form 4.1 quarterly STATEMENT ON INTERNAL FINANCIAL CONTROL

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FORM 4.1

QUARTERLY STATEMENT ON INTERNAL FINANCIAL CONTROL

Establishment/Area Office/HQ Group:

For Quarter ending:

Signed:

Name:

Position:

Date:

Summary and Action PlanRecord key findings from the report and any actions required to improve control.

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1 CONTROL FRAMEWORK

Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Delegation of Authority

2. Fraud Policy, including conflicts of interest

3. Training

Action Plan brought forward from last quarter:

Action Plan:Record action being taken or required to address any weaknesses identified above.

Overall Assessment of system:Based on your comments above how well is the system being controlled?

Well controlled

Satisfactory Marginal Deficient

Further comments:

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2 BUDGETARY CONTROL (Chapter 6)Objective:To plan, monitor, control and adapt resources to meet agreed business objectives whilst remaining within notified limits.

Key Risks identified centrally: Risk Rating

1. Inappropriate allocation of resources resulting in failure to meet objectives

2. Poor decision making as a result of inaccurate or inadequate information

Other locally identified risks: Risk Rating

3.

4.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Business Planning

2. Variance analysis

3. Budget forecasting

4. Regularity, propriety and value for money

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Other local controls operated:Record any other significant controls in place that address the risks identified both centrally and locally.5.

6.

7.




Well controlled


Further comments:

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3 CAPITAL EXPENDITURE CONTROL (Chapter 7)Objective:To select best capital expenditure options and fully evaluate them in terms of financial viability and meeting business need.


1. Value for money not achieved

2. Not meeting business need


3.

4.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Investment Appraisal

2. Post-Project Evaluation

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4.

5.




Well controlled


Further comments:

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4 ACCOUNTING SYSTEM (Chapter 8)Objective:To accurately record financial transactions in order to produce true and fair Prison Service accounts.


1. Unavailability of the system

2. Inaccurate data / accounts

3. Loss /theft


4.

5.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Access

2. Disaster Recovery

3. Reconciliation of control/suspense accounts

4. Accuracy of data

5. Losses and special payments

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7.

8.




Well controlled


Further comments:

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5 PAYMENTS (Chapter 9)Objective:To ensure that payments are made to the right payee on time and at the agreed amount.Key Risks identified centrally: Risk Rating

1. Late payment

2. Loss / theft

3. Incorrect payments


4.

5.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Separation of duties

2. Supporting documentation

3. Authorisation within delegated authority

4. Prompt payment (include payment time performance for period)

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6.

7.




Well controlled


Further comments:

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6 TRADE DEBTORS (Chapter 10)Objective:To promptly recover payment in full for goods and services supplied on credit.Key Risks identified centrally: Risk Rating

1. Debts are recovered late

2. Debts are not recovered


3.

4.


2. Credit checks and limits

3. Debt recovery

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5.

6.




Well controlled


Further comments:

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7 CASH AND BANK (Chapter 11)Objective:To ensure that appropriate levels of cash and bank balances are held, safeguarded and recorded.Key Risks identified centrally: Risk Rating

1. Loss / theft

2. Inability to make cash payments


3.

4.


2. Cash and bank reconciliations

3. Physical security of cash and cheques

4. Secure post-opening procedures

5. Cash requirements

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7.

8.




Well controlled


Further comments:

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8 PAYROLL (Chapter 12)Objective:To ensure the right people are paid the right amount on time.Key Risks identified centrally: Risk Rating

1. Incorrect payments

2. Late payment

3. Loss / theft


4.

5.


2. Post-payment checks

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4.

5.




Well controlled


Further comments:

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9 CLUBS (Chapter 13)Objective:To minimise the risk of write-offs and fruitless payments by the Prison Service in respect of any debts incurred by Staff Clubs.Key Risks identified centrally: Risk Rating

1. Payments outside the ambit of the vote

2. Fruitless payments


3.

4.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Contract indemnifying the Prison Service

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3.

4.




Well controlled


Further comments:

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10 ADVANCES (Chapter 14)Objective:To assist staff cash flow when incurring official expenditure. Key Risks identified centrally: Risk Rating

1. Theft

2. Inappropriate payments

3. Non-recovery


4.

5.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Authorisation

2. Reconciliation

3. Recovery

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5.

6.




Well controlled


Further comments:

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11 PRISONERS' MONIES (Chapter 15)Objective:To accurately record and manage monies held on behalf of prisoners, in line with current policy and legislation.


1. Inaccurate records

2. Loss / Theft

3. Non-compliance with earnings policy

4. Non-compliance with incentive scheme spending limits


5.

6.


2. Earnings and spends policies are communicated

3. Prisoners sign for all transactions out of their accounts

4. Reconciliation of PIES to FOCUS

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6.

7.




Well controlled


Further comments:

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12 SPECIAL FUNDS (Chapter 16)Objective:To ensure non-voted funds are properly accounted for.Key Risks identified centrally: Risk Rating

1. Misappropriated funds

2. Misuse of voted funds

3. Inaccurate accounts


4.

5.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. Approval

2. Accounts preparation

3. Review

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5.

6.




Well controlled


Further comments:

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13 SALES AND TRADING ACTIVITIES (Chapter 17)Objective:To effectively manage appropriate trading activities.Key Risks identified centrally: Risk Rating

1. Loss

2. Failure to achieve appropriate levels of income


3.

4.


2. Reconciliation of sales to income

3. Financial statements

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5.

6.




Well controlled


Further comments:

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14 TAXATION (Chapter 18)Objective:To ensure all direct and indirect taxes are correctly accounted for and liabilities are met promptly.


1. Fines, penalties, back-tax and interest

2. Failure to recover VAT appropriately


3.

4.

Expected Controls: Describe how the following controls operate within your establishment and what you have done to ensure they are operating.Comment on the effectiveness of the controls.1. VAT

2. PAYE

3. Benefits in Kind

4. Section 16

5. CIT

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7.

8.




Well controlled


Further comments:

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15 FIXED ASSETS (Chapter 19)Objective:To ensure all fixed assets are maintained, safeguarded and utilised to meet business need.Key Risks identified centrally: Risk Rating

1. Loss / theft

2. Misuse / abuse

3. Deterioration/Damage

4. Inaccurate/qualified accounts


5.

6.


2. Physical checks against asset register

3. Exit checks

4. Reconciliation

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6.

7.




Well controlled


Further comments:

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Governor’s Statement on Internal Financial Control

What checks have you undertaken to satisfy yourself as to the accuracy of this report?

Are you content with the accuracy of the report? Give reasons.

Are you content with the level of financial control operating in your establishment? Give reasons and any corrective action taken/required.

State what systems you consider to be weakest and what you are doing to make improvements.

Any other Comments

Signed (Governor):

Name:

Date:

form 4.1 quarterly STATEMENT ON INTERNAL FINANCIAL CONTROL

Business

Transcript of form 4.1 quarterly STATEMENT ON INTERNAL FINANCIAL CONTROL