top of page
  • Black Facebook Icon
  • Black Twitter Icon
  • Black Instagram Icon

Financial Management Policy

Financial Management Policy

1. Introduction

MANDALA CIO is committed to ensuring sound financial management and accountability to safeguard its assets and ensure the effective use of resources. This policy outlines the procedures for budgeting, accounting, and financial oversight to support our mission of helping adults with learning disabilities.

2. Purpose

The purpose of this policy is to:

  • Ensure the financial stability and integrity of MANDALA CIO

  • Provide a framework for financial decision-making and accountability.

  • Establish procedures for budgeting, accounting, and financial oversight.

3. Scope

This policy applies to all trustees, employees, and volunteers involved in financial management activities at MANDALA CIO

4. Financial Responsibilities

  • Board of Trustees: Ultimate responsibility for the financial health of the charity, including approval of the annual budget and financial statements.

  • Finance Committee: Oversees financial planning, monitoring, and reporting; provides recommendations to the board.

5. Budgeting

  • Annual Budget: An annual budget will be prepared by the Finance Officer in collaboration with the Executive Director and departmental heads. The budget will be reviewed and approved by the Finance Committee and the Board of Trustees.

  • Budget Monitoring: Monthly budget reports will be prepared by the Finance Officer and reviewed by the Finance Committee. Any significant variances will be investigated and reported to the Board of Trustees.

  • Budget Revisions: If necessary, the budget may be revised during the financial year. Revisions must be approved by the Finance Committee and the Board of Trustees.

6. Accounting

  • Accounting System: MANDALA CIO will maintain an accounting system that accurately records all financial transactions in accordance with generally accepted accounting principles (GAAP) and the Charity Commission’s requirements.

  • Chart of Accounts: A chart of accounts will be maintained to classify and record all financial transactions.

  • Financial Records: Accurate and complete financial records will be maintained, including income, expenditures, assets, and liabilities.

  • Internal Controls: Internal controls will be established to safeguard assets, ensure the accuracy of financial records, and prevent fraud. This includes segregation of duties, authorization controls, and regular reconciliations.

7. Financial Reporting

  • Monthly Reports: The Finance Officer will prepare monthly financial reports, including income and expenditure statements, balance sheets, and cash flow statements. These reports will be reviewed by the Finance Committee and presented to the Board of Trustees.

  • Annual Financial Statements: Annual financial statements will be prepared in accordance with GAAP and the Charity Commission’s requirements. These statements will be audited by an independent auditor and approved by the Board of Trustees.

  • Donor Reporting: Regular financial reports will be provided to donors as required by funding agreements.

8. Financial Oversight

  • Finance Committee: The Finance Committee will meet at least quarterly to review financial performance, budget adherence, and financial risks. The committee will report its findings and recommendations to the Board of Trustees.

  • Audit: An independent audit of the annual financial statements will be conducted by a qualified auditor. The audit report will be reviewed by the Finance Committee and presented to the Board of Trustees.

  • Risk Management: Financial risks will be identified, assessed, and managed through regular reviews and the implementation of appropriate mitigation measures.

9. Cash Management

  • Bank Accounts: All bank accounts will be authorized by the Board of Trustees. Bank reconciliations will be performed monthly by the Finance Officer and reviewed by the Executive Director.

  • Cash Handling: Cash receipts and disbursements will be recorded promptly and accurately. Cash holdings will be minimized, and physical cash will be stored securely.

  • Investments: Investments will be managed in accordance with the charity’s investment policy and approved by the Board of Trustees.

10. Procurement and Expenditure

  • Procurement Policy: All purchases and contracts will be made in accordance with the charity’s procurement policy, ensuring value for money and compliance with legal requirements.

  • Authorization of Expenditures: Expenditures will be authorized in accordance with the charity’s delegated authority levels. Significant expenditures will require approval by the Finance Committee or Board of Trustees.

  • Expense Reimbursement: Employees and volunteers will be reimbursed for legitimate expenses incurred on behalf of the charity, subject to approval and proper documentation.

11. Compliance

  • Legal and Regulatory Compliance MANDALA CIO will comply with all applicable financial regulations and reporting requirements, including those set by the Charity Commission and HM Revenue & Customs (HMRC).

  • Ethical Standards: All financial activities will be conducted in accordance with the highest ethical standards and the charity’s code of conduct.

12. Review and Continuous Improvement

This policy will be reviewed annually by the Board of Trustees to ensure its effectiveness and alignment with best practices. Feedback from staff and stakeholders will be used to continuously improve financial management practices.

13. Contact

For further information or to raise any concerns related to financial management, please contact: mandalatrustcio@gmail.com

14. Approval

This policy was approved by the Board of Trustees on 07.07.2024

MANDALA CIO is dedicated to maintaining the highest standards of financial management and accountability to support our mission and ensure the effective use of resources.

bottom of page