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Finance & Financial Reserves Policy

Finance Policy
Guiding Principles

The aims of the Finance Policy are to enable Friends of Goadby Marwood Village Hall (FoGMVH) trustees and management committee to operate Goadby Marwood Village Hall on a sustainable revenue basis with a reserve fund set aside to manage possible crises or revenue voids.

Financial Management

The trustees will manage the assets of the charity in accordance with the Friends of Goadby Marwood Village Hall Constitution dated February 2024.

The trustees will properly insure the Village Hall with a reputable Insurance Company on an ‘All Risks’ basis for its full rebuild value; the sums insured shall be reviewed at each policy renewal.

Financial records will be kept to ensure that FoGMVH meets its legal and other obligations under Charity Law, Revenue and Customs and common law.

The financial year will end on 31st March and accounts for each financial year will be drawn up and approved by the trustees prior to being presented to the general meeting held in April.

The accounts will be independently examined by an auditor or examiner of accounts appointed by the trustees.

The finance committee will approve an income and expenditure budget prior to the start of each financial year and monitor financial performance at every general meeting.

The trustees shall approve a Reserves Policy and determine the extent and nature of reserves designated as Restricted Funds. Further allocations to the reserves/restrictions will be reviewed annually.

All funds will be held in accounts in the name of Friends of Goadby Marwood Village Hall at such banks and on such terms as the trustees shall decide. Electronic money transfers, bill payments and small cash payments into the accounts require one signature, (that of the treasurer) as agreed and authorised by the trustees and FoGMVH management committee. A deputy treasurer has been agreed and authorised to cover illness, accident or holiday.

The treasurer shall present a financial report to every meeting of the trustees and management committee; the format and content of the report to be decided by the trustees, based on advice from the accountant.

All expenditure shall be properly authorised and documented; all income shall be paid into the bank within a reasonable timescale.

The trustees will undertake a financial risk assessment of all FoGMVH activities and review it annually.  

 

Financial Procedures

1. Financial Records

 The following records shall be kept up to date by the treasurer:

  • A computer-based record analysing all the transactions in the FoGMVH bank account(s).

  • A computer-based record of any cash payments being made.

 

2. Payment Procedure

The treasurer or  deputy treasurer will be responsible for arranging and recording all and any payments made on behalf of FoGMVH.

3. Income Procedure

  • All income will be paid into the bank without deduction.

  • Where appropriate, cash will be counted by the person collecting it and given to the treasurer. The treasurer should be advised of the source and amount. The cash will be handed to the treasurer who will count and confirm the amount.

  • Where appropriate, a card reader or BACS transfer will be used for making payments to FoGMVH, reducing the amount of cash to be handled.               

  • Hiring agreement forms showing conditions of hire, date, purpose of hire, the rate per hour and total due must be signed by the hirer on booking. An invoice will be given to the hirer with copy to the treasurer who will collect the outstanding balance and account for the income.   

4. Payment Documentation

  • Every payment out of the bank accounts will be evidenced by an original invoice. Invoices are to be numbered and matched to finance book and bank statements.

  • No cheques will be issued on behalf of FoGMVH.

 

Reserves Policy

 

The trustees are responsible for the maintenance of the Village Hall and from time to time this will involve major work, refurbishment and the replacement of equipment. Fundraising is undertaken with the objective of building up a reserve to meet these costs as they arise, without the need for a loan.

Grants and donations may be received by the charity and such funds would be restricted to the purpose for which they were awarded and would not be classed as reserves. A sum equivalent to one year’s regular expenses (electricity, cleaners wages, water, insurance) should always be kept in the account to meet ongoing expenses. If the treasurer perceives that the funds in the account are likely to fall below this level the trustees and management committee must be informed immediately, unless prior approval has been given by the trustees and management committee.

This policy will be reviewed annually.

Issue: 1

Last reviewed: February 2024

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