Financial Procedures

1.1. All the Co-operative’s records of account, bank statements and other financial information will be kept on the co-operative’s digital systems (such as QuickBooks and CHICs) and are to be kept up to date at all times. The Co-ordinator is to be responsible for this. All financial records will be kept for a minimum of seven years.

1.2. The bank balance(s) shown on bank statements must be reconciled to the accounting software records at least once monthly. The Co-ordinator to be responsible.

1.3. The Finance sub-group will present a quarterly report to the Management Committee (MC) and General Meeting (GM) of actual expenditure against budget in conjunction with the Co-ordinator.

1.4. The Finance sub-group will ensure that the co-operative’s accounts are audited annually and a financial report made available to the Annual General Meeting (AGM).

1.5. The Co-ordinator, as directed by the Finance sub-group, will be responsible for drafting an annual budget for approval by the MC at least three months before the start of each financial year.

2.1 The Co-operative will maintain one current bank account, through which all payments and receipts will be made. Any additional accounts will operate by transfers into or out of this ‘control account’. Surplus funds will be transferred to a higher interest account. The timing and amount to be decided at a Finance subgroup meeting after consultation with the Co-ordinator.

3.1 The MC Chair, GM Chair, Treasurer, Secretary and designated co-operative signatories will authorise payments from the ‘control account’ on behalf of the MC. Any change in designated signatories must be agreed by the MC. Signatures should normally be hard copy, unless unacceptable delays will occur when they may be digital.

3.2 Payments may only be made if accompanied by a Payment Authority (PA), correctly completed and signed and original invoice/bill; where exceptionally no invoice is obtained the PA must be provide a full explanation. The subgroup, MC or GM who agreed the payment should be indicated. Alternatively, if policy allows the co-ordinator to agree a payment, this should be stated. The PA is to be signed by two signatories.

3.3 Payments will normally be made by bank transfer, debit card or standing order/direct debit. The Co-op no longer uses cheques for payment.

3.4 The Co-operative will hold a debit card for the control account. A Co-op member will be allocated as the named holder of the card. Authorisation for payments will be as above, through a PA with invoice/estimate attached, and signed by two signatories. The Co-ordinator will then inform the card holder to make the payment.

3.5 All paid invoices with the appropriate PA should be digitally filed by the Co-ordinator.

4.1 Setting up financial Standing Orders or Direct Debits has the same requirements as other bank payments – e.g. The Co-Op Chair, Treasurer and Secretary together with the designated co-operative signatories will be authorised to set up standing orders/direct debits on the ‘control account’ on behalf of the MC.

5.1 The Co-op will no longer cash pay for any item.

6.1 All cash or cheques received are to be banked as soon as practicable. A receipt must be issued for all cheques or cash received by the Co-ordinator. A paying-in slip is to be completed each time money is physically paid into the bank stating date, amount, payee and description.

6.2 A record of all electronic and physical payments into the bank account shall be kept with the date, amount, payee and description of type of income or transaction.

6.3 All invoices from the Co-operative should be raised on the Co-operative’s letterhead.

6.4 Rent received should be reconciled from QuickBooks (or other accounting software) to the rent records on CHICs (or other rent management software) each month.

7.1 Expenditure can only be authorised from an approved budget category. The MC must approve the transfer of funds from another budget category.

7.2 Maintenance authorisation levels:

• Up to £500 Co-op Co-ordinator can authorise
• £501 – 750 Maintenance subgroup
• £751 – 1,000 2 quotes must be obtained and submitted to Finance
  subgroup for approval. The MC must be informed.
• £1,001 – 5,000 3 quotes must be obtained and as above.
• Over £5,000 5 quotes, full tender procedure and as above

7.3 It is possible for the Co-op to re-employ trusted and reliable contractors, who are already on our approved list and working to our approved standards, without the specified number of quotes, provided they are employed to do the same or similar job (e.g. clearing gutters; fitting a kitchen etc.) and provided their charges remain in line with previous charges, taking inflation into account.

7.4 General Authorisation Limits: From time to time the MC will recommend to the GM appropriate expenditure authority limits. Until such time the following limits shall apply:

• Expenditure up to £750 must be authorised by a Minute of a duly convened meeting of the Finance subgroup and notified to the MC.
• Expenditure of between £750-5,000 must be authorised by a Minute of the MC.
• Expenditure in excess of £5,000 may only be authorised by a GM.
• Regular payments (e.g. PAYE, energy accounts) can be made by the Coordinator after the initial payment has been authorised as above.

7.5 Any lease, hire purchase agreement or other contract involving expenditure will be subject to the same authorisation limits as above, with the appropriate expenditure amount being the total committed expenditure over the period of the contract, or where the contract is open-ended, over the first 12 months of the contract. Larger contracts should not be entered into without adequate advice from the Co-operative’s relevant professional adviser(s) (e.g. accountant, solicitor, surveyor).

8.1 The Co-ordinator should regularly review and take action to recover debts owed to the Co-operative (N.B. rent arrears have specific procedures). Where these efforts are unsuccessful for more than three months, Finance subgroup should be consulted and the MC advised.

9.1 When undertaking business on behalf of the Co-op members can claim
reasonable expenses for travel, subsistence and other items. All expenses should be itemised and supported with receipts, and submitted to the Co-ordinator for payment. Amounts claimed over £100 must be agreed by Finance subcommittee.

10.1 The payment and level of all salaries, wages, pensions, compensation and other earnings to all employees or former employees of the Co-operative shall be made under arrangements approved and controlled by the Personnel Committee, who will inform the MC of any changes.

10.2 Staff expenses should be checked and authorised by a designated member of the Co-op’s Personnel Committee.

10.3 Any new permanent post shall only be created on the authority of a GM either by specific approval or through a specific budget heading on the approved budget. Any new temporary post shall only be created on the authority of the MC.

10.4 Contractors will only be taken on when authorised in accordance with section 7.2.

11.1 The MC shall be responsible for introducing and maintaining adequate
arrangements for all aspects of security throughout the Co-operative including all buildings, staff, stocks, stores, equipment, cash, records and confidential information in consultation with, and on the advice of all Co-op members.

12.1 The Co-operative’s audited financial statements should be presented to the Co-operative’s AGM within six months of the close of the financial year.

12.2 The financial statements should be prepared in accordance with general accepted accounting principles.

12.3 The audit should be completed by the beginning of February at the latest (preferably earlier) so that Finance subgroup and the MC can approve the accounts and signed copies be sent to the appropriate authorities. Audited accounts are to be presented to the AGM, as stipulated in the Co-op’s Rules.

13.1 Vine Co-operative’s financial year runs from 1-Oct to 31-Sept each year.