Earls Court Community Trust Financial Controls Policy
The Trustees of ECCT are ultimately responsible for the organisation’s finances including:
Ensuring that funds are used in accordance with the constitution, fulfilling all legal and contractual obligations.
Ensuring that ECCT’s use of funds complies with conditions set by funding bodies.
Ensuring that systems are in place to safeguard ECCT’s funds, to enable the organisation to progress and achieve its aims and to support the individuals working for it.
budget setting, monitoring and review
The Treasurer/ the Events Manager, in conjunction with the Chair, will ensure that the Trustees have sufficient financial information to enable them to make informed decisions by ensuring that:
The Trustees before the start of each financial year present a budget for discussion and approval.
Budget monitoring reports (showing actual income and expenditure against budget with full explanations for any material variations) are submitted and approved by the Trustees quarterly meetings.
books of account
ECCT will maintain proper, up-to-date books of account in which:
The organisation’s bank accounts will be recorded
fixed assets
ECCT will ensure the proper control of fixed assets.
A register of fixed assets will be maintained. The register will be reviewed annually.
roles & duties
The Chair Role
At least quarterly, the Chair will meet with the Treasurer/ Hub Volunteer Manager and will
inspect the books of account and underlying records.
The Treasurer/ Hub Volunteer Manager Role
It is the Treasurer’s job to exercise effective control and he will take the lead responsibilities which will include:
Regular reviews of internal procedures, control systems and different insurance covers
Reporting on these reviews and putting any recommendations for change to the
Trustees.
3nsuring all related financial procedures are followed correctly
Financial Controls Guidelines
Bank
ECCT banks with Metro Bank, where the account is held in the name of the Trust. The following accounts are agreed and approved by the Trustees.
(I) A business current account for ECCT’s general purposes.
(ii) Any other (sub-accounts) project accounts, if agreed and approved by the Trustees
The current bank mandate requires approval of the trustees is unlimited and required a decision from the trustees to make any changes.
A decision of the Trustees is required to make any changes to the bank mandate.
Any Standing Orders must be made by the Treasurer /Hub Volunteer Manage.
Reconciling Bank Accounts
ECCT will require the bank to provide statements for each account and these will be
reconciled with the cashbooks at the end of every quarter.
Cash
All cash will be banked on receipt as soon as possible, or otherwise kept in the safe. Cash
received in the safe will be kept to the minimum for items such as catering or cleaning.
Cheque
All cheques received will be banked on receipt as soon as possible
Receipts
All receipts will be recorded on sheets with documentation attached.
Fixed Assets
A register of fixed assets will be maintained showing the date of purchase, serial number
and cost. New assets will be added to the register as soon as possible after purchase. The
register will be reviewed annually.
ECCT will adopt a depreciation strategy for fixed assets with a value greater than £1000
and will write off a smaller purchases at the end of their life
Payments
Invoices shall be approved for payment by the Chair or the treasurer, and be subject to the
same conditions as the bank mandate.
Cheque & Signatories
Cheques will only be drawn for payment that have been properly checked and authorised
subject to the conditions of the approved bank mandate . Full supporting documentation
shall be attached to all cheques.
One person can sign a check of less than £250
Two people shall sign cheques; are required for amount greater than £250
Petty cash & Procedures
The petty cash float will be set at the amount agreed from time to time by the Trustees,
currently £100.
Payment by petty cash will only be used where it is unrealistic or not possible to use
another payment method.
Cash from other sources will never be used to top up the petty cash float.
Borrowing from petty cash is forbidden.
The necessary expenses only will be met from petty cash
Before a petty cash payment is made, a numbered petty cash voucher shall be completed and authorised.
Independent supporting documentation shall accompany each voucher, wherever possible.
Where there is no supporting documentation, the person authorising the voucher shall make
reasonable enquires to ensure expenditure is legitimate.
Sales ledger
Invoices shall be raised as soon as possible after amounts become owing.
All invoices and cash shall be entered in the nominal ledger once a month.
Payroll (future)
There will be a clear trial to show the authority and reason for payment.
All staff appointments will be authorised by the Chair noting the start dates and salary
levels. All changes in hours and other payments such as overtime will be authorised by the
Chair. Annual pay awards will be authorised by the Trustees. The confidentiality of
employees’ financial circumstances will be respected at all times.
Expenses and allowances
ECCT will reimburse expenditure personally paid for by staff, providing reasonable
expenditure evidenced by original receipts
Reserves
ECCT will adopt a reserve policy, which will include an explanation of the applicability restricted, unrestricted and designated funds.
This policy is approved by the ECCT trustees
Earls Court Community Trust
Date of Policy:- August 2004
Reviewed:- 22nd May 2023