1.1 Financial Controls
BUDS UK will implement appropriate financial controls ensuring that more than one person is involved in receiving income and authorising expenditure. These controls will cover all payment methods including cheque, cash, credit card, charge card, debit card, prepaid card, telephone or internet banking, and other electronic means. Cash handling carries increased risks, so BUDS UK will avoid cash payments wherever possible.
1.2 Fund-raising Controls
When others raise funds on behalf of the charity, whether volunteers or paid professionals, BUDS UK will ensure proper controls over the funds raised. Trustees will always act in the charity's best interests, which means enabling the charity to carry out its purposes for public benefit.
3.0 The Treasurer
The treasurer typically leads on:
- Ensuring the charity keeps proper accounts.
- Reviewing financial performance.
- Developing policies for finance and investment.
- Ensuring robust and effective financial controls.
- Liaising with finance staff and the charity's independent examiner, accountant, or auditor.
- Reporting on financial matters to members, the AGM, BOT, and the Charity Commission.
- Complying with additional accounting and reporting requirements.
- Reporting any serious incidents to the Commission as soon as possible.
4.1 Financial and Legal Responsibility
- All trustees uphold financial and duty responsibilities and are accountable for successes and failures.
- The treasurer must maintain written or electronic records and present a report at each BOT meeting and the AGM.
- BUDS UK shall not transfer funds to any member's account but deposit directly into the bank account of a responsible organisation or an identified agreed member outside of BUDS UK.
- All transactions must be official, with receipts obtained and filed.
- Any member of BUDS UK has the right to request details about a project and its funding.
6.0 Financial Risks
- Termination of funding from other bodies.
- Failure to raise funds from the general public.
- Unforeseen rise in service demand.
- Inaccurate or insufficient financial information.
- Inadequate reserves and cash flow.
- Dependency on limited income sources.
- Closure of a regional branch or its bank account.
- Conflict within a branch committee.
- Failure of a region to hand over money in their account.
9.0 Checking Beneficiaries
- Require project application and progress report forms from all applicants.
- Ensure the project lead takes financial accountability for the project.
- Promptly receive and submit receipts for funding expenses to the treasurer.
- Properly account for money received and spent on a project.
- Check the background of beneficiaries using local contacts or similar charities.
- Obtain bank account details and, if necessary, a confirmation letter from the bank manager.
- Request annual income and expense records if necessary.
- Visit project sites in Sri Lanka for on-site checks and verification.