Finance & Fundraising Policy: Difference between revisions

From Wikimedia UK
Jump to navigation Jump to search
(Use // for http vs https-neutral links)
m (Sharon Mitcheson (WMUK) moved page Finance Policy to Finance & Fundraising Policy: Out of date - updated to include Fundraising)
 
(15 intermediate revisions by 5 users not shown)
Line 1: Line 1:
{{BoardApproved|office:Decisions/Scheme of Delegation|29 April 2013|type=policy|
Date Created: August 2018
history =
{{BoardApprovedHistory | office:Decisions/Scheme of Delegation | 29 April 2013 | Revision as per adoption of the [[Scheme of Delegation]] | 39455}}
{{BoardApprovedHistory | Minutes 26Mar13#Amendment to Finance Policy | 26 March 2013 | Revision of car mileage rates |42454 | lastid=39455}}
* [[Minutes 9Feb13|9 Feb 2013]] - [//wikimedia.org.uk/w/index.php?title=Finance_Policy&oldid=37690 Pre-Scheme of Delegation revision approved]
* [[Minutes_8Sep12#Finance_policies_and_recommendation_regarding_depreciation|8 Sep 2012]] - [//wikimedia.org.uk/w/index.php?title=Finance_Policy/2012&oldid=28652 Revision approved]
* 24 Jan 2012 - [//wikimedia.org.uk/w/index.php?title=Finance_Policy/2012&oldid=18665 Revision approved]
* 2011 - [[2011 Budget/Controls]]
| lastid=42454
}}
{{TOC right}}


== 1. Introduction ==
Date Reviewed:  November 2023


As a [[charity status|registered Charity]], and a very public one at that, it is imperative that we institute financial controls that satisfy the expectations of the Charity Commission, the Wikimedia community and the Wikimedia Foundation. This is also a vital part of attainment of our [[:wikipedia:PQASSO|PQASSO]] accreditation.
Date Approved: March 2024


This policy reflects two major developments in the chapter's organisational structure, namely the appointment of our first permanent staff on 1 October 2011 followed by the approval of our charity status by the Charity Commission on 5 November 2011 with its duties and responsibility.
Next Date of Approval:  March 2026{{TOC right}}


As part of this policy, the system is set out where the Board of Trustees agrees the annual plan with financial allocations for different activity areas, projects and grants. The staff then administer the spending and the reporting against budgets, with the Treasurer having responsibility for ensuring appropriate expenditure, reporting and auditing. Volunteers receive support through the expeditious payment of expenses against activity budgets, and grants as agreed by the board.
== Purpose ==
Wikimedia UK is a registered charity and company limited by guarantee.  We are required to maintain accounting records and controls to satisfy the requirements of the Companies Act 2006 and Charities Act 2011.The Board of Directors are additionally the Board of Trustees of the charity, and have a legal duty to safeguard its assets and apply them exclusively to the furtherance of its declared charitable aims and objectives.  They delegate the management of the organisation to the Chief Executive Officer (CEO) who leads the company in strategic, financial, and programming as well as partnership and income generation. The CEO is supported by the Senior Management Team (at the time of writing this consists of a Head of Finance & Operations, Head of Development & Communications, and Director of Programmes & Evaluation), as well as the full staff team to deliver Wikimedia UK’s vision and objectives..


The policy has been developed by bringing together best practice in the UK Charity Sector with what already exists within Wikimedia UK to create a robust framework that will be practical, proportional and secure. Charity commission guidance has been applied where appropriate and discussions have been had with Jon Worsop at UHY Nottingham, our accountants, and a meeting with UHY London.


This policy is intended to be flexible enough to allow for the expected growth of the chapter over the next few years. It is effective from 1 February 2012. In some areas there will be a period of transition where this policy is not fully implemented at first. These areas, along with any other exceptions, will be included in the [[Chief Executive]]'s report to each Board meeting following the effective date. The policy was reviewed for operational effectiveness in October 2012, and will be reviewed annually thereafter.


The policy may, in exceptional circumstances, be overridden with the approval of the Chief Executive. Any such override will be immediately reported by the Chief Executive to the Board. A board decision may also override the policy in exceptional circumstances.
These requirements are expanded by the key principles listed in section 2 ''Responsibilities''.  


The points of each policy area are given below, with the responsible role for ensuring that the policy is adhered to given in brackets.
Within this Purpose the Policy may, in exceptional circumstances, be overridden by the CEO by prior agreement with the Chair of Trustees or Treasurer as an emergency decision between Board Meetings. Any such override will be immediately reported by the CEO to the Board.


== 2. Key Principles ==
The CEO and Head of Finance & Operations are responsible for ensuring that the Policy is adhered to, in conjunction with, and subject to the overall legal responsibility of, the board of trustees.


The key principles underlying this policy are:
Definitions of Staff Roles:


# That our assets are safeguarded from loss, damage or fraud
# The CEO is responsible to the Board of Trustees for the management of the company, its staff, resources, and strategic direction of the company.
# That our assets are applied to our objects in the most effective and efficient way
# Head of Finance & Operations is responsible to the CEO for overseeing top level finances for the company including generating the QFMR (Quarterly Financial Management Report), company accounts, and strategic financial reporting. They also ensure that the team and company work within the scope of this policy.
# That volunteers are facilitated to help deliver the Wikimedia UK mission.  
# Finance & Operations Coordinator is responsible to the Head of Finance & Operations for day-to-day management of the company’s resources, including ensuring that operations and reporting follow established policies.  They also maintain accurate and timely records for the project’s internal finance systems, including logging payments and invoices received, paying invoices via payment software, and raising invoices.  They will support the Head of Finance & Operations with the monthly reconciliations on XERO software and ensure the annual accounts are filed with the relevant bodies The role also includes general administrative support, including schedules, invoicing, and setting up bank payments.
# That our finances and assets are administered in a way that identifies and manages risk
# Budget Holders maintain an overview of their project budgets, working closely with the Head of Finance and Operations.  They prepare project re-forecasting budgets (with the Head of Finance and Operations) with an eye for financial detail to ensure that they are keeping in line with approved project budgets.
# That the controls in place are proportionate to the risks
# That the highest standard of record keeping and financial reporting is maintained
# That financial reporting is clearly expressed and highly transparent
# That duties are sufficiently segregated in order not to overburden any individual or allow an excessive concentration of authority


== 3. Personal integrity ==
== Responsibilities ==
Effective financial controls rely on the personal integrity of all the people involved - including those making payments, claiming for reimbursement, authorising, monitoring or controlling budgets.
The Trustees of Wikimedia UK have ultimate responsibility for financial decisions taken about the company.  Any Trustee can access all financial records and systems at any time.
# We will follow Charity Commission guidance regarding checks on trustees prior to appointment. (Administrator)
# Where issues are revealed or disclosed, these will be treated sensitively and discretely, having due regard for the privacy of the individual but ensuring that chapters' assets are not put at risk (CE)
# Compliance with the [[Conflict of Interest policy]] will be monitored at least annually (Chair/Secretary/CE)


==4. Income==
The financial management of the company is delegated to the Head of Finance & Operations, overseen by the CEO. The Head of Finance & Operations aims to meet the CEO monthly to discuss financial reports and ensure that the company is financially sound.  The Finance & Operations Coordinator reconciles the banking on a weekly basis.  


# Post is held securely before collection (CE)
It is the aim of the organisation to appoint a Treasurer and put an Audit & Risk Committee in place, which is chaired by a member of the Board. The committee consists of the Treasurer, CEO, Head of Finance & Operations, and the Chair of ARC, as well as additional contributors who are appointed by ARC when needed. The Committee meets as required to review accounts, budgets, projections, and procedures. The Committee reports back to the Board through The Treasurer and Minutes of its meetings. The Audit & Risk Committee has responsibility for:
# Post is opened in the presence of two 'unrelated individuals' (i.e. people that are not close relatives by blood or marriage and are not living as part of the same household) with rotating staff where practical. (CE)
# All cheques and cash received held in a secure, locked place prior to banking (Administrator)
# All cheques and cash received recorded in a register (Administrator/Fundraiser)
# Cash received as recorded in the register is reconciled against paying in slips and bank statements at least monthly (Administrator with CE or Treasurer).
# Accurate Gift Aid records are kept and timely returns made. (Fundraiser)
# Regular spot checks are to be undertaken to ensure that Gift Aid declarations and claims are accurate. (Fundraiser with CE or Treasurer)
# Spot checks are to be undertaken to ensure that the funds from any Gift Aid claims are received and reconciled. (Fundraiser with CE or Treasurer)
# Appropriate controls are put in place for any Trading Income (CE)
# All donations in kind that are greater in value than £1,000 are duly recorded, but not monetized in the accounting records. (Administrator)
# All donations received in cash, cheque, bank transfer, Paypal, text, direct debit or other fundraising mechanism are to be promptly thanked and recorded (Fundraiser)
# All donor communication received by the chapter is responded to at least as quickly enough to comply with the Fundraising Agreement (Fundraiser)
# All direct debit instructions are processed in compliance with the Direct Debit regulations (Administrator/Fundraiser)
# Where restricted donations are received, records are kept of the restriction and their own budget lines will be maintained within the accounting records. (Administrator)
# Adequate monitoring is undertaken to ensure there is no abuse of public collections or fundraising events (CE)
# All donor data is encrypted and password protected in accordance with the Charity's data protection policies (Fundraiser)


==5. Banking==
* Monitoring and reviewing annual and departmental budgets, including performance, against budget and potential recovery of overhead costs
* Monitoring proper risk assessment process before agreeing activity and appraise viability
* Ensuring that adequate authorisation procedures are being followed
* Monitoring funding and performance for any investment of charity funds


# All bank accounts will be held in the name of Wikimedia UK (Administrator)
The Head of Finance & Operations is responsible for the preparation of detailed budgets and financial reports that are presented to the Trustees at quarterly meetings.  The Management Accounts, including the QFMR Summary, Balance Sheet and departmental budgets, are presented to the Treasurer in advance of the meeting to discuss any issues.  The following papers are presented to the board:
# No account will be opened or closed without Board authorisation (Administrator)
# Bank payments (cheque or BACS) require at least two signatories, unless the amount is for less than £250, in which case one signatory is required (Administrator)
# Signatories on all bank accounts shall be decided by Board resolution (Administrator)
# Records of all signatories on all accounts are kept in a single document (Administrator)
# Signatories will be a combination of the CE and trustees (Administrator)
# The signatories to the current account are not also signatories to deposit accounts (Administrator)
# The CE will only be a signatory to current accounts, and will only be so in a dual signatory system (Administrator)
# No signatory can make payments to themselves
# No third party shall be allowed to open accounts in our name (CE)
# The credit rating, charges and interest of all banks used shall be reviewed at least annually. (Administrator and Treasurer reporting to the Board)
# Bank reconciliations are prepared monthly for all accounts. (Administrator reporting to Treasurer & CE)
# Accounting records clearly record all interest receipts (Administrator)
# A record is kept of all cheques written (Administrator & Signatories)
# After each electronic banking transaction a printout is taken showing details of that transaction and stored as part of the accounting records (Administrator)
# Paper copies of all bank statements are retained and published on the office wiki (Administrator)
# A reserve policy is reviewed each year as part of the annual budget and year end (Treasurer)
# The balance of the current account is kept to a minimum, having regard for forecast cashflow requirements. Surplus cash is invested in deposit accounts (Administrator)
# As a short-term measure in present conditions, money held with any single financial institution should be no more than £85,000 (the Government guarantee limit), unless specifically authorised (CE/Treasurer/Administrator)
# Choice of deposit accounts will take account of credit worthiness, qualification for the government guarantee scheme (ie UK banks only), deposit insurance and interest rate and will ensure that the failure of one investment or institution would not have a major impact on the chapter. (Administrator reporting through the Treasurer to the Board)
# Records of all deposits made are maintained with regular reports (Administrator)
# All PCs with banking access be password protected in accordance with Wikimedia UK's data protection policies (Administrator)
# All passwords are kept secret in accordance with Wikimedia UK's data protection policies (Administrator and all users)
# All passwords are changed regularly and always following changes in authorised staff and trustees, in accordance with Wikimedia UK's data protection policies (Administrator and all users)
# Adequate training is provided to all involved in on-line financial transactions. (CE)


==6. Assets==
* Trial Balance as at the last day of the quarter
* Balance Sheet as at the last day of the quarter
* Management Accounts (Budget v. Actuals) showing figures at end of quarter with explanations of variance
* Amended Company Budget projections for the rest of financial year are reviewed following End of Quarter 2 and therefore endorsed by Trustees
* Company Cash Flow forecast
* A financial paper highlighting key figures, any areas for concern and outlining possible solutions.


# Any individual item valued at over £500 is recorded in the fixed asset register listing their purchase price, purchase date, description, any identifying marks and location. (Administrator)
The Head of Finance & Operations is also responsible for overseeing the production of annual accounts and liaising with the auditors.  
# All assets are safeguarded from loss or damage (CE)
# Adequate insurance cover is maintained to protect against any substantial loss. (CE with Administrator)
# The value of any such asset will be depreciated on a three-year, straight line basis.


==7. Wages and Salaries==
The Finance & Operations Coordinator is responsible for ensuring that company book-keeping is completed and that all financial records are kept up to date and stored appropriately.  


# Full records of all payroll payments and deductions are maintained. (Our agency monitored by Administrator)
Budget Holders work closely with the Head of Finance & Operations to ensure that project budgets are managed appropriately and that restricted funds are spent in line with projections. The Budget Holders meet with the Head of Finance & Operations monthly to consolidate expenditure for the completed month and reschedule the remaining expenditure as required.
# Monthly payroll reports from bureau are reviewed by Chief Exectutive with administrator
# Paper payroll records are held separately from any paper Human Resources files (Administrator)
# Statutory deductions are paid to HMRC monthly (Our agency monitored by Administrator)
# Year end payroll declarations are completed (P35, P11D and P60s) (Our agency monitored by Administrator)
# Minimum wage legislation is adhered to. (Our agency monitored by Administrator. Trustees to oversee.)
# For staff based in London, the London Living Wage is adhered to as a minimum. (Administrator) 
# No unauthorised deductions are taken from pay (Our agency monitored by Administrator)
# All employees have a proper contract of employment. (CE with board support)
# A stakeholder pension scheme is provided for staff to opt in to, the employer contribution to which will be 6 per cent of the employee's salary (CE)
# Procedures are in place to record starters, leavers, changes in salary, overtime, sickness, maternity etc. (Our agency monitored by Administrator)
# Annual appraisal and salary reviews are held based on RPI, performance and market forces (CE or, in the case of the CE, the Board)


==8. Reporting==  
== Key Principles ==
The key principles underlying this Policy are that:


# It is a condition of receipt of expenses that all expenses are published on an appropriate wiki so that the highest standards of transparency are maintained
# Legal obligations to keep adequate records to be able to prepare, publish and file statutory accounts are satisfied
## Individual expense claims are normally published on the office wiki (Administrator) with a summary of the claims posted on the public wiki
# Assets are safeguarded from undue loss, and from misuse, damage or fraud
## Office expenses and the Chief Executive's expenses are published on the public wiki in summary form (Administrator)
# Assets are applied to further our Objects in the most effective and efficient way
# Income and expenditure is regularly monitored against budget. (Administrator)
# Finances and assets are administered in a way that identifies and manages risk
# Monitoring to include management accounts, a comparison of budget to actual figures, an explanation of variances and details of cash flow, card accounts and closing bank balances. (Administrator)
# Controls in place are proportionate to the risks
# Monthly financial reports to be published on the public wiki (Administrator)
# The highest standard of record keeping and financial reporting is maintained
# Budget holders notify responsible staff of detailed plans and budgets (Budget holders)
# Financial reporting is clearly expressed, comprehensive and transparent
# Processing of budget line expenses is the responsibility of staff with regular reporting to the budget holder and the Board. (Staff)
# Duties are sufficiently segregated to satisfy the demands of charity governance
# Accounting records in line with good Charity Commission practice and our accountant's advice are kept to show all transactions. (Staff)
# Annual accounts are prepared and audited in line with the SORP (Statement Of Recommended Practice) (Accountants & Administrator)
# Annual accounts are presented to the AGM for approval and published publicly (Administrator)
# Annual accounts are provided to the Charity Commission, Companies House and the Wikimedia Foundation as required. (Administrator)
# Funds are specifically delegated to the initiatives that are explicitly described in the respective activity plan. Should an initiative not be specifically included in the activity plan, then the Board needs to be notified about the change of purpose of the budget line should the amount affected be equal to or greater than £500.
# The Board must be informed of any expenditure that exceeds £1,000, and the Board must be given a 24 hour period in order to raise objections to this expenditure. Should any trustee object to the expenditure, then a formal decision must be made about said expenditure.
# The Board must formally approve of any expense that exceeds £5,000, excluding recurring expenses (such as salary, pensions and rent).


== 9. Grants==  
== Personal integrity ==
# Grants under the value of £250 that are outside of individual budget lines will be considered via the [[Microgrants]] process.
Effective financial controls rely on the personal integrity of all the people involved - including those making payments, claiming for reimbursement, authorising, monitoring or controlling budgets.
# Grants between the values of £250 and £2,000) may be submitted as a one page document for review by the WMUK board via the [[Macrogrants]] process. See [[Grants/proposal template]] for a checklist of topics to cover in that submission.
# Grants in excess of £2,000, or complex projects involving 4 or more people, should be submitted to the Board for review after a page on this wiki has been created to develop and discuss your proposal.
# Where grants also fall under [[m:Grants:Index|the Wikimedia Foundation's grant processes]], then those grants could first be submitted to Wikimedia UK, and where suitable they may subsequently referred to the WMF with WMUK's approval.
# Grants to the Wikimedia Foundation will be made in line with the advice of our lawyers, with individual transfers being made upon agreement from the Board on the advice of the Treasurer (Treasurer)


== 10. Payments==
# We will apply Charity Commission guidance regarding checks on trustees and members of the senior management team prior to appointment.
# Where issues are revealed or disclosed, these will be treated sensitively and discreetly, having due regard for the privacy of the individual but ensuring that chapters' assets are not put at undue risk.
# Compliance with the Conflict of Interest policy will be monitored at least annually.  


# Clear and public authority levels are agreed by the Board for purchases and payments (within budget lines) as follows: (CE)
== Charity Budget & Management Accounts ==
## Chief Executive: £5,000
The Head of Finance & Operations and Finance & Operations Coordinator work together with Budget Holders to prepare individual departmental budgets for the organisation. This contributes to an annual budget for the organisation, to be signed off by the CEO.  This will then be sent for agreement by the Trustees prior to the start of the financial year (1st February).
## Other staff: £250
# The Chief Executive will, in liaison with relevant budget holders in each case, to seek approval from the Audit & Risk Committee prior to the commitment of expenditure on any one item or set of items per supplier that is in excess of £5,000 and is within the approved budget plan for the year or that is unbudgeted but does not exceed a threshold of £2,000 (CE)
# The Chief Executive is required to seek approval from the Board via the Audit & Risk Committee prior to committing the charity to expenditure on any item or set of items per supplier above £2,000 which is not within the approved budget plan for the year. (CE)


===11. Procurement===
The following timetable is followed:
::''NB: See [[Procurement process]] for an explanation of how to follow this.
# All purchasing must be considered in terms of 'value for money' including:
## Whether the suppliers are reliable and reputable (Budget Holders)
## Whether the costs, measured against similar suppliers, are reasonable (Budget Holders)
# The purchase of any equipment or service over £1,000 must show evidence of comparative quotes having been sought. When the lowest quote is not chosen reasonable arguments must be put forward for this decision. (Budget Holders)
#All successful tenders for services over a threshold of £5,000 should have a mutually acceptable contract signed by both Wikimedia UK and the contractor
#Any records of communications with, or about, tenderers and contractors should be retained for at least three years following the termination of the contracts.
# We shall endeavour to choose suppliers and purchases that reflect the values of the chapter, in particular not-for-profit, open source and free information (Budget Holders)
# We shall endeavour to source local, environmentally friendly and sustainable suppliers where this is possible and does not conflict with another priority (Budget Holders)
# All procurement shall be subject to our [[Conflict of Interest policy]] (Budget Holders)
# We will take regular advice from accountants in order to avoid any unnecessary VAT obligations, where and if appropriate (CE)
# All invoices are checked against goods or services received. (Administrator)
# All invoices are to be paid within the agreed terms unless disputed (Administrator)


===12. Cheque and online payments===
* A first draft budget is prepared by the Head of Finance & Operations during the 3rd quarter of the financial year.
* The draft budget for the year is presented to the Trustees in the September board meeting for adoption in February.  
* At Quarter 2, an amended forecast is presented to the Trustees for information.  


Secure procedures will be instituted for any payment by cheque including:
The budgeting process must include the following provisions:
# Cheques must only be written in presence of documentation supporting the request for the cheque (Signatories)
# No pre-signed cheques may be provided (Signatories)
# Chequebooks kept in secure locked place (Administrator)


Secure procedures will be instituted for payments made with online banking, working within the bank's system procedures to ensure separation of duties, and authorization at the appropriate levels.
* A target for unrestricted funding sufficient to meet anticipated costs including contingencies for issues such as delayed payments of grants and funding, a minimum of 10% of any project costs
* Staff pension, NI and PAYE contributions  
* Potential disruption to the operation of the charity through change of office location


===13. Card payments===
== Budgeting ==
The Board shall agree an annual budget, where possible before the start of the financial year to which it relates to give effect to the operational plan agreed for the year.  Information shall be collected as is necessary to prepare a budget on a direct costs and an absorbed costs basis by the start of each financial year.


# Staff or trustees may be provided a credit or debit card if a clear need can be demonstrated, after approval by the board (Administrator)
The annual budget shall include a projection of income and the reserves position at the end of the forthcoming financial year.  The annual budget and projection of income shall be reviewed by the Audit and Risk Committee (ARC) before presentation to the Board for their agreement.
# Provision of a card can be withdrawn by the Board or by the Chief Executive at any time (Card users, CE and Trustees)
# Individuals receiving a Wikimedia UK card shall agree to a deduction from their salary or other amounts owed to them in the event of improper use (Card users)
# If a card user ceases in their role with the chapter, their cards will be cancelled and destroyed (Administrator)
# All statements will be sent directly to the offices of Wikimedia UK (Administrator)
# All expenses incurred using a card must go through the usual authorization processes (Card users)
# There will be a six monthly review of card use to ensure proper practice. (Administrator and Treasurer)


===14. Regular bank payments===
The agreed annual budget shall be re-forecast if in the opinion of the Chief Executive there is a material change that warrants it and in that event the reforecast budget shall be reviewed and approved by ARC and the Board at their next scheduled meetings.


# There will be a quarterly review to ensure no redundant regular payments (standing orders or direct debits) are being made. If any redundant payments have been made, then a refund will be requested from the payee. (Administrator)
== Audit ==
Accounts shall be prepared annually and audited by registered auditors appointed by the company at the previous Annual General Meeting. Where allowed by charity law the Board may, at its discretion, opt for the statutory accounts to be independently examined instead of audit and references to audited accounts in this policy shall be read to include that option.  The Board shall consider the reasonable requirements of major donors or grantors when exercising this option.


===15. Cash payments===
== End of Year Procedure ==
The Finance & Operations Coordinator works to compile lists of accruals and prepayments for the auditors and is responsible for ensuring that all submissions are made to the HMRC on time and for issuing P60s to all staff members.  


# Cash payments should generally be kept to a minimum, balancing the risks to the chapter against the convenience for individuals. (Administrator)
The Head of Finance & Operations compiles a detailed report showing which restricted funds are to be carried forward to the next financial year. If they have not been spent the balance remains in the account as a restricted fund.  This should be approved by the CEO prior to sending it to the auditors.
# A petty cash system with a float of normally £250 will be maintained. (Administrator)
# Recipients sign for all payments received. (Administrator)
# The petty cash book recorded a running balance of Petty Cash (Administrator)
# The petty cash log sheets will be published publicly monthly (Administrator)
# Regular spot checks of Petty Cash are undertaken by a third party (CE/Trustee)


==16. Reimbursement of Expenses ==
The Head of Finance & Operations also compiles information that represents income and expenditure between different funding streams and a comparison between projects within the company. Copies of all financial information are supplied to the auditors for them to compile the audited accounts.
:''For the record of expense claims by staff and trustees, see [[Trustee Expenses 2012-2013]]''
:''For an expenses claim form, see [[:File:Expenses Claim Form.pdf]]


# A common set of financial controls is applied to all expense payments, without exception, to all those involved with the chapter whether staff, trustees or other volunteers. (CE)
== Audit Checklist ==
# We seek to involve people in our activities that reflects the diversity of Wikimedia project users and recognise that not all such people are able to pay for their own out of pocket expenses. We will therefore normally reimburse expenses that are properly incurred for the benefit of the chapter. Advance payment of expenses will be considered where cost may be an obstacle to any person carrying out their activities. (Administrator)
The Finance & Operations Coordinator is responsible for compiling all information needed for the audit of the Charity company accounts.  This includes:
# We have tried to establish a policy that is as easy to use as possible, particularly for volunteers. (Administrator)
# The procedure and policy for expenses is included in all induction training (Administrator)
# Expenses will only be reimbursed if they are approved in principle prior to the expense, are reasonable, are correctly submitted and supported by receipts as appropriate and are properly authorised. (Payer)
# The policy sets out the requirement for the provision of properly identified claims and original receipts. If necessary credit card or bank statements may be acceptable (Payer)
# Claimants are expected to keep the expenses they incur to the lowest reasonable level. (Claimants)
# Authorisers must only authorise claims after they have been checked for accuracy and the correct associated paperwork. Authorisers may not process their own claims. (Authorisers)
# Expense claims must be accurate. Submitting or authorising a false or misleading claim, even if not paid, may damage public confidence in the chapter and will be considered a serious disciplinary matter. For staff members this may result in disciplinary action. In extreme cases, disciplinary actions may include removal of membership and hence, for board members, their directorship under [[Article]] 4. (Claimants/Authorisers)
# Expenses are expected to be submitted within three months, or, for expenses incurred up to two months prior to the accounting year end, by one month after the year end. If expenses are not submitted in time, the Charity may be unable to pay them. This rule ensures that the annual financial statements can be prepared promptly. (Administrator)
# All claims for reimbursement will be paid, unless disputed, by BACS or through petty cash within a week of approval. (Administrator)
# Unless we receive a dispensation, an annual P11d expenses form will be provided for any affected staff (Administrator & Agency)


More detailed areas of expense are detailed below:
# Giving the auditors access to XERO
# Compiling board meeting minutes and AGM minutes for the year
# Compiling company management accounts, including all project budgets and re-forecasts
# All bank statements for the year


===17. Airfare ===
== Banking ==


# Airfares are only repaid at economy class rates.  
# All bank accounts will be held in the name of Wikimedia UK
# Flights not using low cost carriers should be booked through the office with our in-house travel agent to obtain charity rates. (Administrator)
# No account will be opened or closed in the name of the charity without Board authorisation (except that an account that is in the view of ARC redundant may be closed and noted at the next Board meeting).
# When not booking through the office, budget airlines are preferred where available; otherwise the use of standard airlines is acceptable, particularly when flights are of long duration (i.e. over 4 hours), or the cost of a standard airline is comparable to a budget airline. (Administrator)
# Signatories on all bank accounts and electronic banking powers shall be decided by Board resolution.
# Increased costs resulting from travelling at more convenient times are acceptable, providing that it does not significantly increase the cost. (Chief Exec)
# Bank payments or other written instructions require at least two signatories except as described in paragraphs 5 to 8.
# Travel by train is generally preferable to flying so long as it does not take significantly longer, and that it is not significantly more expensive than flying. (Administrator)
# Electronic banking payments will be set-up online and authorised in accordance with the Scheme of Delegation concerning small or recurring payments.
# The Treasurer shall act as the administrator of the electronic banking system.
# The CEO will be a main mandate signatory and can be a signatory to current and deposit accounts
# No signatory or authoriser may authorise payments to themselves as a sole authoriser.
# The credit rating, charges and interest of all banks used shall be reviewed at least annually.
# Bank reconciliations are to be prepared monthly for all accounts including credit, debit or any other type of payment card. These shall be reviewed by the Chief Executive, who may delegate this task to the Director of Finance and Operations.
# All transactions shall be recorded in accordance with standard accountancy practice using software approved by ARC that allows accounts to be produced readily that comply with the requirements of the Charities Statement of Recommended Practice: SORP(FRS102)
# If so specified by a grantor and agreed by the Board income shall be treated as a discrete (restricted) fund and expenditure shall record the fund from which it is made.
# Money held with any single financial institution or group should be no more than the current Government guarantee limit unless specifically authorised.
# Choice of deposit accounts will take account of credit worthiness, qualification for the government guarantee scheme (ie UK banks only) and interest rates.
# Adequate training (in house or otherwise) is to be provided to all involved in online financial transactions.  


===18. Train ===
== Assets ==


# Train fares are generally only repaid at standard rates. First class fares may be reimbursed where the cost is less than standard class plus the reasonable benefits of first class [e.g. internet access and catering]
# A Register of Fixed Assets shall be maintained listing all assets at or above a value determined from time to time by ARC.  
# Claimants should try to travel off-peak wherever possible 
# All physical assets shall be physically verified at least once a year or more frequently where the Head of Finance & Operations considers it appropriate.
# All assets shall be appropriately safeguarded from loss or damage
# Adequate insurance cover shall be maintained to protect against any substantial loss.


===19. Private vehicles===
== Wages and Salaries ==
Wikimedia UK employees are paid on the 28th of each month (or the last working day before this if it falls on a weekend or bank holiday).  The payroll is produced by the Head of Finance & Operations and sent for approval to the CEO in advance of this date. Once approved, this goes to PayPlus Ltd for payroll to be run and produced.


# Travel by private motor vehicle will be reimbursed at the [http://www.hmrc.gov.uk/rates/travel.htm HMRC mileage rates] applying at the time. The additional amount per passenger per mile can be claimed when carrying passengers who are also on WMUK business. As mileage is more likely to be incurred for individual trips than in bulk throughout the year, the higher HMRC rate will be used for the first 150 miles of any round trip; thereafter the lower HMRC rate will be used for the remainder of the miles.
Approval for payroll:
# Individuals are expected to travel by public transport, or private vehicle, wherever possible. Travel by taxi should be considered only if there is no other reasonable option.
# Claimants should ensure that their car insurance allows them to be compensated for travel. This may require them to include use for business purposes on the insurance for the vehicle. The cost of such coverage, or any other insurance coverage including breakdown cover, will not be covered by WMUK beyond the standard rates.
# Toll charges where unavoidable or incurred during peak times will be reimbursed.


===20. Car rental===
* Head of Finance & Operations drafts the Payroll Notes and summary and sends to the CEO for approval.
* CEO receives payroll summary by email, reviews, and signs off.
* Approved payroll summary is sent to PayPlus Ltd to be run.
* All payroll documents sent back to the Head of Finance & Operations for double checking and approval.
* Finance & Operations Coordinator sets up payroll in Unity Trust Bank ahead of the payroll date, including journals in Xero.


# Vehicle rental may be approved in advance where necessary on a case-by-case basis, but would not be reimbursed on a routine basis.
== PAYE Management ==
# For example when necessary to transport bulky items, or if the cost of renting and petrol is less than the cost of private motor vehicle mileage (as described above) or other reasonable transport alternatives.
PAYE payments must be received by the HMRC by the 15th day of the following month. The Finance & Operations Coordinator is responsible for ensuring that all PAYE payments and submissions are kept up to date.  


===21. Insurance===
== Pensions ==
If staff are eligible, they will be auto-enrolled onto a pension scheme (Scottish Widows), in accordance with the Company’s pension auto-enrolment obligations.  


# WMUK Staff and trustees will be covered by the WMUK travel insurance policy when on WMUK business (Administrator)
Full details of the scheme are provided to staff when they enrol, including the minimum contribution level that they will be required to make, the contributions that will be made by Wikimedia UK, and their right to opt out if they do not want to join the scheme. While participating in the scheme, staff agree to worker pension contributions being deducted from their salary.  
# Pre-existing illnesses need to be reported to the insurance cover before travel (Staff and trustees)
# Otherwise WMUK expects, and encourages, all individuals traveling on WMUK business to have obtained the appropriate travel insurance, and will reimburse the cost of this insurance.
# WMUK will not normally reimburse expenses and liabilities incurred that would otherwise have been covered by such insurance.


===22. Companions===
The scheme is subject to its rules as may be amended from time to time, and Wikimedia UK may replace the scheme with another pension scheme at any time.


Where expenses are being reimbursed for people under 18 years old, or for people who are disabled and require assistance, the corresponding travel for their guardian or companion may also be reimbursed, if approved in advance and in line with this policy. (Chief Exec)
== Reporting (internally and externally) ==


===23. Accommodation===
# A Quarterly Financial Management Report (QFMR) approved by ARC shall be presented at each Board meeting held more than one month after a quarter end (April, July, October, January).
# Audited annual accounts shall be filed with the Charity Commission, Companies House, the Wikimedia Foundation and published to members as required.


# Reasonable costs of accommodation while on Wikimedia UK business will be reimbursed.
== Authorisation of expenditure ==
# We expect people to choose accommodation that represent reasonable value. As a guideline this would mean their own room with their own bathroom in a safe area within reasonable distance of the venue they are attending.
Clear and public authority levels are agreed as set out in the scheme of delegation.
# We recognise that the price of accommodation varies geographically and by season.
# When standard accommodation is designated by a conference or workshop, we would normally expect people to stay at that hotel even if alternative, cheaper, options exist.


===24. Incidental expenses - per diems===
All expenditure from any source shall be pre-authorised by a budget holder.
# When agreed with the Office Manager in advance, the option of "per diem" expenses allowance may be paid for those coordinating, facilitating or presenting at Wikimedia events or for those at other events and meetings when acting as the official representative of Wikimedia UK. The per diem rate is intended to cover:
##meals and refreshments, including breakfast, lunch and dinner for the full rate; or either lunch or dinner for the lower rate; in both cases including refreshment ##costs in between meals
##costs of phone calls
##Incidental transport costs (e.g. bus fares, car park charges, short taxi rides) too trivial to submit claims for
#These rates are designed to apply to stays of less than 7 days duration within the UK, the rest of the European Union, and the United States of America. Rates may be altered at the discretion of the Chief Executive and Treasurer for longer stays, other locations, or particular circumstances. Where these items are provided by Wikimedia UK or another party, reasonable deductions, at least equivalent to the benefit, will be deducted from the per diem rate. Should there be any doubt or disagreement, the default of requiring receipts for all expenses shall apply.  If the per diem rates prove inadequate owing to high local costs then individual expenses can be submitted for assessment by the office whose decision will be final.
#Where any individual claims per diem expenses on a recurring basis, the Chief Executive will review the arrangement to ensure that the chapter is not breaking its obligations under minimum wage legislation.
#The normal rates for the per-diem, which may be varied for particular circumstances, are:
##Full day (> 7 hours of activity including travel to and from) with overnight stay : £30 per day
##Full day (> 7 hours of activity including travel to and from) without overnight stay : £20 per day
##Half day (4-7 hours of activity including travel to and from): £15 per day


===25. Other expenses===
== Payments ==
Secure procedures will be agreed for any payment working within the bank's system procedures to ensure separation of duties, and authorisation at the appropriate levels. Payments are set up by the F&O Coordinator and approved by the Head of Finance & Operations. Payments over £1,000 are additionally approved by a member of SMT and anything over £20,000 are additionally approved by a Trustee.  


WMUK may also reimburse, where incurred for the benefit of the chapter and approved by the relevant budget holder in advance:
All payments shall be by electronic transfer unless agreed by the CEO
# Registration costs for conferences
 
# Meeting rooms, catering and other corresponding costs for WMUK and WMUK-related events
== Company Cards ==
# Long-duration car parking expenses where necessary
Staff or trustees may be provided a credit or debit card if a clear need can be demonstrated, after approval by ARC
# Publicity material, such as badges, T-shirts and printed materials, and corresponding postage costs, where that material cannot be supplied by the WMUK office
 
# Phone calls to participate in meetings remotely - normally not needed, as WMUK have a freephone conference call service
# Provision of a card can be withdrawn by the Board, ARC or by the CEO at any time
# Costs of caring for dependants whilst on WMUK activity
# Individuals receiving a Wikimedia UK card shall agree to a deduction from their salary or other amounts owed to them in the event of improper use of the card/expenditure.
# Entertainment costs for other parties
# If a card user ceases in their role with the chapter, their cards will be cancelled and destroyed
# Other reasonable expenses
# All statements will be sent directly to the offices of Wikimedia UK
# All expenses incurred using a card must be authorised by a budget holder and signed off by the user's line manager
# All card use must be supported by appropriate receipts etc.
# There will be an annual review of card use to ensure proper practice.
 
== FUNDRAISING ==
Our commitment is to be a responsible and ethical organisation communicating in a way that is truthful and open when we take part in fundraising for the business. Below, ‘donors’ refers to philanthropic sources including individual donors, trusts, foundations and grant-making organisations, and ‘sponsor’ refers to commercial and transactional relationships with organisations.
 
As a UK charity (charity number 1144513), Wikimedia UK depends on support from a range of sources to underpin our activities. Without the support of our donors, we simply could not continue to run all our programmes. All contributions mean a great deal to Wikimedia UK.
 
== Commitment to our donors and sponsors ==
Wikimedia UK values support from a variety of sources. All donors are entitled to know how we use their donations to fund our work and we provide regular updates on how their contributions are enabling our charitable activities. We will not provide donors’ personal details to third parties without express permission.
 
We encourage relationships with organisations that share or aspire to Wikimedia UK’s vision and values. Potential partnerships will be assessed with the following factors in mind:
 
* Shared values
* A commitment to Wikimedia UK’s strategic aims
* Wikimedia UK’s integrity and ongoing reputation
* Fundraised income and expenditure will be monitored and reported in the published accounts each year.
 
Wikimedia UK considers the ethical implications of accepting gifts and in some cases, we may decline a donor or sponsor contribution, if;
 
* The aims of the donor or sponsor are directly opposed to those of Wikimedia UK.
* The donor or sponsor expects Wikimedia UK to deliver benefits that are unachievable or will reduce the charity’s ability to create access for our audiences and participants.
* Receipt of the donation or sponsorship may have a negative effect on Wikimedia UK’s reputation and/or lead to a decline in support of the organisation by other parties.
 
Wikimedia UK will engage in due diligence to determine the source of any major donation from an anonymous source. This will be undertaken prior to accepting the donation wherever possible. When this is not possible the donation may be returned to the donor where is has been deemed that the donor does not meet our gift acceptance criteria as outlined above.
 
== Vulnerable people ==
Wikimedia UK will make every reasonable effort to protect potentially vulnerable people who come into contact with us about giving. The interests of vulnerable people will be prioritised over and above the securing of a donation. Awareness of the needs of vulnerable people is considered in the planning and implementation of campaigns as well as in everyday fundraising interactions.
 
Wikimedia UK will comply with the Institute of Fundraising’s four key principles of FAIRNESS, RESPECT, RESPONSIVE and ACCOUNTABLE in our interactions with all prospective and current donors.
 
== How we make Decisions ==
If there is an issue of concern regarding the acceptance of a gift or sponsorship, Wikimedia UK’s Senior Management Team will contact the Board of Trustees. All final decisions will be governed by the Board of Trustees. It is the duty of the Board to advise of any potential conflicts of interest with regards to funding or partnerships.
 
You will find additional information in our [[Donation and grant acceptance|Grants Acceptance Policy]]
 
== Investment Policy ==
 
=== PURPOSE AND SCOPE ===
To set out the processes by which Wikimedia UK can invest funds surplus to day-to-day operational requirements and to ensure that investment risk is properly and prudently managed.  In doing so, Trustees must:  
 
* Act within their charity’s power to invest
* Set investment objectives
* Set the parameters that deposit counterparties need to meet
* Consider the level of liquid cash required to be held either overnight or within current accounts
* Approve the type of products that the charity can invest in and seek external guidance if required  
* Define processes to manage and make investment decisions  
* Monitor and review investments on a regular basis
 
== RESPONSIBILITY ==
The Audit & Risk Committee delegates the day-to-day responsibility of managing and implementing the investment policy to the Head of Finance & Operations to ensure investments are managed in accordance with this Policy and monitor regularly how the charity’s investments are performing.
 
== Objectives ==
The charity’s overall investment objective is to preserve and grow capital in real terms and to generate returns that support the activities of the charity.  The charity seeks to produce a suitable financial return within an acceptable level of risk.   Any investment decisions must be supported by a cashflow forecast that clearly demonstrates that the charity is left with sufficient liquidity to carry out its daily activities.
 
==== Counterparty risk ====
The charity will only deposit its money with a trustworthy provider.  The charity will only use banking providers that are authorised by a relevant financial regulator such as the Financial Conduct Authority, the Prudential Regulation Authority or a relevant financial regulator in any other country.    
 
==== Counterparty limits ====
The charity uses Fitch Ratings to look at both the Credit Rating and Financial Implied Credit Scores.  The Credit Rating or Financial Implied Credit Score will be checked before each deposit placement or roll-over.
 
 
Any accrued interest is in addition to / inclusive within these maxima.
 
==== Assessing liquidity needs ====
The Head of Finance & Operations should ensure that a sufficient balance is held across accounts with instant access so that the charity’s financial commitments can be met without the risk of the current account going overdrawn.  A contingency amount should also be considered to give flexibility to cover any reasonable one-off events.  
 
If interest rates are not competitive on the current account or by using a sweep facility, the Head of Finance & Operations can consider placing some of the surplus cashflow funds into an appropriate instant access/easy access deposit account providing cleared funds can be repatriated within a short period of time.
 
The charity’s cashflow forecasts will dictate how much is available for investment and for how long.   The cashflow forecasts should be reviewed monthly as part of the management accounts cycle and on maturity of fixed term deposits.
 
=== Investment products ===
Any monies held in a savings or deposit account qualify as investments.  The charity can invest surplus funds in a mixture of interest-bearing accounts and money market facilities (where the capital is not placed at risk) including:
 
* Overnight (instant access / easy access)
* Notice accounts (typically ranging between 30 days up to 365 days)
* Fixed term deposits (decide if you want the ability to go beyond 12 months)
* Investments should not exceed 1 year in term.
 
=== Investment decisions ===
The Head of Finance & Operations is responsible for producing reliable cash flow forecasts as a basis for decision making.
 
The Head of Finance & Operations is responsible for making investment decisions that comply with this Policy.  The opening or closing of bank accounts should be authorised in line with the current Financial Regulations.  
 
=== Monitoring & Reporting   ===
The Head of Finance & Operations will report investments held and the performance of investments against objectives to the Audit & Risk Committee for review each time it meets or when requested to do so. The reporting should include:
 
* Funds invested and the tenor.
* Maturity dates / Notice maturity dates
* Interest rates
* Current market rates
* Blended returns achieved against expected performance and policy benchmarks.  
* Recommendations for the next 3 months.
 
== Risk Management Policy ==
The Trustees have assessed the major financial and reputational risks to which the charity is exposed and are satisfied that there are systems in place to mitigate exposure to the major risks. Trustees review risk at each quarterly meeting, examining cash flow and any reputational risks due to high-profile events that Wikimedia UK is leading on.
==See also==
 
*[[Expense procedures]]
 
==Notes==
<references />


[[Category:Financial]]
[[Category:Financial]]
[[Category:Policies]]
[[Category:Policies]]

Latest revision as of 10:26, 16 April 2024

Date Created: August 2018

Date Reviewed: November 2023

Date Approved: March 2024

Next Date of Approval: March 2026

Purpose

Wikimedia UK is a registered charity and company limited by guarantee.  We are required to maintain accounting records and controls to satisfy the requirements of the Companies Act 2006 and Charities Act 2011.The Board of Directors are additionally the Board of Trustees of the charity, and have a legal duty to safeguard its assets and apply them exclusively to the furtherance of its declared charitable aims and objectives.  They delegate the management of the organisation to the Chief Executive Officer (CEO) who leads the company in strategic, financial, and programming as well as partnership and income generation. The CEO is supported by the Senior Management Team (at the time of writing this consists of a Head of Finance & Operations, Head of Development & Communications, and Director of Programmes & Evaluation), as well as the full staff team to deliver Wikimedia UK’s vision and objectives..


These requirements are expanded by the key principles listed in section 2 Responsibilities.

Within this Purpose the Policy may, in exceptional circumstances, be overridden by the CEO by prior agreement with the Chair of Trustees or Treasurer as an emergency decision between Board Meetings. Any such override will be immediately reported by the CEO to the Board.

The CEO and Head of Finance & Operations are responsible for ensuring that the Policy is adhered to, in conjunction with, and subject to the overall legal responsibility of, the board of trustees.

Definitions of Staff Roles:

  1. The CEO is responsible to the Board of Trustees for the management of the company, its staff, resources, and strategic direction of the company.
  2. Head of Finance & Operations is responsible to the CEO for overseeing top level finances for the company including generating the QFMR (Quarterly Financial Management Report), company accounts, and strategic financial reporting. They also ensure that the team and company work within the scope of this policy.
  3. Finance & Operations Coordinator is responsible to the Head of Finance & Operations for day-to-day management of the company’s resources, including ensuring that operations and reporting follow established policies.  They also maintain accurate and timely records for the project’s internal finance systems, including logging payments and invoices received, paying invoices via payment software, and raising invoices.  They will support the Head of Finance & Operations with the monthly reconciliations on XERO software and ensure the annual accounts are filed with the relevant bodies The role also includes general administrative support, including schedules, invoicing, and setting up bank payments.
  4. Budget Holders maintain an overview of their project budgets, working closely with the Head of Finance and Operations.  They prepare project re-forecasting budgets (with the Head of Finance and Operations) with an eye for financial detail to ensure that they are keeping in line with approved project budgets.

Responsibilities

The Trustees of Wikimedia UK have ultimate responsibility for financial decisions taken about the company.  Any Trustee can access all financial records and systems at any time.

The financial management of the company is delegated to the Head of Finance & Operations, overseen by the CEO. The Head of Finance & Operations aims to meet the CEO monthly to discuss financial reports and ensure that the company is financially sound.  The Finance & Operations Coordinator reconciles the banking on a weekly basis.

It is the aim of the organisation to appoint a Treasurer and put an Audit & Risk Committee in place, which is chaired by a member of the Board. The committee consists of the Treasurer, CEO, Head of Finance & Operations, and the Chair of ARC, as well as additional contributors who are appointed by ARC when needed. The Committee meets as required to review accounts, budgets, projections, and procedures. The Committee reports back to the Board through The Treasurer and Minutes of its meetings. The Audit & Risk Committee has responsibility for:

  • Monitoring and reviewing annual and departmental budgets, including performance, against budget and potential recovery of overhead costs
  • Monitoring proper risk assessment process before agreeing activity and appraise viability
  • Ensuring that adequate authorisation procedures are being followed
  • Monitoring funding and performance for any investment of charity funds

The Head of Finance & Operations is responsible for the preparation of detailed budgets and financial reports that are presented to the Trustees at quarterly meetings.  The Management Accounts, including the QFMR Summary, Balance Sheet and departmental budgets, are presented to the Treasurer in advance of the meeting to discuss any issues.  The following papers are presented to the board:

  • Trial Balance as at the last day of the quarter
  • Balance Sheet as at the last day of the quarter
  • Management Accounts (Budget v. Actuals) showing figures at end of quarter with explanations of variance
  • Amended Company Budget projections for the rest of financial year are reviewed following End of Quarter 2 and therefore endorsed by Trustees
  • Company Cash Flow forecast
  • A financial paper highlighting key figures, any areas for concern and outlining possible solutions.

The Head of Finance & Operations is also responsible for overseeing the production of annual accounts and liaising with the auditors.

The Finance & Operations Coordinator is responsible for ensuring that company book-keeping is completed and that all financial records are kept up to date and stored appropriately.

Budget Holders work closely with the Head of Finance & Operations to ensure that project budgets are managed appropriately and that restricted funds are spent in line with projections. The Budget Holders meet with the Head of Finance & Operations monthly to consolidate expenditure for the completed month and reschedule the remaining expenditure as required.

Key Principles

The key principles underlying this Policy are that:

  1. Legal obligations to keep adequate records to be able to prepare, publish and file statutory accounts are satisfied
  2. Assets are safeguarded from undue loss, and from misuse, damage or fraud
  3. Assets are applied to further our Objects in the most effective and efficient way
  4. Finances and assets are administered in a way that identifies and manages risk
  5. Controls in place are proportionate to the risks
  6. The highest standard of record keeping and financial reporting is maintained
  7. Financial reporting is clearly expressed, comprehensive and transparent
  8. Duties are sufficiently segregated to satisfy the demands of charity governance

Personal integrity

Effective financial controls rely on the personal integrity of all the people involved - including those making payments, claiming for reimbursement, authorising, monitoring or controlling budgets.

  1. We will apply Charity Commission guidance regarding checks on trustees and members of the senior management team prior to appointment.
  2. Where issues are revealed or disclosed, these will be treated sensitively and discreetly, having due regard for the privacy of the individual but ensuring that chapters' assets are not put at undue risk.
  3. Compliance with the Conflict of Interest policy will be monitored at least annually.  

Charity Budget & Management Accounts

The Head of Finance & Operations and Finance & Operations Coordinator work together with Budget Holders to prepare individual departmental budgets for the organisation. This contributes to an annual budget for the organisation, to be signed off by the CEO.  This will then be sent for agreement by the Trustees prior to the start of the financial year (1st February).

The following timetable is followed:

  • A first draft budget is prepared by the Head of Finance & Operations during the 3rd quarter of the financial year.
  • The draft budget for the year is presented to the Trustees in the September board meeting for adoption in February.  
  • At Quarter 2, an amended forecast is presented to the Trustees for information.

The budgeting process must include the following provisions:

  • A target for unrestricted funding sufficient to meet anticipated costs including contingencies for issues such as delayed payments of grants and funding, a minimum of 10% of any project costs
  • Staff pension, NI and PAYE contributions  
  • Potential disruption to the operation of the charity through change of office location

Budgeting

The Board shall agree an annual budget, where possible before the start of the financial year to which it relates to give effect to the operational plan agreed for the year.  Information shall be collected as is necessary to prepare a budget on a direct costs and an absorbed costs basis by the start of each financial year.

The annual budget shall include a projection of income and the reserves position at the end of the forthcoming financial year.  The annual budget and projection of income shall be reviewed by the Audit and Risk Committee (ARC) before presentation to the Board for their agreement.

The agreed annual budget shall be re-forecast if in the opinion of the Chief Executive there is a material change that warrants it and in that event the reforecast budget shall be reviewed and approved by ARC and the Board at their next scheduled meetings.

Audit

Accounts shall be prepared annually and audited by registered auditors appointed by the company at the previous Annual General Meeting. Where allowed by charity law the Board may, at its discretion, opt for the statutory accounts to be independently examined instead of audit and references to audited accounts in this policy shall be read to include that option.  The Board shall consider the reasonable requirements of major donors or grantors when exercising this option.

End of Year Procedure

The Finance & Operations Coordinator works to compile lists of accruals and prepayments for the auditors and is responsible for ensuring that all submissions are made to the HMRC on time and for issuing P60s to all staff members.  

The Head of Finance & Operations compiles a detailed report showing which restricted funds are to be carried forward to the next financial year. If they have not been spent the balance remains in the account as a restricted fund.  This should be approved by the CEO prior to sending it to the auditors.

The Head of Finance & Operations also compiles information that represents income and expenditure between different funding streams and a comparison between projects within the company. Copies of all financial information are supplied to the auditors for them to compile the audited accounts.

Audit Checklist

The Finance & Operations Coordinator is responsible for compiling all information needed for the audit of the Charity company accounts.  This includes:

  1. Giving the auditors access to XERO
  2. Compiling board meeting minutes and AGM minutes for the year
  3. Compiling company management accounts, including all project budgets and re-forecasts
  4. All bank statements for the year

Banking

  1. All bank accounts will be held in the name of Wikimedia UK
  2. No account will be opened or closed in the name of the charity without Board authorisation (except that an account that is in the view of ARC redundant may be closed and noted at the next Board meeting).
  3. Signatories on all bank accounts and electronic banking powers shall be decided by Board resolution.
  4. Bank payments or other written instructions require at least two signatories except as described in paragraphs 5 to 8.
  5. Electronic banking payments will be set-up online and authorised in accordance with the Scheme of Delegation concerning small or recurring payments.
  6. The Treasurer shall act as the administrator of the electronic banking system.
  7. The CEO will be a main mandate signatory and can be a signatory to current and deposit accounts
  8. No signatory or authoriser may authorise payments to themselves as a sole authoriser.
  9. The credit rating, charges and interest of all banks used shall be reviewed at least annually.
  10. Bank reconciliations are to be prepared monthly for all accounts including credit, debit or any other type of payment card. These shall be reviewed by the Chief Executive, who may delegate this task to the Director of Finance and Operations.
  11. All transactions shall be recorded in accordance with standard accountancy practice using software approved by ARC that allows accounts to be produced readily that comply with the requirements of the Charities Statement of Recommended Practice: SORP(FRS102)
  12. If so specified by a grantor and agreed by the Board income shall be treated as a discrete (restricted) fund and expenditure shall record the fund from which it is made.
  13. Money held with any single financial institution or group should be no more than the current Government guarantee limit unless specifically authorised.
  14. Choice of deposit accounts will take account of credit worthiness, qualification for the government guarantee scheme (ie UK banks only) and interest rates.
  15. Adequate training (in house or otherwise) is to be provided to all involved in online financial transactions.  

Assets

  1. A Register of Fixed Assets shall be maintained listing all assets at or above a value determined from time to time by ARC.  
  2. All physical assets shall be physically verified at least once a year or more frequently where the Head of Finance & Operations considers it appropriate.
  3. All assets shall be appropriately safeguarded from loss or damage
  4. Adequate insurance cover shall be maintained to protect against any substantial loss.

Wages and Salaries

Wikimedia UK employees are paid on the 28th of each month (or the last working day before this if it falls on a weekend or bank holiday).  The payroll is produced by the Head of Finance & Operations and sent for approval to the CEO in advance of this date. Once approved, this goes to PayPlus Ltd for payroll to be run and produced.

Approval for payroll:

  • Head of Finance & Operations drafts the Payroll Notes and summary and sends to the CEO for approval.
  • CEO receives payroll summary by email, reviews, and signs off.
  • Approved payroll summary is sent to PayPlus Ltd to be run.
  • All payroll documents sent back to the Head of Finance & Operations for double checking and approval.
  • Finance & Operations Coordinator sets up payroll in Unity Trust Bank ahead of the payroll date, including journals in Xero.

PAYE Management

PAYE payments must be received by the HMRC by the 15th day of the following month. The Finance & Operations Coordinator is responsible for ensuring that all PAYE payments and submissions are kept up to date.  

Pensions

If staff are eligible, they will be auto-enrolled onto a pension scheme (Scottish Widows), in accordance with the Company’s pension auto-enrolment obligations.

Full details of the scheme are provided to staff when they enrol, including the minimum contribution level that they will be required to make, the contributions that will be made by Wikimedia UK, and their right to opt out if they do not want to join the scheme. While participating in the scheme, staff agree to worker pension contributions being deducted from their salary.

The scheme is subject to its rules as may be amended from time to time, and Wikimedia UK may replace the scheme with another pension scheme at any time.

Reporting (internally and externally)

  1. A Quarterly Financial Management Report (QFMR) approved by ARC shall be presented at each Board meeting held more than one month after a quarter end (April, July, October, January).
  2. Audited annual accounts shall be filed with the Charity Commission, Companies House, the Wikimedia Foundation and published to members as required.

Authorisation of expenditure

Clear and public authority levels are agreed as set out in the scheme of delegation.

All expenditure from any source shall be pre-authorised by a budget holder.

Payments

Secure procedures will be agreed for any payment working within the bank's system procedures to ensure separation of duties, and authorisation at the appropriate levels. Payments are set up by the F&O Coordinator and approved by the Head of Finance & Operations. Payments over £1,000 are additionally approved by a member of SMT and anything over £20,000 are additionally approved by a Trustee.

All payments shall be by electronic transfer unless agreed by the CEO

Company Cards

Staff or trustees may be provided a credit or debit card if a clear need can be demonstrated, after approval by ARC

  1. Provision of a card can be withdrawn by the Board, ARC or by the CEO at any time
  2. Individuals receiving a Wikimedia UK card shall agree to a deduction from their salary or other amounts owed to them in the event of improper use of the card/expenditure.
  3. If a card user ceases in their role with the chapter, their cards will be cancelled and destroyed
  4. All statements will be sent directly to the offices of Wikimedia UK
  5. All expenses incurred using a card must be authorised by a budget holder and signed off by the user's line manager
  6. All card use must be supported by appropriate receipts etc.
  7. There will be an annual review of card use to ensure proper practice.

FUNDRAISING

Our commitment is to be a responsible and ethical organisation communicating in a way that is truthful and open when we take part in fundraising for the business. Below, ‘donors’ refers to philanthropic sources including individual donors, trusts, foundations and grant-making organisations, and ‘sponsor’ refers to commercial and transactional relationships with organisations.

As a UK charity (charity number 1144513), Wikimedia UK depends on support from a range of sources to underpin our activities. Without the support of our donors, we simply could not continue to run all our programmes. All contributions mean a great deal to Wikimedia UK.

Commitment to our donors and sponsors

Wikimedia UK values support from a variety of sources. All donors are entitled to know how we use their donations to fund our work and we provide regular updates on how their contributions are enabling our charitable activities. We will not provide donors’ personal details to third parties without express permission.

We encourage relationships with organisations that share or aspire to Wikimedia UK’s vision and values. Potential partnerships will be assessed with the following factors in mind:

  • Shared values
  • A commitment to Wikimedia UK’s strategic aims
  • Wikimedia UK’s integrity and ongoing reputation
  • Fundraised income and expenditure will be monitored and reported in the published accounts each year.

Wikimedia UK considers the ethical implications of accepting gifts and in some cases, we may decline a donor or sponsor contribution, if;

  • The aims of the donor or sponsor are directly opposed to those of Wikimedia UK.
  • The donor or sponsor expects Wikimedia UK to deliver benefits that are unachievable or will reduce the charity’s ability to create access for our audiences and participants.
  • Receipt of the donation or sponsorship may have a negative effect on Wikimedia UK’s reputation and/or lead to a decline in support of the organisation by other parties.

Wikimedia UK will engage in due diligence to determine the source of any major donation from an anonymous source. This will be undertaken prior to accepting the donation wherever possible. When this is not possible the donation may be returned to the donor where is has been deemed that the donor does not meet our gift acceptance criteria as outlined above.

Vulnerable people

Wikimedia UK will make every reasonable effort to protect potentially vulnerable people who come into contact with us about giving. The interests of vulnerable people will be prioritised over and above the securing of a donation. Awareness of the needs of vulnerable people is considered in the planning and implementation of campaigns as well as in everyday fundraising interactions.

Wikimedia UK will comply with the Institute of Fundraising’s four key principles of FAIRNESS, RESPECT, RESPONSIVE and ACCOUNTABLE in our interactions with all prospective and current donors.

How we make Decisions

If there is an issue of concern regarding the acceptance of a gift or sponsorship, Wikimedia UK’s Senior Management Team will contact the Board of Trustees. All final decisions will be governed by the Board of Trustees. It is the duty of the Board to advise of any potential conflicts of interest with regards to funding or partnerships.

You will find additional information in our Grants Acceptance Policy

Investment Policy

PURPOSE AND SCOPE

To set out the processes by which Wikimedia UK can invest funds surplus to day-to-day operational requirements and to ensure that investment risk is properly and prudently managed.  In doing so, Trustees must:  

  • Act within their charity’s power to invest
  • Set investment objectives
  • Set the parameters that deposit counterparties need to meet
  • Consider the level of liquid cash required to be held either overnight or within current accounts
  • Approve the type of products that the charity can invest in and seek external guidance if required  
  • Define processes to manage and make investment decisions  
  • Monitor and review investments on a regular basis

RESPONSIBILITY

The Audit & Risk Committee delegates the day-to-day responsibility of managing and implementing the investment policy to the Head of Finance & Operations to ensure investments are managed in accordance with this Policy and monitor regularly how the charity’s investments are performing.

Objectives

The charity’s overall investment objective is to preserve and grow capital in real terms and to generate returns that support the activities of the charity.  The charity seeks to produce a suitable financial return within an acceptable level of risk.   Any investment decisions must be supported by a cashflow forecast that clearly demonstrates that the charity is left with sufficient liquidity to carry out its daily activities.

Counterparty risk

The charity will only deposit its money with a trustworthy provider.  The charity will only use banking providers that are authorised by a relevant financial regulator such as the Financial Conduct Authority, the Prudential Regulation Authority or a relevant financial regulator in any other country.    

Counterparty limits

The charity uses Fitch Ratings to look at both the Credit Rating and Financial Implied Credit Scores.  The Credit Rating or Financial Implied Credit Score will be checked before each deposit placement or roll-over.


Any accrued interest is in addition to / inclusive within these maxima.

Assessing liquidity needs

The Head of Finance & Operations should ensure that a sufficient balance is held across accounts with instant access so that the charity’s financial commitments can be met without the risk of the current account going overdrawn.  A contingency amount should also be considered to give flexibility to cover any reasonable one-off events.  

If interest rates are not competitive on the current account or by using a sweep facility, the Head of Finance & Operations can consider placing some of the surplus cashflow funds into an appropriate instant access/easy access deposit account providing cleared funds can be repatriated within a short period of time.

The charity’s cashflow forecasts will dictate how much is available for investment and for how long.   The cashflow forecasts should be reviewed monthly as part of the management accounts cycle and on maturity of fixed term deposits.

Investment products

Any monies held in a savings or deposit account qualify as investments.  The charity can invest surplus funds in a mixture of interest-bearing accounts and money market facilities (where the capital is not placed at risk) including:

  • Overnight (instant access / easy access)
  • Notice accounts (typically ranging between 30 days up to 365 days)
  • Fixed term deposits (decide if you want the ability to go beyond 12 months)
  • Investments should not exceed 1 year in term.

Investment decisions

The Head of Finance & Operations is responsible for producing reliable cash flow forecasts as a basis for decision making.

The Head of Finance & Operations is responsible for making investment decisions that comply with this Policy.  The opening or closing of bank accounts should be authorised in line with the current Financial Regulations.  

Monitoring & Reporting  

The Head of Finance & Operations will report investments held and the performance of investments against objectives to the Audit & Risk Committee for review each time it meets or when requested to do so. The reporting should include:

  • Funds invested and the tenor.
  • Maturity dates / Notice maturity dates
  • Interest rates
  • Current market rates
  • Blended returns achieved against expected performance and policy benchmarks.  
  • Recommendations for the next 3 months.

Risk Management Policy

The Trustees have assessed the major financial and reputational risks to which the charity is exposed and are satisfied that there are systems in place to mitigate exposure to the major risks. Trustees review risk at each quarterly meeting, examining cash flow and any reputational risks due to high-profile events that Wikimedia UK is leading on.

See also

Notes

Retrieved from "https://dev.wikimedia.org.uk/w/index.php?title=Finance_%26_Fundraising_Policy&oldid=179144"