Financial Controls Policy

Financial Records and Accounts

  1. Financial records must be kept so that:

The organisation meets its legal and other statutory obligations, such as Charity Acts, HMRC and common law.

The trustees have proper financial control of the organisation.

The organisation meets the contractual obligations and requirements of funders.

  1. The books of accounts must include:

A cashbook analysing all the transactions appearing on the bank accounts – this will be done via FreeAgent software

  • A petty cash book if cash payments are being made.

Inland Revenue deduction cards P11 (if registered for PAYE)

  1. Accounts must be drawn up at the end of each financial year within 6 months of the financial year end and presented to the next Annual General
  2. Prior to the start of each financial year, the trustees will approve a budgeted income and expenditure account for the following
  3. A report comparing actual income and expenditure with the budget should be presented to the trustees every three months or whenever meetings take
  4. The AGM will appoint an appropriately qualified auditor/ independent examiner to audit or examine the accounts before presentation to the next

Banking

  1. The Charity will bank with Barclays Bank at its Leamington Spa Branch and accounts will be held in the name of Inspire Young People.
  2. The bank mandate (list of people who can sign cheques on the organisation’s behalf) will always be approved and minuted by the trustees, as will any changes to
  3. The charity will require the bank to provide statements every month and these will be reconciled with FreeAgent at least every three months.
  4. The charity will not use any other bank or financial institution or use overdraft facilities or loan without of the agreement of the

Income

  1. All monies received will be recorded promptly in the cash analysis book and banked without delay (this includes sundry receipts such as payment for telephone calls, photocopying etc.). The Charity will maintain files of documentation to back this up.

Payments (expenditure)

  1. The aim is to ensure that all expenditure is on the charity’s business and is properly authorised and that this can be demonstrated. The latest approved budget provides the cheque signatories with authority to spend up to the budgeted expenditure, not beyond
  2. Payment by electronic bank transfer. The majority of payments will be made via electronic bank transfer. The Programme Coordinator has the login details for the account and will make the payments.   Clear records of all electronic bank transfers are maintained, as for cheque and cash transactions, using bank statements for regular reconciliation to ensure all account movements, particularly debit transactions are in order.
  1. The Programme Coordinator will be responsible for holding the cheque books (including unused and partly used cheque books) which should be kept under lock and
  2. Blank cheques will NEVER be The relevant payee’s name will always be inserted on the cheque before signature and the cheque stub will always be properly completed. No cheques should be signed without original documentation (see below).

Payment documentation

  1. Every payment out of the Charity’s bank accounts will be evidenced by an original invoice. That original invoice will be retained by the Charity and filed. The cheque signatory should ensure that it is referenced with:
  • Date number
  • Date cheque drawn
  • Amount of cheque

The only exceptions to payments not being supported by an original invoice are Items such as advanced booking fees for a future course, deposit for a venue, etc.

  1. Expenses / allowances. Inspire Young People will, if asked, reimburse expenditure paid for personally by Trustees, providing:
  •    Fares are evidenced by tickets.
  •    Other expenditure is evidenced by original receipts.
  •    No cheque signatory signs for the payment of expenses to themselves.
  1. Cheque Signatures:
  • Each cheque will be signed by at least two
  • A cheque must not be signed by the person to whom it is payable (you will have to ensure that you have enough signatories on your bank mandate)

Other rules

  • The Charity does not accept liability for any financial commitment unless properly authorised.
  • All fundraising and grant applications undertaken 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.
  • The Charity 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 assets. Additionally, the Charity will maintain a property record of items of significant value, with an appropriate record of their