FINANCIAL MANAGEMENT POLICY
This policy has been adopted in an attempt to safeguard the assets of the BCUSG so far as possible and to provide clear procedures for controlling the finances of the Charity. They may not be exhaustive. Vigilance is needed at all times from all concerned with finance, both volunteers and Trustees, and any matters of concern should be discussed with the Chair or Treasurer, as appropriate.
Responsibility for Implementing this Policy
The Trustees are responsible for implementing this policy and the sound management of the Charity’s funds. The Treasurer is delegated the task of reporting to the Trustee Board on the financial position of the Charity and issues relating to this policy. All Trustees are required to abide by this policy.
The financial controls will be reviewed annually.
- A current cheque book bank account will be administered in the Charity’s name at a bank chosen by the Trustees
- The bank mandates will always be approved and minuted by the Trustees as will all changes to it.
- The bank will be chosen according to quality of service (including value for money in terms of interest paid, bank charges, etc). No borrowing will be undertaken by the Charity without a decision being taken at a meeting of the Trustees.
- A deposit account may also be administered in the Charity’s name in an appropriate Society or Company and surplus funds may be invested in appropriate Societies in accordance with the Trustees Investment Act (which allows part of the funds to be invested in equities as well as fixed interest stock). The Charity will not speculate with funds in investments which carry any significant risk.
Authorisation of Expenditure
- Authorisation to purchase items for use by the RUH Cancer Unit must be given at a meeting of the Trustees and appropriately minuted.
- Each branch may spend up to a maximum of £1000 without seeking permission of the Trustees, however any such expenditure must be approved by the Committee of that branch and appropriately minuted.
- All invoices need to be VAT free.
- Both e-payments and cheque payments must be authorised/signed by 2 separate people. Those with authority are the Treasurer and one other Trustee.
- Blank cheques will never be signed. The relevant payee’s name will always be inscribed on the cheque before signature; the cheque stub will always be completed. Cheques must not be signed by the person to whom they are made payable.
- No payment should be authorised until the signatory is satisfied, through sight of an order form, invoice, receipt or similar written evidence, of the validity of the payment.
- A cash float for the use of the Charity for its Christmas Shop must not exceed £100
- Profits from the Christmas Shop, any fundraising events and other collections will be handed to the Treasurer as soon as practicably possible.
Banking Cheques and Cash
Cash and cheque receipts will be banked intact as soon as practicably possible.
The Treasurer will provide an up to date statement of income and expenditure to each meeting of the Trustees and will also provide an annual financial statement to the AGM held in April.
An annual audit (or independent examination as required by the Charity Commission) will be carried out by a qualified auditor (or independent examiner), appointed each year by the Trustees, in accordance with the requirements of the Charities Act and Companies Act. The auditor's report will be discussed and approved by the Trustee Board.
- Careful records will be kept of all income and expenditure, using a system and books approved from time to time by the Treasurer.
- All payments will be recorded and cross referenced in a file containing supporting information (such as order form/letter, invoice or claims form), approved and initialled by a person authorised to do so.
- Transactions will be reconciled against bank statements regularly by the Treasurer.
- Transfer of funds between bank accounts will be initially authorised by two signatories. Once set up regular transfers will be authorised by the Treasurer.
- Chief responsibility for the maintenance of records will rest with the Treasurer. All the Charity’s financial records shall be treated confidentially and will be kept for seven years in accordance with the Charity Act 2011.
Claims for Expenses and Allowances
Rates for expenses or allowances will be those agreed from time to time by the Trustees based on those recommended by the National Joint Council with local authorities. Volunteers and Trustees must complete and sign a claim form. Whenever possible, receipts should be provided.
The Chair will effect insurance cover at a sufficient level to cover possible liabilities as directed by the Trustees.
The Chair shall be responsible for maintaining adequate arrangements for all aspects of security within the Charity.
The Treasurer will ensure that the Charity complies with the Data Protection Act.
Approved by Trustees: 15 January 2020