Finance Introduction Session outline Basic finance systems Principles

Finance Introduction

Session outline • Basic finance systems • Principles of financial management for Boards/committees • Policies and good practice

Basic finance systems • Who will use the system? • What does the system need to do?

Basic finance systems • Who will use the system? – Skills (IT, numeracy, attention to detail) – Access (Board/committee, staff) – External examiner or auditor (end of year) – Funders (transparency) • What does the system need to do? – Record money in – Record money out – Provide project detail and general overview

Basic finance systems • Excel – Lower skills threshold – Accessible to non-finance people – Transferable to Word in table format for reports etc

Basic finance systems • • Cost centres Budget headings or accounts codes Cross referencing to receipts/vouchers Dates and details Totals/balance linked to overview Paper files – income and outgoings Regular and consistent use

Principles of financial management • Stewardship – trustees’ responsibility • Accountability – using resources well • Transparency – open to scrutiny • Viability – well planned and costed • Standards and systems focus on consistency • Commitment

Policies and good practice • Finance manual – Delegated authority – Procedures (petty cash, backing up electronic records etc) – Reporting (frequency and format) – File guide – Cost centre guide – Budget heading/accounts codes guide

Policies and good practice • Policies – – Travel and subsistence Pay scales and pay rises, timesheets Procurement and purchasing Use of business cards