FINANCIAL POLICY AND PROCEDURES


1. FINANCIAL POLICY


The management committee is responsible for:


                               1. Safeguarding the assets of the charity

                        2.  Preventing Fraud

                        3. Avoiding mistakes

                        4. Keeping financial records in accordance with the governing document and relevant legislation (e.g. Charities Act.)

                        5. Preparing Annual Accounts in accordance with the governing document and relevant legislation.



To enable the management committee to carry out these responsibilities, the financial procedures detailed below must be followed at all times by

the Committee Members, Staff, and volunteers.



A copy of this and procedures will be given to all Management Committee members on their election / appointment to the Committee, and to all relevant

 staff and   volunteers.


The policy and procedures will be reviewed annually by the Management Committee and revised as necessary.



2. FINANCIAL PROCEDURES  


Organisational Information


Our Financial Year runs from: April


Name Of Bank:  Unitty Trust Bank and Lloyds PLC Bank


Type of Account : Current Account  



3. Bank Accounts


All bank accounts must be in the name of the organisation.

No account may ever be opened in the name of an individual.

New accounts may only be opened by a decision of the Management Committee, which must be minuted.

Changes to bank mandate may only be made by a decision of the Management Committee, which must be minuted.

All monies received will be banked within five working days. Cash received must be banked intact and may not be used to make payments or top up

petty cash.


Two people should be involved in counting cash receipts.

All cheques must be signed by two signatories.


The signatories are responsible for examining the cheque for accuracy and completeness.

The signatories are responsible for examining the payments documentation (purchase invoice etc) prior to signing the cheque.

Blank cheques must never be signed.


Signatories to the accounts:  2 persons


        4. ANNUAL BUDGET

 

          An annual budget, setting out the organisation’s financial plan for the year, will be prepared so that the Management Committee can approve it before the

          start of each financial year.


          The draft budget will be prepared by the Treasurer

 

          5. Financial Reports


           A financial Report will be prepared every Quarter.

          Each Financial Report will be circulated to all Management Committee members and discussed at the following committee meeting. The reports will be

          prepared by the  Treasurer.


         6. Accounting and other financial records


 The organisation shall maintain:


A Receipts and Payments analysis Book which records:

Cheques and cash received and banked

Cheque payments and other amounts paid from the bank account


          Receipts and Payments Book is written up by the treasurer


         The Petty Cash Analysis Book is written the treasurer



          Every transaction will be entered into the appropriate book and will include:


the date of the transactions

the name of the person money was received from or paid to and the full amount

a brief description of why the money was received or paid

an analysis of each amount under its relevant budget heading

all documents relating to receipts and payments will be filed in the order they appear in the books


            7. Authorisation and Payment


        All orders must be recorded in writing and a copy kept.

        The purchase of any item  must be authorised and minuted by the Management Committee.

        No Management Committee or staff member may authorise payment to themselves, their partner or relatives.

       Goods supplied must be checked for completeness and invoice (or other vouchers) should be matched and checked against orders before payments is authorised.

       Before a cheque payment is made, it must be authorised in writing. When the cheque is signed, the two signatories should also sign the Cheque Requisition Form / Cheque         stub / supporting document.

      Once payment has been made the invoice (or other voucher) should be marked ‘paid’, together with the cheque number and date.


      8. PETIT CASH SYSTEM


        We operate an Imprest Petty Cash System .

        Petty cash voucher must be completed for all expenditure and signed by the Treasurer to authorise the payment.

      The person receiving the money must also sign the voucher.

      Where possible, receipts for goods purchased, travel, subsistence  and other expenses should be attached to the voucher.

      The petty cash float will be reconciled at least monthly or whenever more cash is needed from the bank.

 

      The person responsible for Petty Cash is the Treasurer or the Secretary



       9. Payroll


       All employees (including seasonal and part time employees) must be asked to complete the relevant PAYE form/s before they receive any payment.

      All staff changes and changes to terms and conditions of employment must be authorised and minuted by the Management Committee.


      10. Insurance


      Appropriate Insurance policies will be maintained to cover:

      employer’s Liability / Public Liability/Contents/ professional indemnity


      An inventory of all physical assets of the organisation will be kept and regularly updated.


      A copy will be kept off the premises at the organisation’s address



Updated : 15/06/2013




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