Date: January 2018
Review date: January 2019
By: Chair – Maisa Gaspari
Approved by: President – Jeronimo Cruz
Please note: This document is based upon best practices available from the Charity Commission website: Internal Financial Controls for Charities (CC8)
This document sets out the procedures for the day-to-day management of the RDA’s UK finances. The policy ensures that:
- There are consistent and transparent procedures in place to ensure that assets are
safeguarded and to prevent misappropriation and misallocation of monies.
- The organisation’s assets are used to the best advantage.
- The controls are appropriate for the level and type of activity, to ensure efficient and professional management.
- Bank Accounts
- Bank accounts in the name of the organisation are opened or closed only with the full approval of the Board/Management Committee.
- There shall always be proper approval for movements between, and payments from, bank accounts.
- Two authorised signatories, who shall be unrelated to one another, are required to approve any direct debit or standing order.
- All documentation shall be retained and payments shall be monitored to ensure that the arrangement is cancelled when the organisation stops using the goods or services being supplied.
- The authorised cheque signatories are listed on the following page. Each signatory has the responsibility to make certain that cheques are made out to the correct payee and for the correct amount.
- A minimum of two signatories is required on all cheques.
- No signatory may sign a cheque payable to themselves or to a spouse/partner or relative.
- Where two signatories are authorising a payment, those individuals shall not be related to one another.
- No blank cheques may be signed.
- All cheques are hand written and as far as practicable, drawn up by a person other than a signatory.
- Debit / Credit Cards
- A clear policy shall be set regarding the use of payment cards, the criteria for their issue, spending limits and their securities.
- All expenditure shall be clearly supported by a receipt or invoice.
- Copies of all statements shall be sent directly to the organisation’s Treasurer or Finance Team and not to the individual card holder. The statements shall be used to analyse transactions, matching these with supporting receipts and invoices.
- Card use will be periodically to ensure consistency of use with set policies.
- Payment cards shall be cancelled and destroyed if the individual card holder ceases to be involved in the organisation or if the authorisation of the card’s use is withdrawn.
- Electronic (Internet) banking
The fundamental internal financial control which is recommended as best practice by the Charity Commission is that organisations banking online use a system which requires authorisation of each transaction by more than one individual.
- As with all other areas, there should be a clear separation of duties, to prevent any single person being able to control resources.
- Authorised individuals shall keep all passwords and pin numbers secret and never share their security details with one another.
- After each transaction, a print out shall be produced & stored as a record.
- Payment of Expenses
- A clear policy shall be set for the payment of expenses, which should clarify whether the organisation pays expenses for travel and other out-of-pocket expenses, and if so on what terms.
- Any mileage rate paid will not be above HMRC rates (thus not resulting in a tax or national insurance liability for the organisation or the claimant).
- There shall be a clear requirement to complete expenses claims and to provide receipts.
- Expense claims shall contain a self-declaration that the claim is accurate and incurred in connection with the business of the organisation.
- Expenses claims shall be authorised by someone other than the claimant
- Reimbursement should be made by cheque or bank transfer as far as possible, to minimise cash payments.
Payments in cash should be kept to a minimum due to the greater risk that handling cash presents and difficulties that can arise in establishing correctness & control over cash transactions.
Where payments are made in cash, the following procedures will be followed:
- Cash payments shall be for small amounts only
- Cash shall be paid from a petty cash float specifically kept for such payments, and not from incoming cash or by way of direct withdrawal from the bank account
- Supporting documentation for the cash payment shall be provided and should be authorised by someone other than the person who maintains the petty cash or the person making the payment.
- Checks on Expenditure
All expenditure of the organisation’s funds must be properly accounted for and in accordance with the objectives of the organisation.
All payments should be promptly recorded, including details of the nature of the payment, supported by relevant receipts or invoices.
Regular checks must be made to ensure records are being accurately maintained and that there are no discrepancies.
LIST OF APPROVED CHEQUE SIGNATORIES
RDA UK – Registered Charity 1154739
|Please note: A minimum of two signatories is required on all cheques|
Name …Jeronimo de Jesus Cruz…………………………………………….
Name …Manuela Manfredini
Name …Luciana Cordery
Role … Volunteer (unrelated to the Business)
Name … Noemia Gomes Teque
Role… Volunteer (unrelated to the Business)
Name… Tais Bornancin
Role… Volunteer (unrelated to the Business)