Query

I have been asked by an anonymous enquirer about the significance of the 10 mile rule regarding internal the Internal Auditor from the Parish Council (it might also be queried if this distance rule also applies to Clerk and Auditor).

There are several rules set down by the Internal Audit Forum to ensure complete objectivity and independence from the Council - this presumably also includes the Clerk.  The 10 mile rule has been suggested by the Internal Audit Forum, possibly to ensure a distance which supports objectivity and independence - ie they are not close neighbours/friends/relatives etc.  for example.  

It is also advisable that the Internal Auditor be regularly changed - every two or three years is suggested in order to maintain that objectivity and independence.   

In the main the Auditor is looking at control of spending.  The bottom line is can a reader of the Minutes and accounts be clear about what is being spent?  If not, then changes have to take place. 

The Auditor needs to pick up on what the Council is not doing properly.  All costs known should be entered and made public.  Nothing can be redacted in the financial submissions to the internal or external Auditor.  The whole system relies upon the scrupulous honesty and integrity of both the Clerk and the Council.  This is followed by accountability, openness, and transparency with regard to members of the public.  This comes mainly via what is written in the Minutes and/or entered into the accounts. 

The Auditor does not need to be an accountant but the Auditor must be competent and objective.  There is ample support for both Clerks and Auditors to get things right.  There are lots of free courses and software packages to make the process less arduous.   Some software is not deemed suitable.

The biggest risk is when there is a change of Clerk. 

It is advisable for the Auditor to belong to the Internal Audit Forum which maintains a list and register of Auditors.  It is advisable for Auditors to be registered.  If not then it is advised that one should be found who is.

Questions submitted to Clerk and Council but not addressed:

1.     Does the Auditor live more than 10 miles away from the PC (also from the Clerk?)

 

2.     Is the new Auditor on the Register of Internal Auditors?

 

3.     Objectivity and Independence are of paramount importance.  How often will the Internal Auditor be assessed?

 

4.     Will the Audit be undertaken remotely?

 

5.     Is the Financial/Accounts software used by the new Clerk fit for purpose?   Do we know which one it is?

 

6.     Nothing on the AGAR can be redacted.  All known income/cash should be entered and made public, also its provenance.   

 

7.     Is the Auditor au fait with the JPAG Section  4?

 

8.     Is the Auditor part of the Internal Audit Forum?

 

9.     The most vulnerable time is when there is a change over  of Clerk.  Will the new Clerk highlight any errors made over the past financial year?  Is the accounting system fit for purpose?  Is the coding system fit for purpose and does it adequately cover what is being spent and where?  Can improvements be made re transparency/accountability?

         10.  How long has the Clerk known the Internal Auditor?


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