top of page

Finance

Date: May 26

Review Date: May 28

 

1. Introduction


Clear procedures are needed to make sure that Involve Leeds has the tools and skills to
ensure effective financial management takes place.


The Trustees and the Project Manager are collectively responsible for ensuring that the
group's resources are properly managed and accounted for, with the trustees holding
ultimate responsibility.

 

Financial management involves:

  • Setting financial objectives

  • Planning and acquiring funds

  • Ensuring funds are being effectively managed

  • Management and financial accounting

  • Formulating strategy

  • Planning and controlling activities

  • Decision-taking

  • Optimising use of resources

  • Disclosure to other interested parties external to the organisation

  • Safeguarding assets.

​

1.1. Financial records will be kept so that Involve Leeds can:

  • Meet its legal and other statutory obligations such as Charity Acts, HMRC and Common Law

  • Enable the Steering group to be in proper financial control of Involve

  • Enable Involve to meet the contractual obligations and requirements of funders.

​

​1.2. The financial year will end on the 30th September each year.

​

2. Purpose

To safeguard, monitor and control income including grants, rental income, donations and contributions in the form of BACS, cheques and cash. To outline the structure of authorisation for dealing with cash. To ensure that all expenditure is properly authorised and provide a standardised procedure for dealing with expenditure items.

​

3. Banking

​

3.1.Involve Leeds is currently banking with HSBC via its online bank services. Accounts will be held and maintained in the name of Involve Leeds.

 

3.2. The bank mandate (list of people who can authorise payments and sign cheques on Involve’s behalf) will be approved and minuted by the trustees.

 

3.3. The underlying signatories will be approved and minuted by the trustees. All payments from the bank account must be authorised by 2 out of the 3 authorised signatories.

 

3.3. Involve Leeds will not use any other bank or financial institution or use overdraft facilities or take out a loan without the agreement of the trustees.

​

4. Receipts and invoices (income)

 

4.1. All monies received will be recorded in Quickbooks. Invoices will be issued when appropriate via Quickbooks and will include:

  • All the necessary details as required by HMRC.

  • Purchase Order numbers when required.

  • If the invoice is to a funding body it should state the funding period to which it relates

  • Involve’s payment instruction & terms of payment

​

4.2. Outstanding invoices:

 

4.2.1. The Project Manager will review the outstanding invoices every month.

4.2.2. Quickbooks automatically resent unpaid invoices after 14 days. This can be amended to 30 days in the case of institutions with a standard longer payment period.

4.2.3 Any invoice which remains unpaid for more that 56 days will be brought to the attention of the treasurer to determine what further action should be taken.

4.2.4 Unless there are extenuating circumstances, debtors with invoices more than 56 days overdue will not be allowed any further credit (eg: the provision of goods or services, or access to any of Involve’s facilities or resources) until the outstanding debt has been repaid in full. 4.2.5 .Bad debts will be formally written off annually by the Board as part of the preparation for the audited/examined accounts.

​

4.3 Cash donations and receipts

 

4.3.1 Cash receipts and will be counted and recorded.

4.3.2 Cash payments will be recorded, signed for and receipts will be retained where possible 4.3.2 A Cash float of no more than £100.00, when necessary, should be retained and should be stored safely.

4.3.3 Outstanding cash will be paid into the Involve Bank account as soon as is reasonably practicable

​

​

​5. Payments (expenditure)

​

5.1 Approval

​

5.1.1. All purchases or ordering using Involve funds over the amount of £500 must be agreed by the majority of the Trustees before the purchase is made.

 

5.2 Purchasing and payment

 

5.2.1. Payment can only be made by bank transfer, direct debit or standing order or via the Debit Card.

5.2.2. Bank Transfers can be set up by the Project Manager, Penny Lewis - Primary User, or by one of the named trustees as secondary users, Jackson Turner and Ben Hutchinson.

5.2.3 All transfers require a second authorisation by one of the above for completion. If a payment is being made to one of the authorisers, they cannot authorise it.

​

5.2.3 Procedure

  • If possible, please advise the contractor or service provider to send an invoice to finance@involveleeds.org.uk

  • If a purchase is being made online or in a retail setting, it will be necessary for the purchaser to be made by Involves debit card and receipts to be obtained. The receipt should be photographed and sent to finance@involveleeds.org.uk

  • If a purchase is to be made online or in a retail setting for an amount over ???? approval should be sought from one of the trustees with access to the bank account.

  • If a volunteer makes a purchase uses personal funds to make a purchase on behalf of the centre,, this should be discussed beforehand arrangements for reimbursement

​

5.2.4. The Project Manager and treasurer will be responsible for overseeing quickbooks and the bank account. No payments will be made without going through the procedure and documentation (as outlined above).

​

6. Payments Documentation

​

6.1. Every payment from Involve Leeds should be evidenced by an original invoice (never against a supplier’s statement for final demand). That original invoice will be retained by Involve Leeds via quickbooks.

​

6.2. The authoriser should ensure that the invoice includes a unique invoice number, Involve Leeds registered address & the supplier’s registered address.

 

6.3. Involve Leeds employs staff. Staff payments will be managed by payroll, administered vias Voluntary Action Leeds.

 

6.4 When work is contracted to freelancers, there will be a clear trail to show the piece of work being contracted and the invoice will be paid within the system as outlined above.

 

6.5. A petty cash system will be operated for volunteer expenses. Receipts and a petty cash sheet will be kept and signed for, which will be added to Quickbooks.

​

Expenses/Allowances

Involve Leeds will, if asked, reimburse expenditure paid for personally by volunteers and freelancers, providing: Fares are evidenced by tickets & other expenditure is evidenced by original receipts. If agreed in advance, Involve Leeds will pay car mileage at 45p per mile.

​

7. Accounting and Independent Examining Procedure

 

7.1 The Treasurer and Project Manager will endeavour to ensure that all financial records, supporting documentation and reconciliations are accurately maintained, up to date and easily retrievable for analysis and examination purposes;

 

7.2 The Project Manager, with support from WYCAS and the treasurer will prepare timely and accurate year-end accounts in the appropriate format with the required supporting working papers and relevant reconciliations.

 

7.3. Accounts will be drawn up after each financial year and presented to the next Annual General Meeting (AGM).

 

7.4 An independent examiner will be appointed to examine the accounts for presentation to the next AGM.

​

8. Other undertakings

 

8.1. Involve Leeds does not accept liability for any financial commitment unless properly authorised.

 

8.2. All fundraising and grant applications undertaken on behalf of the organisation will be done in the name of Involve Leeds with the prior approval of the trustees or in urgent situations, the approval of the Chairperson or treasurer who will provide full details to the next Steering group meeting.

​

Reserves policy

 

It is the policy of the trustees to hold between 3 and 9 months reserves.

​

PDF Download Version:

bottom of page