Annual return, year ending 31 March 2015 (audited)

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Annual return for the financia
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March 2015
Local councils in England with an annual turnover of £6.5 million or less must complete an annual return in accordance with proper practices summarising their activities at the end of each financial year. In this annual return the term ‘local council’ includes a Parish Meeting, a
Parish Council and a Town Council.
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year ended
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The annual return on pages 2 to 5 is made up of four sections:
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Sections 1 and 2 are completed by the person nominated by the local council.
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Section 3 is completed by the external auditor appointed by the Audit Commission.
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Section 4 is completed by the local council’s internal audit provider.
Each council must approve this annual return no later than 30 June 2015.
Completing your annual return
Guidance notes, including a completion checklist, are provided on page 6 and at relevant points in the annual return.
Complete all sections highlighted in green. Do not leave any green box blank. Incomplete or incorrect returns require additional external audit work and may incur additional costs.
Send the annual return, together with your bank reconciliation as at 31 March 2015, an explanation of any significant year on year variances in the accounting statements and any additional information requested, to your external auditor by the due date.
Your external auditor will identify and ask for any additional documents needed for their work.
Therefore, unless requested, do not send any original financial records to the external auditor.
Once the auditor has completed their work, certified annual returns will be returned to the local council for publication or public display of sections 1, 2 and 3. You must publish or display the annual return, including the external auditor's report, by 30 September 2015.
It should not be necessary for you to contact the external auditor for guidance.
More guidance on completing this annual return is available in the Practitioners’ Guide for local councils that can be downloaded from www.nale.gov.uk or from www.slcc.co.uk
Page 1 of 6

Section 1
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Accounting statements 2014/15 for
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relate to a parish meeting.
/1 Balances
Readers should note that throughout this annual return references to a ‘local council’
brought forward 19099
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2. (+) Annual
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precept
3 (+) Total other receipts
4 (-)
Staff costs :
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(-) Loan interest/capital repayments
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(-) All other payments
Balances carried forward
8 Total cash and short term investments
9 Total fixed assets plus other long term investments and assets
10 Total borrowings
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or ‘council’ also
Total balances and reserves at the beginning of the year as
“recorded in the financial records. Value must agree to Box 7 of previous year.
Total amount of precept received or receivable in the year.
Excludes any grants 3 received.
Total income or receipts as recorded in the cashbook less the precept received (line 2). Include any grants received here.
Total expenditure or payments made to and on behalf of all employees. Include salaries and wages, PAYE and NI (employees and employers), pension contributions and employment expenses.
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Council/Mesting-
Total expenditure or payments of capital and interest made during the year on the council's borrowings (if any).
Total expenditure or payments as recorded in the cashbook less
’ staff costs (line 4) and loan interest/capital repayments (line 5).
Total balances and reserves at the end of the year.
Must equal (1+2+3)
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(4+5+6)
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The sum of all current and deposit bank accounts, cash holdings and short term investments held as at 31 March
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to agree with
_bank reconciliation.
‘The original Asset and Investment Register value of all fixed assets, plus other long term assets owned by the council as at 31
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third parties (including PWLB).
41 Disclosure note Trust funds
(including charitable)
sole trustee for and is responsible for the accounting statements in this annual return present fairly the financial position of the council and its income and expenditure, or properly present receipts and payments, as the case may be.
and recorded as minute reference:
Signed by Chair of the meeting approving these accounting SS eUEne:
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Date
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Page 2 of 6

Section 2 —Annual governance statement 2014/15
We acknowledge as the members of:
our responsibility for ensuring that there is a sound system of internal control, including the preparation of the accounting statements. We confirm, to the best of our knowledge and belief, with respect to the accounting statements for the year ended 31 March 2015, that:
We approved the accounting statements prepared in z a prepared its accounting statements in the accordance with the requirements of the Accounts and
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3 "way prescribed by law.
Audit Regulations and proper practices.
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|2 We maintained an adequate system of internal control,
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“made proper arrangements and accepted
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including measures designed to prevent and detect fraud
VA “responsibility for safeguarding the public
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i and corruption and reviewed its effectiveness.
_money and resources in its charge. {
3 We took all reasonable steps to assure ourselves that there
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has only done what it has the legal power
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are no matters of actual or potential non-compliance with : ‘to do and has complied with proper i laws, regulations and proper practices that could have a
Vv _ practices in doing so.
i significant financial effect on the ability of the council to conduct its business or on its finances.
4. We provided proper opportunity during the year for the
“during the year has given all persons
| exercise of electors’ rights in accordance with the vw ‘interested the opportunity to inspect and i requirements of the Accounts and Audit Regulations. _ask questions about the council’s accounts.
We carried out an assessment of the risks facing the : “considered the financial and other risks it council and took appropriate steps to manage those risks, va ces and has dealt with them properly.
including the introduction of internal controls and/or external insurance cover where required. :
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6 Wemaintained throughout the year an adequate and rranged for a competent person, i effective system of internal audit of the council accounting :
independent of the financial controls and records and control systems.
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procedures, to give an objective view on
: “whether internal controls meet the needs of
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_the council.
i responded to matters brought to its attention by internal and external audit.
7 We took appropriate action on all matters raised in reports from internal and external audit.
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8 Weconsidered whether any litigation, liabilities or disclosed everything it should have about |
commitments, events or transactions, occurring either cits business activity during the year during or after the year-end, havea financial impact on the JL
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including events taking place after the year-
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council and, where appropriate have included them in the _end if relevant. |
accounting statements.
: i has met all of its responsibilities where it is a sole managing trustee of a local trust or rusts.
9 Trust funds (including charitable)
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in our capacity as the sole:
managing trustee we discharged our responsibility in relation to the accountability for the fund(s)/assets, including financial’
i reporting and, if required, independent examination or audit.
This annual governance statement is approved | Signed by:
by the council and recorded as minute reference
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Page 3 of 6

Section 3
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External auditor certificate and report 2014/15
Certificate
We certify that we have completed our review of the annual return, and discharged our responsibilities under the Audit Commission Act 1998 as transitionally saved, for the year ended 31 March 2015 in respect of:
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Respective responsibilities of the body and the auditor
The body is responsible for ensuring that its financial management is adequate and effective and that it has asound system of internal control. The body prepares an annual return in accordance with proper practices which:
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summarises the accounting records for the year ended 31 March 2015; and
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confirms and provides assurance on those matters that are important to our audit responsibilities.
Our responsibility is to review the annual return in accordance with guidance issued by the
Audit Commission (see note below). Our work does not constitute an audit carried out in accordance with International Standards on Auditing (UK & Ireland) and does not provide the same level of assurance that such an audit would do.
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External auditor report
(Exeeptfor-the-matters-reporied-betow)* on the basis of our review of the annual return, in our opinion the information in the annual return is in accordance with proper practices and no matters have come to our attention giving cause for concern that relevant legislation and regulatory requirements have not been met. (tdelete-as-appreprate}:
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Other matters not affecting our opinion which we draw to the attention @f the council:
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Please see enclosed report
(continue on a separate sheet if required)
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External auditor name
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Page 4 of 6

Section 4
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Annual internal audit report 2014/15 to
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The council's internal audit, acting independently and on the basis of an assessment of risk, carried out a selective assessment of compliance with relevant procedures and controls expected to be in operation during the financial year ended 31 March 2015.
Internal audit has been carried out in accordance with the council's needs and planned coverage. On the basis of the findings in the areas examined, the internal audit conclusions are summarised in this table. Set out below are the objectives of internal control and alongside are the internal audit conclusions on whether, in all significant respects, the control objectives were being achieved throughout the financial year to a standard adequate to meet the needs of the council.
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/A Neel AENS: accounting records
Ne been heist properly throughout the yet
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iB “The counel:
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‘financial regulations have been met, “payments:
were
Netinpored by! invoices, oes,
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| all expences was TNE and VAT was appropriately accounted for. i 2
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Io The comma assessed the ‘significant risks to achieving its objectives. ‘and reviewed the”
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“The em ipreceot requirement resulted from an
1 adequate budgetary process; “progress be
Eeelies the Bea was eau) monitored; Cul reserves were appropiate: i iE
Expected i income was fully received, based on
‘correct prices, properly recorded and i ce
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Cie banked; elie VAY was appropriately accounted for. : ;
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Petty eh payments were
, properly supported on mes all petty cash expenditure ' : ie v | a was eRe and VAI approptiaicly accounted for. :
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Salaries to Renioyece ‘and allowances to emer were ro paid |
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enplevale: and PAYE and NI eR Oncais were prope apelied’
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HH Asset and investments registers were complete and accurate and properly maintained.
“Periodic and. yea -end bank ‘account reconciliations were properly carried out.
"Accounting statements prepared during the yearwere prepared on the ayes!
accounting basis (receipts and payments or income and expenditure), agreed to the cash book, were supported by an adequate audit trail from underlying records, and where aborepilele GEE aIe and Giclee were propel recorded.
-K Trust funds fincluding charitable) The council met its responsibilities as a trustee.
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For any other risk areas identified by the council (list any other risk areas below or on separate sheets if needed) adequate controls existed:
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INTERNAL AUDIT SERVICE
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Name of person who carried out the internal audit
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Signature of person who carried out the internal audit
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Page 5 of 6

Guidance notes on completing the 2014/15 annual return
41 You must apply proper practices for preparing this annual return. Proper practices are found in the
Practitioners’ Guide* which is updated from time to time and contains everything you should need to prepare successfully for your financial year-end and the subsequent audit. Both NALC and SLCC have helplines if you want to talk through any problem you encounter.
2 Make sure that your annual return is complete (i.e. no empty green boxes), and is properly signed and dated. Avoid making any amendments to the completed return. But, if this is unavoidable, make sure the amendments are drawn to the attention of and approved by the council, properly initialled and an explanation is provided to the external auditor. Annual returns containing unapproved or unexplained amendments will be returned unaudited and may incur additional costs.
3. Usethe checklist provided below. Use a second pair of eyes, perhaps a council member or the
Chair, to review your annual return for completeness before sending it to the external auditor.
4 Donotsendthe external auditor any information not specifically asked for. Doing so is not helpful.
However, you must notify the external auditor of any change of Clerk, Responsible Finance Officer or Chair.
5 Make sure that the copy of the bank reconciliation which you send to your external auditor with the annual return covers all your bank accounts. If your council holds any short-term investments, note their value on the bank reconciliation. The external auditor must be able to agree your bank reconciliation to Box 8 on the Accounting Statements (Section 1). You must provide an explanation for any difference between Box 7 and Box 8. More help on bank reconciliation is available in the
Practitioners’ Guide*.
6 Explain fully significant variances in the accounting statements on page 2. Do not just sendina copy of your detailed accounting records instead of this explanation. The external auditor wants to know that you understand the reasons for all variances. Include complete analysis to support your explanation. There are a number of examples provided in the Practitioners’ Guide* to assist you.
7 Ifthe external auditor has to review unsolicited information, or receives an incomplete bank reconciliation, or you do not fully explain variances, this may incur additional costs for which the auditor will make a charge.
8 Make sure that your accounting statements add up and the balance carried forward from the previous year (Box 7 of 2014) equals the balance brought forward in the current year (Box 1 of
2015).
9 Do not complete section 3. The external auditor will complete it at the conclusion of the audit.
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All green boxes have been completed?
All sections lee
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Ail information requested by the external auditor has been sent with this annual
“return? Please referto your notice of audit.
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Council approval confirmed by signature of Chair of meeting approving i
| accounting statements?
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Section 1 An explanation of significant variations from last yearto this yearis provided?
Bank reconciliation as at 31 March 2015 agreed to Box 8?
An explanation of any difference between Box 7 and Box 8 is provided?
Sections 1 and 2
[ust funds — all disclosures made if council is a sole managing trustee?
Section 2 For any statement to which the responseis ‘no’, an explanation is provided?
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Section 4 All green boxes completed by internal audit and explanations provided? :
Page 6 of 6

ISSUES ARISING REPORT FOR
Helmdon Parish Council
Audit for the year ended 31 March 2015
|BDO

Helmdon Parish Council 2
Introduction
The following matters have been raised to draw items to the attention of Helmdon Parish Council.
These matters came to the attention of BDO LLP during the audit of the annual return for the year ended 31 March 2015.
The audit of the annual return may not disclose all shortcomings of the systems as some matters may not have come to the attention of the auditor. For this reason, the matters raised may not be the only ones that exist.
The matters listed below are explained in further detail on the page(s) that follow; e Box 11 not completed e Employment status of clerk
@ Internal Auditor's recommendations

Helmdon Parish Council 3
The following issue(s) have been raised to assist the council. The council is recommended to take action on the following issue(s) to ensure that the council acts within its statutory and regulatory framework.
Box 11 not completed
What is the issue?
The council has not answered box 11 in Section 1 of the annual return. We believe based on prior year information that the council should have answered ‘No’.
Why has this issue been raised?
This is a note for the reader of the accounts to clarify that the council is not a sole trustee of any charities and also to ensure that the Council answer this question in future. It does state on the form that no box should be left blank.
What do we recommend you do?
The council should ensure in future years that it answers 'No’ to box 11, to confirm whether the council does act as the sole trustee of and is responsible for managing trust funds or assets.
Further guidance on this matter can be obtained from the following source(s):
Governance and Accountability in Local Councils in England
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A Practitioners Guide, NALC/SLCC
Employment status of clerk
What is the issue?
The council has not reviewed the employment status of staff it engages on a self employed basis or established a PAYE scheme, in accordance with HMRC guidance issued April 2011.
Why has this issue been raised?
HMRC applies a tight and restrictive definition for employee status and has recently declared that clerks cannot be self employed. From April 2013 the HMRC introduced Real Time Information and so all payments have to be reported to them within 14 days of the payment being made.
What do we recommend you do?
To ensure the council is working within the statutory guidelines we recommend that the council reviews the employment status of all individuals employed on a self employed basis, or at least obtain approval from HMRC that the people it engages on a self employed basis are indeed self employed.
We understand from HMRC that all previous agreements with clerks/RFOs are now void. All councils should contact HMRC to establish PAYE schemes as soon as possible. Failure to register as an employee and submit Real Time Information could result in penalties being levied.
Further guidance on this matter can be obtained from the following source(s):
HMRC guidance on website
Internal Auditor's recommendations
What is the issue?
The internal auditor has made a number of recommendations in respect to the financial systems of

Helmdon Parish Council the council.
Why has this issue been raised?
The council is exposed to the risks associated with these weaknesses.
What do we recommend you do?
The council must implement the recommendations made by the internal auditor to improve the financial systems of the council as soon as possible or in any event before the end of the current financial year.
If the council addresses all the issues raised by the internal auditor the council should improve internal controls which will help to prevent and detect error and fraud and assist the council to operate in an effective and efficient manner.
Further guidance on this matter can be obtained from the following source(s):
Governance and Accountability in Local Councils in England
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A Practitioners Guide, NALC/SLCC
No other matters came to our attention.
For and on behalf of
BDO LLP
Date: 25 September 2015