| Introduction | The trustees of RBKares share overall responsibility for financial control and safeguarding the funds of RBKares and ensuring that the organisation operates in accordance with the financial powers stated in its Constitution This document sets out how this responsibility will be exercised and where functions have been delegated to particular trustees or staff of RBKares |
| The role of the Treasurer | The treasurer takes the lead at board level on: • making sure RBKares keeps proper accounts • reviewing financial performance • ensuring policies for finance and if relevant investment are regularly reviewed • ensuring that RBKares has robust and effective financial controls in place • liaising with the Chief Officer about financial matters and with the auditor (or independent examiner) • reporting on financial matters at the AGM The treasurer will carry out periodic internal checks, for example prior to audit, and a checklist to assist with this will be provided |
| Financial records | Financial records will be kept so that: RBKares can meet its legal and other obligations, e.g., HM Revenue and Customs, Charities Acts, Companies Acts, Common Law.The RBKares trustees can have control of the organisations finances.The organisation can meet contractual obligations and the requirements of funding bodies. The organisation will keep proper books of account using the accounts package. These will include: A cash book analysing all transactionsSales, purchase and nominal ledgersPetty cash records (when/if required)Payroll records (when/if required) |
| 4. Budget | The financial year for RBKares will end on 31st March. Before the start of each financial year, the RBKares trustees will approve a budgeted income and expenditure account for the following year. A paper comparing actual income, and expenditure with the budget will be presented to the RBKares trustees every 3 months |
| 5. Accounts and Audit | Accounts will be drawn up after each financial year within 4 months of the end of the year and presented to the next Annual General Meeting. The accounts will be submitted by the Company Secretary to the Charity Commission and to Companies House. The trustees will appoint an appropriately qualified auditor or an independent examiner to audit the accounts for presentation to the next AGM. The trustees will review the appointment of the auditor/independent examiner at least every 3 years Gifts in Kind and Expenditure in Kind should be included in annual accounts to in order to reflect their monetary value. |
| 6 Best value | When procuring goods and services it is RBKares’s aim to achieve best value. For goods and services valued at over £1,000 at least 3 quotes will be obtained. For service contracts such as ICT, telephone and cleaning organisations will be invited to submit a proposal and these will be considered in relation to specific criteria including price, service requirements and quality. Whenever possible feedback will be obtained from organisations that are currently using the relevant service provider. Service contracts will be reviewed at least every 3 years. |
| 7 Bank | RBKares does not current hold a bank account RBKares will bank with (Still to be confirmed- as agreed by trustees) where the accounts will be held in the name of RBKares. The current account will be held with (see above). All bank accounts held by RBKares must be agreed and approved by the RBKares trustees. The bank mandate (list of people who can sign cheques on the organisation’s behalf) will always be approved and minuted by the RBKares trustees as will all changes to it. RBKares will require the bank to provide current account statements every month. These will be reconciled with the cash book every month by the book keeper and the Chief Officer or Management Accountant will sign the monthly reconciliation. RBKareswill not use any other bank or financial institution or use overdraft facilities or invest speculatively unless authorised, approved and minuted by the RBKares trustees. |
| 8.Fundraising, funding bids, tenders, and partnership arrangements | All fund raising, grant applications and tendering undertaken on behalf of RBKares will be done in the name of the organisation and will generally be based on recovery of the full cost of the proposed work. If the organisation is to subsidise the cost of any work from reserves or earned income then this must be approved by the trustees. The Chief Officer must approve bids and tenders to a value up to £15,000 The trustees who are officers (i.e. chair and treasurer) of RBKares must approve bids and tenders to a value of up to £60,000. Bids and tenders to a value of over £60,000 require the prior approval of the trustee board. Details of all funding bids and tenders will be provided to the trustee board. RBKares may be the partner in a bid submitted by another organisation only if this is consistent with the objectives of RBKares as set out in our Constitution The partnership arrangements must have the prior approval of the Chair or, in the absence of the Chief Officer the Chair (the Teasurer). All partnership arrangements will be reported to the trustee board. When RBKares will receive funding from partnership arrangements and take on financial commitments a written agreement must be in place covering the financial arrangements. In these circumstances the funding that RBKares receives should generally be based on recovery of the full cost of the proposed work. If the organisation is to subsidise the cost of work from reserves or earned income then this must be approved by the trustee board The Chef Officer must approve partnership arrangements to a value up to £15,000 . The trustees who are officers (i.e. chair and treasurer) of RBKares must approve arrangements to a value of up to £60,000. Partnership arrangements to a value of over £60,000 require the prior approval of the trustee board. When RBKares submits a funding bid or tender as the accountable body and there are partners to the bid or tender the arrangements must be agreed by the Chief Officer and trustees in accordance with the financial limits set out above. This includes the composition of the partnership. Where funds are to be dispersed or remitted to partners the partners must have in place arrangements for accounting for these funds that have been agreed with RBKares and that are consistent with our audit and reporting requirements. An agreement must be in place before funds are allocated to partners. |
| 9. Receipts (income) | RBKares will ensure that all the income to which it is entitled is received and that this is evidenced. A schedule of grant and contract income with the method of payment will be maintained and reviewed every 3 months All monies received will be recorded promptly in the cash analysis book and banked without delay (note this includes sundry receipts such as payments for telephone calls, photocopying, small donations from individuals etc.) The organisation will maintain files of documentation i.e. letters from funding bodies to back this up. A schedule of charges for services and facilities will be maintained by (as required). A copy will be provided to the treasurer. This schedule will be reviewed at least annually and increases agreed and reported to the treasurer. |
| 10. Payments (expenditure) | The preferred method of payment is by bank transfer. Cheques will also be used when bank transfer payment is not possible. Cheque books (unused and partly used cheque books) must be kept in the safe under lock and key. Only authorised staff and the book keeper will have access to the safe. Blank cheques will NEVER be signed. Whenever possible, the same person should not be responsible for ordering, processing and checking invoices as well as raising payment requisitions, signing cheques and authorising payments. Authorisation of payments which are greater than £2,000.00 must be different to those requesting purchase of items and at least 2 of those authorising must be an officer of RBKares. Payments greater than the value of £10,000 will require the approval of 3 officers of RBKares. The relevant payee’s name will always be inscribed on cheques before signature. The cheque stub will always be filled in. No payments will be authorised or cheques signed without original documentation. Money will only be spent to meet conditions and requirements of the funding bodies and in pursuance of the objectives in the Constitution/ Memorandum and Articles of Association. |
| 11. Payment Procedures and Documentation | Every payment from the organisation’s bank accounts will be supported by an original invoice (never against a suppliers statement or final demand). The original invoice will be filed and kept for seven years. The person who signs the cheque or authorises the online bank payment should ensure that the RBKares request for payment form is fully completed. This includes the following. PAYMENT METHOD DATE OF INVOICE /REQEST AMOUNT OF PAYMENT WHO AUTHORISED THE PAYMENT The only exceptions to payments not being supported by an original invoice would be for such items as advanced booking fees for a future course, VAT, etc. Here a payment requisition form (see model form on our web site) will be used. Alternative supporting documentation such as the booking application form must be provided. Contracts with suppliers can only be set up if authorised by the Chief Officer in consultation with the treasurer. Petty cash will always be maintained on the imprest system. The Chief Officer will have overall responsibility for this float as agreed by the trustees. When that is more or less expended, a cheque will be drawn for sufficient bringing up the float to the agreed sum (currently no petty cash account held), the cheque being supported by a complete set of expenditure vouchers and when possible receipts, totalling the amount spent. The expenditure will be analysed in the petty cash book within (currently no petty cash account held) Expenses/Allowances – RBKares will reimburse expenditure paid for personally by staff that is claimed using the agreed claim form, providing: Fares are evidenced by proof of purchasesOther expenditure is evidenced by original receipts.Car mileage is based on HMRC allowances.The expenditure has been authorised by a line managerThe claim is submitted within 3 months of expenditure being incurred Process for authorisation: Payments shall be authorised on a weekly basis. Full authorisation shall normally be completed on, and no later than, the Friday following notification by the bookkeeper of payments pending The first signatory should normally be the chief Officer. In their unavoidable, continued absence (state designation of alternative authoriser) may act as first signatory in their place Where only one officer is required to authorise, that will normally be the Treasurer. No signatory should authorise payments to him or herself. It is the responsibility of the other signatory to ensure this does not happen. Weekly procedure: Bookkeeper draws cheques and uploads internet payments. Bookkeeper notifies both signatories of payments pending according to authorisation limits. Bookkeeper makes available appropriate evidence for first signatory (Internet payments only) Bookkeeper forwards summary evidence to second signatory where appropriate First signatory authorises/signs cheque no later than the two days following notification of payments pending. First signatory notifies second signatory of payments pending and ensures availability of primary evidence if required. Second signatory authorises payments no later than, and usually on, the day following notification of payments pending by the first signatory. The bookkeeper may, according to their judgement, specifically notify signatories of exceptionally large or urgent payments. |
| 12. Salaries | Currently there are no employees of RBKares There will be a clear trail to show the authority and reason for payment. The (state name of payroll company used – as relevant) will handle payroll administration. They will provide records of transactions to RBKares. All employees will be paid within the PAYE, National Insurance rules. Salaries will be processed using BACS systems. The Chief Officer or Treasurer will sign off the monthly submission to the payroll company. All staff appointments will be authorised by the Chief Officer in consultation with officers of RBKares. All appointments will be reported to the trustees. All contracts with freelance suppliers will be on the basis of RBKares’s standard consultancy agreement or an alternative that covers the main requirements in the standard consultancy agreement and is subject to the agreement of the Officer. Freelance contracts will be subject to the authorisation limits outlined in section 9 above. |
| 13. Credit card payments | Currently no Credit cards are held with RBKares The preferred and principal method of payment is either by cheque or internet banking from the current account. The credit card should only be used in specific circumstances, namely: a. When a customer account is unavailable to RBKares b. When a purchase by credit card represents significantly better value than a cash purchase c. When card payment is required by a supplier, through the internet d. When exceptional circumstances prevent any other method of payment The card shall never be used for withdrawing cash. Hole in the wall type cash cards will not be used and if issued by the bank will be immediately cut in half. Cards shall only be used for payment by the named cardholder(s). The named card holder(s) will be (to be agreed) The credit card limit will be (to be agreed). Payments shall only be made on receipt of a ‘payment authorisation’ form correctly completed according to the authorisation limits as detailed in the procedures (below). It is the responsibility of the Cardholder to ensure that the credit card is held in a secure place at all times. Every reasonable effort shall be made by the cardholder to maintain the security of the card details: Card details shall not be shared by the cardholder with any other person other than a payee in the process of making a payment. Both sides of the credit card should not be photocopied or recorded and stored together in any other way. Procedure: a. A correctly completed payment authorisation and purchase order form is received by the Card Holder (CH) b. CH verifies funds are available within budget c. CH pays by credit card and acquires receipt d. CH signs payment requisition form to indicate payment and attaches receipt e. CH files requisition f. Monthly statement arrives g. CH verifies all items on the statement, with reference to the supporting documentation, and confirms receipt of goods h. CH attaches a payment requisition form for each entry on the statement and passes to Bookkeeper within 5 working days of receipt of statement i. Bookkeeper enters to purchase ledger and files documentation Note: It is the cardholder’s responsibility to identify, investigate and inform the bookkeeper of irregularities such as non-receipt of goods or incorrect amounts. |
| 14. Insurance | The Treasurer will endeavour to gather 3 competitive quotes which will always be discussed, agreed, approved and minuted by the RBKares trustees as will all changes to it which may occur mid term. Insurance will be renewed annually The current Insurers are: Zurich Zurich House The Zurich Centre 3000 Parkway Whiteley Fareham Hampshire PO15 7JZ |
| 15. Other Undertakings | RBKares does not accept liability for any financial commitment unless properly authorised. Any orders placed or undertakings given, with financial consequences must be approved by the Chief Officer up to a value of £2,000. Those valued at over £2,000 require the approval of (the treasurer) of RBKares Those valued at over £10,000 require the approval of 2 (chair or treasurer). (This covers such items as new service contracts, office equipment, purchase and hire). |
| 16. Confidentiality | The confidentiality of employees financial circumstances will be respected at all times. Trustees, volunteers and employees will at all times act in the best interest of the organisation and if they experience a conflict of interest they will not divulge sensitive information about the organisation. |
| 17. Fixed assets and inventory of capital items | RBKares currently does not hold any fixed assets or capital items RBKares will set up and maintain a fixed assets register stating the date of purchase, cost, serial numbers and normal location of the asset(s). If it holds stocks of goods, e.g. books, etc., of significant value, it will maintain proper records. RBKares will maintain an inventory of all capital items. The fixed assets register and inventory will be produced by the book keeper and reviewed by the Chief Officer (insert other role as relevant) and on a day to day basis. |
| 18. Reserves and Investment Policies | RBKares currently does not have any reserves and Investment policies To be reviewed by the Trustees as required. |
| Approved by: | Kate Kenyon, Sara Grimshaw, Sam Lord |
| Approval date: | 19th October 2021 |
| Next formal review: | 19th January 2022 |
