Financial Management Barnet Federation of Horticultural & Allotment Societies

Financial Responsibility Who is responsible for managing the finances? Who are they responsible to? – Funders (if there are any) – Members – Statutory bodies (HMRC, Charity Commission etc.) What are they expected to do? – What is good financial management?

Financial Planning Setting a budget – This year – Next year Budgeting for overheads Budgeting for projects Cash Flow Planning for risks, contingency and reserves

Financial Controls Who will decide where the money is spent? What criteria should they use? How often should a financial report be given? What should a financial report contain? Where will the bank account be held? Who will look after the cheque book? How will be the treasurer be selected?

Role of the Treasurer To ensure that financial records are kept To report to the Management Committee To ensure that the finances are properly used – spent in accordance with objectives – spent according to the wishes of the donor To oversee the financial planning for the organisation. To oversee the finance sub committee (if there is one)

Keeping the books Cash Book – record of all transactions – Income – Expenditure – Keep separate Petty cash book – record of all cash transactions Income and Expenditure Account Balance Sheet

Checks and Balances Separation of duties – One person authorises, another records Two cheque signatories on each cheque – Or online authorisation Reconciliations Independent Examination

Annual Accounts Audit – is it needed? Independent Examination – Independent verification that the books are in order – Independent verification that the accounts as presented are a fair representation of the organisations affairs Agreed at the AGM

Basic Principles Consistency Accuracy Transparency Looking Ahead