Financial Policy and Procedures

Introduction

This Financial Policy outlines the principles, responsibilities, and procedures for managing the finances of Eridge Village Hall. It ensures the hall's financial resources are used effectively, transparently, and in compliance with legal and regulatory requirements.

1. Governance and Oversight

1.1 Financial Responsibility

  • The management of finances is the responsibility of the Eridge Village Hall Management Committee (hereafter referred to as "the Committee").

  • The Treasurer will oversee day-to-day financial matters and report regularly to the Committee.

  • All Committee members share collective responsibility for ensuring the hall's financial health and compliance with this policy.

1.2 Regular Review

  • This policy will be reviewed annually by the Committee and updated as necessary.

  • Any changes to this policy must be approved by the Committee.

2. Financial Principles

2.1 Transparency and Accountability

  • All financial transactions will be recorded and made available for review.

  • The Committee will ensure accurate and timely reporting of the hall's financial position.

2.2 Value for Money

  • Resources will be used efficiently to achieve the hall's objectives.

  • Competitive quotes will be sought for all expenditures exceeding £500.

2.3 Legal Compliance

  • Financial activities will comply with applicable UK legislation, including the Charities Act and HMRC requirements.

  • The hall will ensure timely submission of all statutory reports, including annual accounts to the Charity Commission (if applicable).

3. Income Management

3.1 Sources of Income

  • Income is derived from:

    • Hire fees from hall users.

    • Grants and donations.

    • Fundraising events.

  • Any new income streams must be approved by the Committee.

3.2 Invoicing and Payments

  • All hire bookings will be confirmed in writing, with invoices issued promptly.

  • Payments must be made by bank transfer or cheque; cash payments are discouraged but will be receipted if accepted.

3.3 Banking Income

  • All income will be banked promptly and in full.

  • The Treasurer will reconcile bank deposits with invoices and receipts.

4. Expenditure Management

4.1 Authorisation of Expenditure

  • Expenditures under £200 may be authorised by the Treasurer.

  • Expenditures over £200 require prior Committee approval.

  • Emergency expenditures exceeding £200 may be approved by the Chair or Treasurer, with ratification at the next Committee meeting.

4.2 Payments

  • All payments will be made through the village hall's bank account.

  • Cheques must be signed by two authorised signatories.

  • Online payments must be authorised by two designated Committee members.

4.3 Supporting Documentation

  • All expenditures must be supported by invoices, receipts, or other appropriate documentation.

5. Financial Records and Reporting

5.1 Record Keeping

  • The Treasurer will maintain accurate records of all income and expenditure.

  • Financial records will be kept for at least seven years in compliance with HMRC guidelines.

5.2 Financial Reporting

  • The Treasurer will prepare a financial report for each Committee meeting.

  • An annual statement of accounts will be prepared and presented at the Annual General Meeting (AGM).

5.3 Audit or Independent Examination

  • The accounts will be independently examined or audited annually, as required by law or the Charity Commission.

6. Budgeting and Reserves

6.1 Annual Budget

  • The Committee will approve an annual budget, detailing projected income and expenditure.

  • The budget will guide financial decisions throughout the year.

6.2 Reserves Policy

  • The hall will maintain a reserves fund equivalent to at least three months' running costs.

  • The reserves policy will be reviewed annually.

7. Asset Management

7.1 Fixed Assets

  • A register of fixed assets, including the hall building, equipment, and furniture, will be maintained and updated annually.

  • Repairs, maintenance, or replacements exceeding £500 require Committee approval.

7.2 Insurance

  • Adequate insurance coverage will be maintained for the building, contents, and public liability.

8. Fraud and Financial Irregularities

8.1 Prevention

  • Dual signatories and clear authorisation processes will minimise the risk of fraud.

  • All Committee members are expected to act with integrity and adhere to this policy.

8.2 Reporting

  • Any suspected financial irregularities must be reported to the Chair immediately.

  • An investigation will be conducted, and findings will be reported to the Committee and appropriate authorities.

9. Conflicts of Interest

  • Committee members must declare any financial or personal interests that could conflict with their responsibilities.

  • Decisions involving a potential conflict of interest must be made by the remaining Committee members.

 

Adopted March 2025