Financial
Policy and Procedures
Financial
Policy
1. The Management Committee, as a whole, is responsible for:
·
Safeguarding
the assets, financial and material, of the organisation
·
Deciding
how the funds will be spent
·
Preventing
misuse of funds
·
Investigation,
mitigation and future avoidance of mistakes where these have been identified.
·
Keeping
financial records in accordance with the governing document and relevant
legislation
·
Ensuring
that the treasurer (or in their unavoidable absence, the Chair) prepares the
Annual Accounts in accordance with the governing document and relevant
legislation.
2. To enable the Committee to carry out
these responsibilities, the Financial Procedures contained herein must be
followed at all times by all Committee members and volunteers.
3. A copy of this policy and procedures
will be given to all Committee members on their election/appointment to the committee.
4.
The policy and procedures will be
reviewed annually by the Committee and revised as necessary.
Financial Procedures
1. Organisational
Information
a)
The Financial Year of the
organisation runs from 1st April to 31st March each year.
b)
The designated Bankers will be the
Co-op Bank Birmingham, PO Box 250, Delf House, Southway, Skelmersdale, WN8 6WT
c)
An accredited Independent Examiner
is to be appointed at the Annual General Meeting to examine and certify our
accounts.
2. Bank Accounts
a) All bank accounts must be held in the
name of the organisation.
b) New accounts may only be opened by a majority decision of a
quorate Management Committee, duly minuted.
c) Cheques and payment authorisation forms for funds sent via
bank transfer to be signed by any two of the four authorised signatories as
follows:
Chair, Vice Chair, Treasurer and
Secretary
d) Changes to the bank mandate may only be made by a majority
decision of a quorate Management Committee, duly minuted.
e) Cheques and payment authorisations, must be signed by two
authorised signatories.
f) The Treasurer is responsible for ensuring that claims and
accompanying receipts/purchase invoices are complete and accurate and the claim
is a valid one in accordance with the Finance Policy and associated guidelines.
g) The signatories are responsible for examining the claim and
associated documentation (purchase invoice/receipts etc.) prior to signing the
cheque or authorising an Internet Transfer.
h) Blank
cheques must never be signed.
3. Signatories to the accounts:
i)
Role/Job Title:
Chair
ii)
Role/Job Title:
Vice Chair
iii)
Role/Job Title:
Treasurer
iv)
Role/Job Title:
Secretary
4. Annual Budget
a) An annual budget, setting out the organisations financial
plan for the year, will be prepared for the Management Committee to approve (by
a majority vote) before the start of each financial year.
b) The draft budget will be prepared by
the following three personnel:
·
Chair
or Vice Chair
·
Head
of Fundraising
·
Treasurer
5. Financial
Reports
a) A financial report will be prepared for
every Management Committee meeting by the Treasurer.
b) The financial report will consist of:
·
Income
and Expenditure to be itemised
·
Current
balances
·
Comparison
with budget/ forward forecast
c) Each Financial Report will be
circulated to all Management Committee members with the agenda papers for
discussion, at least 24 hours before the Management Committee meeting.
6. Accounting and other
financial records
a)
The
organisation will maintain a computerised accounting system with information kept
for at least seven years, passed to subsequent treasurers. Essential information
must also be kept as paper files which record:
·
Cheques
and cash received and banked
·
Cheque
payments, Internet Banking Transfers and other amounts paid from the bank
accounts
b)
Every
transaction will be entered into the appropriate computerised accounts and will
include:
·
The
date of the transaction
·
The
name of the payee or recipient (in the case of unidentified or cash donations
the amount donated or event and date when the monies were raised)
·
The
amount received.
·
If
money was donated, grant-aided or raised for a specific purpose a brief
description of the purpose for which money was received, secured through grant
application or the fundraising appeal/event
·
Large
donations from identified individuals, groups, organisations, etc. should be
acknowledged within a reasonable time-span by the Treasurer.
·
Each
amount received/paid out should be recorded under its relevant budget
heading(s), split accordingly where appropriate to multiple budget headings.
c)
A backup
copy of all transactions must be made fortnightly by the Treasurer or
designated individual. The backup copy will also be transferred electronically
to the Chairperson for safe keeping.
7. Authorisation of Expenditure and Payment
a) All purchase orders must be recorded in the electronically
maintained Purchase Order record and allocated the next sequential Purchase
Order Number.
b) The Purchase Order Number should be noted
on all correspondence with Suppliers
c) Payments will not be authorised unless
prior approval was obtained by the designated authorising officers identified
in this policy.
d) Most expenditure will be planned for and identifiable within
the treasurers forecast. Nevertheless, the Chair, Vice Chair and Lead Officers
(the Officers) may exercise discretionary powers to incur unplanned
expenditure solely in pursuit of group promotional and/or other activities.
This shall be generally recognised as appropriate for the group, up to the
maximum stipulated amounts for each officer set out below, without requiring
authorisation from the Committee. In line with other expenses, receipts must be
produced and authorised by a designated authorising officer before they are
reimbursed to any Officer in accordance with this policy.
The Officers Discretionary Powers for
items not planned, shall be as follows:
1. Chair/Vice
Chair Up to £150 in one month independently in addition to planned
expenditure. In exceptional circumstances, up to a limit of £600 subject to
approval from two other executive members, or three Committee members.
2. Lead Officers Up to £50 in one month in addition to their
planned budget.
Lead Officers shall be named in each case and duly
minuted at Committee meetings.
e) No Officer, Committee member or Lead person may authorise
payment to themselves, their partner or relatives.
f) Contracts of any sort and funding bid applications must be
approved by the Committee and documents signed by the Chair or Vice Chair.
g) All Invoices should be passed to the Treasurer without undue
delay who should match them against the Purchase Order record before payment is
authorised.
h)
All
goods received as a consequence of a Purchase Order should normally be signed
for, if not signed for they must be checked for completeness before payment.
i) Once payment has been made the invoice (or other receipt)
should be marked Paid and filed under the month paid.
j) All payments must be entered in the
computerised accounting system only after being authorised.
8. Reimbursement of out-of-pocket expenses
a) All Officers, Committee Members must submit an expense claim
form to the Treasurer supported by relevant receipts for expenditure incurred.
b) All Volunteers claim forms together with any receipts
should be authorised for payment by the Lead Officer, and forwarded to the
Treasurer for approval and payment.
c) The Treasurers expenses should be authorised by the Chair
or Vice Chair.
d)
Receipts are generally required
for all claims. The exceptions to this rule are:
1. mileage claim where the claimant must indicate mileage
covered on the claim form and calculate the claimed amount at the prescribed
mileage rate; and
2 sundry expenditure not exceeding £5 where a receipt could
not be obtained (in which event details of the expenditure incurred shall be
detailed on the claim form).
The authorising officer shall determine
whether the claim is proportionate. Any dispute arising shall be referred to
the Chair for final determination.
e) Officers, Committee Members and
volunteers should exercise care and prudence when carrying out work on behalf
of BRWR and avoid or mitigate expenses.
f) Only activities which have been duly
authorised / commissioned by the Committee, can be considered for the
reimbursement of expenses.
9. Insurance
a) It is Treasurers responsibility to
ensure appropriate Insurance policies will be maintained to cover:
·
Public
Liability
·
Trustee
Liability Insurance
·
Employers
Liability Insurance
b) These policy documents will be kept by
the Chair and Treasurer
10. Quorum
The Quorum set for financial approvals is under normal
circumstances no fewer than seven Committee members of which at least two must
be members of the Executive Committee.
Emergency quorum to prevent fraud and mismanagement in
BRWR:
14 days notice of the date and time for
a required meeting to all Committee Members should be given in writing. Should
the meeting not be quorate in accordance with the above provision, then
attempts should be made to contact the missing Committee Members by telephone. If
this fails, then providing there are no fewer than five Committee Members
present within 30 minutes of the designated start time for the meeting, the
meeting shall be deemed quorate for the emergency purposes. The members then
present shall be duly authorised to act in respect of the matters for which the
meeting has been convened.
11. This
Financial Policy, and the Financial Procedures detailed above were agreed and
minuted at the Committee meeting on February 13th 2017:
Name Mohammed Naeem Arif:
.
Chair
Date:
Secretary:
Alistair Waugh
Date
..