Financial Controls Policy

Purpose

This policy sets out the financial controls in place to ensure that the Confederation manages its finances in a transparent, accountable, and responsible way. The charity operates virtually, has no employees, and delivers its work through part-time contractors. The charity’s focus is on improving fire safety through awareness, education, and community engagement.

Key principles

  • Financial integrity is everyone’s responsibility.
  • All expenditure must further the charity’s objectives.
  • Proper authorisation and clear documentation are required for all financial decisions.
  • Risk is minimised through separation of duties, even in a small team.

Banking and Accounts

  • The charity will hold a single current account in its name.
  • At least two trustees are nominated as authorised signatories.
  • Online banking access is restricted to authorised users only, with view and payment permissions separated where possible.
  • Bank reconciliations will be reviewed regularly by a trustee not involved in day-to-day payments.

Income

  • All income will be logged and recorded in the accounts software/spreadsheet promptly – ideally via the Website package.
  • Donations and grants must be recorded with clear references and restricted/unrestricted status.
  • Any cash received (if ever) must be banked within five working days and documented.

Payments and expenditure

  • All payments must be authorised by the Treasurer or Director ( or the Chair where any expenditure relates to the Exec Director).
  • Contractors are paid on receipt of invoice and in accordance with agreed terms.
  • No one may authorise a payment to themselves.
  • All expenses must be supported by receipts or invoices and recorded.

 

Contractor Payments

  • All contractors should have a written agreement specifying their services, terms, and payment arrangements.
  • Time and outputs will be verified before payment is approved.
  • No contractor may have access to the charity’s bank account.

Budgets and Financial Planning

  • An annual budget will be prepared and approved by the trustees before the start of each financial year.
  • Expenditure will be monitored monthly against the budget and significant variances reported to trustees.

Reserves and risk

  • The charity will aim to hold reserves equal to at least three months of core costs.
  • Financial risks (e.g. cash flow gaps, grant dependencies) will be reviewed annually.

Reporting and oversight

  • Financial reports will be presented regularly to the trustees.
  • Annual accounts will be prepared in line with Charity Commission guidance and filed on time.
  • An independent examiner will be appointed if income exceeds the statutory threshold or if otherwise required by the trustees.

Fraud and misuse

  • Any suspicion of fraud, misuse of funds, or conflict of interest must be reported immediately to the Chair of Trustees.
  • Trustees will act in accordance with Charity Commission guidance on serious incident reporting.

Review

  • This policy will be reviewed annually by the Board of Trustees or earlier if there is a material change in how the charity operates.