Hempsted Playgroup and Toddlers 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, Her Majesty s Revenue & Customs and common law. The trustees have proper financial control of the organisation. The organisation meets the contractual obligations and requirements of funders. 2) The books of accounts must include: A cashbook analysing all the transactions appearing on the bank accounts A petty cash book if cash payments are being made. 3) Accounts must be drawn up at the end of each financial year within 3 months of the financial year end and presented at the next Annual General Meeting. 4) A report comparing actual income and expenditure should be presented to the trustees every three months or whenever meetings take place. 5) The AGM will appoint an auditor/ independent examiner to audit or examine the accounts before presentation to the next AGM. Banking 1) The bank mandate (list of people who can sign cheques on the organisations behalf) will always be approved and minuted by the trustees as will any changes to it. 2) The charity will limit how much can be taken in one transaction from any individual in any given month. 3) The charity will require the bank to provide statements every month and these will be reconciled at least every three months and the treasurer will spot check that this reconciliation has been done at least twice a year. 4) The charity will not use any other bank or financial institution or use overdraft facilities or loan without of the agreement of the trustees. Income 1) All monies (fundraising etc) received will be recorded promptly in the cash book and banked without delay. The Charity will maintain files of documentation to back this up, stapled receipt, kept with cash book. 2) The aim is to ensure that all expenditure is on the charity's business and is properly authorised and that this can be demonstrated. 3) The Committee will be responsible for holding the cheque books (including unused and partly used cheque books) which should be kept under lock and key. 4) Blank cheques will NEVER be signed. 5) The relevant payee's name will always be inserted on the cheque before signature and the cheque stub will always be properly completed. 6) No cheques should be signed without original documentation (see below). 7) Post to be opened in the presence of two unrelated people. 8) Money held securely on the premises is covered by insurance. 9) Dual signing of BACS authorisation form by authorised signatories before any payment is made to suppliers or reimbursement of staff expenses. 10) Have a clear list of persons, who are cleared to have access to the PIN and password (Banking). 11) Payments made by cash are used from the cash float and not incoming cash. Card payments 1)Authorised staff/committee to use card and an appropriate limit set, clear communication for its use. 2)Cards to be cancelled when a named individual ceases to work for the charity. Payment documentation 1) Every payment out of the Charity's bank accounts will be evidenced by an original invoice (never against a supplier's statement or final demand). That original invoice will be retained by the Charity and filed. The cheque signatory should ensure that it is referenced with: Cheque number Date cheque drawn Amount of cheque 2) The only exceptions to cheques not being supported by an original invoice are Items such as advanced booking fees for a future course, deposit for a venue, VAT, etc. Here a cheque requisition form will be used and a photocopy of the cheque kept. 3) Wages and Salaries. There will be a clear trail to show the authority and reason for EVERY such payment; e.g. a cheque requisition form asking for payment to an employee, HMRC etc. All employees will be paid within the PAYE and National Insurance regulations. 4) 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 either by the trustees. 5) Petty cash will always be kept in a locked cash tin, two people will be present when cash is reimbursed. When that is more or less expended, a bacs payment will be drawn for sufficient funds to bring up the float to the agreed sum, the bacs payment being supported by a complete set of expenditure vouchers, totalling the required amount, analysed as required. 6) Expenses / allowances. The Small Charity will, if asked, reimburse expenditure paid for personally by staff, providing: Fares are evidenced by tickets. Other expenditure is evidenced by original receipts. Car mileage is based on local authority scales. No cheque signatory signs for the payment of expenses to themselves. 7) Committee to ensure that automatic payments are cancelled when the goods/services are no longer being provided to the charity. Cheque Signatures 1) Each cheque will be signed by at least two people. 2) 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 1) The Charity does not accept liability for any financial commitment unless properly authorised. Any orders placed or undertakings given which are likely to cost the Charity in excess of (put your amount of money here) must be authorised and minuted by the trustees. 2) In exceptional circumstances such undertakings can be made with the Chairperson's approval who will then provide full details to the next meeting of the trustees. (This covers such items as the new service contracts, office equipment, purchase and hire). 3) 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. 4) 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 use.