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CALC Financial Regulations

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Adopted by Worcestershire CALC Executive 11th May 2011

Reference: [1] Worcestershire CALC Constitution, Revised August 2008

  1. Financial Regulations adopted by Worcestershire CALC Executive Committee provide for the effective management, control and oversight of the Association finances in support of Association objectives as determined by the Executive Committee in accordance with [1].

    Key Roles in Relation to Financial Management 

  2. Executive Committee (EC)
  3. Treasurer
  4. Executive Officer
  5. Association Financial Signatories

    Planning

  6. Association Financial Year (AFY) operates from 1st April to 31st March of the subsequent year.
  7. Association Budget shall be the principal tool for financial planning. The budget shall identify anticipated income and set maximum expenditure against defined headings. The current year budget shall be agreed by the EC before the start of the AFY. It shall be reviewed & revised annually according to the following timetable:
    Budget Year Q1: Apr-Jun Q2: Jul-Sep Q3: Oct-Dec Q4: Jan-Mar Q5: Apr-Jun
    Previous Information Information Information Information Information
    Current Agreed Agreed Agreed Agreed Agreed
    Next Draft Draft Draft Agreed Draft
    Next+1   Draft  
    Role EO Input to Draft
    Treasurer Prepare Draft Propose Draft & recommend subscription level Amend iaw EC Direction Propose Budget to EC
    EC Consider Subscription policy Review Draft

    Set Subscription Level

    Present to AGM

    Notify Subscription 

    Agree Budget

    Financial Operation

  8. Executive Officer may incur expenditure strictly necessary for the proper conduct of the affairs of the Association in accordance with [1] and the strategic direction set by the Executive Committee and Association policies & procedures and strictly within the limit set by the agreed budget headings for the current financial year and within the cleared funds belonging to the Association.
  9. Executive Officer may delegate EO functions (excluding AFS) to Association staff. All such delegations in relation to the financial regulations shall be clearly defined, bound in scope and auditable and the EO remains responsible in every case.
  10. Budget heading limits shall not be changed without the prior minuted approval of the Executive Committee.
  11. Executive Officer is responsible for realising the income identified within the Agreed Budget.
  12. Executive Officer shall seek value for money for all expenditure. Competitive quotations shall be obtained at any time when in the judgement of the EO or Treasurer doing so would yield better value for the Association and should be considered for transactions that exceed £1000. In any case a minimum of 3 competitive quotations in writing shall be obtained for all transactions that exceed £2,500 except only by prior minuted approval of the EC.
  13. In extraordinary situations the Executive Officer may incur strictly necessary expenditure not in accordance with the normal provisions of these Financial Regulations subject only to this clause and prior (auditable) approval of a minimum of 4 EC Members to include at least 1 of : Chairman, Vice-Chairman or Treasurer.

    Financial Controls

  14. Association financial controls are based on 2 fundamental principles:
    1. Each item of expenditure shall be accountable to a minimum of 2 AFS.
    2. Specifically these principles are applied as follows:
      1. All payments vouchers shall be approved for payment by the Executive Officer.
      2. There are no petty cash arrangements. If cash is received then a written receipt will be provided a copy of which will be retained and the cash shall be paid into the Association bank at the earliest opportunity

    Financial Oversight

  15. AFS shall check all Debit Card payments shown on Association bank statements are associated with approved and validated payment vouchers not less than monthly. This check shall be auditable (e.g. a note and initial on the relevant bank statement).
  16. Treasurer shall reconcile Association accounting records with Association bank statements on no less than a quarterly basis and provide an auditable record of such reconciliation.
  17. Treasurer is responsible for oversight of the Financial Controls such that the Treasurer may make a statement to accompany each quarterly report to the EC that "in the Treasurer's opinion the Financial Controls are operating effectively".
  18. Treasurer shall prepare and present to the EC each quarter a statement showing as a minimum against each budget heading (i) actual income/expenditure to date for the current financial year and (ii) forecast income/expenditure to end of current financial year. The statement shall be accompanied by notes to explain anomalies including any agreed deviations from budget (in actual or forecast).

    Internal Audit

  19. Executive Committee shall from time to time, and not less than annually, appoint a competent person who is not an AFS (and who agrees to conditions of confidentiality regarding the Associations business) to undertake by appointment with the Executive Officer an ad hoc internal audit inspection to verify that these financial regulations are properly applied. This person shall be granted access to all information required to conduct an effective audit and will report findings and recommendations independently to the Executive. Any remuneration provided for this service shall be agreed and minuted by the EC in advance.

    External Audit

  20. AGM appoints an external auditor in accordance with [1]. The arrangements are out of scope of these Financial Regulations.
    • Approved payment vouchers shall be validated by an AFS (excluding the EO) (e.g. by initialling the certification block stamped on the payment voucher).
    • Cheques, transfers or online payments against approved & validated payment vouchers shall be authorised by not less than two AFS at least one of whom shall have approved or validated the payment voucher.
    • Executive Officer may make payments using a Debit Card on the Association’s current account. Payment vouchers associated with such payments shall be approved by the EO & validated by an AFS.
    • Identity of AFS who has authorised, validated or approved shall be auditable (e.g. signature, initial, email).
    • All receipts, payments and transfers shall be recorded electronically in a commercial software package and a paper record of every transaction shall be filed in an orderly manner to assist with audit checks.
    • Auditable records shall be kept of all financial transactions.

(AFS). A minimum of 3 and maximum of 6 persons drawn from a group comprising EC Members (defined in the Schedule to [1]) and the EO, and appointed by a minuted EC decision. AFS may be recognised by providers of financial services to the Association (e.g. bank) to authorise financial transactions (e.g. sign cheques or authorise online payment) on behalf of the Association. AFS shall authorise transactions only in accordance with these Financial Regulations. (EO) is accountable to the EC in accordance with [1, 7(g)]. (EO is not an EC Member.) is accountable to the EC for the financial oversight of the Association business [1, Schedule]. is accountable to Members for oversight of the operation and administration of the Association [1, 7()]

 

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Internal Audit

The council must have an adequate and effective system of internal audit of the council's accounting


records and control systems, as well as carrying out a review of its effectiveness.


This should be undertaken on a regular basis.