Manual of Fiancial & Internal Control Procedures - Diocese of ...

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FINANCIAL AND INTERNAL CONTROL Generally the Charity is a large one. However the number of people employed at any one office is not usually large, making internal control more difficult. In this case there is a particular duty on department heads to ensure that special care is taken over financial matters in particular when authorising and approving expenditure. 1
THE BOARD OF DIRECTORS 1. The running of the Charity is the legal responsibility of the Board of Directors of the Company. (Until 31 st March 2010 it was the responsibility of the Trustees). This Company is referred to as the charity or the Diocese in this manual. 2. The Board delegates the responsibility of keeping proper books and records to the Finance Office. The Annual Report & Accounts and the budgets are prepared by the Finance Office and are formally approved by the Diocese. 3. The Company has the power of appointing new Directors and the Bishop has an effective veto over the decisions of the Board. A new Director indicates the formal taking up of responsibilities by signing the notification to Companies House. 4. The Board meets formally at least four times per annum. 5. Each office, department or service, or by whatever name it is known, is under the formal control of the Board. 6. Independent professional advice is available to the Directors. 7. The Directors’ liabilities are insured. Segregation of Duties 8. Where possible key duties are segregated. A person having access to cash or a cheque signatory should not also be responsible for accounting records. 9. Unless otherwise authorised by the department head incoming post should be opened by two people. 10. A separate record will be maintained of money due into the charity, for example when legacies have been notified, or for Gift Aid and other donations. Follow up checks are then made to ensure that it has been received. Cash and Bank Balances. 11. A list of bank accounts, their signatories (which will always include the Bishop, the Moderator of the Curia, the Chancellor, both Vicars General and the Financial Secretary) and their purpose will be recorded in the Finance Office. Accounts may be opened and closed only on the authority of the Finance Office. 12. It is the policy of the Board that, where possible, new accounts are not opened and that all transactions take place through the main Diocesan account. 13. The policy of the Diocese is that all cheques for payments above £5 thousand require two signatures, one of which will be one of those mentioned in the previous paragraph. No signatory may sign a cheque payable to him or herself. It is obviously not permitted to avoid the second signature on cheques above £5,000 by making out a series of cheques for under £5,000. 2
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Manual of Fiancial & Internal Control Procedures - Diocese of ...

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