1. Purpose
To ensure that BUDS UK maintains strong internal financial controls to safeguard its assets, ensure the integrity and accuracy of financial information, and comply with all relevant legal and regulatory requirements.
2. Scope
This policy applies to all trustees, volunteers, and contractors involved in the financial operations of BUDS UK.
5. Preparing Accounts and Reports
- Accurate accounting records of all transactions are maintained (legal requirement).
- Annual accounts comply with relevant legal requirements (legal requirement).
- An annual report and accounts are prepared and approved by the trustees and at the AGM.
- An auditor or independent examiner is appointed if the charity's gross annual income exceeds £25,000.
- New trustees receive the latest accounts, relevant guidance, and the charity's governing document.
- Annual reports and accounts are filed with the Charity Commission on time.
9. Splitting Financial Duties
Financial duties are divided among individuals to provide a 'double-check' on transactions.
12. Banking Controls
12.1 Bank Accounts
- A list of all bank and building society accounts is maintained and reviewed regularly.
- Regular reconciliations between accounting records and bank statements are performed.
- Accounts are monitored to prevent unauthorised third-party use.
- The bank mandate requires at least two signatories.
12.2 Online Banking
- Online banking transactions require authorisation by two individuals.
- Security details (including passwords and PINs) are kept confidential and changed regularly.
- An audit trail of electronic banking transactions is maintained.
15. Expenditure Controls — Quorum and Voting
- A quorum is present when at least six BOT members are present at a meeting.
- For fund allocation to beneficiaries, at least eight BOT members must be present, or approval taken from eight members of BOT.
- Decisions on expenditures are made by a majority vote of the BOT present and voting. In the case of a tie, the Chairman has a casting vote.
16. Payment Methods
16.1 Bank Transfers, BACS, and Standing Orders
- Only named individuals are authorised to set up these types of payments.
- A dual authorisation system is used for bank transfers and BACS payments.
- Automatic payment arrangements are monitored to ensure they are cancelled when required.
16.2 Cheque Payments
- Cheques are signed according to the charity's governing document.
- Blank cheques are not signed.
- Chequebooks are kept secure with access restricted to nominated persons.
16.3 Cash Payments
- Cash payments are minimal and made from a cash float, not incoming cash where possible.
- Supporting documentation for cash payments is authorised by someone other than the person maintaining the cash book.
- All cash payments are entered in a cash book.
14. Income Controls
- Eligible tax repayments such as Gift Aid are annually checked and claimed.
- Collection boxes are sealed and recorded, with dual counting and prompt banking of funds.
- Online and card reader donations are securely handled and reconciled with bank accounts.
19. Policy Review
This policy will be reviewed annually by the Treasurer and approved by the Board of Trustees. Revisions may be made as necessary to reflect changes in operations or regulatory requirements.