Financial Policies and Procedures
(Appendix to Aberhafesp Community Association’s Constitution)
General
1. The Trustees of the Aberhafesp Community Association (ACA) charity (Charity registration number: 1043185) will manage the leased or owned assets and responsibilities of the charity in accordance with the charity’s latest Constitution and terms of lease.
2. Financial records will be kept to ensure that the village hall meets its legal and other obligations under Charity Law, Revenue and Customs and common law.
3. All funds shall be spent solely on the aims of the ACA as guided by the terms of the ACA Constitution.
4. All funds will be held in account in the name of Aberhafesp Community Association at such bank and on such terms as the Trustees shall decide.
Reporting and budgeting
5. Accounts for each financial year will be drawn up and presented to the Annual General Meeting held on a date specified in the charity’s Constitution.
6. The accounts will be independently examined by an auditor or examiner of accounts appointed by the AGM. Once accounts are approved, they will be used to update the ACA's Charity Commission entry.
7. The Trustees will suggest an income and expenditure budget for each financial year at the first committee meeting of the new financial year (ie immediately following the relevant AGM). This is intended to be used to show progress through the year of the ACA's financial position.
8. The Trustees will approve a Reserves Policy and determine the extent and nature of reserves designated as Restricted Funds. As a guidance, reserves should be sufficient to cover a minimum of an average year’s expenses.
9. The Treasurer shall present a financial report to each quarterly meeting of the Trustees - the format and content of the report to be decided by the Trustees – and to other meetings as required.
Cash levels
10. Cash in hand should normally be limited to no more than £250 between events.
Expenses, expenditure, withdrawals and transfers (cash, cheque, online payments)
11. All expenditure shall be properly authorised and documented; all income shall be paid into the bank.
12. To manage spending, the Aberhafesp Community Association Committee should authorise expenditure for specific events up to a maximum figure. A member of the Aberhafesp Community Association Committee or any Aberhafesp Community Association Sub-Committee should be deemed responsible for keeping this under review. Should the figure prove insufficient then a case should be made to the whole Committee for an increase to the budget.
13. All cheques and transfer documents, including electronic transfers, shall require the signatures/authorisation of two of three Trustees authorised by minute of a Committee Meeting as per the ACA Constitution. No co-signatory shall authorise any payment due to themselves.
14. As with petty cash the Treasurer is authorised to issue payments without further authorisation up to a maximum sum of £100.
15. Payments beyond £100 to require an authorising signature (may be electronic) by any other Aberhafesp Community Association Committee Member OR a minuted authorisation by the Committee.
16. Expenses can be paid by cheque or cash or by bank transfer if possible to speed up the transaction time and improve transparency.
17. Expenses should only be paid against official receipts. Should a receipt be unavailable then a simple declaration of expenses incurred should be signed by the recipient. This may be electronic.
18. The Treasurer is authorised to refund expenses without further authorisation up to a sum of £100. Expenses beyond that amount require an authorising signature by any other Aberhafesp Community Association Officer OR a minuted authorisation by the Committee.
19. Where the Treasurer themselves requires reimbursement for expenses this should always be co-signed by any other Aberhafesp Community Association Committee member or be a minuted authorisation by the Committee.
Insurance
20. The Trustees will insure the Trust Property (whether leased or owned) with a reputable insurance company on an “All Risks” basis for its full rebuild value. The sums insured shall be reviewed at each policy renewal.