Lifting the Lid Part 7: Betley Parish Council Annual Accounting Process

 

The Annual accounts for the Parish have now been prepared and approved by Members.  Between June and July is the period when parishioners can ask to see documents or seek clarification and even raise concerns about expenditure with the internal auditor.  Failing that, the external auditors.  However, the Annual Audits are snap shots of the annual accounts for the PC, the documents submitted to the auditors being chosen by the clerks of councils, their scrutiny ‘light touch’.  Only on occasion might the Auditor ask for more.      

Accounting Scrutiny (or not)

Last year when the clerk was asked for the contact details of the internal auditor the response was that these were on the PC website.  However, they could not be found.  Should this happen again, the Internal Auditor’s contact details (Davenports Accounting) and not to be confused with Davenports Accountancy (of Manchester) are available at Companies House 09892132 if they are not posted on the Betley PC noticeboard with the other Annual Accounting Documentation.  The external Auditors are Forvis Mazar.

An external audit is triggered if a council’s expenditure exceeds £25,000. This year the income of Betley PC was cited as approximately £22,000. Did this figure include any Bonfire Committee contribution (it is understood from the PC that a contribution has been made, but it does not appear to have been accounted for in the Minutes – or the accounts?).  And were any VAT refunds reclaimed during the year?  Have either of these been entered within the AGAR receipts/income figures?  Thus would the PC confirm whether the total gross income has remained below £25,000?

How much of the precept has Betley PC not spent this year?

The Co-op bank account has now been closed and £28,156.25 transferred to  the Unity Trust Bank Instant Access Account (Item 8 iii/iv/x).  There was no explanation given why a second bank account was needed for such small amounts.  Is the Unity Trust Instant Access Account an interest-bearing account for Parish Council reserves? Does the Parish Council have a formal reserves policy? Has VAT reclaimed during the year been included within the receipts/income column on the AGAR form?

The bank reconciliation also refers to ‘£8,000 to be retained as a reserve’ whilst simultaneously stating that the Co-op account was closed and the full balance of £28,156.25 transferred to the Unity Trust Bank.  Could the Council therefore clarify the meaning of this reserve reference.

Some of these questions might more easily have been answered had the cashbook and receipts/payments records been made available for public inspection. It is understood that requests for access to these records, including FOI requests made since 2023 by a councillor, have not resulted in the documents being provided.

 

The closing balance per the cashbook is stated to be £32,002.43. Even allowing for the £8,000 election reserve, this appears to leave reserves equivalent to approximately 1.4 years of annual expenditure. For a small parish council, reserve levels of this scale would normally be expected to correspond with identified capital projects, earmarked liabilities, or a formal reserves policy.

 

Although councils are entitled to retain prudent election contingencies, questions reasonably arise as to whether the £8,000 reserve remains proportionate given that no contested elections arose in either 2025 or 2026. It would therefore be helpful for the Council to clarify what proportion of current balances constitutes general reserves, what reserves guidance or policy is being applied, how the present reserve levels are considered proportionate to anticipated expenditure and risk, and whether current reserve levels were considered when setting the present precept.

So much for the AGAR form and what it tells us about Betley PC accounts.

 

Budget Heads

Further clarification would also be helpful regarding budget virements, Memorial Garden expenditure, and contractor payments.

During the financial year, several budget heads appear either to have been overspent or remain substantially unused.  Some virements have taken place between these budget headings.  However, by year end, it appeared that the Memorial Garden had only £7.34 left in budget in February.  Were the February and March invoices therefore paid?    Based on past submitted amounts, this budget would have been overspent had a sum approval been placed in the expenditure column.  Instead ‘as per contract’ was the  entry ‘approved’ by the council which would be regarded as not good practice and far from best practice.

In the April Minutes the budget for the Memorial Garden records a zero sum, and a new session budget of £3500).  There is no mention of virement or the final total accounted for after the ‘as per contract ‘ or that any outstanding sums had been paid and from where.

The original maintenance contract was apparently arranged earlier in the year through the Clerk’s delegated authority, thus it is not entirely clear from the published records whether councillors and parishioners can readily identify – although the receipt and cashbooks, if available to the public might help clarify issues raised such as:

• the total annual contractual commitment;
• specified amounts approved at each meeting;
• which elements relate to routine maintenance;
• and what expenditure relates separately to items such as lights, Christmas tree decorations, trees, or ornamental features attributed to the Memorial Garden budget.  The Memorial Garden Budget head needs a sub heading to clarify total expenditure.

The issue is therefore less the existence of the expenditure itself and more whether the present accounting presentation provides sufficient transparency for councillors and parishioners to understand.

Assets or Goods

Further clarification is requested regarding the Parish Council Asset Register.

Several entries appear either incomplete or inconsistent with expenditure approved in meeting Minutes.  Thus, it is unclear whether all council-owned items purchased from public funds are being consistently recorded, For example:

• Decorative lights were reportedly purchased for approximately £380 per strand (three strands in total) appear to be recorded as having been purchased in the Minutes (two reimbursed to Cllr Bettley-Smith) simply as ‘lights £300’ on the Asset Register.  It would be useful if number of strings and number of lights on strings could be listed for both clarity and transparency, together accurate amounts paid.

·        Should the  electric point on the Memorial Garden, and the water fixture on Sandycroft be listed on the Register if they were paid for with PC funds?

·        Should the war memorial on the Memorial garden and the several commemorative plaques also be registered?

• Metal statue purchases also appear unclear. Meeting minutes suggest at least two pairs were purchased using Parish Council funds at £350 per set, while additional privately funded pairs were mentioned later.  If sets have been donated to the PC then it would be useful if these could also be registered.  At least 4 sets were on display in 2025.

·         

• Notice Board keys and a loudhailer purchased by Cllr Bettley-Smith, poppy ties purchased and reimbursed to Cllrs Owen, Karling and Bettley-Smith.  Should these appear as Goods on the Register?

·         

·        Hi Viz vests were recently purchased by Cllr Bullock (£99.99 reimbursed).  Should be numbered and listed on the Register?

 

·        Flag poles and poles for the Speed indicator devices also need to be recorded, also computer programmes if they are annually renewed via public funds?

 

·        The new gates are proving to be elusive re number, cost and ownership.  Some have been paid for privately, some by the SCC, and there appears to be an increasing sum for gates financed by the PC precept.  Should the gates be placed on the Asset Register?  Have the privately purchased gates been gifted to the PC?  Or have the gates been gifted to the private landholders?  Are the gates insured against damage/theft?

 

·        Are Apps for private phones currently being approved?  Is there a ruling for this eventuality, if such expenditure is  actually permitted in law, (£30 each for Cllrs Owen and Berrisford for What 3 Words Apps for their personal phones)?  Is this a precedent?

Xmas Trees, commemorative plaques, flags, notice board keys, poppy ties, loud hailers, flag poles are also assets but of a less durable nature than say benches/noticeboards etc..

Overall, it is unclear whether all council-owned items purchased from public funds are being consistently recorded, and whether the Council distinguishes between fixed assets, consumables, and reusable equipment.

It would be helpful to know whether the Internal or External Auditor has considered these matters and whether any guidance has been provided.

If not then it would assist Betley PC to clarify:

• the basis upon which asset values are entered onto the Register;
• whether assets are recorded at purchase cost, insurance value, or another basis;
• whether all council-funded assets are currently included;
• whether gifted or privately funded items situated on Parish Council land are recorded separately;
• have Goods as an important category been entered on the Register?
• and has the Asset Register has been independently reconciled against invoices, minutes and insurance schedules?

Given that AGAR governance assertions rely upon adequate asset recording and internal controls, this is an important matter of public accountability.

It might assist the PC if direct purchase from suppliers by the Council through the Clerk were made in order to improve transparency, auditability and VAT record-keeping.