Financial Controls Policy

1) Financial records must be kept so that: The organisation meets its legal and other statutory obligations, such as Charity Acts, His 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 will include: A cashbook analysing all the transactions appearing on the bank accounts A petty cash book when 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 to the next Annual General Meeting.

4) Prior to the start of each financial year, the trustees will approve a budgeted income and expenditure account for the following year.

5) A report comparing actual income and expenditure with the budget should be presented to the trustees every three months.

6) Love Dunston will appoint an appropriately qualified auditor/ independent examiner to audit or examine the accounts before presentation to the next AGM.

Banking

1)Love Dunston will bank with Unity Trust Bank plc and accounts will be held in the name of the Love Dunston. Unity Trust Bank is an online bank and transactions are carried out online

2) The bank mandate (list of people who can approve transactions on the organisations behalf) will always be approved and minuted by the trustees as will any changes to it.

3) Love Dunston will require the bank to provide statements every month and these will be reconciled with the accounts and cash books at least every three months and the treasurer will spot check that this reconciliation has been done at least twice a year, signing the cash book accordingly.

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 received will be recorded promptly and banked without delay (this includes sundry receipts such as payment for telephone calls, photocopying etc.). Love Dunston will maintain files of documentation to back this up.

Payments (expenditure)

1) Love Dunston will ensure that all expenditure is on the charity's business, is properly authorised and that this can be demonstrated. The latest approved budget provides those authorised with authority to spend up to the budgeted expenditure, not beyond it. Love Dunston Financial Controls Policy June 2024 Financial Records and Accounts

3) The Treasurer 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).

Payment documentation

1) Every payment out of the Love Dunston'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 Treasurer and filed.

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 for EVERY such payment.

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 or agreed by the trustees.

5) Petty cash will always be maintained on the system whereby the Administration Worker is entrusted with a float as agreed by the trustees. When that is more or less expended, a bank transfer will be drawn for sufficient funds to bring up the float to the agreed sum, the cheque being supported by a complete set of expenditure vouchers, totalling the required amount, analysed as required.

6) Expenses / allowances. Love Dunston 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.

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 Love Dunston 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) Love Dunston 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 Love Dunston will maintain a property record of items of significant value, with an appropriate record of their use.