EASEBOURNE PARISH COUNCIL

RISK MANAGEMENT

Introduction
1 The new approach to local council audit seeks to address risk management by placing emphasis on local council’s strengthening their own corporate governance arrangements, improving their stewardship of public funds and providing assurance to taxpayers.

2 Risk management is not just about financial management; it is about achieving the objectives of the organisation to deliver high quality public services.  The failure to manage risks effectively can be expensive in terms of litigation and reputation and the ability to achieve desired targets.

3 In order to formally cover these issues as part of the annual audit the Council is required, as part of the Annual Return – Statement of Assurance, to give a positive response to the following statement: “We have carried out an assessment of the risks facing the Council, and taken appropriate steps to manage those risks, including the introduction of internal controls and/or external insurance cover where required.”

4 In addition, the Internal Auditor is required to review the Council’s risk assessment to ensure that adequate arrangements are in place to manage all identified risks.

Insurance
1 The Council’s policy is based on a standard document adopted by many  local authorities and covers:

a) The protection of the physical assets owned by the Council against loss, damage etc.

b) Theft of money, including through staff dishonesty (Fidelity guarantee)

c) Public liability

d) Employers liability

2 The policy is reviewed annually by the Clerk at or around the renewal date   (August) and any changes recommended to the Council.  Other changes are made as and when necessary.

Financial control
1 All the risks associated with financial control are stated in the Financial Regulations section of the Easebourne Parish Council Standing Orders.

2 It will be the task of the internal auditor, as part of the annual audit, to confirm that those procedures are being followed.        

Preventative action
1 In addition to the Insurance and Financial Control arrangements the Council has set in place a risk assessment process in order to reduce the risks to which the Council may be exposed in carrying out its activities.

2 This process includes several specific recurring checks:
a) The children’s  playground is inspected weekly and defects reported
b) An annual RoSPA safety inspection of the playground and its equipment
c) The maintenance of an asset register