Treasury Management Charitable Trust Funds

Transcription

1 This is an official Northern Trust policy and should not be edited in any way Treasury Management Charitable Trust Funds Reference Number: NHSCT/11/393 Target audience: The procedure is intended to be a working guide for members of staff in the ncome section who monitor and profile CTFs. Sources of advice in relation to this document: an Winton, General Manager Finance Liam O Kane, Assistant Director Financial Accounting and Financial Services Replaces (if appropriate): N/A Type of Document: Directorate Specific Approved by: Liam O Kane, Assistant Director Financial Accounting and Financial Services Date Approved: 15 March 2011 Date ssued by olicy Unit: 16 March 2011 NHSCT Mission Statement To provide for all, the quality of service we expect for our families, and ourselves.

2 Operational procedure Treasury Management Charitable Trust Funds

3 ntroduction Northern Health & Social Care Trust Treasury Management operational procedure for Charitable Trust Funds urpose or aim of the procedure olicy statement Target audience Responsibilities Legislative compliance ndex 1 Banking 2 nvesting Rules 3 Authorised Users for the Business on Line Banking System 4 Weekly rocedures 5 nvestments 6 Maturing nvestments 7 nternal Controls 8 External Relationships 9 Sources of Advice 10 Review 11 Equality, Human Rights and DDA 12 Alternative Formats List of Appendices

4 ntroduction This operational procedure relates to charitable trust funds (CTFs). The overall objective is to ensure that there is always a working balance of funds readily available to meet payments and to invest funds over and above a working balance. urpose or aim of the policy The purpose of this operational procedure is to provide detailed guidance to staff involved in the monitoring of all monies relating to CTFs so that there are sufficient monies available to meet all expenditure and that surplus funds are invested appropriately. olicy statement The Director of Finance is responsible for treasury management arrangements. The application of this procedure will assist staff working in the ncome section to prepare and process the necessary financial transactions to achieve the overall objective of ensuring that funds are always available to meet the working needs of the Trust and to earn interest on investments. Target audience The procedure is intended to be a working guide for members of staff in the ncome section who monitor and profile CTFs. Responsibilities The Director of Finance is responsible for all treasury management arrangements and will delegate operational responsibility to the Assistant Director of Finance (Financial Accounting/Financial Services) for the duties assigned in this document. t is the responsibility of staff working in the ncome section to maintain good accounting records and to use the appropriate documentation to support all transactions. Legislative compliance The Standing Financial nstructions apply at all times and these notes should be read in conjunction with them. 1. Banking The Trust has two bank accounts for the CTFs account which are held with the Bank of reland. These operational accounts are: The Charitable Trust Funds Current Account The Charitable Trust Funds Business Reserve Account (which attracts interest). All monies relating to the charitable trust funds are lodged to the CTFs current account and all cheques are drawn from this account. A working balance must be maintained in the CTFs bank accounts in order to meet all potential payments in the current month. Surplus monies in the CTFs current account are transferred into the CTFs Business Reserve account during the course of each month. At the end of each month a senior officer will monitor the total monies held in both the CTFs Current Account and the CTFs Business Reserve account.

5 2. nvesting Rules The Director of Finance decides which institutions to use for investment purposes. At all times the instructions issued by the Director of Finance must be adhered to. Unlike public funds, there is scope for the Trust to invest CTFs monies. There must always be a working balance which will cover all payments due. Monies can only be invested upon calculation of a sufficient working balance and in those investment instruments as directed by the Director of Finance. The current approved investment institutions/instruments are: Northern reland Central nvestment Fund for Charities ost Office Bonds Short-term investments with the Bank of reland (sole bank provider to the Trust) 3. Authorised Users for the Business on Line Banking System The Trust banker is the Bank of reland. The Trust uses the Bank of reland electronic banking system known as Business on Line (BOL) for treasury management transactions. The BOL system requires two senior members of Trust finance staff to administer the system. The system administrators provide authorised staff access to the BOL system. Only authorised staff will be permitted to process payments, transfers and print reports via BOL. The system administrators together with the names and signatures of all authorised users are recorded on an Authorised Users for the Business on Line Banking System form (appendix 1). The original document detailing the names of current authorised users is held in a central file. 4. Weekly rocedures The objective of the weekly procedures is to ensure that there are sufficient funds in the CTFs bank accounts to meet anticipated expenditure. This may mean that monies may need to be transferred between the CTFs Current Account and the CTFs Business Reserve bank account. Only cash that is surplus to working capital may be invested to gain interest. A minimum working balance of 300,000 should be available in the CTFs Business Reserve account. nvestments are made with the counterparties referred to above. Term investments must placed before 12 noon by the Treasury Manager. At the end of each week, the Trust s opening bank balances should be viewed, using the BOL banking system to check the financial position and any action required should be carried out. Where an investment is to be made a copy of the opening balance printout should be taken and any action required should be recorded on the Cash rojection/nvestment Decision form (appendix 2). The Cash Officer supervisor will notify the Treasury Manager of any exceptionally large value payments that are expected in the following week and/or month. 5. nvestments 5.1 The Trust will minimize risk by using only those institutions approved by the Director of Finance. The Trust currently limits its term investments to its current banker: The Bank of reland 5.2 n addition to any investments held a minimum of 300,000 should be available on 24- hour notice in an interest bearing account (i.e. in the CTFs Business Reserve Account).

6 5.3 Using form Appendix 3 nterest Quotes for Fixed Term nvestments, record the investment period (i.e. from and to), number of investment days, and the amounts of investment(s). Using the information recorded, the Treasury Manager should telephone the BO and record the rates of interest offered on this form (Appendix 3). The Treasury Manager will request the Bank of reland to execute any investment via their BOL system 5.4 The standard letter(s) (Appendix 4 nvestment Letter(s) are prepared to confirm the investment(s) is placed with the Bank of reland, and signed by two people (whose names are contained on the authorised list (appendix 1). 5.5 After the letter is signed, the Treasury Manager will send the original letter via Royal Mail, using 1 st class post, and one copy will be retained on the central file together with the other supporting documentation 6. Maturing nvestments 6.1 On the date the investment(s) mature, the Treasury Manager should complete Appendix 5 (investment transactions record) to record the value of the investments and receivable interest. 6.2 The Treasury Manager must present a written report and it immediately to the Financial Services Manager in respect of any difficulties relating to investments which he/she has been unable to resolve. Such difficulties may relate to a maturing investment that is not returned to the appropriate bank account on the due date or where an outgoing investment does not reach the investment bank on time. 7 nternal Controls 7.1 The Cash Office Supervisor will be required to provide the Treasury Manager with details of any exceptionally large payments due to be made. 7.2 All transactions must have two signatures. 7.3 The Weekly Cash rojections/nvestment Decisions form is used to support investment decisions (appendix 2). 7.4 Copies of the nvestment Transactions Record (Appendix 5), copy letters to Bank of reland (appendix 3) and bank certificates/statements are retained on file. 7.5 Members of the financial accounting and governance section perform all bank reconciliations. This control feature ensures segregation of duties. 7.6 The Director of Finance is the only officer of the Trust who may open or close bank accounts, and he/she requires the authorisation of the Chief Executive. The Trust Board will approve all bank accounts opened by the Trust. 8 External Relationships 8.1 All instructions to investment institutions must be confirmed in writing using either the institution s own forms or by letter. t is the responsibility of the Treasury Manager to ensure that this procedure is followed for all transactions. All relationships with investment institutions are subject to mandates, which should identify: The personnel authorised to deal and the limit of that authority, and subsequent amendments must be advised. The personnel to whom confirmations must be sent.

7 The legal relationship with investment institutions is a matter of contract law and the contract is based on the mandates. The investment institution must be informed promptly of any delay in receiving confirmations. Settlement should only be made against a confirmed and matched deal. 9 Sources of advice 9.1 f you require further advice or assistance, please contact one of the following members of Trust staff (where possible, please use the tie line, by prefixing the extension number with 7631) Name address Telephone number Rhonda Hilditch rhonda.hilditch@northerntrust.hscni.net Margaret Knox margaret.knox@northerntrust.hscni.net Evelyn Stephens Evelyn.stephens@northerntrust.hscni.net an Winton ian.winton@northerntrust.hscni.net Review 10.1 This procedure will be kept under review, and its operation and effectiveness will be examined every two years and revised if appropriate. 11 Equality, Human Rights and DDA 11.1 This policy has been drawn up and reviewed in the light of Section 75 of the Northern reland Act (1998) which requires the Trust to have due regard to the need to promote equality of opportunity. t has been screened to identify any adverse impact on the 9 equality categories and no significant differential impacts were identified, therefore, an Equality mpact Assessment is not required. 12 Alternative formats 12.1 This document can be made available on request on disc, larger font, Braille, audiocassette and in other minority languages to meet the needs of those who are not fluent in English.

8 Listing of Appendices 1 Authorised users for the Business-on-Line Banking System 2 Cash rojections/nvestments Decisions form 3 nterest Quotes for Fixed Term nvestments 4 Letter (of investment) to Bank 5 nvestments Transactions Record

9 Appendix 1 Authorised users for the Business on line banking system Banking On-Line Systems Administrators Name of Officer Official osition Financial Accounting & Governance Manager Financial Services Manager Authorised Users of the Business On-Line system Name of Officer Official osition

10 Appendix 2 TREASURY MANAGEMENT CASH ROJECTONS/NVESTMENTS DECSONS FORM NVESTMENT DECSON(S) As At 201X Details Balance as per CTFs Current Account Bank Balance per CTF Business Reserve Account Less Working balance to be held -300,000 Add Maturing Monies: Bank of reland Less ayments: Net Amount Available for nvestment(s) Bank of reland nvestment limits Amounts Amounts Bank currently Available on investment to nvest above limits effective from: nterest rates required for the following investment(s): to be invested for days to mature on to be invested for days to mature on Signed Treasury Manager Date, 201X

11 Appendix 3 NTEREST QUOTES FOR FXED TERM NVESTMENTS Date: From To Number of Amount Date nterest BANK OF RELAND days Maturing Rate Tel Quote Fax Signed: Date:

12 Appendix 4 Confidential For the attention of Bank of reland 1 Donegall Square South Belfast BT1 5LR Your Ref: Our Ref: Date Dear This is to confirm our telephone conversation this morning. With regards to amounts maturing today, would be grateful if you could action the following: Rollover principal for xx days to 2011 at a rate of x.x%. nterest earned to date should be repaid to Sort Code, Account Number. ncrease the principal amount by (to be taken from Account Number held at BO, Ballymena Branch) and added to the above deal. rincipal of plus interest should be repaid on the new maturity date to Account Number lease acknowledge details of these transactions in due course. Yours faithfully Authorised Signatory _ Authorised Signatory

13 Appendix 5 NVESTMENT TRANSACTONS RECORD DATE TRANSACTON REF. TM EROD / NVESTMENT RECALLED ROLLOVER NVESTMENT NT. RATE DATE Estimated REFERENCE AMOUNT RNCAL NTEREST NSTTUTON % AVALABLE nterest TOTAL nvestment instructions TO : AT : TME COMLETED BY: TO : AT : TME DATE: TO : AT : TME TO : AT : TME REVEWED BY: TO : AT : TME DATE: