Falkland Islands Association: Financial Procedures 20 March 2019

This version agreed by ExCo 20 Mar 19

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FALKLAND ISLANDS ASSOCIATION

FINANCIAL PROCEDURES

To retain the confidence of its members and supporters, The Falkland Islands Association (FIA) needs to manage itself efficiently and prudently and avoid any appearance of waste. To this end, this document sets out key financial procedures and will be reviewed and agreed by the ExCo from time to time.
The following are attached:

Part 1 - Procedures and Controls.

Part 2 - Claims.

PART 1 - PROCEDURES AND CONTROLS

1.1 Bank Accounts.


a. There are 3 bank accounts:

(1) A current account (...999) held at the NatWest, St James & Piccadilly Branch.

(2) A business reserve account (...521) held at NatWest, St James & Piccadilly Branch.

(3) A current account (...000) held at the Standard Chartered Bank, Stanley managed by the Falklands Committee of the FIA.

b. The closing of any of these bank accounts, or the opening of other accounts, is not permitted without the authority of the ExCo.

1.2 Authorising Expenditure. The ultimate authority for all expenditure is the ExCo. However, for reasons of simplicity and control, the ExCo delegates the day to day management of expenditure to the Hon Sec.

a. Authority is to be sought from the Hon Sec before any financial commitment is entered into or expenditure made. However, it will not be necessary to inform the Hon Sec in the following cases:

(1) Routine Out of Pocket Expenses covered by the FIA Claims Policy (Part 2 of this document).

(2) Items which are specifically agreed by the ExCo such as the printing of the Newsletter.

b. The Hon Sec may approve expenditure on his own authority up to £500.

c. Items above £500 should be referred to the Chairman who may authorise expenditure up to £1,000 on his own authority.

d. Items over £1,000 should be referred to the ExCo.

1.3. Payments. Wherever possible, to simplify record keeping, the Hon Sec pays bills online. Only bills that cannot be paid online will be paid by cheque (see Para 5).

1.4 Cheques. Where the use of cheques cannot be avoided, they are to be written by the Hon Sec and signed either by himself and/or one of the other cheque signatories authorised by ExCo. The cheque book is held by the Hon Sec at his home. Signatures are required as follows:

Up to £500 - one signature (normally the Hon Sec).

Over £500 - two signatures

1.5 Bank Mandate. The following are on the Bank Mandate and are authorised to sign cheques:

Ted Clapp (to be taken off as soon as reasonably practical)

Karen Clapp

Tym Marsh

Peter Johnson

Deborah Northwood (to be added as soon as reasonably practical)

1.6 Financial Records. All documentation relating to payments and claims should be forwarded within 30 days to the Hon Sec and filed by him to support the accounts.

1.7 Events. For the avoidance of embarrassment and in the interests of fairness, ExCo members should normally expect to pay for themselves and their guests at FIA events like any other member, in particular:

a. AGM. All Members, including ExCo members, should buy their own lunch. Free lunches are only made available to guests of the Association authorised by ExCo.

b. FIG Summer Reception. All Members, including ExCo members should buy their own tickets (Note: In recent years it has been the practice of FIG to issue free invitations to ExCo members; while this continues it will not be necessary for ExCo members to buy their own tickets).

1.8 Credit/Debit Card. At present, the Association does not have a Credit or Debit Card.

1.9 Insurance. The Association holds Public Liability Insurance to £5m arranged by the Green Insurance Group (www.greeninsurance.co.uk), policy number SALSALIA/R133276. The policy is held by the Hon Sec.

1.10 Financial Year. 1 April – 31 March.

1.11 Annual Accounts. BDO LLP, Ipswich Office, prepares annual accounts. Strictly speaking, this is not an "audit" as BDO do not check every single transaction and its related paperwork; BDO relies heavily on information provided by the Association/Hon Sec.

1.12 Funds held in the Falkland Islands. The day to day management of funds held in the Falkland Islands is the responsibility of the Falkland Islands Committee (specifically Gerald Cheek). The transactions in the Falklands should be included in the Association's annual accounts.

PART 2 - CLAIMS POLICY

2.1 General Principles. The general principles regarding claims for the reimbursement of expenses incurred on FIA business are as below:

a.  We volunteer our time and effort on FIA business without recompense.

b.  We claim only for significant expenditure on FIA business and not minor day-to-day expenses, such as telephone calls, individual postage stamps, sheets of paper etc.

c.  Where there is a charge for attending a non-FIA organised event, claims can only be made if it has been agreed beforehand that such attendance would be in the FIA's interest and that the person attending does so as an FIA representative.

d.  For claimable travel journeys, we travel the cheapest means, using season tickets or travel cards as appropriate.  For car journeys, we use the public transport rate as our motor mileage allowance (ie, 20ppm), which does not include depreciation and insurance weightings.

e.  We should not claim for overnight accomodation costs, except in exceptional circumstances or where specific prior authority has been given.  Where individuals incur costs on FIA business, e.g. on printing invitations, order sheets, using taxis to transport bulky items, prior authority for such expenditure should normally have been obtained.

f.  Persons seeking prior authorisation should approach the Hon Sec in the first instance, or in his / her absence the Chairman.  The prior authority of the ExCo should normally be sought in cases where significant expenditure is likely to be incurred or in special circumstances (e.g. for a new project), unless authority has been specifically delegated.

g.  It is not mandatory to claim expenses.  Those willing to cover their own costs on behalf of the FIA should continue to do so.  Their generosity will always be appreciated.

 2.2 What may be claimed.

a. Travel costs related to FIA meetings and business (Motor Mileage at 20ppm).

b. Expenses related to the routine work of the FIA which are unavoidably incurred as part of carrying out a particular role (eg, postage costs incurred by the Events Secretary).

c. Exceptional costs related to projects approved by the ExCo.

2.3 What may not be claimed. Unless specifically authorised in advance, the following may not be claimed:

a. Hotel expenses related to FIA meetings.

b. Cost of meals consumed during FIA business.

2.4. Claims Procedure. Claims should be:

 

a. Submitted as soon as possible, normally no more than 30 days after the event.

b. Submitted using the FIA Claim Form (specimen attached to this document). It should be made clear on the form what is being claimed for and why so the Hon Sec does not have to make further inquiries.

c. Sent to the Hon Sec either by post or by email (to: honsec@fiassociation.com).

d. Accompanied by receipts wherever possible (scanned in the case of emailed claims.)

2.5 Authorising Payment.

a. The Hon Sec will organise payment on receipt of the claim form. If an ExCo member wishes to be repaid by electronic transfer rather than by cheque, bank details should be provided on the claim form.

b. Claims by the Hon Sec. The Hon Sec is not to authorise his own claims. He is to forward his claim form with a cheque to one of the other cheque signatories; the cheque signatory should check the claim before signing and returning the cheque to the Hon Sec.

c. Claims by the Chairman. Claims by the Chairman should be are authorised by the Hon Sec as with other ExCo members.

 
 

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