Finance and Accounting

Shropshire Disability Network

Finance and Accounting Practice Policy

Shropshire Disability Network (SDN) Management Committee has a duty to its members to ensure proper procedures are followed in relation to its finance and accounting transactions.

  1. General

All money raised by or on behalf of SDN will be used in the work of SDN (including Safe Places Shropshire) alone.  It will also be used to reimburse reasonable out of pocket expenses incurred by members or volunteers in the course of SDN activities

SDN will keep proper accounts of its finances. As per the constitution SDN Management Committee will nominate five of its members as authorised bank account signatories. All cash withdrawals, cheques and financial transactions must be authorised by at least two of those named.  If a transaction relates to payment to one of the five signatories then the person benefitting must not be a signatory to the authorisation. 

SDN Financial Records will be kept up to date by the Treasurer. Bank Reconciliations will be carried out monthly. A written financial report will be provided to the Management Committee at every meeting unless the Management Committee decides otherwise. These records will be available for inspection by any member of SDN.  The request must be made to SDN Honorary Secretary at [email protected] and will be agreed by the Chairperson in consultation with the Management Committee. 

  1. Charity Accounting 

In 2015, SDN adopted the simpler format of producing Annual Accounts on a Receipts and Payments basis. This is in line with the recommendations of the Charity Commission for a Charity of SDN’s size. 

  1. Good Accounting Practice 

3.1  Receipt of Monies 

Receipts and Remittance Advice Notes as necessary will be provided by SDN.

 3.2  Fundraising Events

 All monies raised at any SDN event, must be checked by at least 2 people and at that time a written record should be made and signed.  This will then be passed to the Treasurer or other appointed person to bank i.e. Secretary or Chairperson. 

3.3  Banking of SDN monies

 This should take place as soon as possible after a fundraising event (preferably within 7 days) in order to meet SDN’s insurance policy.

 3.4  Reimbursement of Expenses

 SDN out-of-pocket Expenses should be claimed monthly by using the electronic expenses sheet (also available in hard copy), which will be approved by an authorised member of SDN Management Committee. Any amount in excess of £25.00 will be paid by cheque as agreed by SDN Management Committee in 2015.

 No one should be disadvantaged because of necessary out- of-pocket expenses when volunteering for SDN.  Expense claims are confidential between the claimant, SDN Treasurer and Chairperson/Deputy Chairperson and individual claims will not be discussed with anyone else unless there is a specific need, in which case, it will be discussed with the claimant first.

 Mileage will be paid at 25p per mile for Motability vehicles and 40p per mile for other vehicles.

 3.5  SDN Float

 SDN Chairperson holds a float to pay assorted items i.e. Your Voice postage, Management Committee Expenses, Outreach etc. The Imprest System is used for topping up this float to a maximum of £200.00

 3.6  SDN Expenditure

 All invoices for payment will be authorised by the Chairperson or person appointed in absence of the Chair before payment by the Treasurer. All larger items of expenditure (i.e. equipment) will be subject be discussed at Management Committee. A minimum of 3 quotes will be sought and where possible, if appropriate, business will be given to local businesses.

  Review of Policy

 All SDN policies are reviewed annually.

Review Date April 2018
Review Author Ann Shaw, Honorary Secretary, SDN