Financial Controls Policy

Transcription

1 Financial Controls Policy Background Oblong has adopted the following financial controls to be followed by staff and Board members in managing and monitoring the finances of the organisation. The controls are designed to meet the guidance published by the charity commission. Whilst some powers may be delegated to sub-groups and staff, Trustees have overall responsibility for financial controls, and where necessary training will be provided for members not clear about Trustees responsibilities. Structure The Structure of decision-making and tasks is as follows: Board of Trustees Policy Setting and Review Agreeing Core budget and monitoring income and expenditure against Core budget on a quarterly basis Monitoring of income and expenditure against all restricted funds presented by Finance worker at board meetings. Recommend choice of auditor at the AGM

2 Treasurer Checking assets and documentation, monitoring accounts against bank statements, authorising payments, spot checks of records and petty cash. Finance worker Management of all budgets. Execution of policy with authority to spend within budget headings, authorise payments ensuring adherence to policy. Management of day to day systems, keeping accounts, handling petty cash, preparing invoices, signing cheques, paying invoices, process payroll, monitoring of budgets. Preparing quarterly reports for Board of Trustees Statutory Requirements Proper accounts and records to be kept of all transactions. Accounts will be checked annually in line with current legislation to comply with Companies house and the Charity Commission Accounts to be formally approved by the Board of Trustees at the Annual General Meeting (AGM). Trustees will be provided with a set of accounts when appointed and further accounts will be provided before the AGM. Appropriate Experience and Qualifications The Board of Trustees will ensure that there is sufficient expertise amongst Staff and Trustees, supported wherever necessary by that of the Auditor, to provide adequate knowledge of financial controls within the organisation.

3 Budgets The Board will adopt overall budgets for Core income and expenditure annually. Project budgets will be set by the development collective during fundraising. The budgets will be set within any restrictions placed by the Funders. Expenditure against the Core budget will be reported, at the end of each quarter, to the Board of Trustees by the Finance worker. Changes to budgets of Restricted funding will be subject to negotiation with, and agreement of, the Funder. Oblongs Annual Report and Annual Accounts shall be subject to formal approval by the Board of Trustees before they are submitted to the membership at the AGM. Incoming Funds Oblong will not normally receive income in cash through the post. Cash received for photocopying, room bookings etc is receipted and accounted for. The security of cash income to any of the Projects will be the responsibility of designated members of staff who will place monies/cheque in the safe and the Finance Worker will account for and bank within 10 working days of its receipt. Incoming cheques will be recorded by the Finance Worker. Cheques will always be paid into the bank as soon as possible and certainly within 10 working days.

4 Office Security For safety of incoming mail, petty cash and equipment, all doors will be kept locked when offices are unattended. The safe will be provided for cheques, chequebooks and the petty cash tin. Any cash received will be recorded through the till as income and a receipt given. In the event that a large sum of cash is received, then two members of staff will be involved in the banking and recording procedures. Individuals bank accounts will not used to deposit funds. A numbered invoicing system will be used to record all monies coming into the Centre, due to or paid out by the Centre. A record will be kept of petty cash transactions, and withdrawals of petty cash by the Finance worker. Checks of Income transactions The Treasurer will make checks of the incoming cheques records, against bank statements, and paying-in slips. Checks will be carried out quarterly. Bank Details Oblong will bank with Triodos under the account name of Oblong ltd. No other account will be held at any other bank or financial institution unless approved and minuted by the board of Trustees.

5 The bank will provide monthly bank statements which will be reconciled with the computerised Quickbooks accounts. The Treasurer will spot-check that this reconciliation has been done quarterly. Restricted funds All Restricted funds will be individually tracked and monitored by a class system, to ensure all expenditure from each fund can be separated out, properly accounted for and reported to the Funder. The Auditor will be asked to identify all Restricted funds within the accounts. Cheque Signing No fewer than two approved signatories must sign all cheques. signatories are Current Sue Johnson Trustee John Ward Trustee Chris Lightfoot Finance Worker Duncan Millard Development Worker (Volunteering) Mark Southwell Development Worker Two staff members may not both sign cheques above a level to be approved annually by the Board of Trustees. A limit of 1000 is agreed in first instance. Copies of supporting documentation will be provided to signatories whenever they are asked to sign cheques. In the case of cheques for petty cash the person cashing the cheque will not sign to ensure at least three independent people are involved in releasing the cash. Where two staff members (other than

6 the person receiving the cash) are not available, a Board member will be asked to either sign the cheque (where practical) or authorise the person receiving the cheque to sign it. Furthermore; No signatory will sign a Cheque or authorise bacs payable to either themselves or to a close relative or partner. Cheque stubs will be completed at the time of writing cheques Cheque no. and date will be written on invoices Blank cheques will not be signed under any circumstances. BACS authorising BACS payments will be set up and authorised by the Finance Worker and dual authorised by another signatory unless it is payment to them personally or a close relative or partner. Payments over 1000 will need to be authorised by a Trustee signatory. Controls over purchases A System will be devised to monitor orders made by the Centre. This will include the numbering of orders and allocating responsibility for checking the goods received. Payments should only be made against original invoices; these invoices will be filed in the accounts to be audited. Records of payments will be cross referenced with cheque number, and class number.

7 Capital purchases will require three written quotes for items above Salaries Personnel records will be kept separate from salary records. The BACS instruction signed for payment of salaries administered by Voluntary Action Leeds Payroll Service will be accompanied by a list of employees for which payment is made, to ensure there are no fictitious employees. The Treasurer will inspect salary lists and payment files quarterly. Expenses The Expenses and benefits policy will detail the correct procedure in relation to organisational expenditure Fixed Assets Records will be maintained of fixed assets. Capital purchases will be posted against a Fixed Asset account. The value of Fixed Assets will be depreciated under advice from the auditor for all items over 1,500. Assets will be reviewed annually. Insurance will be arranged for fixed assets where practical.

8 Risk Assessment An annual financial health check will be conducted to examine liabilities in relation to Property and leases Staff and redundancy costs Contract relationships Insurable risks (Public liability, employer s liability property contents, buildings and Directors liability) Fraud Oblongs reserves policy will also be monitored annually to ensure the best return on investment is being achieved. Please see separate Reserves policy. Agreed on 05/05/10