Resource Centre Financial Management Policy

Trustees, Directors and Management Committee

The Trustees of B&H SWET Ltd are responsible in law for ensuring the solvency and financial probity of the Resource Centre. The Trustees are also the Directors of the company and all are members of the Management Committee.

Under the Memorandum & Articles of the company, the Management Committee has the duty to exercise overall control of the policy and general management, including the financial affairs, of the Resource Centre.  The Committee delegates day-to-day financial matters to the staff team.

The Management Committee

1. meets at least once a quarter and holds an AGM of the company;
2. ensures that the administration and activities of the Resource Centre are at all times within the law and within the aims & objects of the charity;
3. sets an annual budget and monitors income & expenditure against the budget;
4. considers quarterly finance reports and monitors the Centre’s cash-flow;
5. assesses the projected performance for the year, revising the budget where necessary;
6. ensures that the accounts are examined annually by a chartered accountant and that a compilation report of the accounts and a Directors’/Trustees’ annual report are prepared in accordance with charity and company law (the gross income of the charitable company is currently over £90,000 but below £250,000);
7. carries out financial forward planning and ensures that the Resource Centre has a programme of fundraising and income-generation aimed at maintaining the Centre’s financial security;
8. ensures that the most effective use is made of the Centre’s income, including any money not required for immediate expenditure;
9. ensures that all income due to the Centre is received and monitors the procedures relating to its trading activities;
10. ensures that grants and fees from the city council and other bodies are used according to the terms of the grant agreement;
11. ensures that the Centre does not take on any obligations which it may be unable to meet;
12. oversees internal systems of financial control to ensure that they are both rigorous and observed by the staff team.

The Management Committee as a whole is responsible for the Centre’s financial affairs and there is no post of Treasurer.  Committee members receive basic training in financial forward planning and reading financial reports and accounts.  Committee members may at any time arrange to examine the Centre’s financial records or discuss financial or fundraising issues with staff.

Staff team

The staff team is responsible for day-to-day financial matters and must adhere to the attached Financial Rules.  The Centre’s workload is divided into a number of areas of work (sections) and staff cover the workload on a team basis.

One member of staff has overall responsibility for day-to-day financial matters and records and for financial reports.  This member of staff is directly responsible to the Management Committee and attends each quarterly meeting to present reports, as well as liaising regularly with the chair and vice-chair.

The Finance section

1. prepares records of staff wages and makes tax and national insurance payments to the Inland Revenue;
2. pays the quarterly licence fee (rent) to Brighton Unemployed Centre Families Project;
3. keeps full records of income & expenditure and monitors stock and debt control;
4. keeps VAT records and submits quarterly returns to Customs & Excise;
5. monitors the Centre’s financial performance, including doing a monthly bank reconciliation and trial balance;
6. monitors income & expenditure on each piece of equipment or service and makes proposals to the staff team on charges to user-groups;
7. prepares the necessary budget recommendations and detailed financial reports, including cash-flow analysis and projected out-turns, to enable the Management Committee to exercise effective control;
8. prepares fundraising reports and any other financial reports required by the Management Committee to carry out its duties;
9. prepares the annual accounts for examination and submits the final accounts and reports to the Charity Commission and Registrar of Companies;
10. maintains a register of the charity’s assets;
11. arranges insurance to cover employer’s and public liability and risks to equipment and stock.

The Development & Fundraising section

1. writes reports and recommendations on the development of the Centre’s work for discussion by the Management Committee and prepares the 3-year rolling programme of work;
2. prepares estimates of expenditure and funding targets for the three years ahead;
3. investigates and follows up all appropriate sources of funding, including local and national government, charitable trusts and businesses;
4. provides monitoring information and reports, including financial information, to funders and to the Management Committee.