Financial risk assessment investments 2020/21

RISK

LEVEL

CONTROLS

SECURITY

  • Financial exposure
  • Risk of fraud
  • Decision making process

High

  • Current account deposits in excess of £10,000 that will not be required in the next 6 months will be invested (in multiples of £10,000) with Wyre Forest District Council
  • All investments to be made in accordance with the Council’s Financial Regulations
  • Transfers of funds, however made, will be overseen by Town Clerk.

LIQUIDITY

  • Adequate remaining funds to cover current debts during period of investment

High

  • Investments only to be made subject to an approved Cash Flow forecast for the proposed period of the Investment
  • Cash Flow forecast to be prepared by the Treasurer in consultation with the Town Clerk

YIELD

  • Maximum yield to be sought only after security and liquidity assured

Low

  • In accordance with Financial Regulations

RECORD KEEPING

  • Availability of records

Medium

  • All records of Investments to be retained for a minimum of 7 years.
  • All records to be available to any member at any time

REPORTING

  • Members of Council adequately informed as to investments

Low

  • Annual Treasury Management report to Finance Committee and Town Council.
  • Any proposed variation from current investment practice between annual reports to be referred for decision by Finance Committee and Town Council.

ACCOUNTING AND AUDIT

  • Availability of records
  • Availability of guidance

Low

  • Records made available to Internal and External Auditor
  • Accepted accounting practices to be observed