Wales Audit Office

Key question	Yes	No	Further information
1 - Do councillors fully understand their responsibilities as members of the Council and the legal duties placed on them?			Welsh Assembly Government Good Councillor’s Guide Click here to email One Voice Wales for information on their training programme for councillors Governance Toolkit for Parish and Town Councils
2 - Has the Council adopted a code of conduct?
3 - Have all members signed up to adhere to the members’ code of conduct?
4 - Are all councillors aware of their obligations under the members’ code of conduct?			Click here to email One Voice Wales for information on their training programme for councillors Governance Toolkit for Parish and Town Councils

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Members’ interests

Key question	Yes	No	Further information
5 - Does the Council have a clear procedure for when interests are declared?			The procedure should state: when declarations must be made; and when councillors will be allowed to remain in and/or participate in the meeting.
6 - Do the minutes of Council meetings record declarations of interests?
7 - Does the Council keep an up-to-date Register of Members’ Interests?			Governance Toolkit for Parish and Town Councils
8 - Is the Register reviewed periodically to ensure all declarations made are included in the Register?

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Council meetings and minutes

Key question	Yes	No	Further information
9 - Has the Council maintained a schedule of its meetings throughout the year?			Governance Toolkit for Parish and Town Councils
10 - Do agenda papers set out the business to be completed at the meeting?			Governance Toolkit for Parish and Town Councils
11 - Does the Council prepare and approve minutes for all meetings held?			Governance Toolkit for Parish and Town Councils
12 - Are the minutes single-line spaced, sequential and signed by the chair of the meeting where the minutes are approved?			Governance Toolkit for Parish and Town Councils
13 - Do the minutes comply with statutory requirements eg, a specific item for approval of accounts?			Governance Toolkit for Parish and Town Councils

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The Council’s internal rules

Key question	Yes	No	Further information
14 - Has the Council adopted standing orders and financial regulations?			Governance Toolkit for Parish and Town Councils Email One Voice Wales to obtain Model Standing Orders and Financial Regulations
15 - Are the standing orders and financial regulations reviewed periodically to ensure they remain relevant and fit for purpose?			Governance Toolkit for Parish and Town Councils
16 - Have all councillors been given a copy of the standing orders and financial regulations on election/co-option and when the standing orders and financial regulations are updated or amended?			Governance Toolkit for Parish and Town Councils
17 - Does the Council consider the requirements of the standing orders and financial regulations before making decisions?
18 - Does the Council monitor compliance with its standing orders and financial regulations?

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Using the Council’s powers

Key question	Yes	No	Further information
19 - Before making decisions, does the Council ensure it has a specific statutory power under which it can act?			Governance Toolkit for Parish and Town Councils
20 - Does the Council have arrangements to refer unusual or contentious issues to the local monitoring officer for advice?
21 - Does the Council keep a separate account of all s137 payments?			Practitioners’ Guide Section 3 Local Government Act 1972
22 - When considering making a grant under s137 of the Local Government Act 1972, does the Council consider if it has an alternative specific statutory power?			Practitioners’ Guide Section 3 Local Government Act 1972
23 - Before making payments under s137, does the Council consider if the direct benefits arising represent value for money and will benefit some or all of the community?			Practitioners’ Guide

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Setting the budget

Key question	Yes	No	Further information
24 - Has the Council prepared a budget for the year?			Practitioners’ Guide Section 3
25 - Does the budget consider all classes of estimated income and planned expenditure, working balances, balances held in reserves and any need for contingencies?			Practitioners’ Guide Section 3
26 - Has the budget and the precept requirement been approved by the Council?			Practitioners’ Guide Section 3

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Monitoring the budget

Key question	Yes	No	Further information
27 - At each meeting, does the Council receive a detailed report setting out actual income and expenditure compared with the budget and previous years’ results?			Practitioners’ Guide Section 3
28 - Where there are significant differences between the actual and budget figures, does the Council ensure that it received detailed explanations of the differences?			Practitioners’ Guide Section 3
29 - Does the Council consider the explanations provided against other information available to check for consistency?			Practitioners’ Guide Section 3

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Risk assessment

Key question	Yes	No	Further information
30 - Has the Council prepared and approved a formal risk assessment for the year?			Practitioners’ Guide Section 2
31 - Does the risk assessment set out the potential impact and likelihood of the risk event occurring and how the risks identified will be managed eg, through maintenance work, insurance etc?			Practitioners’ Guide Section 2
32 - Does the Council periodically review and update the key risks recorded in its risk assessment?			Practitioners’ Guide Section 2

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System of internal financial control (financial checks and balances)

Key question	Yes	No	Further information
33 - Has the Council documented the system of internal financial control so that compliance with the system can be checked?			Practitioners’ Guide Section 3
34 - Has the Council considered where it is possible to separate duties?			Practitioners’ Guide Section 3
35 - Does the Council ensure that compliance with the system is reviewed?			Practitioners’ Guide Section 3
36 - Has the Council carried out an annual review of the system of internal control before completing the Annual Return?			Practitioners’ Guide Section 3
37 - Was the review carried out by someone not involved in the day-to-day operation of the internal controls?			Practitioners’ Guide Section 3
38 - Has the outcome of the review including recommendations for further developments been presented to and approved by the Council?			Practitioners’ Guide Section 3

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Internal audit

Key question	Yes	No	Further information
39 - Has the Council appointed an internal auditor who is independent of the Clerk and of the Council’s internal procedures?			Practitioners’ Guide Section 2
40 - Does the Council agree the scope of the internal auditor’s work for the year?			Practitioners’ Guide Section 2
41 - Does the Council have arrangements with the internal auditor to report significant findings directly to the Council?			Practitioners’ Guide Section 2
42 - Does the internal auditor provide a detailed report of his/her work and his/her findings?			Practitioners’ Guide Section 2

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Income

Key question	Yes	No	Further information
43 - Does the Council issue consecutive pre-numbered receipts for all sources of income?			Practitioners’ Guide Section 3
44 - Does the Council have and operate arrangements to ensure that all income received is banked in full as soon as it is received?			Practitioners’ Guide Section 3

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Making payments

Key question	Yes	No	Further information
45 - Does the Council receive a list of payments for approval at each meeting?			Practitioners’ Guide Section 3
46 - Are the payments approved supported by original invoices etc?			Practitioners’ Guide Section 3
47 - Do individual councillors only sign cheques that have been fully completed before signing?			Practitioners’ Guide Section 3
48 - Do the Council’s procedures ensure that at least two councillors sign all cheques and other orders for payment?			Practitioners’ Guide Section 3

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Cash book

Key question	Yes	No	Further information
49 - Does the Clerk make up the cash book from source documents eg, cheque payments and not by entering transactions appearing on the bank statements?			Practitioners’ Guide Section 3
50 - Is the cash book balanced and checked periodically?			Practitioners’ Guide Section 3
51 - Does the Council review the cash book periodically to check it has been properly kept?			Practitioners’ Guide Section 3

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Bank reconciliation

Key question	Yes	No	Further infomation
52 - Does the Council prepare a bank reconciliation on receipt of every bank statement?			Practitioners’ Guide Section 3
53 - Is the bank reconciliation checked by someone other than the preparer to make sure it is accurate and complete?			Practitioners’ Guide Section 3
54 - Does the reconciliation provide explanations for all reconciling entries?			Practitioners’ Guide Section 3
55 - Is the reconciliation presented to the Council as part of the regular financial reports?			Practitioners’ Guide Section 3

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Preparing the accounts

Key question	Yes	No	Further information
56 - Has the clerk prepared the annual financial accounts using the correct basis of accounts required by the Accounts and Audit Regulations?			Practitioners’ Guide Section 3
57 - Has the Council reviewed its system of internal control in order to complete the annual governance statement set out in the Annual Return?			Practitioners’ Guide Section 2
58 - Has the Council approved the accounts and the Annual Return by the date set out in the Accounts and Audit Regulations?			Practitioners’ Guide Section 3

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Preparing for the audit

Key question	Yes	No	Further information
59 - Has the internal auditor reviewed the preparation of the Annual Return, completed section 4 of the Annual Return and reported their findings to the Council?			Practitioners’ Guide Section 2
60 - Has the Council received the notice of audit from the external auditor?			Practitioners’ Guide Section 3
61 - Has the Council advertised the audit as required by the Accounts and Audit Regulations?			Practitioners’ Guide Section 3
62 - Has the Council made arrangements for members of the public to exercise their rights in respect of the accounts and the external audit?			Council accounts in Wales – Your rights

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The external audit

Key question	Yes	No	Further information
63 - Has the Council approved the year-end bank reconciliation, the explanation of variances and any other information requested in the notice of audit?			Practitioners’ Guide Section 2 and section 3
64 - Has the Council sent to the auditor the Annual Return and all information requested?			Practitioners’ Guide Section 2
65 - Is the Council updated on progress of the audit and considered if there is a need to contact the auditor where there are unexpected delays?
66 - Has the Council received the Annual Return and the external auditor’s certificate before 31 December?			Practitioners’ Guide Section 2 Guidance on the Accounts and Audit (Wales) Regulations

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Publishing the accounts

Key question	Yes	No	Further information
67 - Has the Council advertised that the audit has been completed and that the accounts are available for inspection?			Practitioners’ Guide Section 2
68 - Has the Council published the accounts in accordance with the Accounts and Audit Regulations?			Guidance on the Accounts and Audit (Wales) Regulations Practitioners’ Guide Section 2

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Wales Audit Office
24 Cathedral Road
Cardiff
CF11 9LJ

Tel: 029 2032 0500
Fax: 029 2032 0600
Email: info@wao.gov.uk