Financial Planning and Management

Last Updated: NOT CURRENTLY RATIFIED POLICY OF FARSET LABS

Next Review: NOT CURRENTLY RATIFIED POLICY OF FARSET LABS

Designated Finance Lead: Andrew Bolster treasurer@farsetlabs.org.uk

Financial Records and Accounts

1. Financial records must be kept so that:

   • The organisation meets its legal and other statutory obligations, such as Charity Acts, Her Majesty’s Revenue & Customs and common law.
   • The trustees have proper financial control of the organisation.
   • The organisation meets the contractual obligations and requirements of funders, donors, and the commuity writ large

2. The books of accounts must include:

   • A cashbook analysing all the transactions appearing on the bank accounts
   • A petty cash book if cash payments are being made (NB; Farset Labs does not currently operate a petty cash book but the trustees may at any point choose to temporarily use one).
   • Inland Revenue deduction cards P11 (if registered for PAYE)

3. Accounts must be drawn up at the end of each financial year within 3 months of the financial year end and presented to the next Annual General Meeting.

4. Prior to the start of each financial year, the trustees will approve a budgeted income and expenditure account for the following year.

5. A report comparing actual income and expenditure with the budget should be presented to the trustees every three months or whenever meetings take place.

6. The AGM will appoint an appropriately qualified auditor/ independent examiner to audit or examine the accounts before presentation to the next AGM.

Banking

1. The Charity will bank with Danske Bank plc at its Business Banking Branch and accounts will be held in the name of “Farset Labs”. The following accounts will be maintained:

   • Danske Charity Account

2. The bank mandate (list of people who can sign cheques on the organisations behalf) will always be approved and minuted by the trustees as will any changes to it.

3. The charity will require the bank to provide statements every month and these will be reconciled with the cash book at least every three months and the treasurer will spot check that this reconciliation has been done at least twice a year, signing the cash book accordingly.

4. The charity will not use any other bank or financial institution or use overdraft facilities or loan without of the agreement of the trustees.

Purchasing & Expenses

This document is intended to ensure clarity regarding the spending of Farset Labs money, through direct purchases or through expenses claims. It outlines the general procedures that must be adhered to, and the approvals that must be obtained prior to spending money.

Spending of Money by Trustees

Purchases and expenses must be approved before they are performed.

The table below outlines the number of directors required to approve any given transaction.

Exceptions to approval limits:

• Payment of expected bills (Rent, Gas, Electricity, etc.)
• Recurring and expected purchases (Tuck shop stock)
• Emergency purchases (Purchases where there is no choice, the requisite number of directors are unavailable, and the purchase cannot be delayed. e.g. Plumbers)

Spending Related to Externally Funded Programmes

In cases where funding and approval are sought and received from an external body and based on a reasonably itemised proposed budget, which is agreed by the majority of Directors, and does not include core company funds, approval to purchase is already implied when actioning said budget.

Spending of Money by Members

Members cannot spend charity money without prior approval by charity directors. When money is requested to be spent, there are two options:

• Submission of a purchase request via email to admin@farsetlabs.org.uk The item will be purchased by the directors if approved.
• Purchase of a pre-approved item using personal funds, followed by submission of an expenses claim on Xero.

The table below outlines the number of directors required to approve any given transaction.

Travel Expenses

Expenses for travel may be reclaimed if the travel is company related, and pre-approved before being undertaken. Approval must be obtained prior to travel otherwise expenses are incurred at the traveller’s risk. Member/NEM travel expenses require the approval of a single active director. Director travel expenses require the approval of a director other than the requester.

The repayment table for travel expenses is shown below.

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