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Societies Finance Manual 2009/10 Version 1.2 – July 2009 Society Finance Manual 2009/10 Introduction 3 Most important rule of Finance 3 Spending under £50 3 Spending over £50 3 Accounts 3 Funding your society 4 Fundraising 4 Sponsorship 4 Funding from Activities Committee 4 Societies & Initiative Fund 4 Funding Criteria 5 Activities Loan 5 Ultra Vires Transactions 6 Charity work 6 Food and drink 6 Affiliations 6 Campaigns 6 Educational Campaigns 6 Paying money in and out of your account 7 Paying money into your account 7 Paying money out from your account 7 VAT 7 VAT & fundraising events 8 VAT & other events 8 Finance Forms 8 Purchase Order Form 9 Payment Request Form 9 Transport Claims Error! Bookmark not defined. Deadlines and collection times 9 Other things 10 Insurance 10 Contracts 10 Managing Finances 10 Statements & record keeping 10 Cash Handling 11 Useful contacts 11 - Page 2 of 12 - Society Finance Manual 2009/10 Introduction If you would like any help or advice with any of the procedures included in this guide please feel free to contact Jo Walters, Societies Development Co-ordinator – email@example.com. We’d love to help you. Most important rule of Finance All payments from Union funds must be authorised by the Finance Officer. If you buy anything for a society without authorisation the Union is not liable to pay for it. Whenever you are unsure about whether you can claim something back, ask before you spend! Spending under £50 Usually you can spend this first and then bring the receipts and use a Payment Request form to get it back from the Finance Office. Cash can usually be claimed for amounts under £15 and we’ll pay you back by cheque for larger amounts. See page 9 for more information on Payment Request forms. Your society’s treasurer should be informed of payments made this way, and authorise them where possible to help you run things more efficiently (and so that you don’t go to claim money one day and find you don’t have any left!) Spending over £50 Check with Jo, Societies Development Co-ordinator, first and get a Purchase Order form. This will mean much less hassle for you and if you don’t use one without checking first, the Union is not obliged to pay. See page 9 for more information on Purchase Order forms. Wherever possible, ask the supplier for a Pro Forma Invoice as this enables the order form to be completed accurately and payment sent in advance. If you have any unusual requests – e.g. you need to pay by to an international bank account, please contact Jo in advance as there will not always be staff available to help you if you just turn up on the day you need things done! In general, the more time in advance that you can get your forms to the Finance Office, the better – it’s less hassle for everyone and much less stressful! Accounts Every society has its own account held with the Union. Membership fees, ticket sales and other fundraised money are paid in through USSU Reception. Essentially a society can do whatever they want with their money, but the Union checks claims to ensure fair use of funds. Societies are not permitted to hold external bank accounts without permission. If you feel that your society needs an external account, you must consult Jo, Societies Development Co-ordinator, who will seek permission from the Activities Committee. It should be noted that it is very rare for a society to need its own external account - Page 3 of 12 - Society Finance Manual 2009/10 and by doing so, you will make it more difficult to get help from the Union in managing your finances. Additional funding is granted to societies through Activities Committee. This funding is governed by Ultra Vires law, which places restrictions on what the money can be used for. See page 6 for more information on Ultra Vires and page 4 for more information about funding from Activities Committee. Funding your society Fundraising If you would like to raise money for your society through fundraising, hosting an event etc, speak to Jo, Societies Development Co-ordinator, who will be able to help you. You can also take a look at How To… Make and Save Money, which is available from the Activities Centre or www.ussu.info/resources Sponsorship Before contacting any external organisations with regard to sponsorship, speak to the Jo, as she will be able to advise you and give you examples of contracts and a standard sponsorship request letter. Successful fundraising is largely dependant on how you sell yourselves to the community and potential sponsors. People are unlikely to donate to a cause they know nothing about, nor are they likely to continue unless they are kept informed on how their funds are being used. The most successful requests for funds are those that meet the criteria set by the company. The main points that a company will take into consideration are: The project is in line with corporate philosophy on donations and sponsorships The project is well presented There are convincing, supportive arguments and the need is clearly defined. The society has demonstrated ability to carry through the implementation of the project. There is mutual benefit for both the society and the sponsor. There is further advice about sponsorship at www.ussu.info/resources Funding from Activities Committee Any funding granted by the Activities Committee can only be spent on the items that the committee agreed on, and all funding must be spent within a stated time period, after which if it is not claimed it will go back into the fund. Societies & Initiative Fund If your society needs funding for a particular item or event, you can apply to Activities Committee which meets weekly to allocate funding. To do this, you will need to fill in a Societies Fund or Initiative Fund application form (these are available to download from www.ussu.info/resources) and return it via email. Note that applications should be made at least a week before you would like the money. If - Page 4 of 12 - Society Finance Manual 2009/10 you are applying for funding for an event you will also need to complete an Event Information Pack which is also available at www.ussu.info/resources Both funds only allocate money for specific projects, and do not grant money for general use. For example, if you wanted to buy specific equipment for your society, this could be granted, but you cannot apply for a sum of money to be spent over the year on unspecified items. The Societies Fund grants money based on the strength of the application, and the value and benefits it represents for your members and the wider student body. The Initiative Fund uses the same criteria, but aims to match money that you have already fundraised, again only for specific projects. For example, if you were putting on an event where security costs were £160 and had raised £80 through a cake sale, you could apply to the Initiative Fund for a further £80 to help pay for security at the event. Funding Criteria In order to be granted over £75 from Activities Committee, your society must have at least 15 paid members and have paid in at least £75 into your account in the current academic year. It may be worth considering this when setting your membership fee for the year; although there is no minimum membership, if you run an expensive society that is likely to require a lot of funding over the year, you may wish to charge more. If you are applying for less than £75 from the committee you do not need to meet this criteria, but bear in mind that the committee will consider your contributions over the course of the year. Please note that retrospective payments cannot be granted by Activities Committee; if you are organising an event that requires funding, you must apply in time for the committee to make the decision before the event, otherwise your application will be denied and you will have to pay for the items yourself. Activities Loan An Activities Loan can also be granted by the Activities Committee – this is a loan the Union that you will pay back, and will only be granted for specific projects that you can show will make enough money to pay back the loan e.g. If you are putting on an event that costs £500 but expect to make £1000 back in ticket sales on the night, the Union can grant you an Activities Loan of £500 to put on the event in the first place. For more information on getting money from the Union, see How To…Get Money from the Union, which is available from the Activities Centre or www.ussu.info/resources - Page 5 of 12 - Society Finance Manual 2009/10 Ultra Vires Transactions As an organisation with charitable status, the money the Union receives is governed by law. This means that there are restrictions on how societies spend Union money (i.e. any funds granted through Activities Committee). Money spent by societies must always be in line with their aims as laid out in their constitution. The most common examples of Ultra Vires payments are: Charity work It is illegal to use Union money to subsidise charity fundraising but the Union can grant funds to a fundraising society to put on events/activities due to the personal development/educational benefits to the event organisers. It is also illegal to donate Union money to other charities. You can still fundraise, but you need to cover the costs from money raised or from society money that is not from the Union. Food and drink It is illegal to use Union money to pay for food and drink where it is not a core part of the event e.g. Providing free food and drink at an Education Not For Sale rally. You are allowed to use Union money to pay for food and drink where it is a core part of the event e.g. Wine Society organise a wine tasting and ask for funding to subsidise the cost of the wines. Affiliations Money granted by Activities Committee can only be used to affiliate to a national body where the return service is good value, proportional to the fee paid, and in line with the society’s aims e.g. Amnesty International Society may affiliate to Amnesty International provided that the fee is good value for what the society gets from it. The Union itself cannot affiliate to external groups. Campaigns Societies can only use Union money to fund campaigns directly related to our members as students. You can only use Union money to subsidise places on demos which relate to student issues e.g. top up fees. If campaigns do not fall into these categories, the Union cannot fund them. Educational Campaigns It is valid to use Union money to run a campaign on non-student issues provided it is educational and run for/promoted only to students e.g. An on-campus event raising awareness about climate change in the student body would be permissible. It would not be permissible to use Union funds to promote this campaign to non-students or to campaign outside the campus community e.g. Funding a coach to a national demo in London against climate change. - Page 6 of 12 - Society Finance Manual 2009/10 If a campaign did not fall into the permissible categories, you can fundraise and use the society’s own money to fund the campaign as you wish. If you have any questions about Ultra Vires law and how it will affect your society, contact the Finance Officer. Paying money in and out of your account Paying money into your account Payments can be made at USSU Reception by card/cash/cheque. Cheques must be made payable to USSU with the cheque guarantee card number, expiry date and guarantee limit on the back. If you need to pay money in by bank transfer, see the Finance Office. ALL FUNDRAISED MONEY INCLUDING MEMBERSHIP FEES SHOULD BE PAID IN DIRECTLY TO THE STUDENTS’ UNION, DO NOT DEDUCT MONEY FOR EXPENSES Paying money out from your account It is important to talk to Jo, Societies Development Co-ordinator, before undertaking any significant expenditure to check that the correct procedure has been followed. If the correct procedure is not followed then the Union may not pay and this could mean that you are personally liable for the expenditure. See the relevant sections on Purchase Orders (page 9) and Payment Request Forms (page 9) and ask the Jo if you have any questions. You should ask DJs, bands, and suppliers to provide invoices for your event. If they will need to be paid on the night, please ensure that you leave plenty of time for the Finance Office to process the cheque in advance. If your chosen DJ, band or supplier cannot accept a cheque, please let us know in advance, alternatively you can pay them yourselves and then claim back the money through the same form but you will need to keep a receipt (don’t forget that all payments over £50 need to be authorised in advance). VAT VAT (Value Added Tax) is deducted from membership payments, ticket and general sales but is not deducted from donations which can include sponsorship, money collections etc. This means that if your membership fee is £5 you will only get £4.26 into your account. It can be reclaimed on goods purchased as long as the correct process is observed and there is a VAT receipt or invoice with VAT number. This means that if you buy something (using the correct process) costing £100, only £85.11 will be charged to your account. The Finance Office will automatically deduct/reclaim VAT on your behalf so you don’t have to make any alterations to the way you pay suppliers or pay in money. - Page 7 of 12 - Society Finance Manual 2009/10 VAT & fundraising events The Union is an exempt charity, which means that when you are putting on a fundraising event, you won’t have VAT deducted from the ticket sales provided that it is clearly stated on the tickets and publicity that it is a fundraiser. E.g. “This is a fundraising event for XX Society.” You will have to provide the Finance Office with copies of your tickets and publicity. Note that in this case you cannot reclaim the VAT on the goods you buy. VAT & other events However, if the event is not fundraising e.g. your society is subsidising a Ball or other event so that members can get cheap entry, you are liable to pay VAT on ticket sales, so supposing entry to that event was £10 you would only get £8.51 into your account. If you are putting on an event where you will be charged VAT on ticket sales, you can claim it back on other expenditure e.g. Venue costs, decorations etc. To claim back VAT you need a VAT invoice detailing The name of the supplier The cost excluding VAT The amount of VAT charged The cost including VAT. So please try to get a VAT receipt wherever possible, it might be tricky sometimes, but you should always get them for larger amounts. If you are unsure about VAT and your society, come and speak to Jo, Societies Development Co-ordinator. Finance Forms All finance forms are available from the Activities Centre. Payment Request forms can be downloaded from www.ussu.info/resources. The purpose of each form is detailed below. Please be careful to complete the correct form or it may delay the processing and payment of the transaction. Please note that all forms require supporting documentary evidence – receipts, invoices etc. The forms available are: Purchase Order – to authorise payments in advance for items or services over the value of £50 Payment Request – for reimbursement in cheque/BACS/cash form for payments you have made Please remember that prior authorisation is essential for any expenditure over £50 (up to this point it can be authorised by your club/society treasurer). If authorisation has not been obtained, the Union is not liable to pay and the matter becomes the responsibility of the person who made the purchase. - Page 8 of 12 - Society Finance Manual 2009/10 Purchase Order Form If you are ordering anything over the value of £50, you must fill in a Purchase Order form before the goods or services are supplied. The reason for this is that the order guarantees that the supplier will receive payment, subject to the goods/services detailed on the Purchase Order being delivered. All of the suppliers that the Union regularly deals with require Purchase Orders as a guarantee of payment, and the Finance Office will require you to have filled one in to make the payment, so it is good practice to send the Purchase Order number to suppliers. By supplying an authorised Purchase Order, there is clear evidence of what was ordered - quantities, colour, product, price and delivery requirements. In the event that there is a dispute with the supplier, this document will be vital. If there is no such evidence i.e. the order was placed verbally, any disputes are likely to fail, the result being the society will have to pay, even if dissatisfied with the product supplied. The point should be considered with every order placed so that the society does not find itself in this position. Purchase Orders require authorisation from the Assistant Director (Membership Services) (and the Finance Officer for amounts over £300). Authorisation will not be given unless there is adequate money in your account to pay for the proposed purchases. If a Purchase Order is not used (in the case of amounts under £50), the society must ensure that sufficient funding exists before any expenditure is incurred. N.B. The Purchase Order Form comes in duplicate, both copies are to be returned to the Finance Office so if you’d like to retain a copy you’ll need to photocopy one. Payment Request Form When you have sufficient funds in your society’s USSU account and you’re reclaiming expenses you have to fill in a Payment Request form. The form must be completed carefully and all supporting documentation attached for example; receipts, tickets, purchase invoice, price list. Payment Request forms can be downloaded from www.ussu.info/resources or you can pick up a copy from the Activities Centre Payment Request forms need to be authorised by Jo, Societies Development Co- ordinator, who will check that your society has sufficient funds to be able to meet the costs and the Finance Officer will authorise your claim. If the claim is for under £15, it may be reimbursed in cash, otherwise all claims will be dealt with by cheque. Please hand in completed forms in sufficient time for processing of cheques which takes place once a week; items submitted by Monday 4pm will usually be available by the following Thursday. Deadlines and collection times Cheques for reimbursements and invoices are processed once a week so please plan ahead if you wish to be paid by cheque! Payment requests submitted by Monday mornings should be ready by the following Thursday. Cheques will be posted out if an address is specified on the Payment Request form, otherwise they will be kept in - Page 9 of 12 - Society Finance Manual 2009/10 the Finance Office for collection. Please ensure that you plan your activities to take into account the time it will take for a cheque to be raised. Other things Insurance The Union insures the possessions of societies but there is an excess of £500. If you are buying any expensive equipment etc, please speak to Jo, Societies Development Co-ordinator, about storage, security etc. Societies should maintain inventories of their equipment. If you plan on taking equipment off campus, we need to know exactly what you are moving, where it is going to and the value of the items as they may need additional insurance. If anything of value is lost/stolen please report it to the Office Manager, so that a claim can be filed. Contracts The only person empowered to sign contracts on behalf of the Students’ Union is the Finance Officer. This includes any sort of agreement whether it be sponsorship or a contract with a band to play at an event. If you sign a contract yourself, the Union is not liable. Please bear in mind that the Finance Officer will need to send off any contracts with payment in advance of your event, so don’t leave it all to the last minute! Managing Finances The financial year for the Students’ Union runs from 1st August to 31st July. If the Society continues to run the following year, credits and debts from the previous year will be carried over. For your funds to be carried over you must submit the new committee details to Jo, Societies Development Co-ordinator, by the end of the summer term. Statements & record keeping The Union keeps a computerised record of all financial transactions that go through your society account. You can request a printed or emailed copy of your account from Jo, Societies Development Co-ordinator. REMEMBER: Just like a bank statement, the information within the account statement only shows transactions which have been processed. If you want some help understanding your statement, or have any queries, speak to Jo, Societies Development Co-ordinator. Whilst you can request a copy of your account details at any time, we recommend that each Treasurer keeps their own record of all spending and income. The key - Page 10 of 12 - Society Finance Manual 2009/10 purpose of this is to ensure that at all times the Treasurer can explain the society’s financial position. Because it can take a while for a cash deposit or cheque claim to appear on the statement, it is not sufficient to rely on the statement alone. This is especially important with larger purchases, so you should keep a copy of the Purchase Order. Cash Handling Running a society often involves collecting money from members. It is important that you follow a few simple rules to ensure that everything is managed safely and with minimal risk in terms of loss or theft. 1. Keep clear records of money collected and deposited – when you pay it into USSU Reception you will be given a receipt. 2. Avoid holding sums of cash at home unless absolutely unavoidable and aim to bank the money with the Students’ Union as soon as possible. 3. If you have tickets for sale, you can usually sell these through USSU Reception to ensure all the money goes straight into your account. 4. If you are running an event, it’s better to keep the ticket money separate from the money that you are paying to performers etc. Useful contacts Activities Centre First floor, Falmer House Societies Development Co-ordinator Jo Walters – firstname.lastname@example.org Tel: 877641 Activities Officer Scott Sheridan – email@example.com Tel: 678155 Finance Office Top floor, Falmer House Finance Assistant Berni Lee Tel: 678150 Finance Director Mark Bushby – firstname.lastname@example.org Tel: 678150 Sabbatical Officers Top floor, Falmer House Finance Officer Anna Cornish – email@example.com Tel: 873353 Other Staff Top floor, Falmer House Office Manager - Page 11 of 12 - Society Finance Manual 2009/10 Sue Cornford – firstname.lastname@example.org Tel: 877470 Assistant Director (Membership Services) Mike Riley – email@example.com Tel: 678149 USSU Reception Ground floor, Falmer House firstname.lastname@example.org Tel: 678152 - Page 12 of 12 -
"Societies Finance Manual 200910"