Talk:Financial Policy & Procedures (proposed)

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Background[edit source]

Governance-related changes[edit source]

This proposed new Financial Policy & Procedures document reflects the 2013-14 internal management changes, with the setting up of two Board Committees (GovCom and ARC), the introduction of the QFMR system and also the Board’s Scheme of Delegation of day-to-day management to the CEO. Much of the updating is detail, but the big picture is as follows:

  • Financial scrutiny and internal reporting to the Board is via the Audit and Risk Committee (ARC) with the CEO’s Quarterly Financial Management Reports (QFMR) forming the basis of the ARC’s monitoring on the Board’s behalf.
  • Governance aspects identified by the ARC as involving policy changes will be referred to the Governance Committee (GovCom) for consideration and recommendation to the Board.
  • Budget holding/spending are subject to the overall management responsibility of the CEO.
  • New thresholds for spending-limits by reference to Budget, and for payment-authorisation by trustees/staff.

Payment of suppliers’ invoices and of expense-claims[edit source]

  • Payments of up to £300 per item or set of related items to be signed off by two staff, in effect the CEO or administrator with the member of staff holding the relevant budget.
  • Payments of more than £300 will continue to to need to be signed off by the CEO plus a trustee or else (where required) by two trustees.
  • The reason for the change at point 6 of the Banking section was there was a serious risk at Christmas that the CEO would not be paid as there was only one trustee signatory available. This is a serious issue as we should never be in a situation where staff are not paid – it is normal for the whole payroll to be signed off by one trustee and the CEO even though it includes the CEO’s own salary. The change relates purely to the CEO’s basic salary and does not include his expenses.

Authority for budget-holders to incur expenditure[edit source]

  • Authorising of expenditures up to £5,000 per item or set of related items from and within agreed budgets to come from the CEO as being within his Delegation Scheme.
  • Authorising of items of expenditure over £5,000 to come to the ARC via the CEO.
  • New items (or a set of related items) not included in the agreed budget but not exceeding £2,000 require CEO authorisation, while those of over £2,000 but within a budget variance of 1% must to go to the ARC for authorisation.
  • Variance in the annual budget of over 1% (i.e. circa £7,500) must come to the Board for approval of the unbudgeted expenditure proposed.

Expenses procedures[edit source]

The Expenses Procedures will in future be treated as a separate document: see Expense procedures (proposed) for text and proposed changes. --MichaelMaggs (talk) 14:51, 27 January 2014 (UTC)

Community comments[edit source]

Highlighting changes[edit source]

Please could all changes be marked up? There currently seem to be quite a few changes that aren't highlighted at all here - see [1]. Thanks. Mike Peel (talk) 17:39, 27 January 2014 (UTC)

Direct debit for payroll?[edit source]

Why not use the direct debit option for transferring money to the payroll company that WMUK uses? That would avoid risks of payroll payments not being made due to a lack of trustees being available. I've suggested this before, so I'm sure there's good reasons for not doing it, but equally they offer it so there must be a good reason why the option exists. Thanks. Mike Peel (talk) 17:42, 27 January 2014 (UTC)

We don't transfer any money to the payroll company any more. It's handled in-house - payments are made directly from our bank account to HMRC and staff. We started doing it in August, at the advice of the treasurer and our management accountant. Doing this reduces the risk of us losing the money if the payroll company enters financial difficulties and either not paying staff or HMRC. There are some other smaller reasons, but in effect doing it ourselves is best practice. Richard Symonds (WMUK) (talk) 11:27, 28 January 2014 (UTC)
Ah, that's a great improvement on the old process. :-) In that case my comment here is moot. Thanks. Mike Peel (talk) 21:08, 28 January 2014 (UTC)

Small payments[edit source]

I suggest that 16.1, "A new bank account will be established for payments of under £300.", is removed or modified, as once such a bank account has been established then there's no point having this in the policy! Maybe say "A separate bank account will be used for payments of under £300." instead? (Also, it's worth thinking about how this will interact with the alto cards, which also use the imprest system.) Thanks. Mike Peel (talk) 17:44, 27 January 2014 (UTC)

Good idea re the wording - and yes, the ARC need to have a think about how it interacts with ALTO. We discussed it in the meeting and considered that there would be no problem, but it is worth thinking about a little more. Richard Symonds (WMUK) (talk) 11:59, 28 January 2014 (UTC)

Rsponsibilities[edit source]

Can I propose we relabel responsibilities assignations, or remove them? There is no 'Administrator' and referring to my post as 'Fundraiser' is wooly because that's also the name of the annual campaign itself. This could be departmental or based on job titles if retained? Katherine Bavage (WMUK) (talk) 15:54, 25 February 2014 (UTC)