1. Policy Statement
The Lambourn Junction Community Interest Company (LJCIC) is committed to financial transparency, accountability, and integrity in all our financial operations. This policy is designed to comply with UK laws and charity sector best practices, ensuring effective and responsible financial management.
2. Scope
This policy applies to all directors and authorised individuals managing LJCIC’s financial activities, including payments, donations, grants, and project-specific petty cash.
3. Financial Transparency and Accountability
LJCIC aims to be fully transparent in all financial matters, ensuring that records and financial activities are accessible and clear to all stakeholders, including donors, project participants, and relevant regulatory bodies. LJCIC commits to:
- Maintaining accurate financial records.
- Ensuring all financial activities comply with the relevant UK financial and charity laws, including Anti-Money Laundering (AML) regulations.
- Reporting any financial irregularities or concerns promptly to the board.
4. Authorisation and Payment Limits
- Director Payment Authority: Each director is authorised to make individual payments up to £1,000.
- Payments Exceeding £1,000: Payments above £1,000 require the written approval of a second director before the transaction can proceed. This written approval may be provided via email or other traceable documentation methods.
- Bank Account Access: Only directors are authorised to access and make payments from the LJCIC bank account.
5. Petty Cash Management
Individual projects authorised by LJCIC may manage their own petty cash, subject to the following guidelines:
- Record-Keeping: Projects must maintain detailed and accurate records of all payments made and income received.
- Reporting: Petty cash records are to be submitted to the directors at agreed intervals for review and monitoring.
6. Donations and Anti-Money Laundering Compliance
- Reputable Sources: Directors will ensure that all donations received are from reputable sources.
- AML Compliance: All donations must comply with UK Anti-Money Laundering (AML) laws. Directors must take appropriate steps to verify the legitimacy of large donations or those from unfamiliar sources.
7. Financial Reviews and Approvals
- Biannual Review: All payments will be reviewed by the directors every six months.
- Retrospective Approval: All payments reviewed will be presented and approved retrospectively at the subsequent directors’ meeting.
8. Treatment of Purchases and Grants
- Expense Threshold: Purchases below £1,000 are classified as expenses and are not included on the balance sheet.
- Grant Accounting: Grants exceeding £1,000 will be placed on the balance sheet until the funds are used for their intended purpose. This treatment ensures that, if necessary, the grant can be returned to the original funder in full.
9. Compliance and Review
This policy will be reviewed annually by the directors to ensure compliance with any new regulations, best practices, or operational changes within LJCIC. Any amendments to this policy will be approved by the board of directors and recorded in the meeting minutes.
Approved by the Board of Directors of The Lambourn Junction Community Interest Company
Date: