Financial Procedures
The Trust is a company limited by guarantee number 3182827 and a registered charity number 1055209, which means that all its income must be spent on the Aims and Objects stated in the Memorandum and Articles of Association.
The Trustees are the custodians of public and private funds and are accountable to the Charity Commission and Funding Authorities for the use of their funds. The Trustees hold corporate responsibility to ensure financial and legal responsibilities are properly fulfilled.
An Honorary Treasurer is elected annually whose role is to maintain an overview of the Trust’s affairs, ensuring its financial viability and ensuring that proper financial records and procedures are maintained.
Day to day management of the financial affairs of the Trust is delegated to the Chief Executive.
SECTION 1
Responsibilities and Accountabilities:
1.1 The Finance and Remuneration Committee is responsible for:
a) Overseeing and presenting budgets, accounts and financial statements for approval by the Hampton Trust Board.
b) Being assured that the financial resources of the charity meet its present and future needs.
c) Ensuring that appropriate accounting procedures and controls are in place.
d) Liaising with Treasurer, Chief Executive and Resources Manager about financial matters.
e) Advising on the financial implications of the charity’s strategic plans.
f) Ensuring that financial investments are consistent with the aims and objects of the charity and that investment activity is consistent with the charity’s policies and legal responsibilities.
g) Ensuring that the accounts are prepared and audited in the manner required by company and charity law. Advising the Hampton Trust Board on the appointment of auditors and ensuring any recommendations of the auditors are implemented.
h) Keeping the Hampton Trust Board informed about its financial duties and responsibilities.
1.2 The Chief Executive (delegated to Senior Managers where appropriate) is responsible for:
a) Preparation of a three year business plan.
b) Agreement of annual budgets with the Finance Committee and the Hampton Trust Board.
c) Submission of budgets to funding agencies and any relevant negotiation.
d) Ensuring reports on financial performance to funding agencies
are submitted according to agreed timetables
e) Ensuring invoices to funders are submitted within established procedures
f) Ensuring reports on overall financial performance are ready for Hampton Trust Board meetings
g) Ensuring that all responsible staff are aware of and comply with financial procedures
h) Supervision of accounts function
i) Reviewing of bank reconciliations monthly
j) Establishing cash limit held in office.
k) Authorising investment of surplus funds in agreement with Treasurer to maximise interest and maintain necessary liquid funds to meet daily requirements.
l) Establishing and ensuring the implementation and monitoring
of internal control procedures for the protection of the Trust’s
interests and staff security.
6 Establishing and maintaining relationships with banking and
Investment institutions.
All information connected with Finance, Personnel and Salaries is highly confidential and must be retained in a secure place at all times.
SECTION 2
Income:
2.1 The authorisation to raise an invoice is the responsibility of the Chief Executive and/or Senior Managers
2.2 Invoices must be raised on Trust headed paper in the correct format template bearing the next unique invoice number on SAGE (Appendix 1)
2.2 Invoices must be raised in accordance with agreements with funders, i.e. in sufficient time to meet payment dates agreed.
2.3 All invoices must be marked payable within 30 days or sooner. A white copy of the invoice must be stamped and coded before being put in the Finance tray for posting to SAGE.
2.4 Resources Manager is responsible for chasing payment of invoices not received by due date. Chief Executive must be informed of invoices that remain outstanding after 45 days.
2.5 Numbered Trust Receipts containing the Charity number must be issued by the Resources Manager for all donations fundraising and where requested income. (Appendix 2)
2.6 All remittance advices and records of income to be attached to invoice.
2.7 All remittances from funders must be checked against agreement
contracts.
SECTION 3
Expenditure:
3.1 All expenditure must remain within agreed budgets unless by prior agreement with the Finance and Remuneration Committee.
3.2 All expenditure (except routine monthly charges ie. Rent, phone bills) must be made through the proper Ordering Process (Appendix 3)
3.2 Cheque payments to suppliers must be made within their published terms.
3.3 All payments must be coded and authorised by signature of the relevant budget holder and delegate level (see Appendix 4).
3.4 Cheques must be signed by any 2 of the authorised signatories.
For sums up to £1,000 cheques may be signed by the Chief Executive and an authorised Senior Manager
For sums between £1,000 and £10,000 at least one cheque signatory
must be an authorised Trustee with the other cheque signatory being
either the Chief Executive or another authorised Trustee. In the event that two Trustees are related they would not be able to sign the same cheque.
For sums in excess of £10,000 both cheque signatories must be
authorised Trustees. In the event that two Trustees are related they would not be able to sign the same cheque.
3.5 BACS and automatic bank payment transactions must be authorised by either Chief Executive or a designated Senior Manager. Monthly salary payments must be cross referenced to the payroll information. The Honorary Treasurer will review these transactions on a quarterly basis. Passwords for BACS transactions will only be accessible by the Chief Executive and an authorised Senior Manager. These are kept securely locked in the petty cash tin. The key to the petty cash tin is kept in a secure location).
3.6 Completion and submission of travel and expenses claims must be completed monthly along with a copy of the staff’s whereabouts for that particular month. The Line Manager must authorise staff expenses and a Trustee must authorise the Chief Executive’s expenses. All expenses must be coded and checked by Line Manager before submission for payment. Payment for expenses is made by BACs by the 12th of the following month.
3.7 Cash expenditure is arranged via the petty cash Imprest system for which a float of £100.00 is held.
3.8 All cash payments must be against a signed docket with a supporting receipt.
3.9 The petty cash must be reconciled at least monthly by the Resources Manager and any discrepancies reported to the Chief Executive. When a balancing cheque is drawn, Chief Executive must check the cash balance.
3.10 Any purchase made by credit card must be attached to the statement when it comes in as part of the audit trail. Pin numbers for the two credit card holders must be kept confidential.
SECTION 4
Budgets:
4.1 The preparation of budgets is the responsibility of the Resources Manager in consultation with other Senior Managers and in accordance with guidelines set out by the Chief Executive.
4.2 Individual projects will be budgeted separately and will normally include a management charge of at least 12.5% to contribute to core costs, where possible Full Cost Recovery model will be applied.
4.3 Budgets must be drawn up in December/January each year for agreement by the Honorary Treasurer, Finance and Remuneration Committee and the Hampton Trust Board.
4.4 Once the overall budget has been agreed by the Hampton Trust Board, specified cost centres will be allocated to staff budget holders who are responsible for managing them.
4.5 Any overspend on budgets must be discussed with the Chief Executive immediately it is identified and corrective action taken.
4.6 Budget variance reports will be produced monthly and received by the Honorary Treasurer.
4.7 Budget performance will be reviewed in detail at each Finance and Remuneration Committee meeting and reported at each Hampton Trust Board meeting.
SECTION 5
Banking:
5.1 Banking of all income must be carried out within 2 working days of receipt. Cash to be banked within 5 working days. Paying-in book counterfoils must indicate names of all payees, and invoice number where relevant.
5.2 Signatures from any two authorised signatories are required to validate cheques as 6.2 / 6.3.
5.3 All cheque books must be securely filed when not in use, under the responsibility of the Chief Executive and designated Senior Manager.
5.4 Bank accounts must not go overdrawn without prior agreement by Chief Executive and the Honorary Treasurer. Transfer of funds between bank accounts must be authorised by the Treasurer or Chief Executive.
5.5 Bank statements on the main account are received and reconciled on a weekly basis. Other accounts are reconciled on a monthly or quarterly basis depending on activity of the account.
5.6 All discrepancies must be advised to the Chief Executive and investigated within two working days.
5.7 Monthly reconciliations must be reviewed by the Chief Executive.
SECTION 6
Personnel and Salaries:
6.1 The Trust’s payroll is facilitated by Trinity Business Services.
6.2 The Trust’s payroll is prepared and submitted to Trinity Business Services by the Resources Manager and is checked by the Chief Executive.
6.3 All new employees must provide a P45 and bank details for payroll
purposes on their initial day of employment as requested in their letter
of appointment.
6.4.1 The Resources Manager will obtain a Starter Information Form (Appendix 5) for all new employees and forward it immediately to JCAS along with the employees P45 in circumstances where a P45 is not available a P46 will need to be completed.
6.5 For Sessional and Casual staff working various hours Line Managers need to complete and authorise a Casual/Sessional Hours Payment Form (Appendix 6) and pass this to the Resources Manager for processing by the published payroll and expenses timescales.
6.7 Salaries are normally paid on 26th of each month if this is a working
day. Employees who commence work after the 20th of the month will be paid on the following month’s payroll. An interim salary payment can be made in the first month for employees who join after the 20th of the month by cheque.
6.8 Any inflationary uplift to staff salaries must be agreed by the Finance Remuneration Committee and the Hampton Trust Board. These are submitted through the payroll return to JCAS, duly authorised by the Chief Executive. Changes to the Chief Executive’s salary must be authorised in writing by the Honorary Treasurer once agreed by the Hampton Trust Board.
6.9 The Resources Manager is responsible for handling the administration of employees joining and leaving the Pension Schemes.
6.10 The Resources Manager is responsible for ensuring monthly returns to Hampshire County Council Pension Fund and payments to Inland Revenue are completed by the due date.
6.11 Resignations must be notified immediately to the Chief Executive. In the cases of both resignations and dismissals P45’s must be issued to leaving personnel by the end of the month of leaving. If the member of staff has already left, the P45 will be sent with a personal letter.
Sample Invoice Appendix 1
Address
INVOICE
Invoice No. HT/2200Date: XX.XX.XX
Details / Amount
5 days consultation/training delivered @ £200 per day / £1,000.00
Total Due: / £1,000.00
Payment required within 30 days please
Appendix 2Receipt
No : 168 / Date: xx.xx.xx
Received from : xxxxxx
Total amount: £xx.xx
Received with thanks. Charity No: 1055209
Receipt
No : 169 / Date: xx.xx.xx
Received from : xxxxxx
Total amount: £xx.xx
Received with thanks. Charity No: 1055209
Receipt
No : 170 / Date: xx.xx.xx
Received from : xxxxxx
Total amount: £xx.xx
Received with thanks. Charity No: 1055209
Financial Procedures V1 Page 1 Reviewed and Updated June 2009