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