A COUNCIL has admitted that proper financial practices were not followed in recording its accounts last year after an audit raised a number of concerns.

An internal audit report, published by the Internal Audit for Local Councils (IAC), highlighted that proper practices were not followed in recording the accounts for Burnham and Highbridge Town Council’s annual return.

The report states: “Due to a change in the Practitioners Guide, which sets out ‘Proper Practices’, the town council was required to incorporate into the 2018 Return the income and expenditure and reserves of the Joint Burial Committee (JBC) in which it participates with a neighbouring council.

“The town council was subject to two internal audit visits in respect of the 2017-18 financial year. The first, interim, audit visit took place on February 1 with a further visit on May 8, 2018.

“Subsequent to the interim visit, on February 19, a report was issued to the Council which recommended, as a high priority; the council should contact the external accountants to clarify how they intend to deal with these new arrangements.

“This should be agreed prior to the year end closedown to avoid any potential audit issues at year end.”

However, when the auditors visited in May 2018 it was apparent that 100 per cent of the income and 100 per cent of the expenditure of the JBC had been included in the council’s accounts rather than just the council’s share of the income and expenditure as required.

This was not in compliance with the updated requirements of the Practitioners Guide.

Sam Winter, town clerk for the Town Council, said: “The matter has been discussed by the Policy & Finance committee and members are fully aware of the issues that arose in the previous financial year resulting in an error in the accounting statements and the subsequent adverse comments made by the council’s internal auditor.

“The finances of the council are now administered by a dedicated Responsible Financial Officer and the council has recently employed a qualified town clerk.

“The new councillors elected in May will be invited to attend induction training, which will include training on the council’s system of internal control and proper practices relating to how the council regulates and controls its accounting procedures.”