Financial Management Policy

• Board of Trustees: The board has overall responsibility for the financial management of the charity.
• Finance Committee: A finance committee may be established to oversee financial matters and report to the board.

       • Financial Responsibilities: The board of trustees collectively assumes the financial responsibilities, ensuring proper financial controls are in place.

• Budgeting: An annual budget will be prepared and approved by the board. The budget will include all expected income and expenditure.

       • Financial Forecasting: Regular financial forecasts will be prepared to monitor performance against the budget and to make informed decisions.

• Authorisation: All expenditure must be authorised in accordance with the charity’s authorisation procedures.
• Procurement: The charity will seek to obtain value for money in all purchases and will follow competitive procurement processes where appropriate.

       • Payments: Payments will be made in a timely manner and recorded accurately.

• Internal Controls: The charity will maintain a system of internal controls to safeguard assets, ensure accuracy of financial records, and prevent fraud.
• Bank Accounts: All bank accounts will be operated in the name of Not A Phase. Access to bank accounts will be limited to authorised individuals.

       • Cash Handling: Cash handling procedures will be in place to ensure the security of cash and prevent misappropriation.

• Annual Accounts: Annual accounts will be prepared in accordance with relevant accounting standards and submitted to the Charity Commission and other regulatory bodies as required.

       • Audit and Review: The charity’s financial statements will be independently audited or reviewed in accordance with regulatory requirements.

• Purpose: The reserves policy ensures that Not A Phase maintains a level of reserves that enables the charity to continue operating for a minimum period of three months in the event of unforeseen circumstances.
• Target Reserves Level: For the financial year, it has been agreed that a central reserve of £50,000 will be maintained. This amount is reviewed annually to ensure it remains appropriate for the charity’s needs.
• Calculation of Reserves: The target reserves level is calculated based on the charity’s annual operating costs, ensuring that the reserves can cover at least three months of essential expenditures.
• Use of Reserves: Reserves are intended to be used in exceptional circumstances, such as a sudden drop in income, unexpected costs, or other financial crises. The use of reserves must be authorised by the board of trustees.
• Monitoring and Review: The reserves level will be monitored regularly as part of the charity’s financial reporting process. The reserves policy will be reviewed annually by the board to ensure it remains relevant and effective.

• Risk Register: A financial risk register will be maintained and reviewed regularly to identify and manage financial risks.

       • Insurance: Appropriate insurance cover will be maintained to protect the charity against potential financial losses.

• Anti-Fraud Policy: The charity will maintain an anti-fraud policy and procedures to prevent, detect, and respond to fraud.
• Reporting: Any suspected fraud must be reported immediately to the board and investigated in accordance with the anti-fraud policy.

This policy will be reviewed annually and updated as necessary to ensure it remains relevant and effective.

For further information or to discuss financial management matters, please contact:

• Trustee Responsible for Financial Oversight: Danielle St. James – danielle@notaphase.org