A.1.1. General. Controls on bank accounts to aid good accounting are essential and vital for the Regimental Secretary and other staff in order to discharge their legal duties towards their Charity.
A1.2. Supporting Papers. Every invoice/transaction must have supporting paperwork showing that the invoice/transaction is approved and by whom. This evidence should either be invoices or minutes of meetings signed by the originator. Cheque/On-line Request and Receipt forms are to be used and a clear description of where the funds are to be accounted for is required in order to ensure the Treasurer can correctly account for the item in the accounts. Nominal codes are to be used where possible.
A.1.3. Cheque Signing. All cheque payments under £1000 require one signatory, either the Regimental Secretary or the Treasurer, if the Treasurer signs the cheque then the Regimental Secretary provides authority to pay. Cheques over £1000 must be signed by two signatories.
a. The guiding principle is that the Regimental Secretary should normally be the principal and primary signatory for all cheques on all the accounts. While Ben & Grant cheques should be processed quickly and may be signed by either one or two signatories if required routine cheques should wait for the Regimental Secretary to sign. The second signatory for Ben & Grant cheques should be the Treasurer.
b. Cheques for signing should be given to the Regimental Secretary together with supporting paperwork. No blank cheques are to be signed.
c. No online banking at present. Sally is looking into this to present at board.
A.1.4. Electronic Banking, In order to minimise bank charges and take advantage of electronic banking, payments will made on-line where possible. The internal controls will follow the principles for cheque signing as detailed above, including the requirement for one or two signatories (depending on amount) on Ben & Grants individual supporting paperwork including the Regimental Secretary before any transactions are actioned. The Treasurer will enter the details to be paid into the appropriate bank account and then either the Regimental Secretary or the Treasurer will act as the electronic signature. In addition to the internal controls for cheques a final check will be made by the Treasurer to confirm the accuracy and propriety of each transaction. To ensure complete separation of duty, the Treasurer should not be an authorising signatory on the supporting paperwork.
A.1.5. Signatories. When required additional signatories are:
a. 3rd signatory: The Chair of the Board
b. 4th signatory: Office Manager
A.1.6. Reconciliation. Bank reconciliations are to be carried out every week/month by the Treasurer. A summary of Ben & Grants cheques/on-line payments is produced daily or as appropriate. Reconciliations are to take place even if there have been no transactions that week/month and the record kept.
A.1.7. Credit/Debit Card. A bank credit card will be held by the Regimental Secretary for the Charity account, mainly to be used for pre-booked travel, deposit on travel, accommodation and flowers as required. The Regimental Secretary must approve each use, even if retrospectively. Each month the statement must be reconciled and approved by the Regimental Secretary and scrutinised for propriety by the Treasurer.
a. The following normal authorisation limits are in place:
i. The Regimental Secretary may approve welfare grants up to £1000
ii. Individual welfare grants over £1000 will require the authority of the Benefits & Grants Committee.
b. For administrative transactions:
iii. The Regimental Secretary may approve all payments contained within the Charity’s annual budget. The Chair of the Board should be consulted on any unplanned expenditure over £1000. Any unbudgeted expenditure over £5000 requires the approval of the Board.
A.1.9. Exceptions. The following exceptions apply to normal authorisation limits:
a. Payments from the Charity fund to other Service and Service related charities may be signed off by the Regimental Secretary.
b. Should the Board authorise expenditure and the amount has been agreed and recorded as such in the Minutes in a previous financial year, the Regimental Secretary and another signatory may sign the payment request even if it is over £1,000.
A.1.10. Signatories. The approved signatory list shows who is able to sign on which account, and underlined/highlighted is the primary signatory. Sally to update
A.1.11. Donations/ Legacies. All donations and legacies, letter and actual cheques, are to be seen by the Regimental Secretary. The appropriate member of staff will draft a thank-you letter, which will mention the amount and fund, for the Regimental Secretary’s signature. The letter will act as the receipt unless a specific receipt is requested. All legacy correspondence is to be kept in accordance with charity commission regulations.
a. It is recommended that all donations and legacies are made with no purpose assigned to them to avoid the need for restricted funds.
A.1.12. Irregularities. All irregularities, incorrect procedures or possible fraudulent actions are to be reported to the Regimental Secretary and Chair straight away. Major fraudulent events are to be reported to the police and charity commission.
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(Version 2019.1 updated November 2019)