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