Nuneaton and Bedworth Healthy Living Network

Financial Management Policy and Procedure

1.Policy Aims

The aims of this policy are to ensure that HLN can;

-meet legal and other obligations relating to finance

-deliver services in accordance with the HLN business plan

-meet contractual obligations and funder requirements

-enable the Chief Officer and board to manage the HLN finances

2.Background

2.1 HLN’s financial year will end on the 31st March each year

2.2 Before the start of each financial year, the HLN board will approve a budget which will set out estimated expenditure and income for the next financial year.

2.3 The Chief Officer will ensure that the budget is monitored on a monthly basis and will arrange for a monthly report to be circulated by email and will present a summary financial report to each meeting of the HLN board. Any immediate financial concerns will be raised directly with the HLN chair.

2.4 Accounts will be drawn up within 3 months of the end of the financial year, and will be presented to the HLN annual general meeting. The accounts will be independently prepared.

3.Financial Management Procedures

3.1 HLN will keep proper books of account which will include an analysis of all transactions within the bank account and a petty cash book, and will ensure that all relevant returns to Government Departments, which are prepared externally, are completed.

3.2 HLN will bank with the Natwest at its Nuneaton branch, where the account will be in the name of HLN. HLN will also bank with the Co-operative Bank and United Trust Bank. The list of people who can sign cheques and bank authorisations will be approved by the HLN board.

3.3 The office & finance manager will carry out a bank reconciliation each month, and this will be reported to the HLN board monthly by email and at their regular meetings.

Reviewed by L Pettifor 26th June 2019

3.4 HLN will not use any other bank or financial institution for borrowing or investment purposes unless it is specifically approved by the HLN board.

3.5 All money received will be recorded in the cash book and will be banked promptly. Supporting documentation (e.g. letters from funders) will be retained for future reference.

3.6 The office & finance Manager will be responsible for keeping the cheque book containing unused cheques under lock and key. Blank cheques will not be signed before they are needed.

3.7 Where possible, the same person should not be responsible for ordering, processing and checking invoices as well as raising cheques, signing cheques and authorising payment. Cheques should be fully completed before signature and should not be signed without the original documentation. Cheques should be signed by at least 2 people, and must not be signed by the person to whom it is payable.

3.8 Every payment will be supported by an original invoice, receipt, claim form or cheque requisition. Original invoices will be filed and kept for 7 years. The person who signs the cheque should ensure that all appropriate information is included on the invoice or cheque requisition.

3.9 Salaries and wage payments will be supported by documentation showing what the payment is for and who has authorised it. All employees will be paid within the PAYE/National Insurance rules. All staff appointments/departures/redundancies will be authorised by the HLN board. Variations in hours, including the payment of overtime, are delegated to the Chief Officer.

3.10 Petty cash will be maintained on an imprest basis. The HLN office & finance manager will maintain a petty cash float of £50, and will be reimbursed by cheque which must be supported by vouchers or receipts totalling the amount spent. Expenditure will be analysed in a petty cash book. Expenses and allowances will be reimbursed on the basis of actual cost, supported by suitable evidence such as receipts and tickets, and car mileage will be based on local authority scale rates.

3.11 HLN will not accept liability for any financial commitment unless properly authorised. Any individual orders or undertakings in excess of £5,000 (excluding salaries) must be authorised by the HLN board, unless the board has delegated authority to the Chief Officer. Money will be spent in accordance with the requirements of external funders. All fund raising and grant applications will be in the name of HLN. Details of grant applications once they have been made will be reported to the HLN board.

3.12 The Chief Officer is authorised to approve expenditure on individual items of up to £1,000 and in consultation with the HLN chair up to £5,000.The HLN board is responsible for approving items in excess of £10,000.Any project overspend must be specifically approved by the HLN board, following approval by the relevant external funding body.

3.14.The HLN board will maintain a prudent level of reserves when reviewing HLN’s finances, and take note of guidance issued by the Charity Commission.

Reviewed by L Pettifor 26th June 2019

4.Confidentiality

4.1 Board members, employees and volunteers will at all times act in the best interests of HLN and if they experience a conflict of interest will not divulge sensitive information. The confidentiality of employees financial information will be respected at all times.

5.Other Matters

5.1 This policy and procedure can be provided in large print and can be translated on request.

5.2 This policy and procedure will be kept under continual review and will be updated at periodic intervals of not less than 2 years.

Reviewed and approved by the HLN Board on 9th September 2019

Reviewed by L Pettifor 26th June 2019