Financial Management and Controls Policy
Objects of Friends of Evington:
1 TO PROMOTE FOR THE BENEFIT OF THE PUBLIC, THE CONSERVATION, PROTECTION AND IMPROVEMENT OF THE PHYSICAL AND NATURAL ENVIRONMENT IN THE EVINGTON SUBURB OF LEICESTER AND THE SURROUNDING AREA.
- TO PROMOTE FOR THE BENEFIT OF THE INHABITANTS OF EVINGTON AND THESURROUNDING AREA THE PROVISION OF FACILITIES FOR RECREATION OR OTHER LEISURE TIME OCCUPATION OF INDIVIDUALS WHO HAVE NEED OF SUCH FACILITIES BY REASON OF THEIR YOUTH, AGE, INFIRMITY OR DISABLEMENT, FINANCIAL HARDSHIP OR SOCIAL AND ECONOMIC CIRCUMSTANCES OR FOR THE PUBLIC AT LARGE IN THE INTERESTS OF SOCIAL WELFARE AND WITH THE OBJECT OF IMPROVING THE CONDITION OF LIFE OF THE SAID INHABITANTS.
The Friends of Evington is a fundraising charity that acts as an umbrella body for projects that meet our aims and objectives. These include: Evington Echo. Evington in Bloom and its supported ‘It’s Your Neighbourhood’ groups and individual members.
Purpose of the Policy:
Financial records will be kept so that Friends of Evington can:
- Meet its legal and other obligations, e.g., Charities Act
- Enable the Executive Committee to have control of the organisation’s finances.
- Enable the organisation to meet contractual obligations and the requirements of funding bodies.
1.1 The organisation will keep proper accounts, which will include:
- Records analysing all the transactions in the organisation’s bank accounts.
- Petty cash books as necessary
1.2 The financial year for Friends of Evington will end on 30thJune.
1.3 Accounts will be drawn up after each financial year within four months of the end of the year and presented to the next annual general meeting (AGM).
1.4 Before the start of each financial year, the executive committee will approve a budgeted income and expenditure account for the following year.
1.5. On-line banking enables the treasurer to compare actual income, and expenditure with the budget and will be presented to the executive committee every three months.
1.6. The AGM will appoint an appropriately qualified person to check the accounts for presentation to the next AGM.
2.1 Friends of Evington will bank with the Cooperative Bank where the accounts will be held in the name of Friends of Evington.
2.2 The bank mandate (list of people who can sign cheques on the organisation’s behalf or access the on-line bank account) will always be approved and minuted by the Executive Committee, as will all changes to it.
2.3 Friends of Evington will require the bank to provide statements and these will be reconciled with the cash banked and the Treasurer will have access to on-line banking and will spot check that this reconciliation has been done at least twice a year.
2.4 Friends of Evington will not use any other bank or financial institution or use overdraft facilities or invest speculatively unless authorised, approved and minuted by the executive committee.
- Receipts (income)
The aim is to demonstrate that Friends of Evington has received all the income to which it is entitled and that it is all reasonably evidenced.
3.1 All monies received will be recorded promptly in cash books and banked without delay (note this includes sundry receipts such as payments for telephone calls, photocopying, etc.) The organisation will maintain files of documentation i.e. letters from funding bodies to back this up.
- Payments (expenditure)
4.l The Treasurer will be responsible for holding the cheque book (unused and partly used cheque books), which should be kept securely.
4.2 Blank cheques will neverbe signed.
4.3 Whenever possible, the same person should not be responsible for ordering, processing and checking invoices as well as raising cheque requisitions, signing cheques and payments.
4.4 Cheques greater than the value of £500.00 will require the approval of the executive committee. This will be reported to the next meeting of the Board of Trustees.
4.5 The relevant payee’s name will always be inscribed on the cheque before signature, the cheque stub will always be filled in. In the case of on-line payment, the payees name will always be given.
4.6 No cheques will be signed without original documentation.
4.7 Money will only be spent to meet conditions and requirements of the funding bodies and in pursuance of the objectives of the constitution.
- The Chair and/or the Treasurer with (in either case) one other committee member shall not approve expenditure of more than £100.00 nor an overspend on a particular budget heading of more than 10 per cent unless this approval should be written down, signed by both people approving it, and reported to the next meeting of the board of trustees.
- Payment documentation
- Every payment out of Friends of Evington’s bank accounts will be supported by an original invoice. Payment by cheque should be documented. Payments on-line should be coded and recorded.
- Petty cash will always be maintained on the imprest system whereby the designated persons are trusted with a float, as agreed by the management committee. When that is more or less expended, a cheque will be drawn for sufficient bringing up the float to the agreed sum (currently agreed at £100). The expenditure will be analysed in the petty cash books.
- Cheque signatures and cash cards
6.1 Each cheque will be signed by at least two people.
6.2 Cash cards are needed for paying in cash at the Post Office. Any money withdrawn by authorised persons will be agreed by at least two people.
- Other undertakings
7.1 All fund raising and grant applications undertaken on behalf of Friends of Evington will be done in the name of the organisation with prior approval of the management committee or in urgent situations the approval of the Chair, who will provide full details to the next management committee.
8.1 Committee members and volunteers will at all times act in the best interest of the organisation and if they experience a conflict of interest they will not divulge sensitive information.
- Other rules
9.1 The executive committee will consider the level of reserves that is prudent for the Friends of Evington to have at its first meeting after the AGM. Consideration will be given to any other significant factors that should be taken into account were the Friends of Evington to close.
9.2. The Friends of Evington will adhere to good practice in relation to its finances at all times, e.g. when relevant it will set up and maintain a register stating the date of purchase, cost, serial numbers and normal location of the asset(s). If it holds goods of significant value, it will maintain proper records.
9.3. These controls will be reviewed at the first executive meeting after the AGM.
Author: Finance executive committee
Date: 22ndMay 2018
Date Agreed by trustees: 8thJune 2018