Finance Policy

1. Overview

Tigh a'Chomainn Camphill’s policy is that financial management should, where possible, be delegated to the most effective working levels. While oversight of all finances remains with the Finance Task Force (FTF) and in particular the Finance Officer and SLT, the trustees remain responsible for ensuring the financial integrity of the organisation.

Tigh a'Chomainn Camphill ensures safe and sustainable management of its finances including clear lines of accountability.

2. What we do

Current Expenditure

Every cost centre as well as some managers in Tigh a'Chomainn Camphill are delegated to manage their own current expenditure. Tigh a'Chomainn Camphill performs payments through a variety of methods, including cash, debit cards, credit cards, electronic payments as well as cheques. Where possible, the use of cash is to be discouraged to allow for better transparency and traceability of current expenditure.

Larger expenditure items need to be approved and recorded appropriately. Any purchase of £1,000 or more needs to have approval from a senior manager and amounts of £5,000 or more need additional approval from the Finance Manager or board of Trustees.

Access to online banking is limited to the Finance Officer and senior managers. For any online payment, two members of this group will have to grant approval. Statements are also only accessible for members of this group.

Day-to-day expenditures under the limits set out above can be authorised by the relevant line manager (that is Ass. Team Manager level up). It is the responsibility of the manager to make sure the intended expenditure is for a reasonable good or service in line with the service delivery of that cost centre. Also, the manager is responsible for the correct recording of the expenditure, this includes the relevant monthly credit card statement. Any purchases made via invoices need to be signed off by the relevant manager prior to payment

Investments and Fixed Assets

Tigh a'Chomainn Camphill’s investments are accessible to the Finance Manager, chair of the board and one more senior manager. Any movements to and from our investment accounts as well as any transfers of fixed assets need approval by both the Finance Manager and the chair of the board.

Tigh a'Chomainn Camphill is required to appoint an Independent Financial Advisor (IFA) under the Trustee Act 2000. We should add that we also operate under the Charity and Trustee Investment (Scotland) Act 2005 but are working with the Trustee Act as “best practice” for sector. The appointed IFA is [we do not curretly hold any invstements] who also may act as our solicitors, nominee and custodian on other matters.

Tigh a'Chomainn Camphill’s ethical investment position is based on the premise that Tigh a'Chomainn Camphill’s choice of where to invest should reflect the ethical values it espouses in public life. This includes investing in positions that support ethical and fair treatment of people and the environment. At the same time, Tigh a'Chomainn Camphill’s investment shall actively avoid any positions in companies whose business activities are in contrast to the ethical foundations that Tigh a'Chomainn Camphill operates from.

Tigh a'Chomainn Camphill’s investment funds shall be held by a professional financial services provider, who will provide 6 monthly updates on Tigh a'Chomainn Camphill Investment portfolio. Tigh a'Chomainn Camphill holds a medium attitude to risk for investment funds and a lower attitude to risk for funds we may wish to draw down in next 36 months. Advance notice of 3 months would normally be given for any drawdown. Tigh a'Chomainn Camphill is seeking a mixture of growth and income that is a balanced investment portfolio, made up of around 70% in UK and international equity funds, 20% in fixed interest funds and the remainder in alternative assets such as cash. For simplicity, all accrued interest and dividends can be rolled back into existing investment portfolio.

An appointed Director (Finance Manager) will carry out “due diligence” for all the IFA’s investment recommendations annually and provide copies to FTF and Board of Trustees/Directors. Furthermore, we believe it is prudent for a charity of Tigh a'Chomainn Camphill’s size to hold investment reserves of 3 months running costs, which the SLT will actively work towards.

 

Fundraising

TBC

Fixed Assets

The finance officer will maintain a community fixed asset register showing the date of purchase, nature of asset, supplier and original cost of item. This register shall include donated items of a perceived value of more than £5,000, but given a nil value. Likewise, other items less than £5,000 may (on request) be added to the register at zero value if felt to be important for community use. The register also includes the values of Tigh a'Chomainn Camphill property, which will be updated on a needs only basis due to the cost implications of re-valuing property. The register shall also include personal items of significant value, which might be used for Tigh a'Chomainn Camphill purposes but belong to a co-worker or resident of Tigh a'Chomainn Camphill.

Assets, which are part of the above-mentioned register, can be written off or removed from Tigh a'Chomainn Camphill use only after agreement from FTF. Any proceeds from communal asset disposal will be credited back to either the specific cost centre or the whole organisation. Removal of personal items by a co-worker or resident and any credits due to it belong to the owner of the asset.

Depreciation on fixed assets is provided at rates estimated to write off the cost less estimated residual value of each asset over its expected useful life. The current rates are held by the finance officer and any changes to them will have to be agreed FTF, trustees and the external auditor.

Lettings

Tigh a'Chomainn Camphill wishes to promote community use of our premises where this does not interfere with either the operation of one of our services or with any Tigh a'Chomainn Camphill usage of the premises. Tigh a'Chomainn Camphill is looking to offer its premises to groups or events that uphold the ethical foundations of the organisation and where possible offer members of Tigh a'Chomainn Camphill to directly benefit from the usage of the premises. Access to Tigh a'Chomainn Camphill premises will be supervised by a delegated co-worker from Tigh a'Chomainn Camphill. Tigh a'Chomainn Camphill might require additional information and provisions from the third party hiring part of the premises, such as for groups with children. There will be a charge for the use of Tigh a'Chomainn Camphill premises, which will be dictated by the type of venue, the duration of the hire and any additional provisions from Tigh a'Chomainn Camphill such as catering. The current costings are held with the finance team. Please read Tigh a'Chomainn Camphill Lettings Procedure for further information.

Audit

Tigh a'Chomainn Camphill’s accounts are subject to both an internal as well as an external auditing procedure. The former is carried out by a member of FTF on an annual basis around the half-year mark of the financial year. The internal audit is a spot check of the book-keeping practices of all cost-centres and financial accounts for both Tigh a'Chomainn Camphill and any subsidiaries. The internal audit is aimed at checking on, and where need be, highlighting any fraudulent activity or accounting practices that are not in line with this policy. The results of the audit are communicated to FTF and Tigh a'Chomainn Camphill trustees and where appropriate follow-up action will be taken to ensure that Tigh a'Chomainn Camphill’s financial resources are managed correctly.

The external audit takes place after the end of the financial year and this is an audit performed by a regulated auditor who ensure that Tigh a'Chomainn Camphill’s bookkeeping and financial management practices are up to standard. The external audit results in the final accounts for the financial year being produced, which need board of trustee approval at the AGM.

3. References

Trustee Act 2000