Davenham Players Theatre: Financial Controls Policy
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Financial Controls Policy: Davenham Players Theatre
- Introduction
1.1 Financial records will be kept so that Davenham Players can:
(a) Meet its legal and other obligations, eg Charities Acts, Company Law, HMRC and common law.
(b) Enable the committee and the trustees to be in proper financial control of Davenham Players.
(c) Enable Davenham Players to meet the contractual obligations and requirements of funders.
(d) Demonstrate to members that appropriate financial controls are in place
1.2 Davenham Players will keep a proper accounting system, which will include:
(a) A cashbook analysing all the transactions in Davenham Players’ bank account(s). This maybe a computer package, excel or paper.
(b) A petty cash book if cash payments are being made.
1.3 The financial year will end on the 30th June each year.
1.4 Accounts will be drawn up after each financial year within three months of the end of the year and presented to the next Annual General Meeting.
1.5 Prior to the start of each financial year, the committee will approve a budgeted income and expenditure account for the following year.
1.6 A report comparing actual income and expenditure with the budget will be presented to the committee or trustees every three months.
1.7 A cash flow will be produced each month if the charity is in financial difficulties or reserves are less than three months expenditure.
1.8 The AGM will appoint an appropriately qualified independent examiner to examine the accounts for presentation to the next AGM, filing with the Charity Commission when the appropriate threshold is exceeded and, if appropriate, filing with Companies House.
1.9 Within two months of each production the Treasurer will report to the committee on the income and expenditure relating to that production.
Davenham Players Theatre: Financial Controls Policy
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2.1 Davenham Players bank with Nat West, Lloyds and CAF. Accounts are held in the name of Davenham Players. The following accounts will be maintained:
Nat West Account
CAF Project Account
CAF Cash Account
Lloyds Bar Account
2.2 The bank mandate (list of people who can sign authorise electronic payments on the organisations behalf) will always be approved and minuted by the committee and/or the trustees as will all the changes to it.
2.3 Davenham Players will require the bank to provide statements every month or access to electronic statements. These will be reconciled with the bookkeeping system at least every three months and the treasurer will spot check that this reconciliation has been done at least twice a year, sign the reconciliation document accordingly.
2.3
Davenham Players will not use any other bank or financial institution or use overdraft facilities or loan without of the agreement of the committee. - Receipts (income)
3.1 All monies received will be recorded promptly in the bookkeeping system and banked without delay (note this includes sundry receipts such as payment for telephone calls, photocopying etc). Davenham Players will maintain files of documentation to back this up.
3.2 Money credited to the bank electronically.
Davenham Players will issue reference numbers to customers for them to use when making electronic payments, to ensure that receipts into the bank account can be traced to the customer easily.
Davenham Players will set a limit of £10,000 for the maximum balance for the account whose details are publicised widely for the receipt of payments.
Davenham Players runs a form of electronic bookings for its customers and will ensure that the system is reconciled to the bookkeeping system and that all customers who should be invoiced are invoiced.
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Davenham Players will keep a record of aged debtors and contact debtors every month. - Internet Purchases
When purchases are made over the internet Davenham Players will ensure that only well know bon a fide sites are used for purchasing and that they have appropriate security as illustrated by a lock padlock in the bottom right hand side of the screen when a payment is being made. Such purchases will be properly authorised in a similar way to other purchases. - Payments (expenditure)
The aim is to ensure that all expenditure is on Davenham Players’ business and is properly authorised and that this can be demonstrated. The latest approved budget provides the account signatories with authority to spend up to the budgeted expenditure, not beyond it.
5.1 Electronic banking.
Each signatory will have a unique password which will be made up of lower and upper case letters, numbers and symbols.
The Treasurer and Chairperson will be able to access the electronic banking system for the purposes of putting transactions onto the system for authorisation by the signatories and for assessing bank statements.
The Treasurer and/or Chairperson will check that purchases have been properly authorised and when appropriate there is evidence that goods in good condition or proper services have been received.
The Treasurer and/or Chairperson will scan and e-mail invoices and evidence of authorisation to the signatories.
The Treasurer will check and enter the suppliers sort code, account number, account name into the system and provide these by e-mail to the signatories.
The signatories will check the payment details sort code, account number, invoice and amount. If these are accurate the signatory will authorise the payment.
Following authorisation the signatory will e-mail the administrator to confirm their authorisation. This e-mail will act as evidence for the Independent Examiner as to who authorised the payment.
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The Chairperson and Treasurer may also be a signatory. - PayPal
At present Davenham Players does not have a PayPal account. - Payment documentation
7.1 Every payment out of Davenham Players’ bank accounts will be evidenced by an original invoice (never against a supplier’s statement or final demand). That original invoice will be retained by the Charity and filed. The account signatory should ensure that it is referenced with:
Electronic authorisation reference
Date payment made electronically
Amount of payment
Who signed or authorised the payment.
7.2 The only exceptions to electronic payments not being supported by an original invoice would be for such items as advanced booking fees for a future course, deposit for a venue, VAT, etc.
7.3 Wages and Salaries. Davenham Players is staffed by volunteers so this is not applicable at present.
7.4 Davenham Players does not use petty cash.
7.5 Expenses / allowances. Davenham Players will, if asked, reimburse expenditure paid for personally by volunteers, providing:
Fares are evidenced by tickets.
Other expenditure is evidenced by original receipts.
Car mileage is based on local authority scales.
No signatory signs for the payment of expenses to themselves, authorise electronic payments to themselves. - Signatures and cash cards
8.1 Davenham Players no longer issues cheques.
8.2 Electronic bank payments will be signed by the number of people required by the relevant bank’s procedures.
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8.3 Hole in the wall type cash cards access any of the charities bank accounts will not be used and if issued by the bank they will be immediately cut in half. Davenham Players holds a debit card for use for certain types of payments when necessary. It’s use is regulated by the Treasurer and Chairperson. - Other undertakings
9.1 Davenham Players does not accept liability for any financial commitment unless properly authorised. Any orders placed or undertakings given, the financial consequences of which are, prima facie, likely to exceed in total £500, must be authorised and minuted by the committee. In exceptional circumstances such undertakings can be made with the Chairperson’s approval who will then provide full details to the next meeting of the committee. (This covers such items as the new service contracts, office equipment, purchase and hire).
9.2 All fundraising and grant applications made on behalf of the organisation will be done in the name of the Davenham Players with the approval of the committee or in urgent situations the approval of the Chairperson who will provide full details to the next committee meeting.
9.3 Copies of grant applications will be kept and available to the committee on request. When bids are made using internet portals electronic or paper copies of the bid will be kept.
9.4 Any funding contracts or grant acceptance documentation will be brought to the committee’s attention. In urgent situations this may be by e-mail to all committee members.
10 Cash and Cashing Up Sheets
10.1 All cash floats and cash takings will be secured in the safe in the Davenham Players kitchen.
10.2 One key to the safe will be held by each of Chairperson, Treasurer and Bar Manager. The key will not be passed to any other person, however briefly unless approved in advance by the committee.
10.3 Immediately following any event all cash and card reader takings will be counted and witnessed in accordance with the cashing up procedure agreed by the committee. All cash, card reader printouts, cashing up sheets, receipts relating to the event will be placed in the safe by one of the key holders listed in 10.2 immediately after the event.
10.4 Any cash received from members or others at any other time (e.g. membership subs, payment for scripts etc) will be posted in an envelope into
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the locked post-box in the Davenham Players kitchen for the Treasurer to collect and process.
10.5 No cash, cashing up sheets, record sheets will be removed from the premises unless by the Treasurer for banking or account recording purposes. - Other rules
11.1 Davenham Players will adhere to good practice in relation to its finances at all times, e.g. when relevant it will set up and maintain a Fixed Asset Register stating the date of purchase, cost, serial numbers and normal location. Additionally Davenham Players will maintain a property record of items of significant value, with an appropriate record of their use.
11.2.1
Davenham Players will maintain up to date good quality antivirus and anti- phishing software on all computers that connect to the internet.
This policy Version 1.1 was adopted by the committee on 30th April 2025
Next review date is April 2026
