Introduction
- Financial records will be kept so that Ousden Village Hall and Playing Fields (“the Charity”) can:
- Meet the Charity’s legal and other obligations, e.g.in accordance with the Charities Acts, Company Law, HMRC and common law.
- Enable the Trustees of the Charity to be in proper financial control of the funds of the Charity.
- Enable the Charity to meet the contractual obligations and requirements of third parties and funders.
- A Treasurer will be appointed at the Charity’s Annual General Meeting who will maintain a proper accounting system for the Charity, which will include:
- A cashbook analysing all the transactions in the Charity’s bank account(s). This financial record may take the form of either a financial computer package, excel spreadsheet or paper.
- A petty cash book, if any cash receipts are received or any cash payments made they should be recorded at the time.
- And, if applicable, any HMRC and records which may be kept by a pay roll bureau.
- The financial year will end on the 31 st August each year.
- Accounts will be drawn up by the Treasurer before the 30th November following the end of each financial year and presented to the next Annual General Meeting of the Charity.
- Prior to the start of each financial year, the Treasurer will draw up and the Trustees will approve a budgeted income and expenditure account for the following year.
- Every three months the Treasurer will prepare a report comparing actual income and expenditure with the budget which will be presented to the Trustees every three months.
- The Trustees will approve the appointment of an appropriately qualified independent examiner to examine the annual accounts of the Charity.
Banking
- The Charity currently banks with the Newmarket branch of Lloyds Bank plc. No other bank account will be operated by the Charity other than by minuted approval of the Trustees.
- The bank mandate (list of people who can sign cheques or authorise electronic payments on the organisations behalf) will always be approved and minuted by the Trustees.
- The Charity will require the bank of any account held by them to provide monthly paper copy statements to the Treasurer or to provide the Treasurer with access to electronic statements. The Treasurer will reconcile such statements with the bookkeeping system at least every three months and will provide a copy of the latest available bank statement to the Trustees quarterly.
- The Charity will not use any other bank or financial institution or use overdraft facilities or loans without the minuted agreement of the Trustees.
Receipts (income)
- The Treasurer will:
- Record and deliver all invoices promptly.
- Record all monies received. All monies will be recorded promptly in the bookkeeping system, and will be banked without delay. Maintained files of documentation will evidence such receipts with appropriate cross references.
- Maintain a record of aged debtors.
- Money credited to the bank electronically.
- The Treasurer will issue clear references to payers for them to use when making electronic payments into a bank account of the Charity, to ensure that receipts into the bank account can be traced to the payer easily.
- If the Charity runs any form of electronic bookings for its customers the Treasurer will ensure that the system is reconciled to the bookkeeping system and that all customers who should be invoiced are invoiced promptly.
Payments (expenditure)
The Treasurer will aim to ensure that all expenditure is on the Charity’s business and is properly authorised by the Trustees.
Electronic banking
- Each signatory will have a unique password.
- The Treasurer will be able to access the electronic banking system for the purposes of putting transactions onto the system for authorisation by the signatories and for assessing bank statements. The Treasurer will scan and e-mail invoices and evidence of authorisation to the signatories.
- The Treasurer will check and enter the suppliers sort code, account number, account name into the system and provide these by e-mail to the signatories one of whom is the Chairman
- The Chairman will approve any payment and another signatory will check the payment details sort code, account number,invoice and amount. If these are accurate the signatory will authorise the payment.
- Authorisation from two signatories will be required for each payment.
Payment documentation
- Every payment out of the Charity’s bank accounts will be evidenced by an original invoice or such other appropriate original documentation. That original invoice/documentation will be retained by the Treasurer and filed. The Treasurer should ensure that the filed invoice/ documentation is referenced with:
- the date the electronic payment was made,
- the amount of the payment, and
- details of who approved and authorised the payment.
- Wages and Salaries. There will be a clear trail to show the authority and reason for EVERY such payment; e.g., a copy of the payment, asking for payment (employer’s payment record, VAT return HMRC etc. All employees will be paid within the HMRC regulations.
- All staff appointments/departures will be authorised by the Trustees, minuting the dates and salary level.
- Petty cash will always be recorded. Any income received should also be recorded and then banked unless cash is required for future events when the amount in hand may exceed the float limit.
- Expenses / allowances. The Treasurer will, if asked, reimburse expenditure paid for personally by individuals on behalf of the Charity, providing such expenditure has been approved and authorised by the Trustees and:
- Fares are evidenced by tickets.
- Other expenditure is evidenced by original receipts.
- Car mileage is based on local authority scales.
Signatories and cash cards
- Electronic bank payments will be signed by at least two people.
- Hole in the wall type cash cards to access any of the Charity’s bank accounts will not be used and if issued by the bank they will be immediately cut in half.
- The Charity does not allow top up debit cards to be issued to named Trustees.
Other undertakings
- The Charity 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 Trustees. In exceptional circumstances such undertakings can be made with the Chairperson’s approval who will then provide full details to the next meeting of the Trustees. (This covers such items as new service contracts, office equipment, purchase and hire).
- All fundraising, contract bids and grant applications made on behalf of the organisation will be done in the name of the Charity with the prior approval of the Trustees or in urgent situations the approval of the Chairperson who will provide full details to the next Trustee’s meeting.
- Copies of grant applications will be kept and available to Trustees on request. When bids are made using internet portals electronic or paper copies of the bid will be kept.
- Any funding contracts or grant acceptance documentation exceeding £5,000 will be brought to the Trustee’s attention for approval. In urgent situations this may be by e-mail to all trustees.
- Reserves Policy – A reserve of £5,000 or such amount as may be agreed and minuted by the Trustees is held to cover any unforeseen costs for the Hall and Playing Fields. Information about the Reserves Policy and the levels of reserves must be included in the Trustees’ Annual Report. In the event of the Charity being wound up, it will be necessary, in accordance with the Charity’s Constitution, to make arrangements for any money or property remaining after payment of debts, to be given to Charity.
Other rules
The Charity, the Trustees and the Treasurer will adhere to good
practice in relation to the Charity’s finances at all times.
This policy is subject to annual review and update as required when necessary.
Last reviewed & published Jan 2024