MYATT’S FIELDS PARK

FINANCIAL POLICY
Myatt’s Fields Park Project (‘The Organisation’) aims to ensure the fullest possible
control of the organisation’s finances by the Board of Trustees, Finance Committee
(‘the Committee’) and the Management Team.

The Board has the overall responsibility for the management of MFPP. The Finance
Committee provides financial oversight of MFPP. Day to day management is
delegated to the Management Team.

The Committee has agreed this set of policies and procedures to make sure that the
organisation’s financial resources:

- are used and accounted for properly and efficiently

- achieve value for money
- are protected against theft and fraud

These financial policies and procedures are to be reviewed annually by the

Committee at any time and all decisions to amend them are to be recorded in the
minutes.

An important principle to maintain in the operation of these financial procedures is

that of segregation of duties ie ensuring that no one individual has sole responsibility
for a financial transaction from start to finish.

These rules apply to the following sections:

1. Budgeting and forecasting

2. Financial reporting – management information
3. Annual report and accounts and examination
4. Seeking income
5. Donated goods and services
6. Receiving income
7. Authorising expenditure and making payments
7.1. Authorising expenditure
7.2. Budgets
7.3. Making payments
7.4. Payroll
7.5. Expense claims
7.6. Petty cash
8. Identifying and recording fixed assets
9. Maintaining adequate accounting records
10. Safeguarding funds
11. Managing risk of fraud or bribery

MFPP Financial Policy

Reviewed: may 2023
 1. Budgeting and forecasting (income, expenditure and cash flow)

Annual budgets of income, expenditure and cash flow are set annually as part of the
business planning process ahead of the start of each financial year. At mid-year a
review of the budget is carried out (forecast). The Management Team presents the
proposed budgets and forecasts to the Finance Committee for approval. Once
agreed, the Finance Committee recommends the budget to the Board of Trustees.

Projects budgets (for restricted projects) are prepared by the Management Team.
Budget requests for new projects with the value of over £20,000 to be approved by
the Finance Committee before submission to the funder.

Any changes to the budget and forecasts are presented to the Finance Committee
for approval.

2. Financial reporting – management information

Monthly management information reports for unrestricted and restricted projects

(income and expenditure actuals, compared to the budget) are prepared by the
designated member of the Management Team and distributed to all the Management
Team and Finance Committee.

Any overspend should be investigated by the budget holder and overspends should
be reported to the Finance Committee.

Quarterly a financial performance report is prepared by the designated member of

the Management Team and presented to the Finance Committee. The summary
reporting is presented at the quarterly Board meetings by the Treasurer.

Annually, during the AGM, the Treasurer will present the financial results for the year
and if unavoidably absent, will submit a written report.

3. Annual report and accounts and accounts examination

At the end of each financial year, Finance Manager will finalise the accounts and
prepare them in accordance with applicable charity and company legislations. The
Treasurer will review and approve the draft financial statements.

The Finance Manager will coordinate the examination of the accounts by the
independent examiner, appointed by the preceding Annual General Meeting.

The designated member of the Management Team will coordinate the production of
the annual report. Once the annual report and accounts are produced, these will be
distributed to the Board of Trustees for comments and approval.

Following the examination and the Annual General Meeting, the annual report and
accounts will be filed with the Charity Commission and the Companies House, within
the statutory deadlines.

4. Seeking income

MFPP Financial Policy

Reviewed: may 2023
Income generation strategy is agreed by the Board as part of the Business planning
process. The Management Team is responsible for generating those streams of
income, including grants, donations and unrestricted income, that are in line with the
strategy; any new income opportunities, not aligned to the strategy, should be
brought to the Board for approval. The Finance Committee will assess the financial
viability of a new opportunity, its implications on tax and any other regulatory
requirements, and will make the recommendations to the Board. The Board will
assess the impacts, ethics and financial viability of new income streams and will
make the decision.

Grant applications for new projects over £20,000 are approved by the Chair and the
Treasurer before being submitted.

5. Donated goods and services

Donated goods and services are gifts given to MFPP free of charge or pro bono
services provided (for example, a pro bono legal advice, a table tennis donated to the
park). These do not include the volunteer or trustee time.

The Management Team to keep a log of any donated gifts and services, together
with its estimate of the market value. These gifts and services are reported on in the
annual accounts and show the value of the pro bono support provided to the charity.

6. Receiving income

Funds received directly into MFPP’s bank account are identified (for example, grant
payments), checked for accuracy (e.g. for grants – against grant agreements) and
recorded in the finance system.

All cash received (e.g. subscriptions, cash payments for hire of the building, income
from fundraising events) is logged by the Park Manager and handed to the Finance
Manager for banking and recording in the finance system appropriately.

The cash and cheques should be logged on the day they are received, banked within
a week. This cash will not be used as petty cash, unless in exceptional
circumstances authorised by the Chair or the Treasurer.

Hires procedure:

All bookings for the Mulberry Centre parties, football pitch, tennis courts, weddings
and other hires are paid online. These are recorded appropriately in monthly income
and expenditure accounts and sent monthly to the Finance Committee and Park
Manager along with other bookkeeping records. The income from bookings is
checked against the income spreadsheet, the number of bookings in a month is also
checked against the caretakers’ payments in payroll. If there are any discrepancies
enquiries are made as appropriate.

Ethical income generation:

MFPP Financial Policy

Reviewed: may 2023
All new sources of income to be agreed in line with the financial ethical framework.
Projects that are judged green can be given the go ahead by the delegated member
of the Management Team: orange and red are referred for the Board for the decision.

7. Authorising expenditure and making payments

7.1. Authorising expenditure

Only trustees on the Finance Committee or the Park Manager or Community

Development Manager may authorise expenditure on behalf of the Organisation to
the levels specified in these Rules.

Only the Treasurer and other designated Committee members who are bank
signatories, the Park Manager and Development Manager, may sign financial
documents and cheques and make online payments.

Money to be spent by the Organisation may be authorised as follows:

- Up to £500 - by the Park Manager or Community Development Manager;

- Over £500 – by one of the Finance Committee member;
- Over £1,000 – approved by the Chair or Treasurer and another member of
the Finance Committee;
- Over £5,000 – approved by the full Finance Committee plus 3 quotes to be
provided to ensure good value for money i.e. ensuring the best balance of
cost, quality and timeliness of delivery. Trustees and staff should consider
value for money when selecting suppliers.

Restricted budgets are set at the beginning of the project with agreement of the
finance sub committee and Management Team. Budgets are delegated to managers
and spend approved as above.

Travelling expenses are normally to be authorised in advance as above. In

unexpected circumstances, local journeys may be made, and the cost reimbursed,
without prior authorisation.

Travel should normally be by the least expensive means of travel. Public transport
journeys will be reimbursed at cost, car and cycle journeys at mileage rates agreed
from time to time by the Committee. These should be in accordance with current HM
Revenue & Customs rules.

Non-travel expenses will normally be authorised in advance, in conformity with

decisions of the Committee and otherwise according to the scale set out above.

7.2. Budgets and delegated spending decisions

Budgets are set at the beginning of each year for all anticipated areas of spend.

Budgets for administration, overheads, staffing, horticulture and other areas are set
and allocated to members of senior management. They are then responsible for
managing these budgets with delegated decision making for spend up to £500 (with

MFPP Financial Policy

Reviewed: may 2023
agreement of the Development Manager over £200). They will report back each
month to trustees on spend and any areas of concern.

7.3. Making payments

Bills and invoices

On receipt of an invoice it must be checked and signed by the persons who ordered
the purchase and/or authorised the expenditure. They must be marked up with the
appropriate code.

The invoice will then be passed to the Finance Manager and will be recorded
appropriately in the finance system. On a monthly basis the invoices not yet paid by
other means (e.g. card payment) will be paid by bank transfer. The payments will be
set up online by the Finance Manager and authorised by the Treasurer or appointed
trustee, after checking them against paperwork, checking that the payee’s details and
bank details are correct. The Treasurer and other bank signatories will not approve
payments without assurance that the expenditure has been properly authorised. Any
request for unauthorised payments will be reported to the Committee, who will
determine the appropriate course of action.

All paid-up invoices will be marked ‘paid’, with the cheque number / bank transfer
confirmation and date of payment. Also an internal reference number is allocated to
each invoice for ease of reference. The reference numbers are in sequential order,
being a mean of controls that the bookkeeping records are complete. The same
procedures apply for the invoices paid electronically, when a card confirmation
payment is attached to the invoice. They are marked as paid by card and are
referenced in the same way as above and checked by the Treasurer. The Accounts
Manager and Treasurer will keep on file original bills, invoices, copies of orders,
receipts and other documents related to payments. The Accounts Manager and
Treasurer will not under normal circumstances accept photocopies.

The designated Finance Committee members, Park Manager and Development

Manager are the only people authorised to make payments by card.

7.4. Payroll

Staff are paid monthly in accordance with their contracts of employment. Any
increases to pay to be agreed by the Finance Committee and confirmed in writing to
the employee.

Monthly payments schedule to be sent to the Finance Manager and shared with the
Treasurer. The Finance Manager will prepare the salary payments by BACS and will
make the necessarily deductions and payments to HMRC and pension provider.

7.5. Expense claims

The Accounts Manager will file receipts and all other documents submitted in support
of claims.

Expenses incurred by the Management Team should be approved by the Chair or

the Treasurer before making the payment. Expenses incurred by the Trustees,

MFPP Financial Policy

Reviewed: may 2023
should be approved by the Chair. Chair’s expenses should be approved by the
Treasurer.

No payment will be made to any member of the Committee, except for the
reimbursement of legitimate out-of-pocket expenses. Any other proposed payments
to the Trustees to be checked by the Treasurer and only will be made if in line with
the Charity Commission guidelines.

7.6. Petty cash

Small amounts of petty cash up to £200 to be kept for the cafe, gardening project
(plant sales) and food project (donations for retired people's lunch). All petty cash
received and paid is recorded and receipts kept for inspection. The key to the safe is
kept by the Park Manager and the Community Development Manager.

8. Identifying and recording fixed assets

All fixed assets such as land, property, computers, software and equipment, over
£500 to be identified and recorded by the Finance Manager in a fixed assets register.
Important documentation such as ownership records/title deeds / purchase invoice to
be securely stored and assets to be adequately ensured where appropriate.

Fixed assets are depreciated as per the depreciation policy.

9. Maintaining adequate accounting records

The Finance Manager is responsible for keeping the accounting records. All
transactions are recorded in the finance system. Bank reconciliations to be
performed on monthly basis to ensure all income and expenditure is recorded
appropriately.

The Finance Manager will also maintain files containing all bills, invoices, receipts,
copies of order notes and such other documents as may reasonably be required at
the time of the annual independent examination.

All records and other documents relating to the accounts, including copies of the
Committee minutes, will be kept in a safe place for a period of not less than six years
from the end of the financial year to which they relate.

10. Safeguarding funds

Bank Accounts

MFPP Financial Policy

Reviewed: may 2023
The Organisation will hold accounts in its own name with the financial institution
named in the Constitution / Governing Document, or with such other financial
institution(s) as the Committee may from time to time decide (Cooperative Bank).

Bank statements are to be addressed to the Treasurer at The Old Depot, Myatt’s
Fields Park, Cormont Road, London SE5 9RA and passed to the Accounts Manager
without delay. Bank statements will be kept in the office and presented to the
Committee as needed.
Cheques

All cheques must be signed by any two of the following:

● The Treasurer;
● Other named Committee members (at least two in number) appointed by the
Committee and recorded in the minutes.
● Members of staff as appointed by the Committee and recorded in the minutes

A mandate form will be competed each time signatories are appointed or changed by
the Committee and will be forwarded to the bank.

Under no condition is any signatory to sign a blank cheque.

The cheque book(s) will normally be held in the Park Office.

11. Managing risk of bribery and fraud

All hospitality/gifts and conflicts of interest to be declared, recorded and reviewed

every 6 months by the Committee.

Payments by cheque or bank transfers should only be authorised in the bank when
appropriate approvals were followed (see Section XX above).

Trustees should sign a declaration of interest each year confirming any possible
conflict of interest and also agreeing to comply with the charity’s policies.

Any sign of fraud should be reported to the Chair or the Treasurer who will decide on
the course of action.

Any bribery or fraud undertaken by the staff of trustees will be treated as a gross
misconduct and may result in immediate termination of the contract.

The Management Team should not make any payments except legitimate travel
expenses to Trustees without prior consent from the Chair and the Treasurer. Such
payments may result in breaking the Charity Commission rules so careful
consideration will be undertaken to assess whether a payment should be made.

MFPP Financial Policy

Reviewed: may 2023