Finance Management Policy

AUTHORITY

Nothing in this policy over-rules or supersedes the conditions and procedures detailed in the station’s Constitution.

APPLICATION OF FUNDS

All monies received by or on behalf of Roch Valley Radio shall be applied to further the charitable objects of the station and for no other purpose.

KEEPING OF ACCOUNTS

The trustees are responsible for keeping proper accounting records, which disclose with reasonable accuracy, at any time, the financial position of the station and which enables them to ensure that the financial statements comply with the Charities Act.

The Finance Director shall be responsible for keeping proper accounts of the finances of the station.

These accounting records are to be kept at such place as the Committee see fit, and shall be open to the inspection of fellow committee members.

INVESTMENT AND SAFEGUARDING OF ASSETS

Any money not immediately required shall be invested in such investments, securities or property as the trustees see fit.

The trustees are responsible for safeguarding the assets of the station and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ANNUAL FINANCIAL REPORT

Roch Valley Radio shall prepare financial statements for each financial year which give a true and fair view of the station’s financial activities during the year and of its financial position at the end of the year.

The annual accounts shall be available to the committee and presented at the AGM.

PREPARING FINANCIAL STATEMENTS

In preparing financial statements, giving a true and fair view, the station is required to:

a) select suitable accounting policies and then apply them consistently;

b) make judgements and estimates that are reasonable and prudent;

c) state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

d) prepare the financial statements on the going concern basis unless it is inappropriate to presume that the station will continue in operation.

REQUIREMENT FOR ACCOUNTS TO BE SUBMITTED FOR AUDIT OR EXAMINATION

The accounts shall be audited or shall be shown to satisfy the conditions for exemption from an audit of the accounts for the year specified.

In the instance where the accounts require to be audited, the accounts and notes thereon shall be audited by a person eligible for appointment as a company auditor under the provisions of section 25 of the Companies Act 1989. Such auditor will be appointed by the Committee.

In the instance where the accounts do not require to be audited, the balance sheet and income and expenditure account and notes thereon or a statement of balances and the receipts and payments account and notes thereon shall be subject to examination by an independent examiner; and an independent examiner shall be an independent person who is reasonably believed by the trustees to have the requisite ability and practical experience to carry out a competent examination of the accounts. Such independent examiner will be appointed by the Committee.

PROCEDURES

a) The Finance Director shall prepare the station’s accounts on the “accruals basis”, including a record of the association’s assets and liabilities.

b) The stations Financial Year shall be 1st March to 28th or 29th February, or as set by the Committee.

c) The Committee shall formally approve the station’s annual report and accounts.

d) Each member of the Committee shall be provided with copies of the report and accounts each year, and all new committee members shall be provided a copy on appointment.

e) Annual budgets shall be set at the beginning of each financial year.

f) Committee members and members of a sub-committee have authority to spend or commit the station against an approved budget up to the limit of that budget. All other expenditure should normally be agreed at a committee meeting.

g) In exceptional circumstances where it is impossible to wait until a Committee meeting, the written, e-mail or verbal approval of two of the Chairman, Operations or Finance Director shall be sought to spend or to commit to expenditure.

h) For each major event staged, a budget shall be prepared, showing budgeted expenditure and expected returns, and approved by the Committee before any significant expenditure occurs, contracts are let or liabilities otherwise incurred.

i) For each major event staged, a “statement of account” shall be drawn up after the event and presented to the Committee detailing the actual income and expenditure against budget.

j) Cheques shall be signed by the Finance Director and another Committee member as authorised. One of the authorised signatories shall be the Finance Director.

k) Signatories shall check the original invoice presented when signing cheques, and sign the invoice.

l) A signatory to the station’s bank accounts shall not sign a cheque payable to themselves, a close relative, or any member organisation to which they are affiliated.

m) Blank cheques shall never be signed in advance by any of the signatories.

n) The Finance Director should aim to keep at least £1000 in the account. They must alert the Committee in the event that funds fall below or are expected to fall below that level.

o) The Operations Director shall ensure that the Asset Register is kept up-to-date at all times.

p) The Operations shall ensure that the assets are properly insured.