Voluntary Action Lewisham

Our expectations of our management committee is that it is equipped to manage the organisation's affairs on behalf of its members. This includes the organisation's legal responsibilities with respect to finance, recruitment, health & safety, etc. Just how much as a trustee do you need to know?

By the end of the training you will be:

• Familiar with Charity and Company Law
• Able to understand the duties of the Board
• Able to recognise appropriate interaction with staff
• Able to recognise good practice

Are you a management committee member, chair or treasurer of a charity or voluntary group?

Perhaps you are considering joining a committee but are worried about the responsibility?

If you would like to learn more about the financial aspects of being a committee member, this workshop will help you:

• Be clear about the financial responsibilities that are shared by committee members
• Be aware of policies and procedures for managing your organisation's money.

The Essential Skills in Financial Mangement courses are designed for beginners with little or no knowledge of bookkeeping and accounts as well as those who feel they need a refresher course. The five half day sessions make up a complete introductory course but you can book individual course sessions if places are available and you have the relevant skills.  If in doubt, please contact us for advice before you book.  Priority will be given to those attending all 5 courses.

The course is paper based and will demonstrate manual bookkeeping.  However we will discuss how these records can be kept on Excel spreadsheets and we can provide you with templates in Excel that you can tailor to your group's needs.

Follow up support will be available to help you implement what you have learned.

5. FINANCIAL REPORTS FOR YOUR COMMITTEE

This final course relies on knowledge and skills acquired in the four earlier sessions.  If you want to attend this session on its own you will need experience of bookkeeping and budgeting. If in doubt, please contact us for advice.

By the end of this course you will:

• Understand the importance of providing financial reports to your management committee
• Know some typical financial reports that you could use e.g:
  - A budget variance report
  - A receipts and payments accounts
  - A cashflow forecast

NB This final session relies on knowledge and skills acquired in the four earlier sessions. If you want to attend this session on its own you will need experience of bookkeeping and budgeting. Please check with the course organiser before booking.

For more information or to book a place please contact Christine Wykes Driver on 020 8314 6576.

The Essential Skills in Financial Mangement courses are designed for beginners with little or no knowledge of bookkeeping and accounts as well as those who feel they need a refresher course. The five half day sessions make up a complete introductory course but you can book individual course sessions if places are available and you have the relevant skills.  If in doubt, please contact us for advice before you book.  Priority will be given to those attending all 5 courses.

The course is paper based and will demonstrate manual bookkeeping.  However we will discuss how these records can be kept on Excel spreadsheets and we can provide you with templates in Excel that you can tailor to your group's needs.

Follow up support will be available to help you implement what you have learned.

4. YEAR END ACCOUNTS – RECEIPTS & PAYMENT FORMAT

By the end of this course you will:

• understand the legal requirements for year end accounts
• have used a Receipts and Payments working sheet to summarise the cash book and petty cash book
• have compiled a Receipts and Payments account 
• understand the Statement of Assets and Liabilities
• have looked at the Charity Commission’s template for producing Receipts and Payments accounts

An understanding of the Cash Book and Petty Cash Book is needed for this session if you have not attended the prior session Introduction to Bookkeeping.

NB This session does not cover accounts in the accruals format which is used by larger charities and all charitable companies.  Training can be provided on this on request.

For more information or to book a place please contact Christine Wykes Driver on 020 8314 6576.

The Essential Skills in Financial Mangement courses are designed for beginners with little or no knowledge of bookkeeping and accounts as well as those who feel they need a refresher course. The five half day sessions make up a complete introductory course but you can book individual course sessions if places are available and you have the relevant skills.  If in doubt, please contact us for advice before you book.  Priority will be given to those attending all 5 courses.

The course is paper based and will demonstrate manual bookkeeping.  However we will discuss how these records can be kept on Excel spreadsheets and we can provide you with templates in Excel that you can tailor to your group's needs.

Follow up support will be available to help you implement what you have learned.

3. INTRODUCTION TO BOOKKEEPING

By the end of this course you will:

• know how to enter financial transactions in a petty cash book
• know how to enter financial transactions in a cash book
• know how to do a bank reconciliation

For more information or to book a place please contact Christine Wykes Driver on 020 8314 6576.

The Essential Skills in Financial Mangement courses are designed for beginners with little or no knowledge of bookkeeping and accounts as well as those who feel they need a refresher course. The five half day sessions make up a complete introductory course but you can book individual course sessions if places are available and you have the relevant skills.  If in doubt, please contact us for advice before you book. Priority will be given to those attending all 5 courses.

The course is paper based and will demonstrate manual bookkeeping.  However we will discuss how these records can be kept on Excel spreadsheets and we can provide you with templates in Excel that you can tailor to your group's needs.

Follow up support will be available to help you implement what you have learned.

COURSE 2. SETTING AND MONITORING A BUDGET

By the end of this course you will:

• Know how to prepare a simple budget
• Understand the importance of planning and costing
• Understand the need for budget monitoring
• Understand the difference between restricted and unrestricted funds
• Know how a variance report is laid out

For more information or to book a place please contact Christine Wykes Driver on 020 8314 6576.

The Essential Skills in Financial Management courses are designed for beginners with little or no knowledge of bookkeeping and accounts as well as those who feel they need a refresher course. The five half day sessions make up a complete introductory course but you can book individual course sessions if places are available and you have the relevant skills.  If in doubt, please contact us for advice before you book.  Priority will be given to those attending all 5 courses.

The course is paper based and will demonstrate manual bookkeeping.  However we will discuss how these records can be kept on Excel spreadsheets and we can provide you with templates in Excel that you can tailor to your group's needs.

Follow up support will be available to help you implement what you have learned.

1: FINANCIAL PROCEDURES AND POLICIES

By the end of this course you will:

• understand the main financial responsibilities of the management committee
• know some basic systems for organising and recording financial activities
• understand why financial controls are necessary and how a policy can help
• have thought about financial policies and procedures needed for your own organisation

For more information or to book a place please contact Christine Wykes Driver on 020 8314 6576.

Her Majesty's Revenue and Customs (HMRC) have released guidance on how they will implement part of the Finance Act 2010.

New definition of Charity

The Act introduces a new definition of charity for tax purposes and includes a 'fit and proper person' test for the trustees and senior managers of charities. This will also affect Community Amateur Sports Clubs which already register with the HMRC.

The legislation follows an European Court of Justice case which found that charity tax relief should be given on donations to charities that are based in other European member states. 

For the purposes of the Finance Act, and hence for tax relief, a charity must:

• Be established for charitable purposes
• Be subject to UK law, (for charities in the UK)
• Be registered with the Charity Commission (for charities in England and Wales)
• Meets the management condition i.e. all the trustees and senior managers meet the new fit and proper person test.

Fit and Proper Person Test

The fit and proper person test is designed to prevent charities claiming tax exemptions where the trustees or senior managers may abuse the charities tax status. So, any of the following will be likely to cause an individual trustee or manager to fail the test:

• a history of tax fraud
• a history of other fraudulent behaviour including misrepresentation and/or identity theft
• HMRC knowledge of involvement in attacks against or abuse of tax repayment systems
• information or evidence pointing to a heightened risk of involvement in other fiscal or financial impropriety
• being barred from acting as a charity trustee by a charity regulator or Court, or being disqualified from acting as a company director

If a manager or trustee fails the test HMRC may reject the charity's claim to tax relief.

This new definition of charity could lead to an organisation being recognised as a charity by the Charity Commission, but not being recognised as a charity by HMRC.

What next?

HMRC say that they do not intend to routinely ask charities to demonstrate that their senior managers and trustees will pass the fit and proper person test. However:

HMRC will expect charity trustees to be able to show, if challenged, that they have given proper consideration to the suitability of people they appoint to positions of trust or influence in the charity, especially where they are able to exert control over the charity's finances and tax affairs.

Trustees may wish to obtain a declaration from any new managers, trustees and directors appointed after 5 April 2010. A template for this is available here and includes a declaration by the individual that they are a fit and proper person to act as a charity manager.

Model Declaration for Fit and Proper Persons

People in some of the categories on the model declaration may already be excluded from acting as a trustee by the charities governing documents. This is particularly the case is a charity has used one of the Charity Commission's model governing documents.

As many governing documents do not have a power to remove trustees from office it may also be worth looking at the options available to a charity should one of their trustees or senior managers fail the new test.

The Charity Commission has updated much of it financial guidance for charities.

This includes updates to:

• Charities and Risk Management (CC26)
• Financial Difficulties and Insolvency (CC12)
• Charities and reserves (CC19)
• Internal Financial Controls (CC8)

The new guidance has been issued to help charities cope with the current economic conditions. It follows research showing that charities expect to be hit later than other sectors by the recession, but take longer to recover.

Updates include a new risk grid (Charities and Risk Management); guidance on controls over internet banking and safeguards against fraud and financial crime (Internal Financial Controls); a checklist of key questions for trustees to establish their charity’s financial position (Financial Difficulties and Insolvency) and guidance on setting reserves in the context of financial and risk management (Charities and Reserves).

Asset

The Community Accountancy (Asset) Project at VAL can assist voluntary and community groups in Lewisham with advice and training on handling finances.
For further details please contact: Christine Wykes Driver on: 020 8314 6576 or e-mail christine@valewisham.org.uk.

There are similar projects in Bexley, Greenwich and Southwark.

If your group is thinking about taking on staff, or has begun to employ full, part time or sessional workers, then this course will help you understand your payroll  responsibilities as an employer.

By the end of this course you will:

·        Understand the legal requirements to operate PAYE

·        Be able to identify who counts as an employee

·        Be aware of the procedure for taking on a new worker and what forms to complete

·        Have an overview of how to operate payroll and what records to keep

This course is an overview, suitable for organizations that have started to employ staff or are thinking about doing so. 

For an extensive selection of factsheets on financial management go to the CASH website www.cash-online.org.uk and select CASHFACTS.

Below are information sheets and handouts produced by the Community Accountancy Service at Voluntary Action Lewisham. Contact us if you would like us to email or post a copy to you.

The Community Accountancy Service at VAL and its partners in ASSET provide a range of training in all areas of financial management and control for charities, social enterprises and voluntary sector organisations. Our courses include useful handouts and we are happy to give further support and advice to help you implement what your learn.

Training Courses

Essential Skills in Financial Management

This is a series of five half day courses that gives a thorough introduction to all aspects of managing your voluntary organisation's money. It is designed for beginners and those wanting to refresh their skills. Priority will be given to those booking all five courses.

To discuss your financial training needs please contact Christine Wykes Driver on 020 8314 6576 or email christine@valewisham.org.uk

Click here to subscribe to an RSS feed of Asset news.

ASSET Support Services

The Community Accountancy Service at Voluntary Action Lewisham is free for charities and non-profit organisations working within the borough. This includes social enterprise organisations and community groups.  We have considerable experience of working with voluntary and community groups and understand the pressures and challenges faced by this sector.  We can support you at all stages of your organisation’s growth. For example:
 
Setting up a new community group

• an overview of financial implications and responsibilities
• writing a business plan
• creating budgets and forecasts to support funding applications

Getting going

• financial awareness training for your management committee
• support and training for treasurers
• developing a financial controls policy
• help with setting up basic bookkeeping systems
• how to monitor your cashflow
• record-keeping and reports for funders
• preparing year end financial statements 

As the organisation grows

• employing staff – from payscales to payroll
• preparing for audit or independent examination
• advice on choosing and setting up computerised accounts packages
• budgeting for full cost recovery
• support for lone finance workers and non-financial managers

Financial Health Checks
One of the ways we can help you assess the strength of your financial management is by doing a Financial Health Check for your organisation. This is a simple questionnaire which looks at the four key areas of

• financial controls
• record-keeping
• budgeting and financial planning
• financial reporting

After completing the questionnaire with the Community Accountant we can help you identify priority areas for improvement,devise an action plan and help you implement it by providing model documents and policies, bookkeeping templates, information and referrals to specialist agencies, one-to-one advice and support, and access to our in-house or public training courses.

Our newsletter, ASSET News, goes out once a year.  See the previous page - Community Accountancy - for the last ASSET Newsletter with information on Reserves Policies and free budgeting software.

Welcome to the Community Accountancy pages

ASSET (Accountancy Support in South East Thames) is a consortium of community accountancy projects in four South-East London boroughs: Bexley, Greenwich, Lewisham and Southwark. We are here to provide voluntary organisations, community groups and charities with financial support and training to enable them to better manage one of their most significant resources – money.

ASSET in Lewisham

At Voluntary Action Lewisham we recognise that one of the challenges facing many organisations is to develop good financial policies, systems and practices. To respond to this we provide free financial advice and support for management committee members, staff and volunteers in the Voluntary and Community Sector (VCS).

For further details please contact: Christine Wykes Driver on: 020 8314 6576 or e-mail christine@valewisham.org.uk

ASSET Partners