Finance Policy - Revision history

Jack at 12:46, 4 February 2026

2026-02-04T12:46:04Z

← Older revision		Revision as of 12:46, 4 February 2026
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	Trustees can delegate responsibility to approve projects to the Finance Steering Group. This may be for works agreed in the annual budget.		Trustees can delegate responsibility to approve projects to the Finance Steering Group. This may be for works agreed in the annual budget.

	== Conflicts of Interest ==		== '''Conflicts of Interest''' ==
	This policy should be read in conjunction with our [[Conflict of Interest Policy]]		This policy should be read in conjunction with our [[Conflict of Interest Policy]]

	== Reserves ==		== '''Reserves''' ==
	The trustees commit to maintaining Handcrafted’s reserves in line with its levels of financial risk and expenditure to mitigate the impact of any unforeseen loss/delay of income or unexpected expenditure.		The trustees commit to maintaining Handcrafted’s reserves in line with its levels of financial risk and expenditure to mitigate the impact of any unforeseen loss/delay of income or unexpected expenditure.

Jack at 12:45, 4 February 2026

2026-02-04T12:45:24Z

← Older revision		Revision as of 12:45, 4 February 2026
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	The Finance team and Finance Steering Group have outlined the following as the key financial risks the charity faces. This will be reviewed at least annually.		The Finance team and Finance Steering Group have outlined the following as the key financial risks the charity faces. This will be reviewed at least annually.
	{\| class="wikitable"		{\| class="wikitable"
	\|+
	!Risk		!Risk
	!Likelihood		!Likelihood

Jack: Addition of Reserves section; addition of Property Purchases and Large Capital Works section; update of job titles throughout, and minor edits to reflect use of Airtable system for financial controls.

2026-02-04T12:44:05Z

Addition of Reserves section; addition of Property Purchases and Large Capital Works section; update of job titles throughout, and minor edits to reflect use of Airtable system for financial controls.

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Seymour Jacklin: /* Making payments */ ammended signatories

2025-08-22T09:21:57Z

Making payments: ammended signatories

← Older revision		Revision as of 09:21, 22 August 2025
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	==== '''Making payments''' ====		==== '''Making payments''' ====
	Signatories per mandate: Dan, ~~James~~, ~~Lorraine~~, ~~Ruth and~~ Catherine.		Signatories per mandate: Dan Northover, Jenny Booth, Shalom Sabu, Tim Crichton, Catherine Braddock, Bobbie Ryder.

	==== '''Bank payments''' ====		==== '''Bank payments''' ====

Seymour Jacklin: /* Gateshead, Chester-Le-Street and Durham hubs: */

2025-08-22T05:13:46Z

Gateshead, Chester-Le-Street and Durham hubs:

← Older revision		Revision as of 05:13, 22 August 2025
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	'''You cannot approve your own staff expenses or cash reimbursement.'''		'''You cannot approve your own staff expenses or cash reimbursement.'''

	===== '''~~Gateshead, Chester-Le-Street and Durham hubs~~:''' =====		===== '''Hubs:''' =====
	* Budget holder is the Project Development Manager		* Budget holder is the Project Development Manager
	* Expenditure to be approved by Project Development Managers (or Operations Director or MD if required). Support workers and Administrators can approve cash expenditure.		* Expenditure to be approved by Project Development Managers (or Operations Director or MD if required). Support workers and Administrators can approve cash expenditure.

Jack: Updated approval limits and procurement limits in line with Finance Steering Group agreement.

2025-08-15T12:19:53Z

Updated approval limits and procurement limits in line with Finance Steering Group agreement.

← Older revision		Revision as of 12:19, 15 August 2025
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	![[The Finance Steering Group\|'''The Finance Steering Group''']]		![[The Finance Steering Group\|'''The Finance Steering Group''']]
	\|-		\|-
	\|'''Last review and approval'''		\|'''Last full review and approval'''
	\|19/09/2023		\|19/09/2023
			\|-
			\|'''Changes to Approval & Procurement Limits approved'''
			\|21/07/2025
	\|}		\|}

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	Sometimes the purchase/ordering and payment occur at the same time, but sometimes the payment happens later. There is a tendency to focus on the point of payment, but by then it is often too late because the organisation is already committed to paying. Approval processes therefore need to be in place at both stages.		Sometimes the purchase/ordering and payment occur at the same time, but sometimes the payment happens later. There is a tendency to focus on the point of payment, but by then it is often too late because the organisation is already committed to paying. Approval processes therefore need to be in place at both stages.

	The approval processes below are for expenditure that was included in the annual budget and approved by the Board. Different approval levels need to be considered if an expense was not included in the annual budget. Anything not included in the annual budget, and not covered by additional funding committed, should be approved by the Managing Director (MD) for amounts up to £500 and by the ~~Board~~ for anything higher.		The approval processes below are for expenditure that was included in the annual budget and approved by the Board. Different approval levels need to be considered if an expense was not included in the annual budget. Anything not included in the annual budget, and not covered by additional funding committed, should be approved by the Managing Director (MD) for amounts up to £500 and by the Chair of Trustee's for anything higher.

	== '''Making purchases''' ==		== '''Making purchases''' ==
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	'''Managing Director up to £10,000 for budgeted expenses.'''		'''Managing Director up to £10,000 for budgeted expenses.'''

	'''Above £10,000 needs ~~Board~~ approval. '''		'''Above £10,000 needs Chair of Trustee's approval. '''

	* Once approved it should be paid by BACS.		* Once approved it should be paid by BACS.
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	* Approval to use the debit card should be received '''in advance''' of the card being used. Therefore, in advance of making a purchase on the debit card, the '''card holder''' needs to obtain approval from the budget holder by completing the relevant form on Airtable. For the amount, always put in a higher estimate if you are unsure as this makes the process simpler and avoids having to get re-approval at a later stage.		* Approval to use the debit card should be received '''in advance''' of the card being used. Therefore, in advance of making a purchase on the debit card, the '''card holder''' needs to obtain approval from the budget holder by completing the relevant form on Airtable. For the amount, always put in a higher estimate if you are unsure as this makes the process simpler and avoids having to get re-approval at a later stage.
	* Once a request has been made, the budget holder needs to review and approve it by logging onto Airtable. The budget holder should check the cost centre, budget line etc. They should then approve or decline the request to use the card. If the request is declined, the budget holder must contact the Support/Admin staff and explain the reason and agree on the course of action to dispute the invoice.		* Once a request has been made, the budget holder needs to review and approve it by logging onto Airtable. The budget holder should check the cost centre, budget line etc. They should then approve or decline the request to use the card. If the request is declined, the budget holder must contact the Support/Admin staff and explain the reason and agree on the course of action to dispute the invoice.
	'''Project Development Manager~~/Operations Director~~ can approve up to £400.'''		'''Project Development Manager can approve up to £400.'''

	'''Managing Director to approve ~~£400 - £1~~,~~000~~. '''		'''Operations Director can approve up to £1,000.'''

			'''Managing Director to approve up to £2,500. '''

	* If approved, the card holder can make the purchase.		* If approved, the card holder can make the purchase.
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	'''Managing Director up to £10,000 for budgeted expenses.'''		'''Managing Director up to £10,000 for budgeted expenses.'''

	'''Above £10,000 needs ~~Board~~ approval.'''		'''Above £10,000 needs Chair of Trustee's approval.'''

	* Once the SO or DD has been set up. The supplier account number or reference number should be entered onto Airtable to allow finance to easily track payments to the bank.		* Once the SO or DD has been set up. The supplier account number or reference number should be entered onto Airtable to allow finance to easily track payments to the bank.
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	* Can approve for all departments.		* Can approve for all departments.
	* Cash up to £75		* Cash up to £75
	* Staff expenses up to ~~£200~~		* Staff expenses up to £1,000

	* Invoices up to £10,000		* Invoices up to £10,000
	* Debit cards up to ~~£1000~~		* Debit cards up to £2,500

	===== '''Operations Director''' =====		===== '''Operations Director''' =====
	* Can approve for hubs, core expenses and renovations.		* Can approve for hubs, core expenses and renovations.
	* Cash up to £75		* Cash up to £75
	* Staff expenses up to ~~£200~~		* Staff expenses up to £400
	* Invoices up to £5,000		* Invoices up to £5,000
	* Debit cards up to ~~£400~~		* Debit cards up to £1,000

	===== '''Project Development Managers''' =====		===== '''Project Development Managers''' =====
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	\|'''Action Required (minimum)'''		\|'''Action Required (minimum)'''
	\|-		\|-
	\|Less than £2,~~500~~		\|Less than £5,000
	\|Best value for money		\|Best value for money
	\|-		\|-
	\|£2,~~500~~ -£9,999		\|£5,000 -£9,999
	\|Two written quotes		\|Two written quotes
	\|-		\|-
	\|£10,000 - ~~£19~~,999		\|£10,000 - £24,999
	\|Three written quotes		\|Three written quotes
	\|-		\|-
	\|More than ~~£20~~,000		\|More than £25,000
	\|Formal tender		\|Formal tender
	\|}		\|}
	'''Best value:''' There is no requirement to obtain more than one quotation or follow the tender procedures, but the budget holder must act in the charity’s best interest and seek value for money.		'''Best value:''' There is no requirement to obtain more than one quotation or follow the tender procedures, but the budget holder must act in the charity’s best interest and seek value for money.

	'''Written quotes:''' For goods/services expected to cost between £2,~~500~~ and ~~£19~~,999, two or three written quotations must be sought from reputable, independent suppliers. The budget holder should clearly document their rationale for the procurement method selected. Where it is not possible to source two/three quotations an explanation should be attached to the documentation.		'''Written quotes:''' For goods/services expected to cost between £5,000 and £24,999, two or three written quotations must be sought from reputable, independent suppliers. The budget holder should clearly document their rationale for the procurement method selected. Where it is not possible to source two/three quotations an explanation should be attached to the documentation.

	'''Formal tender''': Interested suppliers submit a full tender in response to an advertisement. Following the closing date, tenders should be evaluated by at least two people (the budget holder and MD), against agreed criteria. Where necessary, shortlist suppliers and/or invite them to an interview/presentation. The panel should evaluate the tenders and the minutes of the meeting should be recorded in writing.		'''Formal tender''': Interested suppliers submit a full tender in response to an advertisement. Following the closing date, tenders should be evaluated by at least two people (the budget holder and MD), against agreed criteria. Where necessary, shortlist suppliers and/or invite them to an interview/presentation. The panel should evaluate the tenders and the minutes of the meeting should be recorded in writing.
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	* After which, any new Approved Suppliers must be appointed by the MD using the same procedures set out in the table above.		* After which, any new Approved Suppliers must be appointed by the MD using the same procedures set out in the table above.
	* Once added to the Approved Suppliers list, goods/services may be purchased from the supplier without a tendering process, provided that the budget holder responsible is satisfied with the quotation received and feels that there would be little benefit in a tendering process.		* Once added to the Approved Suppliers list, goods/services may be purchased from the supplier without a tendering process, provided that the budget holder responsible is satisfied with the quotation received and feels that there would be little benefit in a tendering process.
	* Each Approved Supplier must be reviewed at least biennially to ensure the supplier is still appropriate. At this point their contract should be reviewed and commercial negotiations with each of these suppliers over ~~£20~~,000 will also be held to ensure the charity is still getting value for money.		* Each Approved Supplier must be reviewed at least biennially to ensure the supplier is still appropriate. At this point their contract should be reviewed and commercial negotiations with each of these suppliers over £25,000 will also be held to ensure the charity is still getting value for money.

	==== '''Exceptions''' ====		==== '''Exceptions''' ====

Seymour Jacklin at 11:05, 11 March 2025

2025-03-11T11:05:01Z

← Older revision		Revision as of 11:05, 11 March 2025
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	== Conflicts of Interest ==		== Conflicts of Interest ==
	This policy should be read in conjunction with our [Conflict of Interest Policy]		This policy should be read in conjunction with our [[Conflict of Interest Policy]]

Seymour Jacklin at 11:04, 11 March 2025

2025-03-11T11:04:22Z

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Seymour Jacklin at 10:58, 11 March 2025

2025-03-11T10:58:26Z

← Older revision		Revision as of 10:58, 11 March 2025
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			At Handcrafted, we are committed to maintaining high standards of financial management to ensure transparency, accountability, and the responsible use of resources. Our financial policies and procedures are designed to safeguard the organisation’s assets, ensure compliance with legal and regulatory requirements, and support effective decision-making.

			This policy outlines the financial controls, responsibilities, and processes in place to manage income, expenditure, and reporting. This policy will be reviewed as required and at least annually by the group or individual responsible for review and authorised by the Trustees as below:

			{\| class="wikitable"
			!Group or individual responsible for review
			![[The Finance Steering Group\|'''The Finance Steering Group''']]
			\|-
			\|'''Last review and approval'''
			\|19/09/2023
			\|}

	=== '''Overview''' ===		=== '''Overview''' ===
	Handcrafted needs to be capable and resilient to sustain and grow our work. Handcrafted’s trustees and senior management are committed to building long term financial sustainability as a foundation for further growth. This policy is built on the following principles:		Handcrafted needs to be capable and resilient to sustain and grow our work. Handcrafted’s trustees and senior management are committed to building long term financial sustainability as a foundation for further growth. This policy is built on the following principles:

Seymour Jacklin at 12:46, 31 January 2025

2025-01-31T12:46:56Z

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