Financial policy

Garden aims

  • To create and maintain green spaces for wildlife, plants and people.
  • To support enjoyment and learning about nature
  • To promote an inclusive community and nurture wellbeing
  • To promote biodiversity and sustainable practices

 Principles

Appropriate financial policies are necessary In order to meet our aims.

  1. The Trustees are responsible for:
  • Safeguarding the assets of the charity
  • Preventing fraud
  • Keeping financial records in accordance with the governing document and relevant legislation (e.g. Charities Acts).
  • Preparing Annual Accounts in accordance with the governing document and relevant legislation
  1. To enable the Trustees to carry out these responsibilities, the Financial Procedures detailed below must be followed at all times by all Trustees, staff and volunteers
  2. A copy of this policy and procedures will be given to all Trustees on their election/appointment and to all relevant staff and volunteers
  3. The policy and procedures will be reviewed annually by the Trustees, or earlier if there is a significant change in circumstances, and revised as necessary

Financial Procedures

Financial procedures must establish clear authority to enter into grant arrangements and for spending funds, including any assignment of authority by the trustees. There must be clear responsibility for maintaining accurate financial records, including the use of QuickBooks software package.

Income

Grants

Authorisation to enter into grant arrangements on behalf of FGCG will be delegated to a sub -group authorised by the Trustees.

  • This group will contain at least two members, at least one of whom must be a trustee
  • Any changes in composition of the group must be approved by the Trustees
  • While there is no routine requirement for the group to consult the Trustees on entering into a grant, they are encouraged to consult at their discretion
  • Information about grants obtained and in progress should be presented to Trustees at their periodic meetings

Grants should be paid into FGCG bank account, by BACS wherever possible.

Other income

  • Other income received in cash:
    • Cash receipts should be counted by two people
    • The sums received should be recorded on a spreadsheet, which will include the names of those who counted the cash
    • All cash receipts should be banked as soon as possible
    • The amounts on the spreadsheet should be checked to the bank account
  • Control of FGCG card readers
    • The trustees are to be informed as to who keeps the card readers. This person is also responsible for allowing specified persons to use them for specific events

Expenditure

Grant related expenditure

  • Expenditure made in accordance with the grant claim need not be further authorised by the Trustees
  • Any significant changes to the amounts per the claim should be approved by the person who will sign off that particular grant

Other expenditure

  • Core expenses and expenses in excess of £250, not related to a grant, are to be approved by a Trustee, the chair or a Trustee member of the Grant subgroup
  • Optional expenditure, e.g. terms for items subsidised by FGCG, should be approved by the chair or a Trustee member of the Grant subgroup

Payment

  • Expenses will be paid from the bank account on receipt of an invoice or other authoritative payment request, e.g. a receipt from the provider of the service, by persons authorised by the bank mandate
  • The FGCG cash card may be used by the Treasurer, co-ordinator or chair
  • Payments from petty cash are to be entered in the expenditure record maintained by the treasurer

Staff costs

  • Rates of pay for self-employed persons are to be documented in a letter detailing their contract for services, authorised and approved by the Trustees
  • Payments are to be made in accordance with the contract for services

Bank Accounts

Control over bank accounts

  • All bank accounts must be in the name of the organisation
  • No account may ever be opened in the name of an individual or individuals
  • New accounts may only be opened by a decision of the Board of Trustees, which must be minuted
  • Changes to the bank mandate may only be made by a decision of the Board of Trustees, which must be minuted
  • Two people are to be authorised to make payments from the bank account, the Treasurer and another notified to the Trustees

Records and budgets

Master budget

FGCG will maintain a computer record for each grant in accordance with the grant submission and grant offer documentation, including

  • projected grant income, expected and actual receipt dates
  • budgeted and actual expenses
    • expense details will include date, recipient and brief description, together with other information required under the terms of the grant, e.g. sub-analyses
  • FGCG will maintain a computer record of general expenses that are not grant-related
  • Changes to the master budget will be made in consultation with the chair.

Document Retention

Responsibility

FGCG will maintain a computer record for each grant in accordance with the grant submission and grant offer documentation, including

  • projected grant income, expected and actual receipt dates
  • budgeted and actual expenses
    • expense details will include date, recipient and brief description, together with other information required under the terms of the grant, e.g. sub-analyses
  • FGCG will maintain a computer record of general expenses that are not grant-related
  • Changes to the master budget will be made in consultation with the chair.

Preparation of financial information

Financial statements

The Trustees will ensure that

  • FGCG has been maintaining financial records that are adequate to meet obligations to grantors and for the preparation of financial statements
  • Annual Accounts have been prepared in accordance with FGCG’s constitution, Charities legislation and, to the extent relevant, accounting standards prepared by authoritative standard setters
  • Where required by charities legislation, obtain an independent financial examiner’s report on the financial statements
  • The Chair of Trustees will ensure that the Independent financial examiner meets the requirements issued by the Charity Commission and that the examiner carries out work in accordance with the up-to-date guidance [as at the date of this document, ‘Independent examination of charity accounts: guidance for trustees’, Updated 14 July 2021’].

Reserves

The Trustees may decide to invest surplus funds held in the charity bank account into a deposit account for the generation of revenue.

Surplus funds are unrestricted cash balances in excess of the trustees’ estimate of the amount that will be needed by FCGC in the following twelve months. This estimate will take account of:

  • Staff costs that will become payable in this period, net of unutilised grants received and committed grants receivable for the payment of staff costs;
  • Core costs; and
  • Other committed costs.

The trustees should not invest funds to the extent that they reduce the balance of unrestricted cash in the bank account to less than £15,000, this balance being subject to review by the Trustees each time an investment decision is taken.

The Trustees will consider annually whether there should be a change to the reserves policy and report this in the annual financial report.

Trustee meetings

The Trustees will hold at least three meetings per year

Documents for Trustee meetings

For each meeting the Trustee with responsibility for financial matters, normally the Chair, will circulate and present a statement of restricted and unrestricted funds

  • In the absence of the Trustee, the Chair may delegate this to another person

    Policy ends

    Approved by Trustees Nov 2025                         To be reviewed Nov 2026