Finance Handbook 2015-16

Finance Handbook 2015-16

INTRODUCTION In order to be a ratified society, group accounts must be controlled by KCLSU. This allows us to fulfil our charitable objective, and also ensures that we maintain transparency. This section explains the fundamentals of Student Activity Group finances and is for use by all members of Student Activity Groups. It also goes through a step by step guide of how to use our finance system (Exchequer Live). Exchequer Live is the system we use to process all payment requests. It is internet based so you can access it from anywhere, at any time. Each President and Treasurer will be set up with their own unique login details in order to process payment requests, these must not be shared and only these people must use Exchequer Live. VIEWING STUDENT ACTIVITY GROUP (SAG)( TRANSACTION REPORTS The most common enquiries we receive involve Presidents and Treasurers asking about their accounts, remaining balances and/or querying particular transactions. These questions can often be answered by opening the Activity Group and Society Account document, which can be found on the KCLSU website under 'Get Involved' and 'Running a Group/Club' at: http://www.kclsu.org/runningagroup/ or http://www.kclsu.org/runningaclub/ 2

Once opened, you can search (Ctrl F) for either the Group Name or the unique 3 digit department code. This document (pictured below) provides the current balances and particular transactions in each account; it will provide the information Presidents and Treasurers generally seek. If they have any remaining questions, direct them to our finance team. EXCHEQUER LIVE To access Exchequer Live go to https://prf.kclsu.org/exchequerlive/#login STEP 1: Payment Request submission to Treasurer/President Payee (the person who is claiming reimbursement) fills out a Payment Request Form (PRF available at http://www.kclsu.org/runningaclub/ and http://www.kclsu.org/runningagroup/) and sends it to Treasurer/President via email or in person with the corresponding receipts attached. If a Treasurer or President requires reimbursement, he/she will need to complete a PRF and submit it, with the corresponding receipts, to their counterpart for submission through Exchequer Live. A President/Treasurer may NOT request his/her own reimbursement. All receipts must be accompanied by a completed PRF. Failure to provide a completed PRF will result in your payment being late as we will request a completed PRF to be submitted before we authorize. Step 2: Payee account set up and verification in the System Treasurer/President log in to Exchequer Live to request the payment on behalf of the payee. Note: Firstly, please check if the Payee account has been set up in Exchequer system before you start the process of raising the Payment request. A list of payees has been put on the website to allow you to check if the payee has an account in the system. Please see the list online. If the payee is not on the list, please fill the new supplier request form or send an email to Finance with the relevant information I.e. Payee s Name Name, address address, email address and bank account details to create an account. 3

When the account has been set up, a confirmation email will be sent to you from Finance with the new payee code. You will then be able to raise the Payment request through Exchequer Live. Step 3: Raise payment request in Exchequer Live To access Exchequer Live go to https://prf.kclsu.org/exchequerlive/#login or Login to the KCLSU website. Enter your unique log in information - Username (your 3 digit department code and PRES (presidents)/trea (Treasurers) (e.g. 111PRES). Your 4 digit password would have been emailed to you from Finance. Click Menu in the top left corner and then E-Procurement Procurement. You will arrive at a page that looks something like this: Step A: A Select Order Order to create a payment request/purchase order. Step A will bring up a new window that will require you to fill out the relevant information for the person who requires the reimbursement. 4

Step B: Click the Magnifying glass Icon to find the Payee account Type the payee name and a drop down list will help you find the right person. Double click the name on the list to bring up the payee account. STEP D: You must click on the Add button to add more information about this request. See next step. STEP C: Your Ref should be an invoice number (if you have an invoice from the payee) or anything to help you keep track of the expenditures in your account. Use something that you will understand, or you can use for example PR 17.06.2015. Alternative Ref- Put your three digit SAG department code, for example, 100. This reference will help you to view all payment requests for your department. Clicking the Add button will open another new window for you to enter specific details about the payment. If you have exited the transaction and need to return and amend it, you should click the Lines tab at the top. You may add multiple lines and divide payments between different amounts, items, and/or the account you wish to pay from. 5

STEP E: Click here to add a description of the reimbursement for example, train tickets to Portsmouth. Step H On completing all this information you must click Save on the right hand side of that window STEP F: In this section you need to fill out the details of the goods/service you are being reimbursed for the relevant part is Unit Cost Price. Please keep Quantity as 1. STEP G: GL Code this is the 5-digit code corresponding to your accounts: for example. Private: 65030 Grant: 65010 Charity donation: 65055 Restricted: 65050 Cost Centre Input AAA Department this is the unique 3 digit code associated to your group, for example, Lacrosse is 632. This is normally defaulted. 6

Step I: After you have selected Save, the transaction will be the first item on the list of New Purchase Orders. Right click and Cancel Hold. Double click on the transaction to attach the supporting documents for the payment request. STEP J: Please attach the payment request form by selecting the Add Add in the top left hand corner. Payment request form and proof of purchase are compulsory. This can be in the following file formats:.xls,.doc,.docx, PDF, or JPEG. Failing to attach documents in one of these formats will result in delays as we cannot open other formats. In order to save the attachment, please also input a Description. 7

NOTE: Please be aware, payments will be delayed if the supporting documentation is not supplied (i.e. proof of purchase and filled in payment request form). NOTE: If you have an invoice for the payee you do not require a Payment Request Form. Step 4: 4 Authorization in Exchequer Live To request authorisation, you need to Cancel Hold (to get rid of H icon) by right clicking on the payment request raised and select Cancel Hold. Now click on Approval the system will send an email to the finance team to review and authorise the request. The status of the payment request will now show as Awaiting Authorisation. NOTE: Once the payment request has been authorised, you will receive an email shortly from the system telling you that the request has been approved. If a payment request has been rejected, you must amend the information. Possible reasons for rejection are: insufficient funds available in the account or self reimbursement or lack of supporting documents or duplicate requests. If this is the case, please go back into Exchequer Live and find the relevant transaction to amend. 8

UNDERSTANDING YOUR ACCOUNTS General Ledger Codes (GL Codes) These are 5 digit codes that you must use when submitting payments. They correspond to certain income and expenditure lines within our accounts and will help you monitor all your financial activities. Within your group s finance reports your account is split into 5 distinct parts Private (65030) contains all money generated by the group themselves Restricted (65050/65040) contains any externally sourced income (sponsorship or grant) Grant (65010) contains KCLSU funding for groups. Limitations apply to its use. Charity (65055) contains any funds raised for charitable causes, to be donated to charity. When you are submitting a payment through Exchequer Live the GL Codes you use correspond to these sections within your finance report. Private account GL Code 65030 This is an expenditure account contains all private money belonging to the Group. The income may be from memberships, ticket sales or any other private and unrestricted deposits to the account. It belongs permanently to the group, can be spent on anything for the benefit of the group and remains in the account for subsequent academic years. KCLSU closely monitors account usage to ensure funds are used fairly and for all members. Legitimate use: Any group activities that cannot be supported financially by the Grant account. Activities for the benefit of all members funds must never be used for individuals. Restricted account GL Codes 65040 or 65050 This account is for any money acquired through sponsorship or external grants such as the King s College London Annual Fund Grant. It should be used solely for the purpose for which the funds were assigned. Your group must provide KCLSU with all the details of any such grant and the restrictions on its use. If the payment you are submitting is of sponsorship money then you must use the GL code 65040. For all other expenditures in this part of your account use 65050 as the GL code. This is to keep a clear track on the money that is being spent against sponsorship income so it is easier for you and us to track when it comes to reporting at the end of the year. Grant account GL Code 65010 Group funding allocated by KCLSU is placed in this account. This money must be spent on the core expenditure of the group, as outlined in the group s aims & objectives. Examples are provided below: Legitimate use: Stationery Photocopying - Publicity costs - Website Speaker or trainer costs Audiovisual and room hire costs General running costs Theatre productions Affiliations and Competitions Travel to fixtures outside the M25 Equipment etc 9

At the close of each financial year (1 August to 31 July) the remaining total in the Grant account is cleared into central KCLSU funds and cannot be carried over to the following year. If the account is in deficit this will be recovered by transferring the arrears from the Private account regardless of whether the Private account is in surplus or deficit. Charity account GL Code 65055 This account should be used to hold any charitable donations to be made by your group. Should your group hold a fundraising event, money raised should be placed in this account from where it can be sent out to the charitable cause of your choice. Department Codes Each Group has an account held with KCLSU identified by its own unique 3-digit Department Code. A list of all department codes can be found on the KCLSU website within the finance reports. VAT (Value Added Tax) Codes on o Expenditures Please follow this guidance in order to complete the VAT code correctly. Explanation Sports Clubs VAT Clearly stated on Invoice (if ( paying from Membership Private account and Sponsorship income) VAT clearly stated on Invoice (if ( paying from f KCLSU Grant & third party Grants) Invoice without VAT Stated Activity Groups VAT Clearly Stated on Invoice (if ( paying from f Private Account & Sponsorship Income) VAT Clearly Stated on Invoice (if ( paying from f KCLSU Grant & Third Party Grant) Invoice Without VAT Stated Code 1 Z Z S Z Z Invoice If your group requires goods or services from a company for a large amount it is best to request an invoice. The invoice should then be submitted to KCLSU using the Exchequer Live platform. You will only need to attach the invoice copy rather than Payment Request Form and receipts. Please note that invoices should be submitted at least two weeks in advance of the payment deadline Purchase Orders Sometimes a purchase order may be required for goods or services provided by a company as a guarantee that they will receive payment. KCLSU checks that you have sufficient funds and then sends purchase orders on your behalf to secure supply. The company will send an invoice at a later date requesting payment. When you will need one: When booking College Audio-Visual equipment When a company would like confirmation from KCLSU that your group has enough to satisfy payment. When booking services from King s College London venues/catering. You may also choose to send one when placing an order for a high value and/or where the goods being ordered are non-standard items such as hoodies or t-shirts. This will ensure that payment is not authorised unless the goods are delivered in satisfactory time, quality and condition. 10

If a purchase order is needed, please log into Exchequer Live and set up the payment as if you had possession of the invoice, but do not complete and submit for authorization. This will provide you with the POR number, which can be given to the College or company as a PO number for them to quote on their invoices. PAYING MONEY INTO YOUR ACCOUNT Student groups must pay all money collected at any point in the year into their group accounts. At a Student Centre Funds paid-in here will be deposited directly into your account making this is the easiest way to pay money in. other than a membership fees button there are two other buttons on the tills: One will place the money into your Private account The other will place money into your Charity account You will be given a receipt for these transactions which you should keep safe - it will be required when dealing with account queries. When paying in a cheque these should be made payable to KCLSU and not the name of the Group. The Group s name and Department Code and nature of the income i.e. membership or sponsorship or ticket sale or donation, should instead be written clearly on the reverse so that the funds can be assigned correctly by our finance department and traced in relation to an enquiry. For activity groups VAT is charged on ALL income into your Private account such as ticket sales and memberships. You must always consider VAT when purchasing goods or services to avoid shortfalls in income. For sports clubs, membership income is exempt from VAT. BACS Transfer Funds can be transferred to KCLSU via a BACS transfer using the following details: Account Number: 22521526 Sort Code 56-00-13 You must provide your Group s 3-digit Department Code and group name as a reference along with the nature of income to help us allocate the funds. External Bank Accounts Groups are not permitted to open or operate an external bank account for its members. This is a contravention of the charity law by which we are governed. This policy also acts to protect the members of the group since such a bank account is not subject to any controls over expenditure or to the scrutiny of audit. KCLSU only recognises Union accounts and requires all income and expenditure relating to a Group to pass through its accounts. Where a Group is found to be operating an external bank account it will cease to be recognised as a Union Group and will not receive any grant funding or privileges from KCLSU. Dormant Accounts Where a Group is inactive for a period of one year the Group will be considered dormant. Any surplus or deficit on the account will be written off or cleared into central KCLSU funds after a period of 7 years. 11

Our Financial Year KCLSU s financial year runs from 1 August to 31 July. This is important because it means that at the end of July any unspent money in a group s Grant Account is cleared back into central KCLSU funds. All financial issues for the year must also be resolved as they will not be processed in the following financial year. Viewing your account You can view your group s reports online via the KCLSU website and these detail all transactions made on your accounts. Check this regularly and make a note of any payments which have not yet been credited or debited from your account so that issues can be resolved quickly and when budgeting for future payments, keep a track of outstanding payments. Committee Misconduct Where any committee member is deemed to be financially irresponsible or otherwise seriously mishandling group affairs they will be referred to the Student Life Committee. Petty cash tins must not be kept, and if they are this is at your own risk and KCLSU cannot be held accountable for any losses. The result may be the future exclusion of the committee member from Group committees and at the very least, the inability to run for the positions of President or Treasurer. In extreme cases, this may result in criminal charges or College sanctions. Useful Contact All Group finance enquiries should go to the Finance Team 020 7848 1588 020 7848 1247 020 7848 1215 020 7848 1349 Finance.mailbox@kclsu.org 12