Financial Controls Policy

Walsall Community Active Projects CIC

Company number 17051741

Financial Controls Policy

---

1. Statement of Intent

Walsall Community Active Projects CIC is committed to handling money honestly, carefully and transparently. As a community interest company, our funds are held for the benefit of the community, and we have a duty to use them well.

This policy sets out our day-to-day financial controls. It is supported by our Misuse of Funds and Fraud Protection Policy, Reserves Policy and Subsidy Control Policy.

2. Principles

Our financial management is based on five principles:

• Transparency: our finances are open to scrutiny by our Board, funders, regulators and the public.
• Accountability: everyone handling money is responsible for following our rules.
• Proportionality: controls match the size and risk of the activity.
• Segregation of duties: no one person controls a financial transaction from start to finish where this can be avoided.
• Value for money: we make sound decisions about how funds are spent.

3. Roles and Responsibilities

Board of Directors

• Approves budgets, annual accounts and key financial decisions
• Reviews financial reports at least quarterly
• Appoints accountants and (where required) independent examiners or auditors
• Approves reserves levels and significant changes

Founder / Finance Lead

• Manages day-to-day finances within agreed budgets
• Maintains accurate, up-to-date financial records
• Produces regular reports for the Board
• Liaises with the accountant, bank and funders

All Staff and Volunteers

• Follow procedures for income, expenditure and expenses
• Keep receipts and records
• Report concerns immediately

4. Banking

We will:

• Hold our main account with a reputable UK bank
• Have at least two authorised signatories on every account
• Require two authorisations for payments above £500
• Never share login details or PINs
• Use online banking with two-factor authentication
• Reconcile bank statements monthly
• Not use personal accounts to hold organisational funds

5. Income

All income will be:

• Recorded promptly in our accounting system
• Banked within 5 working days, or as soon as practical
• Cross-checked against bookings, invoices or grant agreements

Cash income will be:

• Counted by two people where possible
• Recorded on a cash income sheet
• Banked in full, never used to pay expenses directly

6. Expenditure

All expenditure must be:

• Within an approved budget line
• Authorised in line with our delegation limits
• Supported by an invoice, receipt or other evidence
• Recorded in our accounting system

Our delegation limits are:

• Up to £500: Founder / Finance Lead
• £501 to £5,000: Founder plus one other Director
• Over £5,000: Board approval required

(These figures can be reviewed by the Board as the organisation grows.)

7. Purchasing and Suppliers

For significant purchases:

• Up to £1,000: one written quote
• £1,001 to £5,000: at least two written quotes
• Over £5,000: at least three written quotes and Board approval

We will:

• Check that suppliers are reputable and properly registered where required
• Avoid being tied to a single supplier without good reason
• Declare any personal connection to a supplier in line with our Conflict of Interest Policy

8. Expenses and Reimbursements

Staff and volunteers can claim reasonable out-of-pocket expenses, including:

• Travel by public transport at standard fares
• Mileage at HMRC-approved rates (currently 45p per mile for the first 10,000 miles, then 25p)
• Reasonable meal costs on long trips
• Approved materials and equipment

All claims must:

• Be made on our expenses form
• Include receipts wherever possible
• Be submitted within 30 days
• Be approved by a line manager or Director (not the claimant)

9. Payroll

We will:

• Use a payroll system that meets HMRC Real Time Information requirements
• Pay staff through PAYE at the agreed rate, on the agreed date
• Make pension contributions in line with auto-enrolment duties
• Keep payroll records securely and confidentially

10. Petty Cash

If we hold petty cash, we will:

• Limit holdings to £100 in any one place
• Keep cash in a locked tin or safe
• Record every transaction on a petty cash sheet
• Reconcile petty cash at least monthly

11. Restricted Funds

Money given for a specific purpose (such as a grant for a particular project) will be:

• Recorded separately in our accounts
• Spent only on the purpose for which it was given
• Reported to the funder as required
• Returned to the funder if it cannot be used for the agreed purpose, in line with the funding agreement

12. Budgeting and Reporting

We will:

• Set an annual budget, approved by the Board
• Review budget against actual spend at least quarterly
• Report key financial information to the Board at every meeting
• Provide funder reports on time and in the format required

13. Annual Accounts

Each year we will:

• Prepare annual accounts in line with company law
• Submit them to Companies House and the CIC Regulator within statutory deadlines
• File a Community Interest Company Report (CIC34)
• File a Confirmation Statement
• Have accounts independently examined or audited if required by funders or law

14. Insurance

We hold appropriate insurance for our activities, including public liability, employers' liability, trustee indemnity and any cover required by funders or partner venues.

15. Records and Retention

We keep financial records for at least 6 years, in line with HMRC requirements. Records are held securely on our accounting system and in locked storage where appropriate.

16. Concerns

Any concerns about financial wrongdoing must be raised under our Whistleblowing Policy or our Misuse of Funds and Fraud Protection Policy.

---

Policy Review

This policy was adopted on 14 February 2026 and will be reviewed annually, with the next scheduled review in February 2027. It will also be reviewed earlier if there are significant changes in legislation, guidance, or our activities.

All staff, volunteers and trustees will be made aware of any updates and asked to confirm they have read and understood the revised version.

Signed on behalf of the Board