The Board of Directors recognises the general “Duty of Care” undertaken by each individual Director. Up to date guidance is available on the web sites of the Charity Commission and Companies House.

The Treasurer

To ensure efficiency in the day-to-day management of finances, it is good practice for the Board of Directors to appoint a treasurer. It is crucially important for protection of the treasurer’s good name and to enable the Directors to carry out their “duty of care” that the treasurer keeps the Directors informed through financial reports to every meeting of the Board, keeps the full membership informed by presenting audited accounts at the AGM, and provides the Charity Commission and Companies House with annual financial information.

The following guidelines are intended to help both the Treasurer and the Board of Directors manage the financial affairs of Congresbury Community Transport (CCT).

Accounting Requirements

  • All transactions must be recorded.
  • The accounts must be capable of external scrutiny at any time.
  • The accounts must be presented, for approval, to the membership at the AGM.
  • All existing Directors must be provided with the annual accounts.
  • Newly appointed Directors must be provided with the latest annual accounts.

Financial Structure

  • The CCT “Business Plan” should give an outline of financial structure.
  • When financial powers are delegated to the treasurer, other individuals and groups, all particulars must be clearly minuted.
  • Wherever practicable, full segregation of tasks will be the norm.
  • The Board of Directors must take professional advice when appropriate.
  • All Directors should receive training and be aware of their duties.

Budgets

  • An annual forecast, covering both projected income and expenditure should be prepared.
  • Performance compared to the annual forecast should be measured at regular intervals.

Income Management

  • The value, source and date of all income must be recorded.
  • All cash collections must be counted in the presence of the collector or their representative.
  • Accounting and recording should have dual control.
  • All income should be paid promptly and regularly into the CCT bank account.
  • All money belonging to CCT must be held in accounts separate from individuals.
  • The details contained in CCT “Fund-Raising Policy” are observed.
  • Each fund-raising event should have its own Income and Expenditure record.
  • When an event involves the sale of tickets, tickets should be numbered, records kept of who has which tickets, and reconciliation made of money received against tickets sold.
  • When individual donors use “Gift Aid” care should be taken to ensure all eligible tax repayments are obtained.

Expenditure Management

  • All expenditure must be properly authorised by the Board.
  • All payments must be supported by invoices or similar documentation.
  • As a general rule, all payments should be made by cheque or electronic payment.
  • All payments should be recorded along with the cheque number where relevant.
  • The bank mandate signatories should be up to date and available.
  • A nominated signatory may not sign a cheque made payable to themselves.

Investments

  • The account numbers of all bank accounts, investment accounts etc. should be kept by both the Treasurer and Chairperson.
  • Care must be taken over choice of investment to ensure that there no risk of loss of capital.
  • The yield from investments should be monitored to ensure good performance.

Petty Cash Account

  • The cash float should be drawn from the bank, not from money income.
  • All cash payment should be recordedand countersigned by the receiver.
  • The Petty Cash Account must be included in the annual audit of accounts.

Payments to Directors and Volunteer Helpers

  • Payments to volunteer helpers can be made provided all aspects of employment laws are fulfilled.
  • All payments must be recorded for taxation purposes on the numbered payment forms provided for this purpose.

Payment of Expenses

  • Expenses are not payments for services. Expenses are any costs that have been incurred in order to carry out agreed duties. Directors and volunteers may claim reimbursement of all such costs. Claims for larger sums (over £10 per item) should where practicable be supported by bills or receipts. All claims for expenses must be made on the expenses claim forms provided for this purpose.