1. The Director is responsible for:
• Safeguarding the assets of the company
• Preventing fraud
• Avoiding mistakes
• Keeping financial records in accordance with the governing document and
relevant legislation
• Preparing Annual Accounts in accordance with the governing document and
relevant legislation
2. To enable the Board of Directors to carry out these responsibilities, the
Financial Procedures detailed below must be followed at all times by all Board of
Directors members, staff and volunteers.
3. A copy of this policy and procedures will be given to all Board of Directors
members on their election/appointment to the Board, and to all relevant staff and
volunteers.
4. The policy and procedures will be reviewed annually by the Board of Directors
and revised as necessary.
Financial Procedures

1. Bank Accounts
a) All bank accounts must be in the name of the organisation.
b) No account may ever be opened in the name of an individual or individuals.
c) New accounts may only be opened by a decision of the Board of Trustees,
which must be minuted.
d) Changes to the bank mandate may only be made by a decision of the Board
of Trustees, which must be minuted.
e) Two people should be involved in counting cash receipts.
f) All cheques must be signed by two signatories.
g) The signatories are responsible for examining the cheque for accuracy and
completeness.
h) All Internet Bank Transfers must be authorised by two signatories.
i) The Treasurer is responsible for ensuring accuracy and completeness prior to
transmission.
j) The signatories are responsible for examining the payment documentation
(purchase invoice etc) prior to signing the cheque or authorising an Internet
Transfer.
k) Blank cheques must never be signed.

2.Signatories to the accounts:

i) Name: ………………………………………………………………………………
Role/Job Title: ……………………………………………………………………..
ii) Name: ………………………………………………………………………………
Role/Job Title: ……………………………………………………………………..
iii) Name: ………………………………………………………………………………
Role/Job Title: ……………………………………………………………………..
3. Annual Budget
a) An annual budget, setting out the organisation’s financial plan for the year,
will be prepared so that the Board of Trustees can approve it before the start
of each financial year.
b) The draft budget will be prepared by the following three personnel:
• Chairman
• Manager
• Secretary
5. Financial Reports
a) A financial report will be prepared for every Board of Trustees meeting.
b) The financial report will consist of:
• Profit & Loss
• Balance Sheet
c) Each Financial Report will be circulated to all Board of Trustees members and
discussed at the following committee meeting.
d) The reports will be prepared by the treasurer
6. Accounting and other financial records
The organisation maintains a computerised accounting system which records:
• Cheques and cash received and banked
• Cheque payments, Internet Banking Transfers and other amounts paid from
the bank accounts
a) Every transaction will be entered into the appropriate book and will include:
• The date of the transaction
• The name of the person money was received from or paid to and the full
amount

• A brief description of why the money was received or paid
• An analysis of each amount under its relevant budget heading, where
applicable
b) All documents relating to receipts and payments will be filed in the month they
are input into the system
c) A regular backup copy will be taken, saved to CDROM and a copy transferred
electronically to the Coordinator.
7. Authorisation and Payment
a) All purchase orders must be recorded in the Purchase Order book and
allocated the next sequential Purchase Order Number.
b) The Purchase Order Number must be given to the Supplier and quoted on
their invoice.
c) The Chairman (or Treasurer in their absence) must approve the purchase of
any item over £200.
d) No Board of Trustees or staff member may authorise payment to themselves,
their partner or relatives.
e) Invoices (or other receipts) should be matched and checked against the
Purchase Order book before payment is authorised. All goods received must
be signed for, if unchecked they must be checked for completeness before
payment.
f) Before cheque or Internet payment is made, it must be authorised in writing.
g) When the cheque is signed, the two signatories should also sign the Cheque
Requisition Form.
h) For Internet Bank Transfer the two signatories must sign the Authorisation
form.
i) Once payment has been made the invoice (or other receipt) should be
marked “Paid”, together with the cheque number and date.
j) All payments must be entered in the computerised accounting system only
after being authorised.
8. Payroll
a) All employees (including sessional and part time employees) must be asked
to complete the relevant PAYE form/s before they receive any payment.
b) All staff changes and changes to terms and conditions of employment must
be authorised and minuted by the Board of Trustees.
c) Payroll and all calculations will be made by………………………………

9. Insurance
a) Appropriate Insurance polices will be maintained to cover:

• Employer’s Liability
• Public Liability
• Contents
b) An inventory of all physical assets of the organisation will be kept and
regularly updated.
c) A copy will be kept off the premises at the address of the Treasurer.
10. This Financial Policy, and the Financial Procedures detailed above were
agreed and minuted at a meeting of the Board of Trustees on:

Name:………………………………………………………………………………….

Signed:…………………………………………………………………………………

Date:……………………………………………………………………………………