Finance
Managing finance for your hall
As a Committee member and/or Trustee you should ensure that your organisation’s money is secure, properly used and accounted for. Even if your Management Committee has an expert to manage the finances, you are still responsible for overseeing your hall or buildings money.
It is good practise for financial reporting to be an agenda item at every Management Committee meeting. All Committee Members then have the opportunity to be informed on financial activity and issues; they also have the opportunity to question, challenge and review.
Basic financial information that should be produced includes:
- An annual budget set against a business/activity plan for the Community building.
- A cash flow forecast to summarise money being paid out or paid in to your community building throughout a set financial period (usually the financial year).
- A reserves policy that is updated annually to explain what reserves the building has and what plans you have for them in the future.
- An annual report for the Community building including financial activity and reserves profile.
The Charities Act 1993 sets out the accounting requirements for charities.
The aim of the requirements is to meet the need for public accountability for the resources held and managed by charities. To protect charity resources and safeguard the charity. The Charity Commission website provides full details. It also provides an Internal financial controls checklist to assist you to do this properly. This will help you make sure that money coming into your buildings’ finance accounts are:
- secure and recorded
- only spent on your charitable purposes
- at less risk of theft, fraud or cyber crime
For further guidance and support with any accounting related issue do not hesitate to contact RAD Advisor r.rawson@ruralactionderbyshire.org.uk
The Charity Commission website is full of useful information regarding Finance and they also have a handy 5 minute guide – see link below
