Finance and Audit

The financial accounting year for a council runs from 1 April to 31 March in line with the government and other public authorities’ financial year. Local councils are not subject to income, corporation or capital gains tax.

A local council is a corporate body, a separate legal entity from its members, and a local authority. Therefore, its decisions are the responsibility of the whole council and all councillors share collective responsibility for the financial management of the council.

Local councils have been given statutory powers by government including the authority to raise money through taxation (the precept) and a range of powers to spend public money. Financial rules and procedures set by government through various statutes and regulations are designed to protect the council and ensure that it takes no unacceptable risks with public money. The rules protect community assets and aim to make best use of public money.

Every local council is required to make suitable arrangements for the proper administration of its financial affairs, taking responsibility for ensuring that its financial management is adequate and effective, which makes the financial management and regular financial checks one of the most important tasks for the council and councillors.

The council must ensure that one of its officers has responsibility for financial matters; that officer is legally known as the Responsible Financial Officer (RFO). The RFO is usually the clerk in smaller councils, refer to Roles & Responsibilities for more information.

Audit

Internal

Every local council must undertake an effective internal audit to evaluate the effectiveness of its system of internal control, risk management and governance processes. Internal auditing is an independent, objective assurance designed to improve the operations of the council.

External

Local councils are also subject to a ‘light touch’ system of external audit known as a “limited assurance review”, rather than a full audit. Legislation requires a council to prepare accounting statement for each financial year, which must also be externally audited for all councils with an annual turnover over £25K.This, a further audit carried out so that local taxpayers can be assured that risks to public money have been managed.

AGAR

This is the Annual Governance and Accountability Return submitted at the end of the financial year to the External Auditor (PKF Littlejohns).

2023/24 Audit-the figures restated relating to 2.Precept and 3. Total other Receipts, were because we received a grant of £200 from Milton Keynes City Council for King’s Coronation, which was paid with Precept however, these figures have to be shown separately on the AGAR.

Precept/Budget

Budget

The preparation of an annual budget is one of the key statutory tasks undertaken by the council, irrespective of its size. The budget results in the council setting the precept for the year.

The budget is an essential tool for controlling the council’s finances, and demonstrates that the council will have sufficient income to meet its objectives and carry out its activities.

The key stages in the budgeting process are:
review of current year budget and spending;
determine the cost of spending plans;
assess levels of anticipated income;
provide for contingencies and the need for reserves;
approve the budget;
set the precept

Income & Expenditure 2024/25

Budget 2025/26

Precept

The precept is the local council tax requirement required from local electors to meet the council’s budget. Every local council has the power to levy a precept each financial year as a “local precepting authority”. The local council precept is a component of the total council tax levied on local government electors in the local council area.

The council tax requirement is the difference between the council’s estimated income and estimated expenditure for the year. The council must approve a budget before setting a precept, which has to take place by 1 March each year. The precept amount required is notified to Milton Keynes City Council, who then collect it along with all council tax monies and then pay it over to the local council (FCC).

Grants

Fairfields Community Council will make grants to charities, voluntary organisations or groups based in the parish or working in the parish, which can show that their project will benefit residents.

Only two grant applications from any one organisation will be considered within a twelve-month period.

We do not offer funding or sponsorship to individuals.

If you have any questions, please don’t hesitate to contact our Clerk