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Finance Policy

Financial Policies and Procedures Manual


  1. Overview and Scope
  • Policy Application
  • Trustee Responsibilities
  • Governing Documentation and Purpose
  • Organisation Information
  1. Maintaining Financial Records
  2. Authority Limits
  3. Banking and Cash Control
  • Bank Accounts
  • Authorising Payments
  • Signatories
  • Cash Reserves
  • Petty Cash
  • Collection Boxes
  1. Bereavement Support for Individuals
  2. Donations to other Charities
  3. Income Recognition
  • Donations
  • Trading Income
  • Grant Income
  1. Reserves Policy
  2. Fixed Assets and Depreciation
  3. Stock
  4. Financial Reporting
  5. Budgeting
  6. HMRC Tax Compliance
  • Gift Aid
  • Corporation Tax
  • VAT

Appendix 1: Gift Aid Declaration – Multiple

Appendix 2: Gift Aid Declaration – Single

Related Documentation – Expenses Policy, Expense Form and Mileage Form.


Policy Application

To enable the Board of Trustees to carry out these responsibilities, the Financial Procedures below must be followed at all times by all Trustees, staff and volunteers. A copy of this policy will be given to all Trustees on appointment to the Board, and the all relevant staff and volunteers. The policy and procedures will be reviewed annually by the Board of Trustees and revised as necessary. The Charity Elsie Ever After will be referred to within this document as ‘EEA’.

Trustee Responsibilities

The Board of Trustees is responsible for:

  • Safeguarding the assets of the charity.
  • Preventing fraud.
  • Avoiding mistakes.
  • Keeping financial records in accordance with the governing document and relevant legislation (e.g. Charities Acts, Companies Acts etc.).
  • Preparing Annual Accounts in accordance with the governing document and relevant legislation.

Governing Documentation and Purpose

EEA Governing documentation:

  • CIO Foundation Constitution

EEA Vision (Objective):

  • Our vision is that everyone, regardless of location or circumstance, can access bereavement support of their choice.

EEA is set up to achieve:

  • Advancing health or the saving of lives
  • Rehabilitation, convalescence or aftercare

EEA achieves this by:

  • Provides services
  • Providing comforts, services or facilities for patients

EEA supports:

  • Anyone who is bereaved throughout England and Wales


Organisation Information

  • Charity Name: Elsie Ever After (EEA)
  • Charity Number: 1177173
  • Incorporation Date: 15 February 2018
  • Founder – Mrs Helen Louisa Lyons
  • Minimum Number of Trustees – 3 Trustees
  • Registered address: Elsie Ever After, Innovas, Unit 18, Blakemere Village, Chester Road, Sandiway, Northwich, CW8 2EB
  • Name of bankers: Lloyds Bank plc, Leeds City Centre (306522)
  • Year end: 31 December 2019.
  • HMRC Charities reference number: EW93800


  • Financial records will be maintained on password protected excel spreadsheets by the CEO. The spreadsheets will be backed up on a regular basis to a cloud based storage facility.
  • The CFO will review on an annual basis whether there is a requirement to implement a computerised accounting package.
  • All transactions will be documented with details of date, third party reference, amount and nature (cash/cheque/BACS/invoice etc.).
  • All receipts, invoices, bank statements etc. will be filed by month, entered into the system and will be stored safely at the CEO’s premises.
  • The CEO will maintain accounts on a daily basis and the CFO will be responsible for overseeing the correct treatment and preparation of the year-end Financial Statements.
  • All financial documentation will be retained for 6 years from the end of the last company financial year they relate to as per current Statutory requirements.


  • Purchases below £100 for expenditure in line with EEA’s objectives can be approved and made by the CEO without a second signatory.
  • Purchases between £100-£250 for expenditure in line with EEA’s objectives must have prior approval by two of the authorised signatories.
  • Purchases above £250 will require approval by majority vote from EEA’s Trustees which can be carried out electronically.


Bank Accounts

  • All bank accounts must be in the name of the Charity.
  • No accounts may ever be opened in the name of an individual of individuals.
  • New accounts may only be opened by a decision of the Board of Trustees, which must be minuted.
  • Changes to the bank mandate may only be made by a decision of the Board of Trustees, which must be minuted.
  • The CEO is responsible for downloading bank statements and retaining these electronically each month.
  • These records will be reviewed monthly by the CFO who will perform a bank reconciliation and review of transactions for completeness.

Authorising Payments

  • All expenditure must be inline with EEA’s objectives and charitable activies.
  • All cheques must be signed by two signatories, they are both responsible for examining the cheque for accuracy and completeness.
  • All internet bank transfers must be authorised by two signatories, they are both responsible for examining the payment documentation prior to authorising the internet transfer.
  • Signatories will not sign a cheque or authorise a bank payment which is payable to themselves.


  • Name: Helen Lyons
    • Job Role: Trustee and Chief Executive Officer (CEO)
  • Name: Rebekah Tittle
    • Job Role: Trustee and Chief Financial Officer (CFO)
  • Name: Gemma Gerrish
    • Job Role: Trustee and signatory

Cash Reserves

  • The CEO will ensure that the bank account balance does not fall below £1,000 at any point. This £1,000 will be reserved for any disaster recovery or unexpected costs.


Petty Cash

  • The Petty Cash tin will have £100 minimum in at all times and £500 maximum. The petty cash will be kept in a secure safe in the CEO’s house.
  • The code to the secure safe will be help by the CEO and the CFO only.
  • When withdrawing money from the petty cash tin the CEO will document what was taken and for what purpose on the financial records.
  • When cash is collected at events there will be at least two people counting and counter signing the income form which the CFO will agree to the accounting records at the month end.
  • If receiving funds from individuals such as cardboard collection boxes, no income form is required. However, receipts will be provided where possible. Cash received amounting to more than £100 will require an income form to be filled out.

Collection Boxes

  • There are 2 types of collection boxes: small cardboard boxes generally for individual use (see procedures above). Plastic sealed collection boxes for public use. This section refers to the latter.
  • At least two people should be involved in handling and recording any money received.
  • Collection boxes must be individually numbered and their issue and return recorded.
  • All collection boxes should be sealed before use to that it is apparent if they have been opened before their return.
  • All collections should be regularly opened and counted by two people.
  • Cash collected is banked by the charity as soon as possible without deduction of expenses.
  • Records should be maintained for each fundraising event including date and money received.


  • Governing Criteria for support: Support may be offered to anyone who is bereaved under any circumstances in any location. The core team of Trustees must all agree that the grant will improve the mental health of bereaved people and could otherwise not be available.
  • The maximum amount that will be spent on bereavement support for any one individual will not exceed £500.
  • This limit will be reviewed at least annually by the Board of Trustees.


  • Donations may be made to other Charities whereby the receiving Charity complies with EEA’s vision and objectives.
  • All donations to other charities will require prior authorisation by all Trustees.



  • The regular donations come from individuals who are known to the trustees, and such donations do not have any conditions attached to them. These donations will be recognised on a cash received basis.
  • One off donations through fund raising will be recognised on a cash receipt basis.

Trading Income

  • Trading income includes all goods and services provided for a fee and can include charitable activities where fees are charged, as well as those trading activities whose trading activities that raise funds for the Charity.
  • Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of the charity and is shown net of VAT and other sales related taxes.

Grant Income

  • Grants will be recognised on a cash received except when they have attached terms and conditions that must be met in order to retain the income.
  • Grants with conditions will be held on the balance sheet as deferred income and only recognised when formal notice that the conditions have been met has been received from the awarding body.


  • The Charity will not seek to retain reserves but will look to use the reserves to support the Charitable purpose at all times.
  • The Charity however will retain reserves of at least £1,000 at all times. This will safeguard against any drops in income and unforeseen liabilities.
  • Any other reserves for specific purposes will be set aside from the Charities general reserves and accounted for separately.
  • This reserves policy will be reviewed on an annual basis to ensure that it remains current and appropriate.


  • Tangible fixed assets over £500 will be capitalised and initially recognised at cost and depreciated over the expected Useful Economic Life.
  • Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following basis;
    • Computer Equipment 3 years straight line


  • Stock will be held in a secure location and covered by insurance.
  • The CEO will be responsible for recording stock movements in and out.
  • All delivery documentation must be retained for stock received.
  • A full formal stock count will take place at year end by two trustees independently and the results reconciled.
  • Stock will be valued at the lower of cost and net realisable value.
  • Any stock which is damaged or non-usable will be written off at year end.


The CEO/CFO will report to the Trustees quarterly on the financial performance and state of the CIO, however the Trustees may request up to date financial information at any point during the year.

The quarterly financial report will consist of at least;

  • Bank balance
  • Petty Cash balance
  • Stock assessment (not count)
  • Money received (Income)
  • Money spent (Expenditure)
  • Expenses reclaimed by trustees
  • Money owed to the charity outstanding (Debtors)
  • Money owed by the charity outstanding (Creditors)


  • The financial statements will be prepared in accordance with The Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards in the UK.
  • The Financial Statements will be independently reviewed by an external body within the required time scales of Companies House and the Charities Commission.
  • The year-end reporting will be prepared in the format required by the Charities commission within the time frame set by the CFO.
  • The ultimate responsibility for signing off the financial statements as a true and fair view of the Charities status will be the CEO.
  • The Financial Statements will be made available on EEA’s website within one week of the filing date.


  • Due to the nature of the charitable objectives, support is required on an ad hoc basis and therefore a budget is not considered appropriate at this time. This will be reviewed on a regular basis should the Charitable activity become more predictable.


Gift Aid, Corporation Tax and VAT

The above policies must be adhered to and all expenditure incurred must be purely for the purpose of operating the charity and meeting the charitable objectives. The Status will be reviewed on an annual basis.