8 available, shoulda question be raised by a local elector and/or an interested party?

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Sections 1 and 2 Trust funds - have all disclosures been made if the authority is a solemanaging trustee?'

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Annual Governance and Accountability Return 2A17118 Part 2 Page 2 of 6

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Annual Governance and nPage 3 of 6

Annual lnternal Audit Report 2g17lt*

This authority's internal auditor, acting independently and on the basis of an assegsment of risk"carried out a selective assessment of compliance with relevant procedures and csntrsls to be inoperation during the finaneialyear ended 31 March 2018.

The internal audit for 2017i18 has been carried out in accordance with this authority's needsand pianned eoverage. On the basis of the findings in the areas examined, the internalauditconclusion$ are summarised in this table. Set out below are the objectives of internal controland alongside are the internal audit conclusions on whether, in allsignificant respects, the controlobjectives were being achieved throughout the financial year to a standard adequate to meet theneeds of this authority.

For any other risk areas identified by this aulhority adequate conlrols existed {list any other risk areas on separate sheetsif needed),

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Date{$) intemal audii unde{aken

Ir{o+f laSignature of person whocarried out the internal audit

Name of person who canied aut the internal audil

A. Appropriate accounting records have been properly kept throughout the financial year. ' jflB. This aulhority complied with its financial regulations, payments were supported by invoices, all

expenditure was approved and VAT was appropriately accounted for.,'{,',

C. This authority assessed the significant risks to achieving its objectives and reviewed the adequacyof arrangements to manage these.

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D. The precept or rates requirement resulted from an adequate budgetary process; progress againslthe budget was regularly monitored; and reserves were apprspriate.

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E. Fxpected income was fully received, based on conect prices, properly recorded and promptlybanked; and VAT was appropriately accounted for. v..

F, Fetty eash payment$ were properly supported by receipts, all pefiy cash expenditure wasapprcved and VAT approprialely ascounted tar. /

G. Salaries to employees and allowances to members were paid in accordance with this authority'sapprovals, and PAYE and Nl requirernenls were properly applied. {

H. Asset and investmenls reqisters were comolete and accurate and oronerlv maintained. l.l. Periodic and year-end bank account reconciliations were properly carried out. .

Accounting statements prepared during the year were prepared on the corect accounting basis(receipts and payments or income and expenditure), agreed to the cash book, supported by anadequate audit trail from underlying records and where appropriate debtors and creditors wereproperlv recorded.

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K. {For local councils only}

Trust funds {including charitable) - The council met its responsibilities as a trustee..

Annual Governance and Accountability Return 2A17nB Part 2

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Page 4 of 6

$ection 'l - Annual Governance

We acknowledge as the members ot

Statement 2017l1t

fKuPoXHtt-uour responsibility for ensuring that there is a sound system of internal control, including arrangements forthe preparation of the Accounting statements. we confirm, to the best of our knowledge and befief, withrespect to the Accounting statements for the year ended 31 March 201g, that;

1. We hav€ put in place anangemenls for effective tinancialmanagement during the year, and for the preparation ofthe aceounling stalements.

prepared its accoonfing sfalements in accordancewith the Accounts and Audit Regutatians.

2, We mainiained an adequale system of iniemal controlincluding rneasures designed to prevenl and detecj fraudand corruption and reviewed its effectiveness,

made proper arrangements and accepted responsibilityfor safeguarding the public money and rcsaurces inits charge.

3. We took all reasonable $teps to a$sure our$elvesthat there are no matters of actual or potentialnon-compliance with laws, regulation$ and properPractices that could have a $ignifcanl tinancial efeclon the ability of thi$ authority to conduct il$busine$s or manage its finances,

has only done what it has the lega! pawer fo do end hescomplied with Proper pnctbes in doing sa.

4. We provided proper opporlunity during the year forthe exercise of e,ectors' rights in acclidansl with therequlremenls of the Accounls and Audit Regulations.

lunng the y3ar gave a!! persons interested the opportii$ tainspect and ask gaesfibns about this authoity's aicounts.

$. We eanied sul an a$sessment of the rist<s taiing thisaulhority and took appropriate steps to manage thoserisks, includiflg the introduclion of internal controls andiorextemal in$urance cover urtlere required.

eansidered and dacatnented the frnaficia! end ofner iislrs ;tfaces and dealt vnifii them orapeiy.

6, We maintained throughout the year an aaequtts andeffective sy$lem of intenal audit oi the accountiilgrecords and control systems.

arranged fpr€ eampetent per*an, lndtpendent af lhe financialconfrof$ andprocedures, tdgryc an obyeclrve vieyron whetherintemal eantrols meef lfte needs af this smaller authority.

7, lAb took appropriate action on all matters raisedin repcrts from inlemal and extemal audit.

responded to mafters brought to its attention by inlema! andextarnal audit.

S. We eonsidered whcther 6ny litigation, liabilit*l orcommitments, events or transactions, occuning eitherduring or a{er the year-end, have a financial itipact onthis authority ar1d, wirere appropriate, have included themin the sccouniing slatements.

{}Jscroseo eyeryrnflg rf sttourar traye aicffl ils Susines$ actiyifyduring th,e year including events taking place after the yearend if relevant.

9. {For lpcel councils only} Trust funds includingcharitable. ln our capacity as the sole managingtrustee we discharged our accountabilityresponsibilities for the fund(s)/assets, includingfi nancial reporling and, if required, independeitexanrination or audit_

hag met all of ita rfspons,brTffes whcre it is a salemanaging trustee af a local trusl or trulsfs.'#

This Annual Governance Statemenl is approved by thisauthority and recorded as minute reference:

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.. G3 Gf t?r\ sdated

Signed by the Chairman and Clerk of the meeting whereapproval is given:

Chairman

Clerk

Annual Governance and Accountability neturn zot zlt s rart i Page 5 of 6

$ecticn 2 - Accounting Statements 2017118 tar

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I certify that for the year ended 31 March 2018 theAccounling Statements in this Annual Governance andAccountability Return present fairly the financial positionof this authority and its income and expenditure, or properlypresenl receipts and payrnqnts, as the case may be.

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Signed by Responsible Financial Officer

I confirm that these Accounting Statements wereapproved by this authority on this date:," .,.fr tfitpltt,

and recorded as minute reference:

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$igned by Chairman of the meeting where approval of the

Date

8. Total value ofcash andshort terrn investments f5m*

,w The sum of al{ current and depasit bank accounts, eashholdings and shaft term investments held as at 31 March *To agree with bank recanclliatlon.

9. Total fixed assets pluslong term investmentsand assets

,',i!* &The value of all the praperty the autharity cwns * lf ts madeup of all its fxed assefs and long term investmenls as af31 March.

10. Total bonowings The outstanding capital balance as at 31 March af all loansfrom third parties (including PWLB).

The Councilacfs as so/e lrusfee for and is responsible forina Trusl funds or assefs,

11. {For Local Councils Only) Disclosure notere Trust funds (including charitable)

4J.8. Ihe fgures in the accaunlrng stafemen{s above donot include any Trust fransacfions.

Annua! Governance and Accsuntability Return 2A17118 Part 2 Fage 6 of 6