About Safe Haven – A Ray of Hope

Internal Charity Financial Controls Policy and Procedures

 

1. Purpose and Scope

This policy sets out the financial controls and procedures of Safe Haven – A Ray of Hope to:

  • Safeguard charity funds and assets
  • Ensure compliance with UK charity law and regulations (Charities Act 2011, Charity
  • Commission guidance)
  • Promote transparency, accountability, and good governance
  • Prevent fraud and financial mismanagement
  • This policy applies to all trustees, staff, volunteers, and any individuals handling charity finances.
2. Roles and Responsibilities

• Trustees: Hold overall responsibility for financial stewardship and compliance.

• Treasurer: Leads financial oversight, reporting, and liaison with external examiners.

• Finance Officer (if applicable): Manages day-to-day bookkeeping, reconciliations,

and record-keeping.

• All Staff and Volunteers: Must comply with financial controls and report any

concerns.

3. Bank Accounts and Signatories

• All charity funds must be held in accounts in the charity’s name with reputable UK

banks.

• A minimum of two authorised signatories are required to approve any payment  over £500.

• The Board shall approve and regularly review signatories.

• Online banking access must be restricted to authorised persons with secure passwords and two-factor authentication.

• Cheque books and bank cards are stored securely in a locked cabinet.

4. Income Handling and Receipting

• All income (donations, grants, fundraising proceeds) must be:

• Promptly recorded in the accounting system.

• Banked intact within 5 working days.

• Receipted to the donor or grantor if appropriate.

• Cash must be counted and verified by two people where practical.

• Records must clearly state the source and purpose of each receipt.

5. Payment Authorisation

All payments require:

• Proper supporting documentation (invoice, purchase order, grant award letter).

• Evidence of approval in line with the authorisation limits:

 

Amount

Approval Required

Up to £250

One authorised signatory

£251–£500

Two authorised signatories

Over £500

Trustee Board approval & two signatories

                 

• Payments must be made by BACS or cheque wherever possible, minimising the use of cash.

 

6. Expenses and Reimbursements

• Trustees and staff must submit expense claims using the charity’s expense claim

form.

• All claims must:

• Be supported by original receipts.

• Be approved by a trustee or line manager.

• Be reimbursed only for reasonable, necessary expenses incurred on charity

business.

• Claims must be submitted within two months of expenditure.

• Claims must be submitted within two months of expenditure.

 

7. Petty Cash

• A petty cash float may be maintained up to £100.

• All petty cash transactions must:

• Be logged in the petty cash book.

• Have supporting receipts.

• Be reconciled monthly and signed by the Treasurer.

 

8. Financial Records and Reporting

• All records must be:

• Accurate, complete, and up to date.

• Retained for at least 6 years in compliance with HMRC and Charity Commission

rules.

• The Treasurer will prepare:

– Monthly bank reconciliations.

– Quarterly financial reports to trustees.

– Annual accounts for independent examination and submission to the Charity

Commission.

9. Asset Management

• An asset register will be maintained for items over £250 in value.

• Assets must be labelled and stored securely.

• Any disposal of assets requires trustee approval.

10. Financial Planning and Budgeting

• The Board shall agree an annual budget prior to the start of each financial year.

• Spending against budget is monitored quarterly, with variances reported to trustees.

• No expenditure exceeding the budget by more than 10% in any area shall occur without trustee approval.

11. Fund Restrictions

• Restricted funds will be clearly recorded and reported separately.

• All spending from restricted funds must comply with donor terms.

12. Fraud Prevention and Reporting

• All persons handling finances must remain vigilant for fraud indicators.

• Any suspicion or incident must be reported immediately to the Chair of Trustees.

• The Charity has a zero-tolerance approach to fraud.

• Trustees will assess and report serious incidents to the Charity Commission in line

with their guidance.

13. Confidentiality and Data Protection

• Financial records containing personal data will be managed in compliance with the

Data Protection Act 2018 and GDPR.

• Access to financial information is restricted to authorised personnel.14. Review and Compliance

• This policy shall be reviewed annually by the Board of Trustees.

• All staff and volunt

 


Approved by:

Blessing Olalemi: May 30th

Kerry- Ann Batten: May 29

John Olalemi: May 30th

 

Last reviewed: May 30th 2025 | Next review: June 2026