FINANCIAL PROCEDURES POLICY Distington Club for Young people (DCYP)
1.1 Financial records will be kept so that DCYP can:
a. Meet its legal and other obligations, e.g., Charities Acts, Inland Revenue, Common Law, Data Protection Act
b. Enable DCYP to have control of the club’s finances.
c. Enable DCYP to meet the needs of its users, contractual obligations and the requirements of funding bodies.
1.2 DCYP will keep proper books of account via an electronic finance system
1.3 The DCYP financial year will end on 31/03.
1.4 Accounts will be drawn up after each financial year within 2 months of the end of the year and be presented to the next Annual General Meeting.
1.6. A paper comparing actual income and expenditure with the budget will be drawn up at least every 3 months and be presented to the committee
1.7. The AGM will appoint an appropriately qualified person/company to examine the accounts for presentation to the next AGM, depending on legal and charitable obligations.
2. Roles and responsibilities
Each of these should be allocated to a relevant member of staff or volunteer.
2.1 Developing budgets and coordination, producing an annual budget/Overseeing, planning and implementation of any fundraising. While being accountable to funding agencies through reporting and provision of information as required.
2.2 The secretary
Manage petty cash
Input all expenditure and income information into the financial system
Carry out regular petty cash analysis and monthly bank reconciliation
Assist in preparation of regular financial reports for the Board
Carry out banking duties including paying in/cashing cheques and general account liaison
Prepare payments against invoices, salaries, expense claims and other orders
Liaise with the accountant for the annual accounts and examination
Liaise with Inland Revenue, payroll and other bodies as required.
2.3 The Treasurer:
Guide and advise the management committee in the approval of budgets, accounts and financial statements
Advise the committee on the financial implications of DCYP’s strategic plans and key assumptions included in its operational plan and annual budget
Formally present the accounts at the AGM
Approve the DCYP (frequency) bank reconciliation.
2.4 The Committee
Work with the treasurer to address finance issues
Approve exceptional items of expenditure
Monitor levels of financial reserves and report on it
2.5 The Chairman
Strategic decision making
Approve the budget for the year
Approve initial cheque signatories, and any later name changes, to the bank account
Monitor the financial position based on quarterly reports with advice from the Treasurer and Secretary
3.1 The bank mandate (list of people who can sign cheques on the organisation's behalf) will always be approved and minuted by the committee as will all changes to it.
3.1 DCYP will require the bank to provide statements every (month). The Secretary will reconcile the statements with the electronic finance system and the statements must also be signed off by the treasurer or another trustee who is a cheque signatory.
3.1 All monies received will be recorded within three working days in the electronic finance system and banked as soon as possible. DCYP will maintain files of documentation i.e. letters from funding bodies to back this up, keeping them for the legally required period.
3.2 All fundraising and grant applications undertaken will be done in the name of DCYP with the prior approval of the committee or in urgent situations through the approval of the Chair and another committee member. Full details will then be presented at the next committee meeting.
4. Expenditure-Payments by cheque Payments.
4.l Money will only be spent in pursuance of the Objectives of the Constitution and the current business plan.
4.2 The Youth Development Worker is responsible for preparing all payments of invoices and other orders. Before an invoice can be paid it must be authorised and signed off by the club signatories.
4.3 Every payment out of the organisation’s bank accounts should be supported by an original invoice (never against a supplier’s statement or final demand). That original will be filed and kept for ……3… years.
4.4 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, venue hire deposits, etc. Here a copy of the booking form must be taken and kept as documentation and a written form must be filled in.
4.5 The Youth Development worker holds the cheque book, which must be kept under lock.
4.6 The relevant payee's name and payment amount must always be inscribed on the cheque before signature and the cheque stub must always be filled in at the same time.
4.7 All cheques must be signed by two signatories, at least one of which must always be a trustee. No cheques will be signed without original documentation. Blank cheques will NEVER be signed.
4.8 Any single expenditure exceeding £500 (unless already in the approved budget) or an overspend on a particular budget heading of more than 10%, should be authorised by the committee before an order is placed and it should be minuted at the next committee meeting.
4.9 DCYP does not accept liability for any financial commitment unless properly authorised.
5 Petty cash.
5.1 Petty cash will be maintained on an ‘imprest’ system with a starting float of £100. Petty cash is only intended for smaller items normally up to a value of £100, anything over this amount should be paid by cheque. A petty cash request form must always be filled in and receipts should be attached. The petty cash balance will be reconciled when restoring the imprest balance.
5.2 The Youth Development worker is responsible for maintaining the system and reconciling petty cash into the finance system on a regular basis
5.3 The petty cash box must always be kept under lock.
6.1 DCYP payroll will processed by CVS ensuring salary payments via BACS IP. All employees will be paid within the PAYE, National Insurance rules
6.3. Expenses/Allowances – DCYP will reimburse expenditure paid for personally by staff/Volunteers.
7. Fixed assets
7.1 All fixed assets costing more than £350 will be recorded in a fixed assets register. The register will record details of date of purchase and costs and in due course disposal. An inventory list will also be kept of all smaller items owned by DCYP.
9.1 DCYP management committee will consider the level of reserves that it is prudent to have. Consideration to lease agreements and any other significant factors that should be taken into account.
10. Cheque and Cash Signatories.
Name Signature Date
1. Diane Richardson D Richardson 03/10/16
2. Christine Pattinson