Adopted July 2026

1. Internal Control

Internal Control means the systems in place to maintain good financial governance.

The Responsible Financial Officer (who is also the Clerk) has legal responsibility to ensure that proper internal controls are set up and maintained.

These controls ensure that all income due is received; all expenses are properly authorised; books are maintained including regular bank reconciliations; and income and expenditure are in accordance with budgets.

The full requirements are set out within the Accounts and Audit Regulations 2015 and explained within Governance and Accountability for Local Councils, the Practitioner’s Guide (March 2024).

Perranzabuloe Parish Council (PPC) has a number of systems in place to support and manage internal control:

  • Internal control checks: a quarterly review of financial accounts by two appointed Councillors, on a rota basis, which is documented and reported to Full Council using the Internal Control Form.
  • Independent internal auditor: appointed sector professional who carries out an annual audit and presents a written report to Council, ahead of Annual Return completion.
  • Monthly reporting of finances: income & expenditure/actual against budget supplied as an extract from accounting records, together with a payment schedule.
  • Quarterly report to Full Council: by the Clerk, including account balances and earmarked reserve balances.

1.2 Internal Control Checks

Checks cover all financial activities of PPC over the whole of the financial year, using the Internal Control Form. The Clerk organises and oversees the quarterly internal control checks as they are not the main signatory to the accounts of PPC. The Finance Officer assists.

As part of the internal control checks, Councillors will inspect at least three payments and receipts during the quarter.

Payments should be checked as follows:

  • Account total correct and accompanied by supporting purchase order/authorisation?
  • Invoices countersigned by authorised signatories?
  • The payment has been advised to Council and authorised?

Receipts should be checked as follows:

  • Is the amount correct?
  • Has the amount been banked promptly?
  • Was the amount advised to Council and agreed?

Regular activities will be included at each quarterly check, with other activities being included at least once every year. Checks are reported to the next Council meeting.

1.3 Control Check Calendar

  • Check 1: First quarter of the financial year (April–June).
  • Check 2: Second quarter of the financial year (July–September).
  • Check 3: Third quarter of the financial year (October–December).
  • Check 4: Fourth quarter of the financial year (January–March).

1.5 Independent Internal Auditor

A commissioned service by PPC, this is usually an appointed sector professional who carries out a bi-annual audit and presents a written report to Council, and prepares a report ahead of Annual Return completion. This happens in May, once the year end accounts have been closed and before the Annual Return (statutory document) has been completed.

Their written report is presented and considered by Council as part of their complete review of internal controls. This internal audit informs the Annual Return.

1.7 Associated Documents

  • Financial Regulations
  • Standing Orders
  • Internal Control Form