Financial Regulations in. Solon Wandsworth Housing Association. Approved by Management Committee on 10/07/ July 2002

Transcription

1 Financial Regulations in Solon Wandsworth Housing Association 10 July 2002 Financial Regulations.doc Page 1 of 31

2 Contents Chapter 1 Chapter 2 Chapter 3 Status of financial regulations Financial control The Committee of Management Committee structure Audit requirements Responsibilities Budgeting Accounting policies Accounting returns Accounting records Income and banking General Appointment of bankers Banking arrangements Cash receipts Rents The collection of debts Write off of arrears and debts Gifts, benefactions and donations Security of documents Stocks and stores Chapter 4 Expenditure General Authorities Financial Regulations.doc Page 2 of 31

3 Petty cash Purchase orders Tendering Contracts Payment of invoices Chapter 5 Chapter 6 Chapter 7 Salaries and wages General Pensions Travel, subsistence and other allowances Assets Land, buildings, fixed plant and machinery Inventories Asset disposal Treasury management (investments and borrowings) Other Group structures and subsidiaries Risk management Insurance Taxation Security National Housing Federation code of conduct for staff Hospitality Performance standards Trust funds Financial Regulations.doc Page 3 of 31

4 Terminology The following general terms have been used. THE COMMITTEE OF MANAGEMENT The body ultimately responsible for the affairs of the association. AUDIT SUB-COMMITTEE 1 The committee responsible for ensuring that an internal control system exists and is operating effectively. It also ensures that there is an independent review of internal and external audit activity. 1 Housing associations are not required by law to establish an audit committee (or subcommittee) but the codes of practice issued by the regulatory bodies do recommend that larger associations introduce them. The NHF s code of governance also recommends that large and medium-sized associations should have an audit committee or ensure that the finance committee can discharge the functions of an audit committee adequately Financial Regulations.doc Page 4 of 31

5 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 1 Status of Financial Regulations 1.1 The financial regulations of the association form part of its overall system of financial and management control. The rules of the association, the terms of reference of the management committee and its sub-committees, and the standing orders outline how the association will be controlled and run. 1.2 This document translates into practical guidance the association s Risk Management Framework. This document was approved by the committee of management on 10 July It applies to the association and all its subsidiary undertakings. 1.3 Compliance with the financial regulations is compulsory for all staff connected with the association. It is the responsibility of the OG to ensure compliance, and that of the OG Reps to ensure that their section members are made aware of the existence and content of the association s financial regulations and that an adequate number of copies are available for reference within their department. The regulations are also available on the network under Policies and Procedures/Solon Fin Regs2002.doc. 1.4 The Management Committee is responsible for maintaining a continuous review of the financial regulations, and approves changes to it. Financial Regulations.doc Page 5 of 31

6 1.5 The association s detailed financial procedures set out how the regulations will be implemented and are contained in a separate document. It is the Financial Accountant s responsibility to co-ordinate and assist in the preparation and maintenance of the association s financial procedures which should be available to all departments. Financial Regulations.doc Page 6 of 31

7 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 2 Financial Control MANAGEMENT COMMITTEE 2.1 The Management Committee has ultimate responsibility for the association s finances. Its financial responsibilities are: to ensure the solvency of the association to safeguard the association s assets to ensure the effective and efficient use of resources to ensure compliance with the Housing Corporation s performance standards to ensure that financial control systems are in place and are working effectively and that a statement of assurance is produced by the internal audit provider annually to ensure that the association complies with the regulatory body s code of audit practice to approve the association s strategic plan to approve annual estimates of income and expenditure. to approve the annual financial statements and recommend approval by the annual general meeting (AGM) to recommend to the annual general meeting (AGM) the appointment of the association s external auditors. Financial Regulations.doc Page 7 of 31

8 COMMITTEE STRUCTURE 2.2 The Management Committee delegates its responsibilities to the sub-committees detailed below. These sub-committees are accountable to the Management Committee. Audit Sub-Committee 2.3 The Audit Sub-Committee is independent, advisory and reports to the Management Committee. It has right of access to obtain all the information it considers necessary and to consult directly with the internal and external auditors. The sub-committee is responsible for identifying and approving appropriate performance measures for internal and external audit and for monitoring their performance. It must also satisfy itself that satisfactory arrangements are in place to promote economy, efficiency and effectiveness and that the Management Committee is able to give an annual statement of assurance in respect of financial control systems The Housing Corporation specifies the format of and timetable for the association s audit, in their document The way forward. Our approach to regulation. AUDIT REQUIREMENTS 2.5 A timetable for final accounts purposes has to be drawn up and staff and the external auditors advised accordingly. 2.6 The accounts and management letter should be reviewed by the Audit Sub-committee. On the recommendation of the Audit Sub-committee they will be submitted to the Management Committee for approval. 2.7External auditors and internal auditors shall have authority to: access association premises at reasonable times access all assets, records, documents and correspondence relating to any financial and other transactions of the association Financial Regulations.doc Page 8 of 31

9 require and receive such explanations as are necessary concerning any matter under examination require any employee of the association to account for cash, stores or any other association property under his/her control access records belonging to third parties such as contractors when required, subject to their consent. 2.8 Whenever any matter arises which involves, or is thought to involve, irregularities or fraud concerning cash, stores or other property of the association or there is any other suspected irregularity in the exercise of the activities of the association, the OG Rep of the department concerned shall notify the designated officer of the association, in accordance with the association s anti-fraud policy. He/she will take steps as necessary by way of investigation and involvement of internal audit and report the matter to the regulatory body where required. The association should also ensure that a procedure for whistle blowing is in place and operating effectively. External Audit 2.9 The appointment of external auditors will take place annually at the AGM and it is the responsibility of the Management Committee to make recommendations following advice received from the Audit Sub-committee The primary role of external audit is to report on the association s financial statements and to carry out such examination of the statements and underlying records and control systems as are necessary to reach their opinion on the statements and to report on the appropriate use of funds. Their duties will be in accordance with advice set out in the code of audit practice and the Auditing Practices Board s auditing standards. Each year the Audit Sub-committee will review the effectiveness of external audit and, provided the auditors work is of a sufficiently high standard and reasonably priced, should recommend that the board reappoint them. In addition, the Audit Sub-committee will carry out a comprehensive review of the service provided on a regular basis. A competitive tendering exercise will be held at least every five years. Financial Regulations.doc Page 9 of 31

10 Internal Audit and Other Auditors 2.11The internal auditor is appointed by the Management Committee on the recommendation of Audit Sub-committee The main responsibility of internal audit is to provide the Management Committee with assurances on the adequacy of the internal control system The internal audit service remains independent in its planning and operation and has direct access to the Management Committee, Workers Meeting and chair of Audit Subcommittee The internal auditor will comply with the Auditing Practices Board s auditing guideline Guidance for Internal Auditors. 2.15The association may, from time to time, be subject to audit or investigation by external bodies such as HM Customs and Excise and the Inland Revenue who have statutory rights of access. RESPONSIBILITIES Management Committee 2.16 The Management Committee is responsible for: ensuring that the association maintains proper accounts and related records ensuring that systems are in place for all employees and creditors to be paid by their due date and that such systems are effective ensuring that all income received is correctly accounted for and that income receivable is collected promptly receiving and commenting on the association s and capital budgets and reviewing performance revenue ensure compliance with the rules and procedures for Social Housing Grant (SHG) and other legal requirements Financial Regulations.doc Page 10 of 31

11 managing the association s investments overseeing cash management and borrowing policies the association s banking arrangements the association s insurance arrangements The Operations Group 2.17 The OG is responsible for the operational management of the association s affairs. It must assist the Management Committee in determining its strategic objectives and promote the achievement of such objectives through the effective deployment of the association s resources. The Finance Workers 2.18 Day to day financial administration is the responsibility of the finance workers. The finance workers are responsible to the Workers Meeting for: financial and business planning preparing annual revenue budgets preparing management accounts and information, monitoring and control of income and expenditure against budgets and all financial operations preparing the association s annual accounts and other financial statements and accounts which the association is required to submit to other authorities preparing appraisals for major investment decisions ensuring that the association maintains satisfactory financial systems providing professional advice to the committee of management on all matters relating to financial policies and procedures including treasury management. Sections Financial Regulations.doc Page 11 of 31

12 2.19 Sections are responsible to the Workers Meeting for financial management in their own areas. The Financial Accountant will supervise and agree the financial systems operating within Sections including the form in which financial records are kept Sections are responsible for establishing and maintaining clear lines of responsibility within their department for all financial matters Where resources are devolved to budget holders, the budget holder is accountable to the OG for his/her own budget. BUDGETING Resource Allocation 2.22 Resources are allocated regularly, and at least annually, on the recommendation of the Workers Meeting and the endorsement of the Management Committee. Budget Preparation 2.23 A revenue budget is prepared annually for consideration by a Workers Meeting and the delegated MC group or subcommittee, before submission to the Management Committee. The budget should also include cash flow forecasts for the year and a projected year end balance sheet. Detailed budgets are prepared in order to support the resource allocation process and these are communicated to the Workers Meeting as soon as possible following their approval by the Management Committee During the year any budget revisions will be considered by the Workers Meeting before submission to the Management Committee for approval. Development Programmes 2.26 The Association s Housing Development Programme will be Financial Regulations.doc Page 12 of 31

13 agreed by the Management committee on the recommendation of the Development Worker and/or appropriate sub-committee Proposed projects will be in line with the Development Procedure Guide The Development Worker will ensure that any proposed project will have adequate grant support, and that loan financing is available The monitoring of work in progress and a review on scheme completion will be the responsibility of the OG. Financial Planning 2.30 Financial and business plans are prepared for approval by the Management Committee on the recommendation of the Workers Meeting for at least the period required by the Housing Corporation and funders. Financial plans should be consistent with the strategic plans approved by the Management Committee. Budgetary Control and Virements 2.31 The control of income and expenditure within an agreed revenue budget is the responsibility of the designated budget holder who must ensure that day to day monitoring is undertaken effectively. Budget holders are responsible to the OG for the income and expenditure appropriate to their budget. The budget holder will be assisted in this duty by management information provided by the finance section. The types of management information available are described in the association s detailed financial procedures together with the timing at which they can be expected Where a budget holder is responsible for more than one budget, virement (the authority to transfer budgets) is permitted only with the OG s agreement. The Financial Accountant should be advised. Financial Regulations.doc Page 13 of 31

14 2.33 Virement between budgets held by different budget holders is permitted only with the OG s agreement. ACCOUNTING POLICIES Basis of Accounting and Format of the Accounts 2.34Financial statements are prepared on the historical cost basis of accounting and in accordance with applicable accounting standards. 2.35The accounts are prepared for the financial year ending 31 March, in the format required by the Statement of Recommended Practice (SORP) on Accounting for Registered Social Landlords published by the NHF. ACCOUNTING RECORDS 2.36 The association is required by law to retain prime documents. These include: accounts raised (six years) copies of receipts (six years) payroll records (six years) VAT records (three years) For auditing and other purposes, the association should retain other financial documents for three years. Financial Regulations.doc Page 14 of 31

15 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 3 Income and Banking GENERAL 3.1 Appropriate procedures must be in operation to enable the association to receive all the income to which it is entitled. 3.2 Levels of charges rents and lettings are determined by procedures approved by the Management Committee. 3.3 All income (cash or cheques) received will be kept securely in the office safe and banked. 3.4 Procedures must operate to ensure that all grants notified by the Housing Corporation and other bodies are received and appropriately recorded in the association s accounts. 3.5 All claims for funds must be made by the due date. APPOINTMENT OF BANKERS 3.6 The Management Committee is responsible for the appointment of the association s bankers on the recommendation of the finance section. The appointment shall be reviewed on a regular basis after which consideration shall be given by the Management Committee to competitively tendering the service. Financial Regulations.doc Page 15 of 31

16 BANKING ARRANGEMENTS The Management Accountant is responsible, on behalf of Management Committee, for liaising with the association s bankers in relation to the association s bank accounts and the issue of cheques. All cheques shall be ordered on the authority of the management accountant who shall make proper arrangements for their safe custody. 3.8 Only the Management Committee may authorise the opening or closing of a bank account in the association s name. 3.9 All cheques drawn on behalf of the association must be signed in the form approved by Management Committee. Details of authorised persons and limits for all types of payment including BACS and CHAPS shall be provided for in the association s detailed financial procedures All bank accounts must be subject to regular reconciliation and independent review and large or unusual items are to be investigated as appropriate. CASH RECEIPTS 3.11 All monies received within departments from whatever source must be recorded by the administration section on a daily basis together with the form in which they were received. An authorised receipt of the association should be issued Custody of all cash holdings must comply with the requirements of the association s insurers No deductions may be made from any cash collected on behalf of the association prior to passing it to a finance worker Personal or other cheques must not be cashed out of money received on behalf of the association. Financial Regulations.doc Page 16 of 31

17 4 See also the treasury management section in Chapter 6. RENTS 3.15 The procedures for collecting rents must agreed with the Housing Management section. The Housing Management Administrator should ensure that: swift and effective action is taken to collect overdue rents in accordance with the association s formal procedures (detailed in the Rent Arrears Control procedures) outstanding rents are monitored and reports prepared for Workers Meeting and Management Committee. The Rent Accountant will ensure that weekly rents are regularly posted to the rent ledger and that postings are up to date. THE COLLECTION OF DEBTS 3.16 The Management Accountant should ensure that: debtors invoices are raised promptly in respect of income due to the association debtors are raised on official invoices swift and effective action is taken to collect overdue debts in accordance with the association s formal procedures (detailed in the financial procedures) outstanding debts are monitored and reports are prepared for managers The Treasury Accountant is responsible for implementing credit arrangements and indicating a period in which different types of invoice must be paid. These were approved by Management Committee; in accord with the association s Credit Control policy, on 10 July WRITE OFF OF ARREARS AND DEBTS 3.18 All requests to write-off debts must be referred in writing to Financial Regulations.doc Page 17 of 31

18 the OG. Debts within the agreed annual budget can be written off by the OG under the authority delegated by the Management Committee. All amounts written off will be reported to Management Committee. GIFTS, BENEFACTIONS AND DONATIONS 3.19 The Association s Secretary is responsible for maintaining records in respect of gifts, benefactions and donations made to or declined by the association in accordance with the association s policy on such matters. He/she is also responsible for initiating claims for recovery of tax where appropriate. SECURITY OF DOCUMENTS 3.20 The Association Secretary is responsible for the safekeeping of official and legal documents relating to the association. Signed copies of deeds, leases, agreements and contracts must, therefore, be forwarded to the finance department. All such documents shall be held in an appropriately secure, fireproof location and copies held at a separate location. STOCKS AND STORES 3.21 Sections are responsible for establishing adequate arrangements for the custody and control of stocks and stores within their departments. The systems used for stores accounting in departments must have the approval of the Financial Accountant Sections are responsible for ensuring that regular inspections and stock checks are carried out Those Sections whose stocks require valuation in the balance sheet must ensure that the stock-taking procedures in place have the approval of the Financial Accountant and that instructions to appropriate staff within their departments are issued in accordance with advice contained in the association s detailed financial procedures. Financial Regulations.doc Page 18 of 31

19 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 4 Expenditure GENERAL 4.1 The Management Accountant is responsible for making payment to suppliers of goods and services to the association. AUTHORITIES 4.2 Budget holders are responsible for purchases within his/her budget. Purchasing authority may be delegated to named individuals within the section. 4.3 The Management Accountant shall maintain a register of authorised signatories including limits. Any changes to the authorities to sign must be notified to the Management Accountant immediately. OG Reps must supply the Management Accountant with specimen signatures of those authorised to certify invoices for payment. 4.4 Budget holders are not authorised to commit the association to expenditure without first reserving sufficient funds to meet the purchase cost. 4.5 An invoice for payment must be certified by the budget holder, or in their absence and the benefit of evidence of the order, a member of the OG. 4.6 See the Association s guide Authorisation of Expenditure policies and procedures. (Appendix B) Financial Regulations.doc Page 19 of 31

20 PETTY CASH 4.7 Petty cash will be controlled through the Imprest system. Detailed guidance is contained in the association s financial procedures. PURCHASE ORDERS 4.8 The ordering of goods and services shall be in accordance with the association s detailed financial procedures. TENDERING 4.9 Subject to special rules imposed by the Housing Corporation, the association s tendering and acceptance procedures involving competition are contained in the association s procurement policy document. CONTRACTS 4.10 Building contracts are the responsibility of the Management Committee and are administered by the association s development worker and will comply with the detailed contracting procedures set out in the association s document Contractors and Tender Selection Procedure 4.11Proposals will normally be initiated by the development worker in respect of planned replacements, general improvement schemes or in response to requests from departments Consultants may be appointed to the project, as determined by Management Committee. Appointments shall be subject to tendering and other procedures where appropriate. 4.13Proposals shall be presented in the form of costings or investment appraisals as appropriate for the Management Committee. Investment appraisals should comply with appropriate regulatory body guidance. Financial Regulations.doc Page 20 of 31

21 4.14 Following consideration and approval by Management Committee, the submission should be forwarded to the regulatory body where appropriate. Regulatory body guidance on best practice should be followed even when regulatory body approval is not required Conditions of contract for the purchase of goods will be followed as described in the association s detailed financial procedures Following completion of a capital project, a final report should be submitted to Management Committee recording actual expenditure against budget and reconciling funding arrangements. Documentary evidence concerning the decision-making process should be retained in relation to each contract above a threshold determined by the Management Committee, for audit purposes. PAYMENT OF INVOICES 4.17 The procedures for making all payments shall be in a form specified by the finance workers. 4.18The Management Accountant is responsible for deciding the most appropriate method of payment for categories of invoice. Payments to UK suppliers will normally be made by computer cheques produced weekly. In exceptional circumstances the management accountant will prepare cheques manually for urgent payments Suppliers should be instructed by the budget holder to submit invoices for goods or services to the department concerned. 4.20Budget holders are responsible for ensuring that expenditure within their budget does not exceed funds available Payments will only be made by the Management Accountant against invoices which have been certified for payment by the budget holder. Certification of an invoice should follow the procedures laid down in the Authorisation of Expenditure document and will ensure that: Financial Regulations.doc Page 21 of 31

22 there is evidence that the goods have been received, examined and approved with regard to quality and quantity, or that services rendered or work done is satisfactory it is matched to the purchase order invoice details (solon reference,quantity, price, discount) are correct the invoice is arithmetically correct the invoice has not previously been passed for payment where appropriate, an entry has been made on a stores record or departmental inventory VAT issues have been complied with where they apply an appropriate cost nominal ledger code is quoted. This must be one of the nominal ledger codes included in the budget holder s area of responsibility and must correspond with the types of goods or service described on the invoice Invoices must be passed to the finance department as soon as they have been certified. Care must be taken by the budget holder to ensure that discounts receivable are obtained. Financial Regulations.doc Page 22 of 31

23 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 5 Salaries and Wages GENERAL 5.1 The Rent/Payroll Accountant is responsible for all payments of salaries and wages to all staff including payments for overtime or services rendered. All time sheets and other pay documents will be in a form prescribed or approved by the OG. 5.2 All association staff will be appointed on the salary approved by the Management Committee and in accordance with appropriate conditions of service. All letters of appointment must be issued by the Personnel Worker. The Personnel Worker will be responsible for keeping the Rent/Payroll Accountant informed of all matters relating to personnel for payroll purposes. 5.3 In particular these include: appointments, resignations, dismissals, supervisions, secondments and transfers absences from duty for sickness or other reason, apart from approved leave changes in remuneration including pay awards information necessary to maintain records of service for superannuation, income tax, national insurance, etc. Financial Regulations.doc Page 23 of 31

24 5.4 The Rent/Payroll Accountant is responsible for payments to non-employees and for informing the appropriate authorities of such payments. All casual and part-time employees will be included on the payroll. 5.5 The Rent/Payroll Accountant shall be responsible for keeping all records relating to payroll including those of a statutory nature. 5.6 All payments must be made in accordance with the association s detailed payroll financial procedures and comply with Inland Revenue regulations. PENSIONS 5.7 The Management Committee is responsible for undertaking the role of employer in relation to appropriate pension arrangements for employees. 5.8 The Payroll Accountant is responsible for day to day pension matters including: paying of contributions to various authorised pension schemes preparing the annual return to various pension schemes. TRAVEL, SUBSISTENCE AND OTHER ALLOWANCES 5.9 Claims by members of staff must be certified by them and include the appropriate receipt. The certification shall be taken to mean that the journeys and expenses were properly and necessarily incurred and that the allowances are properly payable by the association. Financial Regulations.doc Page 24 of 31

25 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 6 Assets LAND, BUILDINGS, FIXED PLANT AND MACHINERY 6.1 The purchase, lease or rent of land or buildings or fixed plant can only be undertaken as part of an approved development programme. 6.2 The Company Secretary is responsible for maintaining the association s register of land, buildings. INVENTORIES 6.3 The asset register is the responsibility of the Financial Accountant. 6.4 The Office Manager is responsible for maintaining inventories for all plant and equipment, furniture and stores in the office building, with a value in excess of The inventory must include items donated or held in trust. 6.6 Inventories must be checked at least annually and retained in the form prescribed by the Financial Accountant as described in the association s detailed financial procedures. Financial Regulations.doc Page 25 of 31

26 ASSET DISPOSAL 6.7 Disposal of equipment and furniture must be in accordance with procedures agreed by Management Committee and contained in the association s detailed financial procedures. 6.8 Disposal of land and buildings must only take place with the authorisation of the Management Committee. Regulatory body consent may also be required. TREASURY MANAGEMENT (INVESTMENTS AND BORROWINGS) 6.9 Management Committee is responsible for approving a treasury management policy statement setting out strategy and policies for cash management, long term investments and borrowings, and has a responsibility to ensure implementation, monitoring and review of such policies All executive decisions concerning borrowing, investment or financing (within policy parameters) shall be delegated to the Treasury Accountant and an appropriate reporting system established. All borrowing and investments shall be in the name of the association and shall conform to any relevant regulatory requirements. Finance workers are required to act in accordance with the association s treasury management policy statement as approved by the Management Committee The Treasury Accountant will report to Management Committee regularly in each financial year on the activities of the treasury management operation and on the exercise of treasury management powers delegated to him/her including monitoring compliance. Financial Regulations.doc Page 26 of 31

27 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 7 Other GROUP STRUCTURES AND SUBSIDIARIES 7.1 In certain circumstances it may be advantageous to the association to establish group structures or subsidiaries to undertake services on its behalf. 7.2 The Management Committee is responsible for approving the establishment of group structures or subsidiaries and the procedure to be followed in order to do so. The process involved in forming a company and arrangements for monitoring and reporting on the activities of subsidiary undertakings are documented in the association s financial procedures. 7.3 It is the responsibility of the Management Committee to establish the shareholding arrangements and appoint directors of companies wholly or partly owned by the association. 7.4 The directors of companies where the association is the majority shareholder must submit, an annual report to the Management Committee. RISK MANAGEMENT The Management Committee is responsible for developing a risk management strategy, in line with the requirements of the regulatory body, in order to identify the risks facing the association and types of protection required to cover these risks. The strategy should cover important potential liabilities Financial Regulations.doc Page 27 of 31

28 such as terrorism and be sufficient to meet any potential risk to all assets. This will be considered and approved by Management Committee on an annual basis. INSURANCE 7.6 The Treasury Accountant is responsible for effecting insurance cover as determined by Management Committee and/or the regulatory body. He or she is therefore responsible for obtaining quotes, negotiating claims and maintaining the necessary records. He/she will also deal with the association s insurers and advisers about specific insurance problems, falling within the ambit of his/her responsibilities. The Design Group s PI insurance is managed by the Design Group. 7.7 Sections must ensure that agreements negotiated between their department and external bodies cover any legal liabilities to which the association may be exposed. The Treasury Accountant s advice should be sought to ensure that this is the case. Sections must give prompt notification to the Treasury Accountant of any potential new risks, and a list of additional property and/or equipment which may require insurance and any alterations which may affect existing risks. 7.8 Sections must advise the Treasury Accountant, immediately, of any event which may give rise to an insurance claim. The Treasury Accountant will notify the association s insurers and, if appropriate, prepare a claim in conjunction with the relevant section, for transmission to the insurers. 5 The Housing Corporation has defined risk as the threat of an event or action adversely affecting an organisation s ability to meet its business objectives. RSLs should therefore view risk management techniques as central to all their key activities. Risk management procedures should cover development, finance, housing management, information technology and staffing. 7.9 The Treasury Accountant will keep a register of all insurances effected by the association and the property and risks covered. Financial Regulations.doc Page 28 of 31

29 7.10 A suitable record must be kept of plant which is subject to inspection by an insurance company. Any such inspection must be carried out in the periods prescribed All staff using their own vehicles on behalf of the association shall maintain appropriate insurance cover for business use. TAXATION 7.12 Finance workers are responsible for advising sections on all taxation issues in the light of guidance issued by the appropriate bodies and the relevant legislation as it applies to the association. Therefore finance workers will issue instructions to departments on compliance with statutory requirements including those concerning VAT, PAYE, national insurance and corporation tax Finance workers are responsible for maintaining the association s tax records, making all tax payments, receiving tax credits and submitting tax returns by their due date as appropriate. They are also responsible for developing an effective taxation strategy which will minimise the tax burden to the association. SECURITY 7.14 Sections are responsible for maintaining proper security at all times for all buildings, stock, stores, furniture, cash, etc under their control. They shall consult the Security Officer in any case where security is thought to be defective or where it is considered that special security arrangements may be needed The loss of safe keys must be reported to a finance worker immediately Access to areas where data is stored will be restricted to authorised persons. Information relating to individuals held on computer will be subject to the provisions of the Data Protection Act. Financial Regulations.doc Page 29 of 31

30 CODE OF CONDUCT FOR STAFF 7.17 The association expects that staff at all levels will observe the policy enunciated in the document Staff Code of Conduct 7.18 Additionally, members of the Management Committee are required to disclose interests in the association s Register of Interests. HOSPITALITY 7.19 The limits concerning acceptable expenditure for entertaining guests from outside bodies are set out in the association s policy document Declaration of Interest, Gifts and the use of Services Members of the Management Committee and members of staff should refuse all material hospitality and gifts offered by an individual or company that does or could provide services to the association where they are offered as an inducement to secure favour. Any hospitality or gifts that are accepted must be recorded in the Register of Interests of members of the board or the Register of Interests of staff as appropriate. PERFORMANCE STANDARDS 7.21 The association shall use the regulatory body s performance standards as its benchmark. Financial Regulations.doc Page 30 of 31

31 FINANCIAL REGULATIONS FOR SOLON WANDSWORTH HOUSING ASSOCIATION 8 Appendices APPENDIX A Financial Regulations.doc Page 31 of 31