Finance & Fundraising Policy/2012: Difference between revisions

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{{notice|This is a draft for comment, which will be proposed for adoption by the Board on 3 January. Items are marked with <nowiki>{{</nowiki>{{todiscuss|todiscuss}}<nowiki>}}</nowiki> where different options are under discussion}}
#REDIRECT [[Finance Policy 2012]]
 
{{TOC right}}
== Introduction ==
 
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.
 
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.
 
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.
 
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 will be reviewed for operational effectiveness six months after implementation and 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.
 
The points of each policy area are given below, with the responsible role for ensuring that the policy is adhered to given in brackets.
 
== Key Principles ==
 
The key principles underlying this policy are:
 
# That our assets are safeguarded from loss, damage or fraud
# That our assets are applied to our objects in the most effective and efficient way
# That volunteers are facilitated to help deliver the Wikimedia UK mission.
# That our finances and assets are administered in a way that identifies and manages risk
# 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
 
==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.
 
# All staff, trustees and budget holders will be checked for criminal activities and credit history. (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 (Administrator)
 
==Income==
 
# Post is held securely before collection (CE)
# 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 strong box or safe prior to banking (Administrator)
# All cheques and cash received recorded in a register (Administrator)
# 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. (Administrator)
# Regular spot checks are to be undertaken to ensure that Gift Aid declarations and claims are accurate. (Administrator with CE or Treasurer)
# Spot checks are to be undertaken to ensure that Gift Aid payments received. (Administrator 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 (Administrator)
# All donations received in cash, cheque, bank transfer, Paypal, text, direct debit or other fundraising mechanism are to be promptly thanked and recorded (Administrator)
# All donor communication received by the chapter is responded to at least as quickly enough to comply with the Fundraising Agreement (Administrator)
# All direct debit instructions are processed in compliance with the Direct Debit regulations (Administrator)
# Where restricted donations are received, records are kept of the restriction and their own budget lines will be maintained within the accounting records.
# 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 (Administrator)
 
==Banking==
 
# All bank accounts will be held in the name of Wiki UK Ltd (Administrator)
# No account will be opened or closed without Board authorisation (Administrator)
# Bank payments (cheque or BACS) require two signatories (Administrator)
# Signatories on all bank accounts shall be decided by Board resolution (Administrator)
# 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; all discrepancies reported to CE and Board)
# Accounting records clearly record all interest receipts. (Administrator)
# A record is kept of all cheques written (Administrator & Signatories)
# After each electronic banking transaction a print out 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 adopted each year as part of the annual budget (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)
# Choice of deposit accounts will take account of credit worthiness, 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 regularly public reports (Administrator)
# The signatories to the current account are not also signatories to deposit accounts (Administrator)
# All PCs with banking access be password protected. (Administrator)
# All passwords are kept secret. (Administrator and all users)
# All passwords are changed regularly and always following changes in authorised staff and trustees. (Administrator and all users)
# Adequate training is provided to all involved in on-line financial transactions. (CE)
# Emails are avoided when communicating bank details to avoid disclosure of sensitive information (Administrator)
 
{{todiscuss|(Needs expansion as to who will be signatories on bank accounts. [[User:Mike Peel|Mike Peel]] 21:19, 29 December 2011 (UTC))
This will depend on which accounts. We will be moving to dual signatory for day to day business with CE plus a trustee or two trustees, especially when payments being made to CE. I am hoping for a split of A and B signatories. A (CE plus two or more trustees) for current account business and B (Three other trustees)with the power to transfer out of the Deposit and Savings accounts. This means no one person can have control of significant funds. In practice slightly more complicated as we have accounts with different banks and they all have slightly different rules. By Feb 1 should be 70% sorted. [[User:Jon Davies WMUK|Jon Davies WMUK]] 11:19, 30 December 2011 (UTC)
(For the purpose of this policy, I've suggested #3 above as in practice we will have different signatories for different accounts and will want to have the flexibility to change them easily, for instance, when a new Treasurer takes office. [[User:AndrewRT|AndrewRT]])}}
 
 
Wording shared with Mike P and Jon Davies
 
That we aim to separate the cheque signatories on our deposit account from those on our current accounts to create greater financial security.
That the CE is a signatory to current accounts only in a dual signatory system.
That no signatory can make payments to themselves - this must be done by two other signatories
 
[[User:Jon Davies WMUK|Jon Davies WMUK]] 14:43, 16 January 2012 (UTC)
 
==Assets==
 
# Any individual item valued at over £100 is recorded in the fixed asset register listing their purchase price, purchase date, description, any identifying marks and location. (Administrator)
# All assets are safeguarded from loss or damage (CE)
# Adequate insurance cover is maintained to protect against any substantial loss. (CE with Administrator)
 
==Wages and Salaries==
 
# Full records of all payroll payments and deductions are maintained. (Our agency monitored by Administrator)
# Payroll records are held separately from 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 (£8.30 in 2012) is adhered to. (Administrator) 
# No unauthorised deductions is 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)
 
==Reporting==
 
# 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
## Individual expense claims are normally published on the office wiki (Administrator) with a summary of the claims posted on the public wiki
## Office expenses and the Chief Executive's expenses are published on the public wiki (Administrator)
# Income and expenditure is regularly monitored against budget. (Administrator)
# 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)
# Monthly financial reports to be published on the public wiki (Administrator)
# Budget holders notify responsible staff of detailed plans and budgets (Budget holders)
# Processing of budget line expenses is the responsibility of staff with regular reporting to the budget holder and the Board. (Staff)
# 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 on the public wiki (Administrator)
# Annual accounts are provided to the Charity Commission, Companies House and the Wikimedia Foundation as required. (Administrator)
# Any management letter received from our auditors is published with a response, subject to appropriate redactions in exceptional circumstances (Administrator)
 
==Grants==
# Grants under the value of £250 that are outside of individual budget lines will be considered via the [[Microgrants]] process.
# 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 [[Microgrants]] 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)
 
== Payments==
 
# Clear and public authority levels are agreed by the Board for purchases and payments (within budget lines) as follows: (CE)
## Chief Executive: £2,000
## Other staff: £250
# All orders placed are within an agreed spending plan or budget. (Budget holder)
# Any additional spending to be authorised by CE and Treasurer or Board as appropriate. (Budget holder)
 
===Procurement===
 
# 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)
# 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 (CE)
# All invoices are checked against goods or services received. (Administrator)
# All invoices are to be paid within the agreed terms unless disputed (Administrator)
 
===Cheque payments===
 
Secure procedures will be instituted for any payment by cheque including:
# 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)
 
===Card payments===
 
# Staff or trustees may be provided a credit or debit card if a clear need can be demonstrated, after approval by the board (Administrator)
# Provision of a card is considered an exceptional privilege that can be withdrawn by the Board (or, in a emergency, by the Chief Executive) at any time (Card users, Chief Exec 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 users ceases in their role with the chapter their cards will be destroyed or cancelled (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 periodic review of card use to ensure proper practice. (Administrator and Treasurer)
 
===Regular bank payments===
 
# 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)
 
===Cash payments===
 
# Cash payments should generally be kept to a minimum, balancing the risks to the chapter against the convenience for individuals. (Administrator)
# 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 on the office wiki monthly (Administrator)
# Regular spot checks of Petty Cash are undertaken by a third party (CE)
 
==Reimbursement of Expenses ==
 
# 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)
# 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)
# 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 will only be reimbursed if they are submitted within three months, or, in for expenses incurred up to two months prior to the accounting year end, by one month after the year end. This rule ensures that the annual financial statements can be prepared promptly. Exceptions to this rule can be authorised by the CE or Chair. (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:
 
===Airfare ===
 
# Airfares are only repaid at economy class rates.
# Budget airlines are preferred where available; otherwise the use of standard airlines is acceptable, particularly when flights are of long duration (i.e. over 2 hours), or the cost of a standard airline is comparable to a budget airline. (Administrator)
# Increased costs resulting from traveling at more convenient times are acceptable, providing that it does not significantly increase the cost. (Chief Eec)
# Flights not using low cost carriers should be booked through the office with our in-house travel agent to obtain charity rates. (Administrator)
# 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)
 
===Train ===
 
# 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]
# Claimants should try to travel off-peak wherever possible 
 
===Private vehicles===
 
# 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, adjusted based on the fact that mileage is more likely to be incurred for individual trips than in bulk throughout the year.
# These rates are currently (December 2011):
## Up to 10,000 miles over the course of a financial year (up to 150 miles per trip): Cars 45p/mile, Motorbikes 24p/mile, Cycles 20p/mile
## Over 10,000 miles in a single financial year (or mileage over 150 miles per trip): Cars 25p/mile, Motorbikes 24p/mile, Cycles 20p/mile
## An additional 5p per person per mile may be claimed when carrying passengers who are also on WMUK business.
# 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.
 
===Car rental===
 
# Vehicle rental may be approved in advance where necessary on a case-by-case basis, but would not be reimbursed on a routine basis.
# 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.
 
===Insurance===
 
# WMUK Staff and trustees will be covered by the WMUK travel insurance policy when on WMUK business (Administrator)
# 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.
 
===Companions===
 
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)
 
===Accommodation===
 
# Reasonable costs of accommodation while on Wikimedia UK business will be reimbursed.
# 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.
# 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.
 
===Incidental expenses - per diems===
 
# A "per diem" expenses allowance may be paid if approved in advance 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 for longer stays and other locations may be altered at the discretion of the Chief Executive and Treasurer.
#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 amount of the per-diem is regularly reviewed and approved by the Board:
## Full day (> 7 hours of activity plus travel to and from) with overnight stay : £30 per day
## Full day (> 7 hours of activity plus travel to and from) without overnight stay : £20 per day
## Half day (4-7 hours of activity plus travel to and from): £15 per day
 
===Other expenses===
 
WMUK may also reimburse, where incurred for the benefit of the chapter and approved by the relevant budget holder in advance:
# Registration costs for conferences
# Meeting rooms, catering and other corresponding costs for WMUK and WMUK-related events
# Long-duration car parking expenses where necessary
# Publicity material, such as badges, T-shirts and printed materials, and corresponding postage costs, where that material is not stocked by the WMUK office
# Phone calls to participate in meetings remotely
# Costs of caring for dependents whilst on WMUK activity
# Entertainment costs for other parties
# Other reasonable expenses

Revision as of 16:52, 21 January 2012

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