(a) Meet its legal and other obligations, e.g. Inland Revenue, Customs & Excise, organisation law, common law and to funders.
(b) Enable the Management Committee to be in proper financial control of Name of organisation and make proper financial decisions.
(c) Enable Name of organisation to meet the contractual obligations and requirements of funders.
(a) A cashbook analysing all the transactions in the Name of organisation' bank account(s).
(b) A petty cash book analyses all petty cash payments.
(c) Inland Revenue deduction cards P11 and Schedule D and tax reference numbers for freelance workers.
1.3 Name of organisation financial year are April to March.
1.4 Accounts will be drawn up after each financial year within five months of the end of the year and presented to the next Annual General Meeting.
1.5 In January the Management Committee will approve a budgeted income and expenditure account for the following year.
1.6 The Management Committee will receive every three months a financial management report that will consist of the following: income and expenditure, budget variance, balance remaining. The Finance Officer will produce monthly Receipts and Payments Account for the Senior Staff.
1.7 The Management Committee must meet every x weeks to ensure that proper financial decisions can be taken and to carry out financial planning. Meeting will be scheduled 6 months in advance.
1.8 The AGM will appoint an appropriately qualified auditor/examiner to audit/examine the accounts for presentation to the next AGM.
2.1 The Organisation will bank with Co-op Bank plc at its xxxx Branch:
Accounts will be held in the name of Name of organisation. The following bank account will be maintained: Business Current Account.
2.2 The bank mandate (list of people who can sign cheques on the organisations behalf) will always be approved and minuted by the Management Committee, as will all the changes to it. Two signatories must sign each cheque.
2.3 The Organisation will require the bank to provide statements every month and these will be reconciled with the cash book at least every three months and the treasurer will spot check that this reconciliation has been done at least twice a year, signing the cash book accordingly.
2.4 The Organisation will not use any other bank or financial institution or use overdraft facilities or loan without of the agreement of the Management Committee.
3.1 All monies received will be recorded promptly in the cash analysis book and banked without delay (note this includes sundry receipts such as payment for telephone calls, photocopying etc.). Name of organisation will maintain files of documentation to back this up (an Income file).
The aim is to ensure that all expenditure is on the organisation business and is properly authorised and that this can be demonstrated.The latest approved budget provides the cheque signatories with authority to spend up to the budgeted expenditure, not beyond it.
4.1 The Senior staff will be responsible for holding the chequebook (unused and partly used chequebooks) which should be kept under lock and key.
4.2 Blank cheques will NEVER be signed.
4.3 The relevant payee's name will always be inserted on the cheque before signature and the cheque stub will always be properly completed.
4.4 No cheques should be signed without original documentation (see below).
4.5 All expenditure above £1,000 has to be approved by the Management Committee. Chairs action cannot be taken.
5.1 Every payment out of the Name of organisation bank accounts will be evidenced by an original invoice (never against a supplier's statement or final demand) and a cheque requisition slip. That original invoice will be retained by Name of organisation and filed.The cheque signatory should ensure that it is referenced with:
5.2 The only exceptions to cheques not being supported by an original invoice would be for such items as advanced booking fees for a future course, deposit for a venue, VAT, etc.In this instance a cheque requisition form will be used and a photocopy of the cheque kept.
5.3 Wages and Salaries. There will be a clear paper trail to show the authority and reason for EVERY such payment e.g. a cheque requisition, asking for payment to an employee, the Inland Revenue, etc.All employees will be paid within the PAYE, National Insurance regulations.
5.4 All staff appointments/departures will be authorised by the Management Committee, minuting the dates and salary level. Similarly, all changes in hours and variable payments such as overtime, etc, will be authorised either by the Management Committee or by the senior staff.
5.5 Petty cash will always be maintained on the imprest system where by the Finance Officer is entrusted with a float as agreed by the Management Committee. When that is more or less expended, a cheque will be drawn for sufficient funds to bring up the float to the agreed sum, the cheque being supported by a complete set of expenditure vouchers, totalling the required amount, analysed as required.
5.6 Expenses / allowances. Name of organisation will, if asked, reimburse expenditure paid for personally by staff, providing:
6.1 Each cheque will be signed by at least two people.
6.2 A cheque must not be signed by the person to whom it is payable.
6.3 Hole in the wall type cash cards will not be used and if issued by the bank they will be immediately cut in half.
7.1 Name of organisation does not accept liability for any financial commitment unless properly authorised. Any orders placed or undertakings given, the financial consequences of which are, prima facie, likely to exceed in total £5,000, must be authorised and minuted by the Management Committee. In exceptional circumstances such undertakings can be made with the treasurers approval who will then provide full details to the next meeting of the trustees. (This cover such items as the new service contracts, office equipment, purchase and hire).
7.2 All fundraising and grant applications undertaken on behalf of the Organisation will be done in the name of the Name of organisation with the prior approval of the Management Committee or in urgent situations the approval of the treasurer who will provide full details to the next trustees meeting.
8.1 Name of organisation will adhere to good practice in relation to its finances at all times, e.g. when relevant it will set up and maintain a fixed asset register stating the date of purchase, cost, serial numbers and normal location.Additionally Name of organisation will maintain a property record of items of significant value, with an appropriate record of there use.
8.2 Name of organisation will maintain the following insurance policies