Report on Proposed Changes to Parish Council Banking Arrangements

P4 07.16

REPORT ON PROPOSED CHANGES TO PARISH COUNCIL BANKING ARRANGEMENTS

Making payments by cheque is becoming increasingly problematic for several reasons:

1 An increasing number of suppliers are asking for payments to be made electronically and a small number are saying that they will soon refuse to accept cheque payments. This includes the NEST pension scheme.

2 Payment of staff salaries by cheque is unsatisfactory as it takes several days for cheques to clear.

3 Currently the PC pays no bank charges but Barclays are intending to make charges in future if we do not use electronic banking.

4 The Clerk has significant difficulty communicating with Barclays Bank in the last year as they have changed their managerial arrangements and we no longer have a manager available.

5 Small items that are required are purchased by the members of the council or the clerk and then reimbursed, meaning that

I should like to ask Councillors to approve the use of Internet Banking arrangements in future.

The Parish Council’s Financial Regulations allow for the use of internet banking and informal enquiries with other Parish Clerks indicate that an increasing number of Parishes now use this method of payment.

Many Parish Councils and similar organisations use Unity Trust Bank.

Unity Trust operates a system whereby a Clerk can set up a payment but then someone else (in the case of East Hanney PC, at least two Councillors) authorise it.

Many other users may be given read only access.

As far as I can identify, no major banks operate a system offering on-line banking AND a separation of the person setting up the transaction, and the person(s) authorising it.

There is a fixed fee of £6 per month for a Unity Trust Select Account (current account) but by using online banking we would save on using postage and envelopes.

Daily interest (currently 0.14% net annual) would be payable on account balances over £20,000. The rate is similar to Barclays at present.

I recommend and ask that that East Hanney Parish Council resolves to:

1 Open a current account with Unity Trust to be used as the main account for regular business.

2 Use internet banking wherever possible.

3 Approve the issue of a prepaid debit card up to the value of £200 per month to enable the Clerk to make small online and telephone purchases as well as for buying stamps, stationery and other similar small items and to pay for larger occasional items such as printing.

4 retain the Barclays current account for the Neighbourhood Plan expenses only.

Guy Langton

26th June 2016