Financial Governance

Internal Systems and Controls

Internal Financial Controls for Charities (CC8) – Charity Commission
‘Information and Training for the Voluntary Sector’

http://www.charity-commission.gov.uk/publications/ccpubsff.asp

This document, which can be viewed online or downloaded, gives comprehensive and detailed guidance on internal financial controls and is to be found on the Funding and Finance Publications List page of the Charity Commission website

‘The Commission cannot give financial advice, but the publications listed here will help trustees to understand the extent of their powers and duties when raising, investing and managing charity funds.’

Contents

Also a downloadable self checklist, very readable at only 4 pages

Managing your Money –
Northern Ireland Council for Voluntary Action

http://www.nicva.org/index.cfm/section/Publications/key/954BFD46-B0D0-7815-0FB1AF686C856FFB

Very comprehensive and detailed yet readable guide, which is free to download.

‘A guide for new and existing voluntary groups seeking to implement best money management practice.’

Chapters:

  1. The Application Process and Offer of Acceptance Procedures – Includes: Accessing funds, planning and budgeting, and offer of acceptance.
  2. General Accounting Procedures - Includes: Basic requirements of book keeping and general rules for maintaining books.
  3. Budgeting - Includes: Principles of budgeting, preparing a budget and planning expenditure.
  4. Managing Finance Throughout the Year - Includes: Good financial systems, information requirements of funding bodies and planning cash flows.
  5. VAT and Taxation Effective Giving - Includes: Value added tax, completing a VAT return and tax effective giving.
  6. Auditing - What is it and why? - Includes: What is an audit? Why have an audit, and Auditors - what to look for?
  7. Banking - What to Look for - Includes: Reviewing banking arrangements.
  8. Investments - Includes: How to choose a fund manager, measuring investment performance, ethical investments.
  9. The Role of Trustees - Includes: Who are the trustees, and the role of trustees.
  10. Statement of Recommended Practice 2: 'Accounting by Charities' SORP2 - Includes: Introduction to SORP2 and the annual report.
  11. Insurance - Includes: Types of insurance, and how to obtain insurance.

Guide to Financial Management for NGOs –
Management Accounting for Non-governmental Organisations (MANGO)

http://www.mango.org.uk/guide/introduction.aspx

Plain English online guide with links to further MANGO resources including a complete financial system for small to medium organisations based on Excel spreadsheets which can be freely downloaded.

Guide to Financial Management –
from the Finance Hub’s Introductory Pack on Funding and Finance

http://www.financehub.org.uk/introductory_guides.aspa

Gives a thorough overview of financial management within the wider context of an organisation’s strategic planning with links to other Finance Hub documents and resources

‘Managing the money you have is just as important as getting it. And if you can’t demonstrate that you understand the basics of financial management and planning – budgets, accounts, tax, and reporting – you’re unlikely to be taken seriously by funders. Many people find dealing with the money the most worrying part of running a voluntary organisation or community group. This site should help you develop systems that are right for you.’

Contents

CASH-ONLINE is published by Community Accountancy Self Help (CASH)

‘…a London based community accountancy project that provides financial advice and training to small charities and voluntary groups.’

http://www.cash-online.org.uk/content/1/37/

This site aims to provide people with the basic financial skills needed to run successful charities and voluntary organisations. Although their training and casework is London based, the site contains much useful information in the form of factsheets, a model financial controls policy and an email update service you can sign up to.

CASHFACTS Factsheets

http://www.cash-online.org.uk/c/1/#contentlist

These factsheets are designed to be used both as an introduction for new management committee members and as practical work books for staff and volunteers.

Financial Controls – Model Policy

http://www.cash-online.org.uk/content/1/37/

Simple, easy to understand Model Policy for small organisations

“Financial controls help maintain a systematic approach. Developing a service – and piloting new projects – is a creative process. With all creative endeavours a basic truism is that the best work is done in the stablest of situations. Adopting systems – and keeping to them – enables workers to have more energy to concentrate on the charities goals, while the bureaucracy becomes routine and can be carried out with the minimum of effort. The alternative – not having systems – leads to chaos and exhausts even the most energetic worker or trustee – resulting in a poorer service to clients.”

CASH eNEWS – Email update

http://www.cash-online.org.uk/enews.php

“CASH eNEWS is an occasional email newsletter sent out to inform people of major updates on CASH-ONLINE. There are also timely reminders of key finance dates throughout the year.”

‘Managing Money’ Information Sheets –
Wales Council for Voluntary Action

http://www.trusteewales.org.uk/guidance/governance-gateway/managing-money

Short, readable information sheets on a number of key subjects.

‘This section is concerned with information and guidance on all those matters that trustees need to consider when managing money. These may include:’

Information Sheets
8.1 Setting up a financial system
8.2 Setting a budget
8.3 Full cost recovery
8.4 Monitoring expenditure and budget
8.5 Financial controls
8.6 Annual accounts and audit
8.7 VAT
8.8 Payroll
8.9 Reserves
8.10 Pensions
8.11 Avoiding fraud

Financial Procedures, Sample Document –
VolResource - information for voluntary and community organisations

http://www.volresource.org.uk/samples/fin_proc.htm

Single web page containing a fairly comprehensive set of sample financial procedures in quite formal language.

‘Please note that our sample documents are intended as examples which can act as starting points and prompters. They should not be taken as definitive, complete or even sufficient for your purposes - you should at the very least consider how your circumstances (requirements, organisational structure etc) differ. But they are better than a blank sheet!’

CONTENTS

  1. Purpose of document
  2. Ordering supplies and services
  3. Payment authorisation
  4. Cheque writing and signing
  5. Handling of cash
  6. Salaries, payroll and freelancers
  7. Income
  8. Bank accounts
  9. Books of account and records
  10. Budget setting
  11. Financial monitoring and audit
  12. to 14. Roles

Charity Finance Directors’ Group?

http://www.cfdg.org.uk/cfdg/cfdg.asp

Some free information although most is available by subscription and more appropriate to larger charities with a turnover greater than £1 million.

‘Promoting Best Practice in Charity Finance’ – “The Charity Finance Directors' Group is a membership organisation set up in 1987 and specialises in helping charities to manage their accounting, taxation, audit and other finance related functions.”

Publications – Some free to download

http://www.cfdg.org.uk/cfdg/publications.aspp