Financial Responsibility

The responsibility for the control of Herts Aid funds is that of the Management Committee even when these duties are devolved to staff or agents.

If funds are lost through misappropriation or misapplication because Trustees neglected their duty of care they could be held personally liable to repay those funds.

Internal Controls

Banking

• Incoming receipts to be banked regularly and as soon as possible. All money to be banked gross.

• Cash and cheques waiting to be banked to be kept in a locked safe.

• Keys to be separate from the safe and access to the safe to be limited to Director, Operations Manager, Administrator and Treasurer only.

• The Bank Accounts to be in the name of “Herts Aid” and requiring two out of four signatures.

• Bank books to be kept in a safe place.

Cheques

• Require two out of four signatures; no two signatories to be related.

• Cheques made payable to a nominated signatory cannot be signed by that person.

• Blank cheques not to be signed by both signatories.

• Cheque stubs to be filled in and cheque payments to be cross-referenced.

• Cheque payments to be made against original invoices or other documentation.

Purchases

• Orders to be recorded on an order form or.

• Invoices checked against orders.

• Orders over £3000 require authorisation of a member of the Executive Committee.

• Other liability to be incurred by the Executive and Director only.

Cash Payments

• Where possible, payments to be made by cheque.

• Cash payments to be made from the Petty Cash tin, which is replenished from the Bank, not incoming payments.

• Replenishment of the cash float to be backed by signed supporting documentation. Ideally this paperwork to be by someone other than the claimant.

• Petty Cash vouchers to be filled in for all cash claims. Receipts for claims to be attached.

Fund Raising Events

• The Management Committee to ensure that the statutory regulations governing public collections are adhered to.

• Records to be kept and made available after the event showing gross receipts and costs incurred.

• For ticket events tickets to be pre-numbered; sales and tickets issued are to be recorded and reconciled.

• Similar records for sponsored events should be maintained.

Refer to booklet CC22 “Charities and Fundraising” if necessary.

Wages and Salaries

• Salaries are currently dealt with by an outside agency.

• Staff records to be kept.

• Salary records to be kept.

• Where payments are made in cash a signed receipt must be obtained.

• Staff to have Contracts of Employment

• Expenses to be paid against a claim form and with receipts attached.

Funds for Specific Projects

Funds reserved for specific projects to be administered separately to ensure they are used in accordance with these restrictions.

Assets

• A list of fixed assets to be drawn up and updated regularly.

• Appropriate insurance taken out.

• Assets to be reviewed regularly to ensure they serve the interests of Herts Aid.

Investments & Building Society Deposits

• Full records of investments to be kept.

• A record (other than passbooks) of all Bank and Building Society deposits to be held in a safe place.

• Instructions to open or close deposit accounts to be authorised by a formal resolution Management Committee.

Revised December 2009