Financial management and controls policy
1.1 Financial records will be kept so that Sherburn in Elmet Community Trust can:
- Meet its legal and other obligations: e.g. Charities Acts, HMRC, Companies Act, Common Law
- Enable the Trust Board to have control of the organisation’s finances
- Enable the organisation to meet contractual obligations and the requirements of funding bodies
- The organisation will keep proper books of account, which will include:
A spreadsheet analysing all the transactions in the organisation’s bank account(s)
A monthly petty cash analysis on spreadsheet for the Old Girls’ School
A record of all grants received but not yet expended
1.3 The financial year for Sherburn in Elmet Community Trust will end on 31 March.
1.4 Accounts will be drawn up after each financial year within one month of the end of the year and presented to the next Annual General Meeting (AGM) usually held in November when the audited accounts are available.
1.5 Before the start of each financial year, the Trust Board will approve a budgeted income and expenditure account for the following year.
1.6. A financial report comparing actual income and expenditure with the budget will be prepared by the Treasurer and presented to the Trust Board on a monthly basis.
1.7. The AGM will appoint an appropriately qualified auditor/ independent examiner to audit/ examine the accounts for presentation at the next AGM.
2.1 Sherburn in Elmet Community Trust banks with the National Westminster where the accounts will be held in the name of Sherburn in Elmet Community Trust. The following accounts will be maintained: current and business, reserve, and any other project accounts as agreed and approved by the Trust Board. There are two bank accounts – one for the Old Girls’ School Community Centre and one for Library and General
2.2 The bank mandate (list of people who can sign cheques on the organisation’s behalf) will always be approved and minuted by the Trust Board, as will all changes to it.
2.3 Sherburn in Elmet Community Trust will require the bank to provide statements every month and these will be reconciled with the cash book every month.
2.4 Sherburn in Elmet Community Trust will not use any other bank or financial institution or use overdraft facilities or invest speculatively unless authorised, approved and minuted by the Trust Board.
- Receipts (income)
The aim is to demonstrate that Sherburn in Elmet Community Trust 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 the petty cash analysis spreadsheet and banked without delay. All cash must be stored under lock and key until banked. The organisation will maintain files of documentation (e.g. invoices and letters from funding bodies) to back this up.
3.2 Banking will be carried out by the OGS and Library representatives
- Payments (expenditure)
4.l The Treasurer will be responsible for holding the cheque book (unused and partly used cheque books) which should be kept under lock and key.
4.2 Blank cheques will never be 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 The relevant payee’s name will always be inscribed on the cheque before signature, the cheque stub will always be filled in.
4.5 No cheques will be signed without original documentation.
4.6 The following bills for the Old Girls’ School are paid by Direct Debit
- Phone and broadband
- Waste bins
4.7 The following annual bill for the general account is paid by Direct Debit
- ICO for data protection registration
4.8 Money will only be spent to meet conditions and requirements of the funding bodies and in pursuance of the objectives of the constitution.
4.9 The Chair and/or the Treasurer with (in either case) one other committee member may approve expenditure of more than £1000 nor an overspend on a particular budget heading or project of more than 10 per cent provided this approval is documented in an email trail and reported to and minuted at the next full Trust Board meeting.
- Payment documentation
5.1 Every payment out of the organisation’s bank accounts will be supported by an original invoice (and never against a supplier’s statement or final demand). That original will be filed and kept for seven years at the registered address of the Trust. The person who signs the cheque should ensure that the cheque requisition slip/ purchase order is fully completed. This includes the following:
Date cheque drawn
Amount of cheque
Who signed the cheque.
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, VAT, etc. Here a cheque requisition form/ purchase order will be used and a photocopy of the cheque kept.
5.2 Wages and salaries: All employees will be paid by BACS within the PAYE, National Insurance rules. The Treasurer or another Trustee will process any salaries. (N.B. Payroll may be contracted out.)
5.3 All staff appointments will be authorised by the Trust Board, minuting the dates and salary level. Similarly, all changes to contracts of employment and other payments such as overtime etc. will be authorised by the Trust Board.
5.4. Expenses/Allowances: Sherburn in Elmet Community Trust will, if asked, reimburse expenditure paid for personally by staff, providing:
Fares are evidenced by tickets (where possible).
Other expenditure is evidenced by original receipts.
Car mileage is based on local authority scales.
- Cheque signatures, BACS and cash cards
6.1 Each cheque will be signed by at least two people.
6.2 Hole in the wall type cash cards will not be used and if issued by the bank will be immediately cut in half.
6.3 All BACs payments must be authorised by at least two people by e-mail approval. Documentation required is the same as for cheque payments.
6.4 Credit Card A credit is available for purchases where invoice payment is not available. The credit card is held by the Treasurer. The monthly statement is checked against all purchases with back up documentation. The statements will be signed off at each Trust meeting.
- Other undertakings
7.1 Sherburn in Elmet Community Trust 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 £1000.00 must be authorised and minuted by the Trust Board. (This covers such items as the new service contracts, office equipment purchase and hire).
7.2 All fund raising and grant applications undertaken on behalf of Sherburn in Elmet Community Trust will be done in the name of the organisation with prior approval of the Trust Board or in urgent situations the approval of the Chair, who will provide full details to the next Trust Board. Chair of the Friends of OGS to provides report on fund raising activity and a annual calendar of fundraising activities.
8.1 The confidentiality of employees’ financial circumstances will be respected at all times.
8.2 Committee members, volunteers and employees 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 Trust Board will consider the level of reserves that is prudent for Sherburn in Elmet Community Trust. This is covered by the Reserves Policy
9.2. Sherburn in Elmet Community Trust 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 of the asset(s). If it holds stocks of goods it will maintain proper records.
9.3. These controls will be reviewed on an annual basis.
Approved by: Trust Board Date: January 2021