Region, Branch, SIG Finance management guidance

Transcription

1 Region, Branch, SIG Finance management guidance October 2010

2 Aim of the document This document provides guidance to region, branch and SIG members who have been allocated the responsibility for financial management. It is intended to provide a clear, uncomplicated and consistent framework to enable individual branches and management boards to organise and manage financial matters within their localities. The guidance can be adapted to meet specific local issues but the need for consistency is important to ensure that the collective systems for financial reporting and auditing are met at the end of the year. Terminology General Reference in this document to Treasurer means any officer who has been appointed to manage the finance within the region, branch or SIG. This may include the, Secretary or the Executive Officer. References to the Board or Board members means Board members of the CIEH Regional, Branch or SIG Management board. This document outlines how the financial transactions of the Board are managed and will be regularly updated to ensure that it remains accurate and relevant. At any point branches, regions and SIGs may contact central finance for advice and information about the accounts and financial management. The CIEH will organise a meeting for Treasurers within September of each year or as required. The Treasurer is to be appointed by the board/region/sig and has overall responsibility for financial management and probity, related to: Maintaining income and expenditure records Dealing with invoices, expenses claims, petty cash transactions Producing regular statements of income and expenditure ( balance sheets) and including forward financial plan Producing an annual end of year financial report Arranging checking of the end of year accounts and submission of the verified accounts Completion of the funding formula spreadsheet and funding application processes Attending meetings of the Board and at Chadwick Court as required Liaison with central finance and regional support The Treasurer may delegate some of these tasks with agreement of the board to a person or persons, whether voluntary or paid (e.g.an executive or administrative officer) but retains overall responsibility for probity. No member can sign any payment for themselves without a robust system in place that checks and approves the payment. If the Treasurer or contractor who is responsible for payments needs to pay fees or make any reimbursements to themselves, the process for approving these payments needs to be agreed by the Board. Where possible and practicable this should involve countersignature but may include an approval process if access to another member in person is difficult. The main underlying principles behind the CIEH region, branch, SIG finance system is clarity, accuracy and transparency. Importantly all financial transactions need to be directly linked, 2

3 relevant and appropriate to the business planning and member activity within the Region, Branch or SIG. Funding allocation Regions and SIGs will be funded on an annual basis via a simple equation. The variables in this equation will be: 1. The number of members in the region/sig 2. The geographical size of the region/sig* 3. The number of CPD hours provided in the previous year by the region/sig** *The notional size of each SIG will be calculated as twice the geographical size of the biggest region. ** This figure aims to reflect the number of CPD hours which have been made available to members over a year i.e.: Hours of CPD at an event multiplied by the number of Members attending each event Or: Where: H _x _A = CPD hours H is hours of CPD provided A is number of members attending The funding available for Regions/SIGs in any year will be divided up as follows: Variable % of funding pot Number of Members 50% Geographical Size 20% CPD Hours 30% Forward planning As part of an effective management process all regions and SIGs will be asked to complete the financial planning spreadsheet. This spreadsheet is a tool to enable the Treasurer to identify any anticipated income and expenditure related to the aims and objectives for the coming year set out in the agreed business plan for the region (including branches) or SIG. These forward looking financial plans will be collated by central finance to provide an overall picture of the anticipated income and expenditure across regions and SIGs. End of Year Accounts (Annual returns) The CIEH financial year runs from 1 January 1-31 December. Annual/end of year statements of accounts must be produced by all branches, regions and SIGs. Branches need to send initially their unchecked accounts to the region and to central finance. A combined or consolidated account for the region is then submitted by each regional Treasurer to central 3

4 finance. SIGs also submit their end of year accounts (unchecked and checked versions) direct to central finance. The timetable for submission is set each year after discussions between CIEH Finance and PKF (CIEH auditors) regarding the overall work programmes to complete the CIEH audit. This is usually expected within January each year. This statement needs to contain information on income generated and expenditure incurred for that year but does not contain information on VAT. The VAT return is sent separately in March each year. The format is the same every year. A schedule is sent out by in December each year by central finance to each Treasurer for completion with details of the submission timetable. The schedule sets out the necessary columns for balances and reconciliations. Before submission to the CIEH, the Board needs to review the consolidated or combined accounts and ensure that all members have an opportunity to view the accounts, comment or ask questions. After discussion and agreement with the Board the Treasurer may submit the accounts to the Finance Officer at the CIEH. Useful tip: It may be useful to ask for a bank balance as at 31 December. Try to update your accounts regulary and ensure the necessary information is available by October each year. This will mean there is less information to add to the format at the end of the year. Verification of the End of Year accounts Branches, regions and SIGS need to check their accounts to ensure accuracy. The branches, regions and SIGS are all part of the CIEH and as such their finances are subject to the auditing arrangements the CIEH organise for the entire organisation centrally. This is currently conducted by PKF. Branches, regions and SIGS are therefore required to arrange for their annual accounts to be checked and countersigned. This can be undertaken by two members on behalf of regions and one member on behalf of each branch. The members involved in checking do not need to be qualified accountants or auditors. The members chosen for checking the accounts should not be the Chairman, Secretary or Treasurer. This is to ensure robustness of the process. It should be noted that although PKF have so far not chosen to drill down into any or all of the branches, regions and SIGs completed annual returns, they are within their rights to do so. Management of the budget The Treasurer shall regularly provide the Board with a statement of income and expenditure to date. It is the responsibility of the Board to check that all income and expenditure are in line with agreed business plans and priorities and relevant to the work of the CIEH at region, branch or SIG level. The Treasurer is responsible for maintaining all records and documents relevant to the financial management of the region, branch or SIG. As part of this the Treasurer may ask 4

5 members to supply all relevant documentation to support the accurate recording and justification for the income/expenditure. Reserves Drawing down money into branch/region or SIG accounts when it is not needed affects the overall annual expenditure and may influence what funding is available in the forthcoming financial year. If your branch, region or SIG are planning a large event or initiative that will require significant money up front, this can be arranged through central finance. Banking arrangements and cheques Where possible each region, branch and SIG should have one bank account and two approved signatories. This is particularly important where the Treasurer will need to pay/reimburse themselves for activities undertaken within the region, branch or SIG. It is acknowledged that the day to day practicality of using two signatures may be difficult to achieve in some Regions/SIGs. In these circumstances one signature can be approved. However, the need for self payment will still require a clear process of approval as discussed before. Treasurers must keep all bank statements as a record of banking transaction and submit these to central finance if requested to do so. Personal credit cards may be used and these transactions will be reimbursed using the normal payment methods. Occasionally credit cards are needed to hold rooms. The CIEH does not expect members to pay out large sums of money from personal resources. Help and advice may be sought from central finance (Andrew Gardner) to help on these occasions. It may be helpful to have access to a small amount of petty cash to aid purchase of small items and services. Internet banking can be set up through central finance only. Please contact Andrew Gardner. Electronic banking guidance The procedure is as follows: Invoicing Contact Andrew Gardner (Group Chief Accountant) by at a.gardner@cieh.org requesting that electronic banking is sought The should nominate a person who will have authority to access the account (typically this would be a signatory to the bank account) Note that electronic payments are possible but there will be an agreed limit of 1,000. These limits can be increased with prior approval from Andrew Gardner at central finance. The invoice should have the following details (please use the CIEH template): 5

6 The name: Chartered Institute of Environmental Health across the top of the invoice The branch/region address (not the HQ address of CIEH in London). The invoice should make reference that the invoice is from a Region/Branch office and not from the Headquarters of the CIEH CIEH VAT number: GB The VAT number has to be stated on the invoice despite the fact that the region does not charge VAT to their customers The region s bank account details: - Bank name - Bank address - Bank sort code - Bank account number The bottom of the invoice should state the registered office: CIEH, 15Hatfields, London, SE1 8DJ Please note that when the invoice is sent out to the region s customer (say the local Council), there is a risk that the customer will change the bank details of the HQ of CIEH on their system not realizing that the invoice is from a Branch of the CIEH. Hence, there is a risk that having not realized this that customer will pay the Region for all invoices, including those owing to HQ of CIEH. It is therefore important that the customer is made aware that they should set up a separate supplier account on their system to avoid paying into an incorrect bank account. If the customer has incorrectly paid into the CIEH bank account at HQ, please contact creditcontrol@cieh.org with all details. The Credit Control team will then endeavour to ensure that these payments are credited into your bank account. Payment of accounts Apart from petty cash payments other payments shall be made by cheque, BACS or by any other approved means. All invoices for payment shall be reviewed and verified by the Treasurer. Before certifying an invoice the Treasurer shall satisfy her/himself that the work, goods or services to which the invoice relates have been received, carried out, examined and approved and relevant to the business plans and priorities. Agreed invoices shall be passed to the Treasurer and paid within 30 days of their receipt. The region, branch or SIG bank account shall not be overdrawn at the bank. If any Treasurer is unable to pay an invoice or is having problems collecting payments they must inform central finance immediately for advice and inform the Board that such action has been taken. Payment of contractors The payment of contractors shall be made by the Treasurer from the current account in accordance with agreed job contracts and HR arrangements. Please note as mentioned previously, payment to self must be approved and countersigned. Any staff recruited are done so on a contractor, and not an employee, basis. Standard proforma forms for the engagement of contractors are available from HR (contact Claire Forrester on x 5917). 6

7 Any persons / members who are paid a fee, but do not have a contractor contract (i.e. members who are paid an honoraria) must be declared on the honoraria form. The form must be returned to Chadwick Court by the 1 May each year. These untaxed fees will be declared to HMRC. An annual return is expected from each region and branch even a nil / none return. The return declares the individuals name, home address, NI number and amount paid. Note it is the date the amount is paid rather than the period it relates to that is important. Donations and sponsorship The CIEH is a charity and therefore is unable to pay donations to other charities. If a collection is made within the branch, region or SIG, the accounts can be used but there must be transparency in the money being collected, deposited and then paid to the charitable cause. Income The collection of all sums due to the Board shall be the responsibility of the Treasurer. All income received must be recorded and banked. All relevant documentation collated and kept as a record of the transaction. Particulars of all charges to be made for work done, services rendered or goods supplied shall be notified to the Treasurer and the Treasurer shall be ultimately responsible for the collection of all accounts due to the Board. The Treasurer needs to inform the Board of any issues or problems with payments or receipt of payments at the earliest opportunity. Further advice must be sought from central Finance at CIEH if necessary. All sums received on behalf of the Board shall either be paid to the Treasurer for banking. In all cases all receipts shall be deposited with the Board s bankers with such frequency as the Treasurer considers necessary. Personal cheques shall not be cashed out of money held on behalf of the Board. Insurance All insurance is arranged centrally at CIEH HQ. No region, branch or SIG needs to make local insurance arrangements. Any local claims will be collated by the Treasurer, discussed at the Board, and then submitted with relevant details to CIEH for action. VAT Central Finance is responsible for dealing with the VAT returns for all regions & SIGs. The income/expenditure records are sent in by the regions/sigs annually which are then included in the VAT return in March each year. Any monies owed are reclaimed and are credited back to the region/sig. The CIEH as a whole, including regions and branches, is subject to VAT. 7

8 VAT should not be charged on invoices issued to those who attend seminars (both members and non-members). VAT on expenses should be listed on the annual VAT return to Chadwick Court: You should only list the VAT element of an invoice/expense where you have a valid VAT receipt (ie. A piece of till roll or receipt that shows a date, amount and VAT registration number). Where a single transaction is greater than 2,000 then a copy of the invoice must be attached to the annual return. A VAT return must be made - even a NIL return (mark the form nil or none). A VAT return to Head Office only has to be submitted once a year (March). This is to be sent with the annual accounts for the calender year (to 31 December). You will not be able to work out in advance how much your input claim is - unless you happen to submit a NIL return. This is because VAT is reclaimable on different expenses at different rates. As a result of the above please account for VAT reclaims received on cash received basis. Post all cash book postings gross. Do not make an accrual for a repayment at the year end. Treat any money received as other/sundry income. The Annual VAT return will include: Date : Ref. : Detail : Type : Aas printed on invoice. For your use if you cross reference to expense/invoice file. Brief details of expense. General Heading (eg. Seminar/Admin. expenses) Monies reimbursed to regions/branches. The annual returns from regions and branches are included on the CIEH s March VAT return. Any monies due back to Regions and Branches will normally be remitted in either May or June. Revision of financial management guidance It shall be the duty of the Board to review the financial management processes of the Board from time to time and to make such recommendations as it considers are required to central CIEH to ensure consistency across all regions, branches and SIGs is maintained. This guidance will reviewed annually at the Treasurers meeting or in light of new information or changes to procedures. Contacts Further information can be obtained from the contacts below. In addition, documentation and relevant forms and templates can be found on the regional resources page on the CIEH website: 8

9 Financial management contact: Arif Kaji Andrew Gardner Funding allocation contact: Jon Buttolph Revisions and amendments: Sharon Smith Date of document : October