AFSCS Financial Control Policy
1 . Introduction
The Management Committee (Trustees) of African French Speaking Community Support (AFSCS) understands that they are responsible for the financial management of this organisation. It agrees that funds shall only be used to its further objects and shall operate a system of open reporting to funders and its membership.
1.1 Financial records shall be kept so that this organisation can:
- (a) Meet its legal and other obligations e.g. Charities Act 1992, Inland Revenue etc.
- (b) Enable the trustees to be in proper financial control.
- (c) Enable the organisation to meet the contractual obligations and requirements of funders.
1.2 The organisation shall keep proper records of accounts which shall include: Analysis of all the transactions in the bank account.
- A record of cash payments being made.
- Receipts of all expenditures undertaken.
1.3 The financial year shall end on the 31st March each year.
1.4 Accounts shall be drawn up after each financial Year within three months of the end of the year and presented at the next Annual General Meeting (AGM).
1.5 Prior to the start of each financial year, the Management Committee (trustees) shall approve a budgeted income and expenditure account for the following year.
1.6. A report comparing actual income and expenditure with the budget shall be presented to the trustees every three months.
1.7 The AGM shall appoint an Independent Examiner to examine the accounts for the presentation to the next AGM.
2.1 The African French Speaking Community Support (AFSCS)shall bank with Nationwide Building Society at 180 Soho Road, Handsworth, Birmingham, West Midlands, B21 9LP (branch).
2.2 The bank mandate (this is the list of people who can sign cheques on behalf of the organisations) shall always be approved and minuted by the Management Committee (Trustees) as shall be all the changes to it.
2.3 The AFSCS shall require the bank to provide statements every month and these shall be reconciled with the analysis records at least every three months.
2.4 The AFSCS shall not use any other bank or financial institution or use overdraft facilities or loan without a recorded agreement of the Management Committee (trustees).
- 3.1 All monies received shall be recorded quickly in the analysis records and banked as soon as possible.
- 4.1 John Givashi Mwanga (Treasurer) is the person responsible for holding the cheque book which should be kept in a secure place.
- 4.2 Blank cheques will never be signed.
- 4.3 The relevant payee’s name will always be inserted on the cheque before signature and cheque stub Shall always be properly completed.
5. Payment documentation
5.1 Every payment out of the bank account shall be evidenced by an original invoice. This invoice shall be retained and filed. It should be referenced with:
- Cheque number
- Date cheque drawn
- Amount of cheque
- Who signed cheque
5.2 The only exceptions to cheques not being supported by an original invoice should be items such as advanced booking fees for a future training course, deposit for a venue. Cheques shall be photocopied before the original is sent.
5.3 All employees shall be paid within the PAYE and National Insurance regulations.
5.4 Where amounts of cash are required to make payments a Petty Cash book shall be maintained. Cash shall be kept in a locked tin or safe. Payments shall be evidenced by receipts and a numbered voucher system. All cheques written for cash must be recorded.
5.5. “Out of pocket” expenses shall be reimbursed providing: Fares are evidenced by tickets. Other expenditure is evidenced by original receipts. Car mileage is based on recognised Voluntary Sector rates. E.g Volunteering England.
6. Cheque signatures and cash cards
- 6.1 Each cheque shall be signed by two people who shall be unrelated and not
co habitingin the same household.
- 6.2 The cheque must not be signed by the person to whom it is payable.
- 6.3 Hole in the wall type cash cards shall not be used and if issued by the bank they shall be immediately cut in half.
7. Other undertakings
- 7.1 The AFSCS shall not accept liability for any financial commitment unless properly authorised and minuted by the Management Committee (trustees) .
- 7.2 All fundraising and grant applications undertaken on behalf of the organisation shall be done in the name of the charity with prior approval of the Management Committee (trustees).
8. Other rules
- 8.1 A register (inventory) of equipment shall be Made, recording cost of item, date of purchase, serial numbers and stating normal location.
9. Fraud, theft, misappropriation of funds
- 9.1 In the case of fraud or suspected misappropriation, consideration shall be given to calling the accountants to establish the extent of the loss before passing the matter to the police.
- 9.2 If the person concerned is an employee, they should be suspended on full pay until the matter is resolved.
- 9.3 In all instances of deliberate misappropriation of funds
,fraudor theft where there is sufficient evidence for a criminalor civil action, that action should be taken.