Policy and Procedures

Doc. No.2Version No.1
Last Reviewed Approved ByThe Board
Next Review ResponsibilityManager

Table of Contents

1. Organisational Structure. 1

2. Policy. 2

2.1 Policy Statement 2

2.2 Purpose. 2

2.3 Scope. 2

2.4 Responsibility. 3

3. Procedures. 4

3.1 Accounting Records. 4

3.1.1 Back-Up, Archiving, Maintaining, Updating and Review.. 4

3.1.2 Books and Records. 5

3.2 Financial Returns to Funding Providers. 5

3.3 Bank Account(s) and Authorised Signatories. 5

3.3.1 Bank Accounts. 5

3.3.2 Authorised Signatories. 6

3.4 Annual Budget and Authorisation Limits. 6

3.4.1 Annual Budget 6

3.4.2 Authorisation Limits. 6

3.5 Financial Control 7

3.5.1 Income. 7 Incoming Mail – Cash and Cheques. 7 Issuing of Invoices. 7 Receipts. 7

3.5.2 Expenditure. 8 Invoice Payment 8 Electronic Transfers: 8 Payments from Petty Cash. 8

3.6 Public Procurement 9

3.6.1 Procurement 9

3.6.2 Tax Affairs. 9

3.7 Online Banking. 10

3.7.1 Access and Authorisation. 10

3.7.2 Transfers. 10

3.7.3 Online Bill Payments. 10

3.7.4 Pre-Authorised Payments. 11

3.7.5 Additional Controls. 11

3.8 Expenses. 11

3.9     Payroll 12

3.10 Fixed Asset Management 12

3.11 Administration. 13

3.11.1 Financial Reporting. 13

3.11.2 Bank Reconciliations. 14

3.11.3 Audit 14

3.11.4 Year End. 14

4. Monitoring and Review.. 15

. Organisational Structure

            Company Name: Twilight Communiy Group   Company Registration Number: 636173- /Charity No.20200322
Twilight Community Group was established in 2014. It is a community organisation, Limited by Guarantee. It was set up to promote and support volunteering in County Kilkenny. The Board of Management consists of the: –   Chairperson: Mr Martin Brennan   Secretary: – Ania Adamowska   Treasurer: – Syed Mustafizur Rahman   Directors: – Patrick O’Neill, Denis Hynes , Peter Cleere                                                                                             Primary Objective of  TCG : To promote and support voluntary activity throughout Co. Kilkenny by encouraging individuals to participate in voluntary activity and by supporting community and voluntary organisations to deliver their services effectively in a sustainable fashion. “We are a one stop shop for everything to do with volunteering in Co. Kilkenny. We work to promote and support volunteering in the County. We are a resource for individuals who want to volunteer and for groups and organisations looking for volunteers”. TCG believes that volunteering benefits both society and the volunteer. It is an important way for individuals to participate in their community, contribute to tackling the issue they care about and to strengthen social bonds. “We aim to ensure that volunteers are treated with respect and dignity and to offer everyone an equal opportunity to volunteer”.  
2. Policy   2.1 Policy StatementTwilight Community Group is committed to handling all its financial transactions with integrity and transparency. We will always manage our funds responsibly and honestly and with the highest standards of financial accountability possible. To meet this commitment, we will adhere to the following principles. Consistency – All Board members, staff and internal volunteers should consistently adhere to the policy and procedures. It should not allow manipulation of processes and systems.Accountability – We will provide information to all relevant stakeholders on how funds have been used and what has been achieved as a result.Transparency – We will be open about our work and provide relevant stakeholders with information about our activities and plans, including preparing accurate, complete and timely financial reports.Viability – Mechanisms will be put in place that maintain a balance between expenditure and income at operational and strategic levels. Integrity – All individuals will operate with honesty and propriety as the integrity of financial records depends on accuracy and completeness.Oversight – We will provide systematic monitoring and review at all levels throughout the organisation. This would include risk assessment; strategic planning etc.Accounting Standards – The accounting systems will meet national and internationally accepted standards of financial accounting and recordkeeping.
2.2 PurposeTo ensure that all financial transactions are transparent, controlled and are carried out in accordance with generally accepted accounting principles and provide guidance on all financial transactions to the Board, Manager and staff.
2.3 ScopeThis policy covers all financial transactions carried for or on behalf of the organisation and applies to all individuals or groups undertaking those transactions.
2.4 ResponsibilityBoard They have a general duty to ensure that the organisation: Complies with the law.Maintains proper books of accounts.Prepares annual financial statements and reports.Has carried out an annual Financial Audit in a timely manner.Convenes general meetings.Files relevant documents with the Companies Registration Office (CRO). Manager The Manager reports directly to the Board and has overall responsibility for administration, specific responsibilities include: Liaising with the accountant. Liaising with the auditor. Liaising with the payroll company. Establishing programme objectives and initiating the budget process. Finding the most effective way of achieving programme objectives within the limits of the approved budget. Ensuring programmes and services follow financial policies and procedures, as well as the requirements of funders.  Establishing the amount and purpose of all financial transactions always taking advantage of possible savings. The manager is also responsible for submitting the following documents to the accountant on a monthly basis: Bank statements and reports from internet business banking.List of invoices paid and amounts for each bank account – numbered sequentially.List of amounts received and source.List of invoices issued and amounts – numbered sequentially. Budget document.List of lodgements.Funding proposals/agreements as relevant.Credit card statements and supporting documentation. Accountant The Accountant prepares and provides KVC with the following: Financial reports for Board.Financial reports for funding applications.Annual audited accounts.Financial returns for funders.Support regarding maintenance of accounts, including a review of financial records. Staff Being aware of those aspects of the financial management system that are immediately relevant to their jobs. Complying with all policies and procedures and communicate any breaches promptly and accurately to management. Looking for opportunities to improve operational efficiencies and optimise financial resources. Reporting any concerns they may have with the policy and procedures.



3. Procedures

3.1 Accounting Records 

3.1.1 Back-Up, Archiving, Maintaining, Updating and Review

PurposeTo ensure that all accounting records are available for relevant stakeholders as required to meet our legal and organisational obligations.
ResponsibilityBoard, Finance Sub-Committee, Manager
ProcedureThe accounts are processed using a software package.The organisation has electronic and hard copy accounting records.Electronic records are back-up quarterly and archived on a separate server.At the time of back-up the manager will test to ensure that records are recoverable. Hard copy records are stored securely in a locked cabinet in the manager’s office with relevant documents maintained off site with the accountant.  The manager is responsible for maintaining and updating all records and liaising with auditors. Relevant records will be updated at monthly intervals.Relevant computerised records should be printed, signed and dated at monthly intervals and maintained for review as required for the specified period outlined in the retention schedule.The Manager prepares monthly management accounts for presentation to the Board. Management accounts, include: an income and expenditure account, balance sheet and forecastThey are reviewed by the manager for presentation to the BoardThe Board is responsible for reviewing and certifying the accounting records at regularly scheduled meetings.
RecordsFinancial Documents, Computer Logs, Retention Schedule, Manager Job Description, Management Accounts.  






3.1.2 Books and Records 

Books and RecordsManual, ComputerisedResponsibilityComments
Bank StatementsComputerisedManager 
Assets RegisterComputerisedAccountant 
Financial SpreadsheetComputerisedManager/Board 
Invoices ReceivedManualManager 
Lodgement ReceiptsManualManager 
Expenses ClaimsManualManager 
Credit Card StatementsComputerisedManager 


3.2 Financial Returns to Funding Providers

PurposeTo ensure that financial returns for relevant stakeholders are up to date, accurate and made available in a timely manner.
ResponsibilityBoard, Manager, Accountant,
ProcedureReport to be forwarded to all Funders on the completion
RecordsAudited Accounts, Annual Work Plan and Report(s), Financial Reports


3.3 Bank Account(s) and Authorised Signatories

PurposeTo ensure that bank accounts and associated funds are managed and utilised in a safe and secure manner.
ResponsibilityBoard, Authorised Signatories, Manager
Procedure3.3.1 Bank Accounts The organisation has two bank accounts.Account 1 – This is a current account used for the organisation’s core running costs and core funding from the Department. It is used for income and expenditure related to services, events and campaigns.Account 2 – This is a deposit Account and holds reserve funding for the Organisation. All Garda Vetting income goes into this account.    The organisation’s bank account(s) are located at the Bank of Ireland, Kilkenny.Should it be necessary to open a new bank account the manager will bring the matter to the attention of the Board who have responsibility for approving the opening of new accounts. 3.3.2 Authorised Signatories There are three signatories (members of the Board). Each financial Transaction requires two signatures.No staff member is allowed to become signatories on any account or with other agencies without prior approval of the Board.
RecordsBank Account Details, Record of Meetings.


3.4 Annual Budget and Authorisation Limits

PurposeTo ensure that the organisations finances are allocated and managed in an effective and efficient manner.
ResponsibilityBoard, Manager
Procedure3.4.1 Annual Budget An annual budget is prepared by the manager in advance of each financial year, and approved by the Board. The Manager is the authorised budget holder for the organisation and, as such, has responsibility to ensure spending is kept within the budget headings agreed by the Board at the beginning of the year.The Board is presented with financial reports and management accounts at regularly scheduled meetings and they use this opportunity to review the annual budget and make any necessary adjustments.     3.4.2 Authorisation Limits The amount of expenditure that the manager may spend in excess of the agreed budget without authorisation is 500.00 Euro.One member of the Board will authorise any expenditure on any single item over this amount.Any spending on items of capital expenditure of over 500.00 must be sanctioned by the Board.The Board may, from time to time, grant exceptions to this authorisation limit.
RecordsAnnual budget, Work Plan, Record of Meetings, Financial Reports, Management Accounts


3.5 Financial Control

3.5.1 Income

PurposeTo ensure that cash and cheques are managed in an effective and efficient manner and that monies owed are managed effectively and efficiently while meeting our obligations to relevant stakeholders.
ResponsibilityAll Management and Staff
Procedure3.5.1.1 Incoming Mail – Cash and Cheques All mail shall be date stamped and signed when received. Cash and cheques received must be recorded in the log specifically designated for this purpose. Cash and cheques received will be given to the manager or left addressed to them in a secure drawer used for this purpose.Cash should not be kept on the premises. Any cash received should be banked on the same day.All income received is recorded on the accounts. Issuing of Invoices All staff will be given appropriate authorisation to generate invoices.Invoices should start at number 1 and continue on in number sequence.All payments in should be tracked by issuing an invoice and a receipt to the payee. The following should be included in the invoice being issued:DateName of Company/Person invoice is issued toExplanation of the service/item for which the invoice is being issued.Amount in EurosInvoice NumberDue Date – All credit terms will be set to a default of ‘0 days’ – payment due immediately upon receipt of invoice. There may be some exceptions to this rule on the larger scale projects where a payment schedule is agreed with the customer. Credit terms can be altered on the invoice(s) accordingly.A copy of each invoice should be held in a folder and should be ticked off when paid. A spreadsheet should be kept on file outlining invoices issued and when paid and an electronic copy of the invoice stored.If an invoice is cancelled this must be recorded (along with the reason for the cancellation) so that the invoice does not appear outstanding.  After 7 days, a telephone reminder should be made to the company/individual.  Reminder invoices/statements should be issued after 14 days.Where a refund may be deemed necessary, a credit note is issued managerWith approval by the board, if required.The reason for such refund is detailed on the credit note. Receipts Receipts are recorded in a lodgement journal.This records the date, payer and amount received. Receipts are allocated to invoices in the first instance where the remittance refers to a specific invoice. Where no such information is available, receipts will be allocated against the oldest outstanding sales invoice first and so on.Receipts are updated on a weekly basis.
RecordsMail, Invoices, Receipts, Lodgement Journal


3.5.2 Expenditure

PurposeTo provide staff with a framework for the effective and efficient management of funds. 
ResponsibilityBoard, Manager
Procedure3.5.2.1 Invoice Payment The manager will review all invoices and payment request forms (electronic or hard copy) as soon as they are received.If the goods or services on the invoice do not match those received, the manager must investigate.If the goods or services on the invoice match those received, and there has been prior approval of the expenditure the manager must sign the invoice as payable and add the date.The authorised person can proceed with paying the invoice by processing the electronic transfer.Invoices will only be paid on the presentation of valid supporting documentation. By proceeding with payment the manager is certifying that:The expenditure is valid according to these policies and procedures.The required supporting documents are attached and were reviewed.The goods or services were received in proper working condition.In the case of an invoice relating to a contract, that the work was completed according to the terms of reference.The manager processes online banking payments on a fixed date each month.When a banking online payment has been issued, its number and date paid must be recorded on the invoice.A copy should be filed and all invoice details must be recorded in the accounts monthly. Electronic Transfers: Electronic transfer requests will be issued only for approved expenditures.A payment request form must be filled out and given to the manager for approval.For all expenditure over 500, the manager must bring the payment request form to a Board member for authorisation. Payments from Petty Cash The only cash to be kept on the premises will be a float of 20 euro max for petty cash.Staff must use a sign-out sheet to request access to petty cash. A receipt is required for all items bought from petty cash.Petty cash payments are signed off and reviewed by the manager. Petty cash expenditure is reconciled monthly.
RecordsInvoices, Receipts, Financial ReportsReconciliation Statement, Purchase Orders, Management Report.


3.6 Public Procurement

PurposeTo ensure the organisation obtains the best possible value when securing goods or services while meeting our legal obligations.
ResponsibilityBoard, Manager, Staff
Procedure3.6.1 Procurement The procurement of goods and services must represent value for money, giving due consideration to the quality of those goods or services.The Manager is responsible for ensuring best value.The purchase of goods, services or works must be carried out in line with agreed budgets and eligibility requirements.On all goods and services over 500 euro the organisation will seek 3 quotations for the goods or service and will choose the most appropriate option and record the rationale for the choice made.If an item is required between meetings any three members of the Board can agree on the purchase in writing (including email) to a value of over 1,000 but less than 3,000 euro.Purchases over 3000.00 must be agreed by the Board.The Manager in conjunction with the relevant member of staff is responsible for preparing terms of reference that accurately describes the work required; distributing the terms of reference to the potential tenders; and obtaining bids from appropriate suppliers. 3.6.2 Tax Affairs In order to keep our tax affairs in order the following will apply: We will ensure that any contractor, supplier or 3rd party employed or paid in connection with the implementation of agreed actions or projects, has a current C2 certificate or a tax clearance certificate from the Revenue Commissioners in respect of the current tax year. In cases where payments are made to registered charities, tax clearance procedures will be waived.  Such charities should be asked for their CHY No.
RecordsQuotes, Contracts, Tender Documents


3.7 Online Banking

PurposeTo provide guidelines for authorised individuals when using our online banking facilities.
ResponsibilityAuthorised Personnel
ProcedureThe organisation avails of online banking facilities provided by Bank of Ireland Kilkenny. This system has been put in place in accordance with the user guidelines as issued by Bank of Ireland. 3.7.1 Access and Authorisation The online banking and pre-authorised payment functions have been set up to do the following:View and download account transactions and balances.Transfer funds between internal accounts.Allow for online payment of supplier invoices.Allow for pre-authorised bill payment for utility, communications etc.The online banking allows access to bank accounts, each person who uses the online banking will be given access to each of these.Online payments require authorisation by the manager, who has authority to conduct transactions up to a limit of 500 per transaction. Transactions over that amount require authorisation by a member of the Board also.Passwords for online banking are changed every 90 days.  The sharing of passwords and codes is strictly prohibited. Should a breach of this nature occur it must be reported to the manager and to the Bank immediately.   Access to bank accounts online is only permitted by authorised staff and nominated Board members.  Banking transactions are cross checked by a nominated Board member on a regular basis, with intermittent checks carried out on original substantiating documentation.No other staff or Board member will be given the User ID and password without the express permission of the Board. If the password is given to another employee or Board member on a temporary basis, it will be changed when the temporary arrangement is no longer required. 3.7.2 Transfers The following rules apply to transfers: No transfers to non-approved accounts are permitted.Transfers from one account to another require board approval before transfers are made.The written request for approval must be made using a transfer requisition form which is signed by an authorised signatory. A second signatory will review and approve the transaction after-the-fact. 3.7.3 Online Bill Payments The following rules apply to payment of supplier invoices: No suppliers will be set up for online bill payment without the written approval of the Board. The manager will be the only person to set up approved suppliers.Pre-approval from an authorised signatory is required for all invoices to be paid online.The written request for pre-approval must be a payment request form.The manager will identify all bill payments on the bank statements and ensure that documentation is provided for each payment, for the review and approval of the authorised signatories.  3.7.5 Additional Controls The manager will ensure that no online transactions other than those authorised have been carried out and that all documentation is provided to support the transactions that were made. The authorised Board member will review the banking website on a quarterly basis to ensure that only authorised suppliers, and organisational accounts, have been set up and that no other online transactions have taken place other than those approved as noted above.If one of the above-named authorised users of the online banking site leaves the password will be changed immediately.The manager will instruct the bank that online banking should be restricted so that no transfers to non-approved accounts can be placed.No email transfers are permitted.
RecordsBanking Online Manual, Record of Meetings, Authorisation Form


3.8 Expenses

PurposeTo ensure that all individuals are fully reimbursed for legitimate expenses incurred while working for or on behalf of the organisation.
ResponsibilityManager, Placement Officer
ProcedureEach month an employee, intern or volunteer who has incurred expenses on behalf of the organisation must submit a claim on the approved claim form to the manager.All the required fields must be completed on the form.Forms not properly completed or authorised will be returned to the claimant.All claim forms must be accompanied by all the relevant receipts.  Failure to include receipts with the expense claim may make the claim be deemed invalid.Expenses incurred must be reasonable and “wholly, exclusively and necessarily” for the course of business.Exceptional expenses must be agreed with your supervisor or the manager in advance.
RecordsExpense Claim Forms, Receipts

3.9  Payroll

PurposeTo ensure that all staff receive their agreed salary in a timely manner.
ResponsibilityBoard, Manager, Accountant
ProcedureThe payroll system for the organisation will be outsourced. A certificate of payroll is issued fortnightly and staff are paid by electronic transfer.  Payments are made to Revenue on a monthly basis and P30’s are filed online via ROS. Payroll payments are approved by a Board. It is the responsibility of the manager to advise the accountant of any salary changes, staff changes or revenue dictate tax changes.Separate files are maintained for all payroll records. Copy payslips, gross to net listings, PAYE/PRSI returns and end of year reports are all kept in this file, managed by the manager. Gross to net reconciliation is performed by the accountant and payroll summary is reviewed by the manager. Where they exist, payments to pension schemes are deducted monthly from employees’ salary and paid monthly to pension scheme provider.Wages are paid fortnightly on Fridays, two weeks in arrears are made by electronic transfer. The manager maintains a monthly copy of payslips and a payroll summary in a secure location on the server.  The manager distributes salary slips to all staff.  All work carried out by an employee must go through the payroll system.The accountant is responsible for monthly revenue returns through revenue online (www.ros.ie).
RecordsTimesheets, Payroll Records, Payslips, Revenue Returns, Bank Statements


3.10 Fixed Asset Management

PurposeTo ensure that accurate records are developed and maintained of all the organisations fixed assets.
ResponsibilityBoard, Manager
ProcedureA fixed asset register is maintained and updated annually. The manager is responsible for entering all fixed assets into the register and for keeping the information current and accurate.The fixed asset registry is a list of any tangible property with a life expectancy of more than 1 year that costs 500 or above such as:Purchased assets.Self-constructed capital items.Improvements or additions that will enhance the value or the useful life of the asset.Leased and rented items or assets.Assets acquired through replacements of insurance claims.Assets created by using parts from other fixed assets.Assets transferred to the custody of the organisation.When a fixed asset is purchased or received, the manager will record the following information in the registry: Date of purchase.Name of supplier.Description of asset.Cost of the asset.Depreciation schedule.A copy of the fixed asset register will be available to the auditor.Equipment, fixtures and fittings which cost under 500 are not deemed to be fixed assets and will be posted to a relevant expense account. They will not be included on the fixed asset register list.The manager will carry out an audit of the organisation’s fixed assets at least once a year before the fiscal year end. The audit must include:A reconciliation of the physical count to the registry An investigation in to any differences between the count and the registryPreparing a report on all investigations to be given to the Board/Steering Committee. Identifying obsolete items and those no longer in use.Adjusting the value of all assets and items based on the depreciation schedule.Depreciation policy, annually:Computers 25%. Furniture 20%. Note: Depreciation is calculated monthly.
RecordsFixed Asset Register, Audit Report


3.11 Administration

PurposeTo ensure that accounting records are developed, maintained and managed in an effective and efficient manner while meeting our legal and organisational obligations. 
ResponsibilityBoard, Manager, Accountant
Procedure3.11.1 Financial Reporting The accountant will prepare a quarterly report of the income and expenditure against the budget and a written analysis as to the financial status will be reflected in the report.The report must include revenues and expenditures for all bank accounts.The accountant will give the quarterly financial summary to the manager for presentation to the Board at the next scheduled meeting.The Board will review the status of the accounts. 3.11.2 Bank Reconciliations Bank statements are received monthly and are kept, in separate folders, in date/numerical order. The accountant will reconcile the statements monthly and file a copy of the reconciliation for the auditor The accountant will use bank statements for all accounts and review them for accuracy and completeness. Any item on the statement but not on the record (e.g. bank charges) should be queried if necessary and recorded. The bank reconciliations are presented to the Board on a quarterly basis. A member of the Board will regularly review the bank reconciliations to ensure there is complete transparency with the underlying books and records and the bank statements. As the organisation utilises online banking, statements are accessible online for three months. 3.11.3 Audit The Board appoints an auditor on a  yearly basis at the AGM. The auditor will be appointed by a tendering process for approval by the Board, for no more than a 3-year term. The accounts are submitted for audit at the end of each financial year. All accounts are kept safely for the specified retention period.  The financial statements must be audited within 3 months of the fiscal year end (December 31st) The Auditor is responsible for: Reviewing books of account for the fiscal year and to produce financial statements to represent a true picture of the financial positionEvaluating the effectiveness of the financial reporting and internal controls.Determining compliance with policies and procedures established by Board, generally accepted accounting principles, and applicable legislation.Completing the annual audit within the time frame set by the Board.Presenting the audit to the Board at the AGM.Filing the financial statements with the Company Registration Office (CRO). 3.11.4 Year End Expenditures may be made out of the previous year’s budget after the end of a fiscal year only if the goods or services were provided or committed to before the year end and a proper invoice was received and authorised.No other expenditure may be made from a previous year’s budget unless the Board authorises the expenditureWe will follow generally accepted accounting procedures for closing out year end and the transfer of surpluses and deficits to the New Year’s budget.
RecordsFinancial Reports, Management Reports, Audit Reports, Record of Meetings, Auditor Job Specification, Budget



4. Monitoring and Review

Monitoring and ReviewStaff members will be provided with opportunities to provide feedback on any activities at regularly scheduled staff meetings. Where relevant individuals will have an opportunity to highlight any procedural issues. Procedures will be reviewed by the manager and relevant staff members annually or sooner if required. The policy will be reviewed by the Board every three years, or sooner if required.  
RecordsRecord of Meetings, Emails, Document Control Matrix