1.1 As a registered charity CTB must have in place rigorous financial controls and procedures throughout the organisation, which will enable CTB to fulfil the expectations of the Charity Commission and the Trust’s stakeholders, to ensure financial viability for the future of the organisation.
1.2 This policy and associated policies and procedures are written to be readily comprehensible and to be consistent with each other and all other policies of CTB, thus promoting clarity of purpose and sustainability.
2.1 In line with good practice and requirements of The Charities Commission, the Trustees are corporately responsible for:
- safeguarding the assets of the charity
- preventing fraud
- keeping financial records in accordance with the governing document and relevant legislation (e.g. Charities Acts.).
- preparing and filing Annual Accounts in accordance with the governing document and relevant legislation
2.2 The Treasurers have day to day responsibility for the operation of the financial controls.
3.1 Financial records will be kept, and financial procedure adopted so that CTB can:
- meet its legal and other statutory obligations.
- enable the trustees to be in proper financial control of the CTB.
- conform to sound accounting principles and practices to enable it to produce accurate and timely financial reports and accounts
- enable CTB to meet the contractual obligations and requirements of funders
3.2 CTB will keep proper books of accounts, which will include:
- a cashbook analysing all the transactions in CTB’s bank account(s).
- a petty cash book if cash payments are being made
- relevant HMRC taxation records in accordance with current legislation and reporting requirements
- a record of all monies due to CTB and payable by the CTB.
3.3 Accounts will be drawn up after each financial year within three months of the end of the year and presented to the next Annual General Meeting.
3.4 Prior to the start of each financial year, the trustees will approve a budgeted income and expenditure account for the following year. This should be compiled with reference to the CTB’S policy on the level of reserves to be held.
3.5 The Treasurers will compile and circulate a quarterly management accounts report to the Trustee meeting. A report comparing actual income and expenditure with the budget will be presented to the trustees every three months
3.6 The AGM will appoint an appropriately qualified independent examiner to examine the accounts for presentation to the next AGM.
4.1 The Trust will bank with a regulated UK bank. Accounts will be held in the name of the CTB.
4.2 Changes to the bank mandate will be formally approved by the Trustees.
4.3 CTB will require the bank to provide statements every month and these will be reconciled with the cash book no less frequently than every three months.
4.4 Any change to the bank or financial institution or use of overdraft or loan facilities will require the approval of the Trustees.
5.1 All monies received will be recorded promptly in the cash book and banked without delay. CTB will maintain documentation to back this up.
6.1 The aim is to ensure that all expenditure can be demonstrated to be the charity’s business and is properly authorised. Whilst an approved budget sets out the planned level of expenditure within the year, signatories should not incur expenses which are outside of their authorised expenditure level.
The Treasurers will be responsible for holding the cheque book (unused and partly used cheque books) which should be kept under lock and key. Blank cheques will NEVER be signed. Supporting documentation will always be presented to the signatory when a request is made to approve a cheque or online transaction. No cheques should be signed or online transaction approved without original documentation.
7. Payment documentation
7.1 Every payment will be evidenced by an original invoice. That original invoice will be retained and filed for at least 6 years.
7.2 Wages and salaries. There will be a clear trail to show the authority and reason for each payment. All employees will be paid within the PAYE National Insurance regulations.
7.3 All staff appointments/departures will be authorised by the Trustees, minuting the dates and salary level. Similarly, all changes in hours and variable payments such as overtime, etc. will be authorised by the Trustees.
7.4 Petty cash will always be maintained on the imprest system whereby the administrator is entrusted with a float as agreed by the Trustees.
8. Cheque Signatories
8.1 Each cheque will be signed by at least two people. A cheque must not be signed by the person to whom it is payable.
9. Other undertakings
9.1 All fundraising and grant application undertaken on behalf of the organisation will be done in the name of the CTB 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.
9.2 The Trust will adhere to good practice in relation to its finances at all times, e.g. it will maintain a fixed asset register for relevant items stating the date of purchase, cost, serial numbers and normal location. Additionally the Trust will maintain a property record of items of significant value, with an appropriate record of their use.
9.3 The Trust will maintain appropriate insurance cover at all times, both to cover our legal obligation and to underpin our duty to protect our staff, assets and resources. This will include:
- employers’ liability insurance to cover both staff and volunteers
- public liability insurance
- contents insurance
- vehicle insurance
The Treasurers are responsible for providing its insurer/broker with a detailed and accurate schedule of activities and inclusions to be covered and for ensuring all insurance policies are current and appropriate documentation maintained.
10. Additional information
- Financial Reserve Policy
- Cash donations procedure
- Expense authorisation and payment procedure
- Legacy donation procedure
- On-Line banking procedure
- Salary Payment procedure
- Financial controls checklist