As a small charity reliant on raising our own funds, we have essential checks and procedures. This means we:
- Keep good quality accounting records, to be able to prepare timely and relevant financial info.
- Ensure our financial reporting complies with legal requirements.
- Protect our charity’s money.
- Make informed decisions about our financial position.
- Avoid fraud and financial mismanagement
We use Accounts and Returns accountancy services as below to support us in this and the Xero accountancy package. But all trustees remain responsible for their charity’s financial management
Accounts and Returns. 26 Smith Street,Warwick,Warwickshire, CV34 4HS
www.accountsandreturns.co.uk
Financial Records and Accounts
Financial records are kept by the accountants so that:
- Woolly Hugs meets its legal and other statutory obligations
- The trustees have proper financial control of the organisation.
Woolly Hugs’ accounts:
- We use the Xero package analysing all the transactions appearing on the bank accounts. All trustees have access to clear, accurate and up-to-date financial information, ie the latest accounts.
- Trustees must question things we don’t understand and highlight any concerns
- Accounts will be drawn up at the end of each financial year. These form part of the trustees’ annual report and enable us to monitor our charity’s financial performance.
Banking and Online Banking
- Woolly Hugs banks with the Co-operative Bank and accounts are held in the name WOOLLY HUGS. We use one current account.
- Woolly Hugs requires the bank to provide statements every month and these will be reconciled with the cash book at least every three months and the book keeper from Accounts and Returns will spot check that this reconciliation has been done at least twice a year, signing the cash book accordingly.
- Woolly Hugs does not use overdraft facilities or loans.
- The opening or closing of accounts will be authorised by the whole trustee body
- Woolly Hugs accounts will not be used for any individuals’, or third parties’, private use.
- Woolly Hugs keeps all devices with access to online banking facilities secure
- Woolly Hugs keeps all devices up to date with anti-virus, spyware and security system software
- Woolly Hugs keeps all passwords and PINs secure
- We will change passwords periodically.
- We will not respond to emails or telephone calls asking for personal security details.
- We will ensure Woolly Hugs complies with the UK General Data Protection Regulation (GDPR) and any other relevant data protection laws.
Banking cash and cheques
- We will record and bank cash and cheques promptly
- We will store cash and cheques you have not yet banked in a safe or locked cash box
- At events we ask for card payments/ BACs instead of cash as these are more secure. We use SumUp and keep card readers and passwords securely.
Income and donations received by post will be.
- held securely
- opened promptly
- accurately recorded
Gift Aid
At present we have not set up Gift Aid but this is in process.
Payments (expenditure)
- Woolly Hugs only buys things it needs and within budget
- Woolly Hugs only pays for goods or services it receives and at agreed prices
- Woolly Hugs gets good value for money
- Woolly Hugs does not have cheque books.
- Expense payments ie refunds of payments which a trustee, member of staff or volunteer has had to meet personally to carry out their duties for your charity. (See expenses policy) Woolly Hugs will, if asked, reimburse expenditure paid for personally by staff. These will be paid via BACS transfer
- Payment documentation Every payment out of Woolly Hugs bank account will be evidenced by an original invoice or receipt. These must be forwarded to the book keeper.
Other rules
Woolly Hugs does not accept liability for any financial commitment unless properly authorised. Any orders placed or undertakings given which are likely to cost the Charity in excess of £500 must be authorised by the trustees.
All fundraising and grant applications undertaken on behalf of the organisation will be done in the name of Woolly Hugs with the prior approval of the trustees or in urgent situations the approval of the Chairperson who will provide full details to the next trustee’s meeting.
Woolly Hugs will adhere to good practice in relation to its finances at all times