Financial Controls Policy

1. Scope of this Policy
1.1. This Policy sets out the systems of control which apply to financial transactions undertaken on behalf of the Norbury Community Land Trust Ltd. (NCLT) and should be read in conjunction with NCLT’s Rules (the “Rules”). In the event that this Policy and the Rules conflict, the Rules shall prevail.
1.2. This Policy applies to NCLT’s board members (“Board Members”), its employees and volunteers when acting on behalf of NCLT.

2. Organisation
2.1. NCLT’s financial year end is 31st March.
2.2. NCLT’s bankers are: The National Westminster Bank, Norbury Branch, 1393 London Rd, SW16 4AL.
2.3. NCLT’s auditors are two members appointed at each Annual General Meeting or if a vacancy occurs in between by the Board.
2.4. NCLT will appoint professional auditors when its turnover reaches the required level.

3. Role of Treasurer
3.1. NCLT’s finances, cash, accounts, investments and financial systems shall be supervised by a Treasurer, who shall be a Board Member appointed by NCLT’s Board.
3.2. NCLT’s Treasurer shall, subject to the provisions of this Policy and the Rules, have control over NCLT’s bank accounts, cash, treasury activities, records of account and financial reserves.

4. Annual Budget
4.1. Each year NCLT’s board shall approve an annual budget and business plan for the forthcoming financial year submitted by the Treasurer in accordance with Rule D1.

5. Accounts
5.1. The Treasurer shall supervise the maintenance of NCLT’s records of account in such a form as may be prescribed by law, including (but not limited to) records of all payments and receipts.
5.2. NCLT’s records of account shall hold no less than the following information in respect of each transaction or movement: a) the transaction’s date; b) the name of other party or parties; c) the reason for the transaction; and d) where the transaction has been included in NCLT’s budget, details of the budget which refers
5.3. NCLT’s records of account shall also hold supporting documents in the form of an invoice, receipt, authorisation or other evidence, sufficient to meet the requirements of this Policy and NCLT’s auditor in respect of each accounting transaction.
5.4. At least one backup copy of NCLT’s records of account and all supporting documents shall be held securely at a separate physical location.
5.5. All records and documents referred to by this Policy may be held and presented either: a) in physical form; or b) in the form of electronic records accessed through computerised or digital retrieval systems

6. Bank Accounts and Payments
6.1. Opening and closure of each NCLT bank, cash or credit account shall be approved in advance by NCLT’s Board.
6.2. Each payment, disbursement or settlement made from funds owned by or under the control of NCLT shall require prior approval (in writing or via electronic message) of: a) the Treasurer; and b) one or more other persons authorised by the Board, each being a bank account signatory. The Board will determine who are the authorised signaturies, two of which must sign each cheque.

7. Approval Limits
7.1. All approvals will be made by the board.
7.2. Loans, mortgages, credit arrangements or agreement of other forms of debt to be approved by Board resolution.
7.3. A copy of each approval required by paragraphs 7.1 and 7.2 above shall be held by NCLT along with the supporting document held for the relevant accounting transaction.
7.4. Notwithstanding the other provisions of this Policy, no NCLT Board member, employee or volunteer may authorise a payment in which they have an interest, taking into account NCLT’s Conflict of Interest policies.

8. Deposits
8.1. Each cash deposit received by NCLT shall be banked within seven working days.

9. Funding requirements
9.1. Where goods and services procured by NCLT are funded by loans, grants or other finance, the rules and stipulations of the funding body or bodies will be applied.

10. Competitive Tendering
10.1. The decision to purchase of goods or services (including entering into any contract or agreement to purchase) of the type shown in the below shall be made by the Board.
10.2. A minimum of two quotes or tenders shall be obtained depending on the value

Approved by Board: 10 July 2021
Effective from: 10 July 2021
Annual Review Date: 10 July 2022