Financial & Management Risk Assessment

Document Date

19/03/2026

Created by

Parish Clerk

Accessible version of document

CATEGORY	RISK IDENTIFIED	LIKELIHOOD	CONTROL MEASURE/MANAGEMENT	ACTION	FREQUENCY
INCOME
Precept	Not submitted Not paid by North Northants Council Adequacy of precept	L L M	Full Parish Council minute – RFO to follow up. Check & Report to Parish Council. Reserves of 60% of precept Quarterly review of budget to actual agreed	Diarise Diarise Diarise	Annually Half yearly Quarterly
Grants	Application & procedure Receipts of grant when due	L L	Clerk/RFO quarterly Check and report to Parish Council	Diarise Diarise	Annually Annually
Investment Income	Investment Policy Receipt when due	L L	Review Fin Regs policy Update accounts	Council Diarise	Every 2 years Annually
EXPENDITURE
Salaries	Wrong hours paid Wrong pay rate Wrong salary paid False employee Wrong deductions NI/Tax	L L L L L	Record hours, check to contract, produce payslip Check to contract/minutes, produce payslip Check to contract/minutes Check to PAYE records & lists Check to PAYE calculations, produce payslip	Internal Control Finance Internal Control Finance Internal Control Finance Internal Control Finance Internal Control Finance verify, external Auditor/when applicable	Monthly Annually Monthly Monthly Monthly/Annually
Direct Costs & Overhead Expenses	Goods not supplied to Parish Council Invoice incorrectly calculated	L L	Order System Check arithmetic	Approval check Approval check	Monthly Monthly
Chair’s Allowance	Incorrect allowance Misappropriation	L L	Budget setting Budget setting	Members Members	Annually Annually
Grants and Support	Power to pay Agreement of Council to pay Conditions agreed Cheque & voucher Follow up verification	M L L L M	Minute power Minute power Use reasonable condition Signatory initials, voucher RFO check/obtain accounts (prudent to verify if payment in excess of £250)	Member verify Member verify RFO check Member verify RFO verify	Annually Annually Annually Annually Annually
Election Costs	Invoice at agreed rate	L	RFO check and consider budget	RFO verify	Whenever needed
VAT	VAT analysis VAT recoverable Charged on sales Charges on purchases Claimed within time limit	L L L L L	All items in accounts Submit VAT N/A – not registered for VAT Consider all items per accounts Agree returns submitted	RFO/Finance verify Diarise RFO/Finance verify RFO/Finance verify RFO/Finance verify	Monthly Quarterly Annually Annually Annually
FINANCE
General Fund	Adequacy	L	Consider at budget setting	Council	Annually
Reserves – Earmarked	Earmarked or contingency liability Adequacy	L L	Consider at budget setting and account reviews Consider at budget setting and account reviews	Council Council	Annually – December Annually December
Assets	Loss, Damage etc Risk or damage to third party property or individuals	M M	Annual inspection, update insurance and asset registers Review adequacy of Public Liability Insurance	RFO/Chair/Vice Chair Diarise – Clerk/RFO	Annually April/May Annually April
Staff	Loss of key personnel (clerk) Fraud by staff	L L	Hours, health, stress, training management, long term sickness, early departure Adequate insurance (Fidelity Guarantee Value) Clerk to monitor and increase as and when necessary. Insurance Company conditions	Chair/HR Committee Council	Annually Continual
Loss	Consequential loss due to critical damage or third party performance	L	Consider insurance cover requirement	Diarise – Clerk/RFO	Annually April
Bank Reconciliation	Unrecorded income Unrecorded expenditure Bank error undetected Fraud undetected	L L L L	Record receipts/cheques immediately, check bank statement Check bank statements Reconcile payments/receipts, bank statements Independent review of bank reconciliation	RFO RFO RFO Finance Party	Monthly Monthly Monthly Monthly
Authorised Signatures and Expenditure Approval	Inappropriate spending Illegal letting of contracts Unauthorised payments	L L L	Financial regulations stating authorisation limits and protocols Standing orders/financial regulations Monitoring of all payments	RFO/Council RFO/Council RFO/Finance/Council	Annually Annually Monthly
Borrowing	Adequacy of finances to be able to repay loans	M	Financial plan for repayment of loan	Diarise RFO/Finance Team	Annually
Legal Powers	Illegal activity or payment	M	Educate Council as to their legal powers, training	Clerk/NCALC	Annually
Best Value	Incorrect tendering	L	Ensure correct tendering for services	RFO/Finance	Annually
Financial Recording system and budgeting	Inadequate records Budget overspends	L M	RFO/Clerk check, internal control and annual audit Regular review of budgets	Diarise RFO	Quarterly/Annually Quarterly
Treasury Management	Unsuitable investments Inappropriate loans Loss of interest	L L L	Agreed investment establishments Financial Regulations Monitoring of interest rates	Finance Party, Members Finance Party, Members Finance Party, RFO	Annually Every 2 years Quarterly
MISCELLANEOUS
Remembrance Service	Risk or damage to third party	L	Inspect Cemetery on day of parade, ensure public liability insurance covers event	Clerk/Council	Annually Nov
Maintenance	Poor standard of assets	M	Annual maintenance inspection	Diarise/Clerk/Working Parties	Annually April
Minutes	Accurate and legal	L	Review at following meeting	Clerk/Chair/Vice Chair	Monthly
Members’ Interests	Conflict of interest	L	Update declarations of interest	Members	Monthly
Business Continuity	Loss of documents/data Meeting venue not available	L L	Electronic data stored in cloud, on memory sticks Another venue – Library	Clerk Clerk	Weekly Annually
Bus Shelters/Bins/Benches/ Street Lights	Risk or damage to third party	M	Regular inspections	Clerk/Working Parties	Monthly
Village Grass Cutting	Public from machinery, Flying debris	L	Contractor carries public liability insurance	Contractor/Clerk	Annually
Parish Council Litter Pick/Community Environment Group	Risk or damage to third party	M	High Vis Vest, grabbers, bags, briefing, covered by public liability insurance, proper disposal arrangement in place with Norse	Working party/Clerk	On each occasion Insurance annually
Events Committee – Events	Risk or damage to third party	L	Check no attending event under 2000/over 2000 for correct public liability insurance. DBS Certificates where appropriate. Ensure Food Hygiene Certs and third-party public liability insurance covers those assisting	Clerk/Chair of Committee/third party	When organising event

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