Financial Controls Policy
October 2024
North Willesborough Community Forum (NWCF)
Financial Records and Accounts
1) Financial records must be kept so that:
The organisation can account for monies received and spent.
The Steering Committee has proper financial control of the organisation.
The organisation meets the contractual obligations and requirements of funders.
2) The books of accounts will include:
A cashbook analysing all the transactions appearing on the bank accounts
A petty cash book if cash payments are being made.
3 A report comparing actual income and expenditure should be presented to the Steering Committee at each Steering Committee meeting and be available at Community Forum meetings.
4) The Steering Committee will ensure independently examined accounts are prepared and presented at the Annual General Meeting.
Banking
1) NWCF will bank with a reputable bank and any funds will be held in an account in the name of the Forum.
2) The bank mandate (list of people who can sign cheques on the organisations behalf) will always be approved and minuted by the Steering Committee, as will any changes to it.
3) The charity will require the bank to provide statements every month and these will be reconciled with any income and expenditure that has taken place.
4) NWCF will not use any other bank or financial institution or use overdraft facilities or loan without of the agreement of the Steering Committee.
Income
1) All monies received will be recorded promptly and banked without delay. The Treasurer will maintain files of documentation to back this up.
Expenditure
2) The aim is to ensure that all expenditure is properly authorised and that this can be demonstrated.
3) The Treasurer will be responsible for holding the cheque books (including unused and partly used cheque books) which should be kept securely
4) Blank cheques will NEVER be signed.
5) Online banking will set up with all relevant security in place, i.e. passwords, account and individual kept safely by the Treasurer and other signatories.
6) At least two signatories will be required for cheque or online payment authorisations.
Financial documentation
1) Every payment out of NWCF bank account will be evidenced by an original invoice. That original invoice will be retained by the Treasurer.
2) Expenses should be agreed prior to the expenditure. The Steering Group will reimburse expenditure paid for personally by Steering Group members.
Expenditure is evidenced by original receipts.
Car mileage is based on local authority scales.
No cheque signatory/online payments should be authorised by the person claiming the expenses.
Cheque Signatures /online authorisation
1) Each cheque /online payment will be signed /authorised by at least two people.
2) There should be up to five Steering Group members who are authorised to make payments, one of which must be the Treasurer.
3) All fundraising and grant applications undertaken on behalf of the organisation will be done in the name of NWCF.
Public Liability Insurance
The Steering Committee will ensure, where appropriate, that the relevant risk assessments are carried out and insurance is in place.