Risk Management Policy

The Parish Council is responsible for putting in place arrangements for the management of risk. The Clerk with the Chair shall prepare, for approval by the council, risk management policy and assessment in respect of all activities of the council. Risk policy statements and consequential risk management arrangements, shall be reviewed by the Council at least annually.

When considering any new activity, the Clerk with the Chair shall prepare a draft risk assessment including risk management proposals for consideration and adoption by the council.

Major Threat

The greatest risk facing the council is not being able to deliver the activity or services expected by village residents.”

Risk assessment is a systematic general examination of working conditions, workplace activities and environmental factors that enable the Parish Council to identify any and all potential risks inherent in the place or practices. Based on a recorded assessment the Council should then take all practical and necessary steps to reduce or eliminate the risks, insofar as is practically possible, making sure that all employees are made aware of the results of the risk assessment.

This document has been produced to enable the Parish Council to assess the risks that it faces and satisfy itself that it has taken adequate steps to minimise them. In conducting this exercise, the following main points have been followed and the register constructed accordingly.

• Identify the areas to be reviewed.
• Identify what the risk may be.
• Evaluate the management and control of the risk and record all findings.
• Review, assess and revise if required.

Points and areas identified are dealt with in the tables that follow and assessed and recorded accordingly:

Financial & General Management

Topic	Risk	H/M/L	Management/control of risk	Review/Assess/Revise
Business Continuity	Risk of Council not being able to continue its business due to an unexpected or tragic circumstance	L	Business Continuity Plan agreed and reviewed annually.
Precept Determination	Fit for purpose	L	Councillors receive monthly statements of how the accounts are performing against budget.  Figures are displayed in monetary and percentage terms.  This provides simple analysis and tracking and when budgets are formed (November) the RFO works with each committee to determine the budget for the next year.  In January the precept calculations are received and the budget finalised.	Process used has been established for some time and operates effectively
Precept Income	Income not received from CBC or reduced from January’s projected amounts	L	Reserves value is one years operating as a minimum.	Procedure set to mitigate this risk
Financial Records	Financial irregularities	L	The Council has Financial Regulations, which set out requirements for banking, cheques and reconciliation of accounts.
	Bank errors or Bank Losses	L	The Clerk is not a bank signatory. Two Councillor signatures required per cheque.  RFO checks bank statements monthly against approved expenditure for internet banking purposes
	Internet fraud	L
Cash	Loss through theft or dishonesty	L	Council requirements are set out in the Financial Regulations. Cash received is banked within 3 banking days if possible. No petty cash or float held.	Existing procedures are adequate and finance regulations are reviewed annually.
Reporting and Auditing	Information Communicated	L	Financial management statement produced and examined by finance sub-committee monthly. Statement includes, expenditure against budget and a breakdown of receipts and payments.	Existing communication procedures adequate.
	Auditing and Governance	M	Council undertakes internal and external independent audits.	Council appoints an independent Auditor annually
Cost Overheads	Services not supplied but invoiced	L	Committee approves all invoices for payment and only approves when goods supplied or work completed	Procedures proven to be satisfactory over many years.  Financial regulations check annually
Bad Debt	Incorrect invoicing	L	List of invoices prepared for approval by Councillors every month.	Procedures proven to be satisfactory over many years.  Financial regulations check annually
	Cheque payable incorrect	L	Two Councillors check each invoice against the cheque book and associated paperwork and initials related cheque stubs.
	Loss of stock	L	Minimum stock held
	Unpaid invoices	L	Unpaid Council invoices for adverts, bulletins or services are pursued and if practical payment obtained in advance.
Payment Approval	Payments authorised by full council only	L	All payment transactions made following the finance regulations process and are presented monthly at Council meeting for review in a due payments list	Procedures proven to be satisfactory over many years.  Financial regulations check annually
Grants Received	Grants are applied for against specified projects	L	Grant applications are prepared by the RFO and approved by the council.  The RFO checks progress and reports back when the application result is determined.  Grants normally have conditions of use attached, these being checked and monitored by the Clerk.	The application process determines the procedure to be followed if at variance from the financial regulations.
Allotments income	Rental received from the allotments	L	Rents set annually by Council.  Allotments chair (non Council) invoices under the Clerks supervision.  Collections due each January and paid to the Clerk.  Bank reconciliation made by RFO against invoices.  Allotments Chair chases bad debt	Existing procedures works well.
Achieving Best Value	Multiple quotes for larger projects	L	The finance regulations dictate when multiple quotes are required.  For significant spend projects contracts awarded through sealed bid tenders.  Professional contractors used to project manage the contractor.  Project specification produced for significant tenders as part of the tender process.	Existing procedures checked annually.
	Project overspend	M	Each significant project has a Council sponsor.  Sponsor and Clerk (and/or Consultants) check the delivery against specification and reports shortfalls to the Council.
Salaries and Expenses	Salaries incorrect, wrong hourly rate or hours worked	L	Salaries assessed annually by the relevant committee and recommendations made to Council.  Figures incorporated in budget calculations.  Hours worked checked and approved by committee Chair and reported to Council monthly.	Existing procedures checked annually.
	Fraud or incorrect claims	L	Expenses must be approved.  Mileage claims paid on completion of claim form and receipts provided.  Mileage claim rates match those recommended by NALC.
	Wrong deductions of NI or Tax Unpaid Tax & NI contributions to Inland Revenue		Use of payroll programme package (12 Pay) submitted to IR monthly.
Employees	Loss of key staff or long term illness, resignation or misconduct.Health and Safety training requirements.	M	Clerk considered only critical staff member.  Temporary replacements for sickness sought using EALC.  Vacancy roles filled using the recruitment process.	The EALC advice and recommendation sought.  Personnel sub committee formed to interview candidates.  Recommended candidates approved by full Council
	Task specific training needed.	L	Training sources and budget available
Election Costs	Risk of unexpected election	L	Council precepts for election costs each year.  CBC monitoring office advice sought annually on potential election costs	Reserves used to meet election costs if necessary
VAT	Re-claiming/charging	L	Requirements set out in the financial regulations	Existing procedures checked annually
Annual Return	Completed and submitted in time limits	L	Annual Return is completed and submitted to the internal auditor for checking.  Approved by Council and signed before sending to the External Auditor within time limit.	Existing procedures adequate
Legal Powers	Illegal activity or decision making	L	All activity and payments within the powers of the Parish Council to be resolved and minuted at Full Parish Council Meetings, Clerk to ensure appropriate powers are available.	Decision made form part of the minutes
Agendas, Minutes & significant reports	Accuracy and legal	L	Minutes and agenda are produced by the Clerk to defined standards and adhere to the legal requirements. Minutes are approved and signed at the next Council meeting. Minutes and agenda are displayed according to the legal requirements as a minimum. Council meetings managed by a Chairman.	Standing Orders followed and adequate.
Members Interests	Conflict of Interests and register of Interests	L	Standing Orders require declaration of interests at each Parish Council meeting by members.Register of Members Interest in the public domain and should be reviewed regularly by Councillors.	Existing procedures are adequateMembers reminded to review their entry.Clerk responsible for ensuring new Councillors register their interests
Insurance	Meets needs and competitive	L	Reviewed annually prior to policy renewal.  All associated liability covered.  Policy updated as new assets added.  Employee cover adequate and current.	EALC discount scheme used.
Data Protection	Data protection rules followed	L	Clerk registered for data protection and reviewed annually
Freedom of Information	Policy availability	L	FoI policy available in the public domain.  Policy reviewed annually

Recreation & Play Areas

Topic	Risk	H/M/L	Management/control of risk	Review/Assess/Revise
Assets	Loss or damage	L	Annual review of assets undertaken.	Adequate inspections undertaken
	Risk of damage or injury to third parties
Asset Management	Premises or other assets being closed or unavailable for use by the Council or community due to poor or dangerous condition	L	An asset register produced and reserves in place such that assets can be replaced at the end of their natural life	Asset management inventory and plan
Recreation Areas	Lorkin Daniell Playing Field	L	Areas regularly inspected by Councillors and staff	Adequate inspections undertaken
	Poor Land	L
	Allotments	L
	Village Heath	L
	MUGA
Village Halls and Storage areas	Damage	M	Regular checks carried out by Councillors and staff.  Insurance cover against fire and damage.Emergency planning policy in place for halls if needed Fire and security alarm fitted professionally and inspected as appropriate.  Fire drill procedures in place	Adequate inspections undertaken
	Fire	L
	Emergency Accommodation	L
Social Club and Scouts Hut	Damage	M	Social club insurance cover held under main PC policy.   Social club use and activities managed by the club Trustees and Manager. Separate scout hut insurance cover is maintained by the Scouts as a contractural condition.
	Fire & Third party injury	L
Children’s Play Areas	Play equipment of LD Playing Field	L	Regular checks carried out by Councillors and staff.  Play equipment inspected annually by CBC or professional contractor	Adequate inspections undertaken
Maintenance	Village Halls	L	Committee and Hall Administrator regularly inspect the halls for maintenance needs.  Routine maintenance agreed as required.  Budgetsufficient to meet maintenance requirements.Hall Roof fund established and maintained for when needed.	Hall needs recorded through the Premises and Recreation Report
		L	Insurance cover in place for village Halls
Notice Boards	Risk of Damage or injury to third parties. Location suitability	L	Notice board located at Co-Op and Orpen Hall. MUGA notice board also in scope.  All covered by insurance policy and inspected regularly	Adequate inspections undertaken
Street Furniture	Risk of Damage or injury to third parties.Location suitability	L	Street furniture covered by insurance policy and inspected regularly by Councillors and staff.  Maintenance needs recorded through the Environment & Highways Report	Adequate inspections undertaken
Meeting Location	Adequate provision and	L	PC, Committee and Sub Committee meetings held in the village halls.  These buildings are assessed above
	H&S checked	M
Council Records – paper	Loss through fire or theft	L	Electronic records held on computer
	Computer failure	M	Regular backups taken but stored on site
Trees	Trees or branches posing a safety problem to the public where unrestrictive right of access is available	M	Annual inspection and register of trees. Trained Councillors and staff. Reporting procedure for the public. Purchase of expertise as required for problem areas.	Review regularly

Miscellaneous

Topic	Risk	H/M/L	Management/control of risk		Review/Assess/Revise
Poor reputation of the Council	The work of the Council is not understood leading to negative feedback from parishioners and dissatisfaction with the way services are carried out	L		Regular use of communication channels including web site and newsletters to explain the Council’s activities.  Use of Social Media	Communication Plan and Use of Social Media
Poor stakeholder relationships	Perceived or real breakdown in communications between tiers of local government or between the PC and other public providers	L		PC to understand the services provided by others and to discuss areas of joint interest periodically. The PC to respond to consultations to put its point of view across adequately.	Communication Plan
Lack of vision	An over-emphasis on the management and operation of Council services may lead to a poor performance with regard to forward planning which may prevent partnerships being formed with other public and private supplier or even the loss of grants.	M		The PC to review its Parish Plan and VDS stance on Planning proposals and to proactively develop a Neighbourhood Plan so that a vision of the future is always available. Plan reviewed regularly and community engagement for feedback	Review regularly
Lack of Training or time to undertake the role of the PC	Inadequate knowledge or specialist ability may lead to poor decisions	L		Adequate training budget available.  Encourage training for Councillors and staff	Maintain a training record and review annually.