Financial Management Policy

            Mere and District Link Scheme

Charity number 1062328

Financial Management Policy

Purpose This Financial Management Policy provides guidelines to ensure that the financial resources of Mere and District Link Scheme are managed responsibly and transparently.

1. Financial Responsibilities

  • Board of Trustees: The Board of Trustees holds ultimate responsibility for overseeing the financial health of the charity.
  • Treasurer: The Treasurer monitors financial activities, ensures compliance with relevant regulations, and reports financial performance to the Board.
  • Staff and Volunteers: Staff and volunteers must follow this policy when handling or authorizing financial transactions.

2. Financial Performance

  • Financial performance will be reviewed at regular intervals during the financial year with any significant variances investigated and addressed.

3. Income Management

  • Donations: All donations will be recorded accurately and acknowledged promptly.
  • Grants: Grants will be used in accordance with funder requirements. Reports on grant usage will be prepared and submitted as required.
  • Fundraising: All fundraising activities will comply with applicable laws and ethical standards.

4. Expense Management

  • Authorization: All expenditures must be authorized by the Treasurer and must be in line with normal expenditure patterns.
  • Receipts: Proper documentation, including invoices and receipts, must support all expenses.
  • Procurement: A competitive process will be used for significant purchases to ensure value for money.

5. Cash Handling

  • Cash Donations: Cash donations will be counted and recorded by the Treasurer before being paid into the Charity’s bank account.

6. Bank Accounts

  • Account Management: All bank accounts will be in the charity’s name, and access will be limited to authorized personnel.
  • Reconciliations: Bank statements will be reconciled monthly by the Treasurer.

7. Record Keeping

  • Documentation: Accurate and complete financial records will be maintained for at least seven years.
  • Software: Accounting software or spreadsheets will be used to ensure accurate financial tracking and reporting.

8. Financial Reporting

  • Internal Reports: Financial reports will be prepared and reviewed by the Board of Trustees at least 4 times a year.
  • Annual Report: A financial report, including an income and expenditure statement, will be prepared and made available to the Annual General Meeting

9. Internal Controls

  • Segregation of Duties: Although day to day financial operations rest with the Treasurer, overall financial responsibility is borne by the Board of Trustees.
  • Audits: An independent review may be conducted annually, as required by law or best practice.
  • Conflict of Interest: All financial decisions must be free from conflicts of interest, and potential conflicts must be disclosed.

10. Investment Policy

  • Purpose: Any investments will be managed to ensure the long-term financial sustainability of Mere and District Link Scheme while prioritizing the preservation of capital and alignment with the charity’s mission.
  • Approval: All investment decisions must be approved by the Board of Trustees, based on recommendations from the Treasurer.
  • Types of Investments: The charity may invest in low-risk instruments such as government bonds, fixed deposits, and socially responsible mutual funds. High-risk investments will generally be avoided.
  • Ethical Considerations: Investments must align with the values and mission of the charity. Investments in industries or practices that conflict with these values will be avoided.
  • Monitoring and Review: Investment performance will be reviewed quarterly by the Treasurer and reported to the Board. Adjustments will be made as necessary to meet financial objectives.

11. Internal Risk Management Policy

  • Purpose: The purpose of the Internal Risk Management Policy is to identify, assess, and mitigate risks that could impact the operations, reputation, or financial health of Mere and District Link Scheme.
  • Risk Assessment:
    • The charity will conduct an annual risk assessment to identify potential internal and external risks.
    • Risks will be categorized (e.g., financial, operational, reputational, compliance) and ranked based on their likelihood and impact.
  • Mitigation Strategies:
    • Develop and implement strategies to address identified risks, including internal controls, training, and contingency plans.
    • Regularly review and update these strategies to ensure their effectiveness.
  • Responsibility:
    • The Board of Trustees is responsible for overseeing risk management processes.
    • The Treasurer and nominated Trustees will implement risk mitigation measures and report progress to the Board.
  • Monitoring and Reporting:
    • Risks and mitigation efforts will be reviewed quarterly and included in financial or operational reports to the Board.
    • Any significant incidents or emerging risks must be reported immediately to the Board of Trustees.

12. Compliance

  • Mere and District Link Scheme will comply with all applicable laws, regulations, and accounting standards, including those governing charities.

Approval and Review This policy was approved by the Board of Trustees on   10th February 2025   It will be reviewed annually or as needed to ensure it remains relevant and effective.

Signed:
John Fitzgerald
Chair, Board of Trustees

10th February 2025