Financial Management

Barnet Federation of Horticultural & Allotment Societies

Financial Responsibility

• Who is responsible for managing the finances?

• Who are they responsible to?– Funders (if there are any)– Members– Statutory bodies (HMRC, Charity Commission etc.)

• What are they expected to do?– What is good financial management?

Financial Planning

• Setting a budget– This year– Next year

• Budgeting for overheads• Budgeting for projects• Cash Flow• Planning for risks, contingency and reserves

Financial Controls

• Who will decide where the money is spent?• What criteria should they use?• How often should a financial report be given?• What should a financial report contain?• Where will the bank account be held?• Who will look after the cheque book?• How will be the treasurer be selected?

Role of the Treasurer

• To ensure that financial records are kept • To report to the Management Committee• To ensure that the finances are properly used– spent in accordance with objectives – spent according to the wishes of the donor

• To oversee the financial planning for the organisation.

• To oversee the finance sub committee (if there is one)

Keeping the books

• Cash Book – record of all transactions– Income– Expenditure– Keep separate

• Petty cash book – record of all cash transactions

• Income and Expenditure Account• Balance Sheet

Checks and Balances

• Separation of duties– One person authorises, another records

• Two cheque signatories on each cheque– Or online authorisation

• Reconciliations• Independent Examination

Annual Accounts

• Audit – is it needed? • Independent Examination– Independent verification that the books are in

order– Independent verification that the accounts as

presented are a fair representation of the organisations affairs

• Agreed at the AGM

Basic Principles

• Consistency• Accuracy• Transparency• Looking Ahead