SOS Financial Policy & Procedures

Purpose

This Finance Policy sets out how Sussex Ornithological Society (SOS) manages, records, and safeguards its money. It ensures:

• compliance with charity law and the Charity Commission checklist Internal Financial Controls for Charities (CC8)
• transparency and accountability
• proportionate controls suitable for a small, volunteer-run charity
• protection of volunteers handling funds

This policy applies to all trustees and volunteers involved in financial activity.

The policies and procedures explained in this manual have been developed so that we can manage our finances and resources effectively to enable us to succeed in delivering these aims.

All trustees (Council members) and those who handle money on behalf of the Society are expected to familiarise themselves with any sections of this guidance that are relevant to their work for the Society, and to comply with the procedures. 

For all investments and purchases of equipment, supplies or services, the following principles should be observed.

• Value for Money: This does not mean choosing the cheapest option, but the best mix of quality, reliability, and price.
• Sustainability & Ethics: Where possible, priority should be given to local suppliers, social enterprises, or environmentally friendly products.
• Transparency: All purchasing decisions must be documented to provide an audit trail and should be logged on SharePoint.
• Conflicts of Interest: Any volunteer or trustee with a connection to a potential supplier must declare it and take no part in the purchasing decision. 

This policy and procedures should be read in conjunction with the Society rules.

This is a working document, and we welcome recommendations and feedback on the policies and procedures, for example if volunteers have suggestions from their experience for ways to make a process easier, or more streamlined please discuss these with the Treasurer.

Annual budgets

A budget for the Society’s activities for the following year is presented to the trustees for approval each year at the November Council meeting.

The Society’s Funding Policy includes the following specific category allocations for grant applications:

No other specific budgets are set however Council reserves the right to allocate budget to any project, subject to Council agreement.

Any significant, unplanned expenditure must be approved by trustees.

Reserves policy

SOS Council has an agreed reserves policy that unrestricted funds not committed or invested for the long term should be equivalent to six months of resources expended. At this level Council feels it would be able to continue the Society’s current activities in the event of a significant drop in funding. 

The reserves level is reviewed annually and commitments are limited so that this level of reserve is maintained.

Reporting and monitoring income and expenditure

The Treasurer produces regular reports to be presented at Council meetings so that trustees can review the Society’s financial performance regularly.

Reports will include:

• Comparison of income and expenditure to date against budget, and forecast income and expenditure to year-end against budget 
• Explanations of any material variances from plan, and suggestions for corrective action where necessary

Reports should be provided to Council members at least seven days prior to a Council meeting so that members have time to read the reports in advance.

Financial year, accounts, and reporting

Our financial year runs from 1 January to 31 December each year.

Accounts will be drawn up after each financial year and be completed and signed off by an independent examiner within three months of the end of that year. These are then presented to members for approval at the Society’s Annual General Meeting (AGM), having previously been approved by Council members. 

Annual returns are filed with the Charity Commission in line with required timescales.

Banking and financial transactions

Recording and reconciliation of transactions

All bank transactions in the Society’s current and deposit accounts  are linked to the Society’s accounting software package and imported daily, so that all income and expenditure is recorded.

Bank reconciliations are carried out regularly and bank statements are sent to the Chair of Council for independent review each month.

The Society’s banking arrangements are reviewed regularly by SOS Council, and the opening or closing of accounts requires trustee approval.

Banking authorisations

At least three trustees are required on the bank mandate.

For online banking transactions, payments above £500 require dual authorisation from the Treasurer and Assistant Treasurer.

No trustee may authorise a payment to themselves.

Payments

Payments are made by bank transfer only. SOS does not use cheques, debit/credit cards, or petty cash.

All payments must be supported by documentation.

Income Handling

Donations and Online Income

Donations are received online via CAF Donate or Stripe, and sometimes by direct bank transfer. These are reconciled to bank statements regularly and gift aid claimed where eligible.

Cash Income is only received at the annual conference for raffle and merchandise sales. Any cash received will be separately confirmed by the Treasurer or Assistant Treasurer plus one other trustee. Occasionally, SOS may attend events to promote its brand and cash may be handled at these.

Registration fees are paid online. These payments are recorded on the day using a payment log, and cash is banked promptly by the Treasurer as soon as possible after the event. Payment logs are kept centrally and provided to the Chair of Council, for reconciliation with bank accounts.

On the rare occasion that cheques are received by post, these are banked promptly by the Treasurer using the mobile banking app.

Procurement of goods and services

While SOS is a volunteer-led charity there are occasions where we have a need to purchase equipment or supplies, or to procure professional services. All purchases must be of demonstrable benefit to the Society and in support of our charitable aims.

Examples include, but are not limited to, professional legal advice, accountancy, IT support, website design and maintenance, the Sussex Bird Report, our quarterly newsletter, marketing and branding, training. 

There may also be occasions where the work would be onerous for a volunteer or relying solely on volunteers could expose SOS to errors or liability.

Equipment may only be bought for the legitimate purposes of running the Society effectively and furthering its objectives, and may include survey equipment, stationery, IT and office equipment, and marketing materials and equipment for events.

All purchases should be made with consideration of cost effectiveness and using the following principles:

Purchasing approvals

Equipment and supplies

One-off purchases of equipment or supplies up to £100 can be made by Council members without prior approval. These will be authorised and reimbursed by the Treasurer or Assistant Treasurer upon production of receipts.

One-off purchases of equipment or supplies by Council members from £100 to £250 can be made with prior verbal approval by the Chair or Secretary of Council. These will be authorised and reimbursed by the Treasurer or Assistant Treasurer upon production of receipts.

Purchases of equipment or supplies over £250 by Council members require prior authorisation by  the Chairs of Council and of the relevant Committee (Scientific or M&P).

Where equipment or supplies need to be purchased by a Committee member who is not also a Council member, Council approval is required.

Services

For services being procured, the following purchase values and associated actions and approvals are required:

For recurring payments e.g. an ongoing contract for services, approvals apply for the sum of the purchase over the lifetime of the project. For example, using the above table, web maintenance for a year at £50 per month would require approval by majority vote of Council members.

All recurring payments should be reviewed annually.

Payment of invoices

Invoices are checked against agreed quotations and paid via bank transfer. Where invoices are over £100, two people must be involved in the process of checking invoices against agreed quotations, their authorisation and payment. The person who invited the quotations should authorise the payment, to be made via bank transfer by the Treasurer.

Expenses

Reasonable out of pocket expenses may be claimed by volunteers. All planned expenditure should be pre-approved by the Treasurer (or another Trustee if the applicant is the Treasurer) and any planned expenditure of over £50 should be pre-approved by the Treasurer and another Trustee (or two other Trustees if the applicant is the Treasurer.

Itemised receipts are required for all expenses incurred, and reimbursement will be paid via bank transfer.

Where it is agreed to pay mileage, this is reimbursed at the published HMRC rate (currently 55p per mile July 2026). Where mileage is likely to be over £50 in total this should be pre-approved and authorised in line with the above guidance. All mileage needs to be signed off in advance by a Council member and any mileage amounting to over £100 should be authorised by the Chair or Secretary of Council, or the appropriate Committee Chair.

Where there is any doubt about whether expenses can be claimed this should be referred to the Treasurer, Assistant Treasurer, or to the Chair or Secretary of Council.

Payments and/or reimbursement can be authorised by the Treasurer or Assistant Treasurer, but not by the claimant if they are either of these. 

SOS reserves the right not to reimburse expenses that do not fulfil the purchasing requirements set out above, lack the appropriate authorisation or are not accompanied by an itemised receipt.

Assets and Equipment

A register of SOS assets and equipment is maintained on SharePoint and reviewed annually by either the Treasurer or Assistant Treasurer plus one of the Chair or Secretary of Council.

Property and equipment may only be used to further the charitable objectives of the Society.

Insurance

The Society’s insurance provision is reviewed annually to ensure value for money and adequate cover.

Grants Awarded by SOS

SOS has a Funding Policy outlining how we may award grants as they relate to our charitable objectives.

Once a grant application is agreed, grantees must provide evidence of expenditure, and compliance with the agreed reporting requirements before the grant can be paid.

Grant recipients will be asked to provide an annual report on how the funding has been used, with outcomes.

A central record of grants is maintained on SharePoint.

Investments

SOS uses the CAF/Flagstone platform to invest funds. Each deposit is protected up to £120k.

Investments are reviewed at least annually.

Loans

SOS does not make or receive loans.

Conflicts of Interest

A conflict of interest in our fundraising and grant-giving could occur when the person involved in decision-making, such as a Council or committee member, or other volunteer, has a personal, professional, or financial interests that could, or appear to, influence their ability to act solely in the best interest of the Society.

This could result not only in actual wrongdoing, but in a perception of bias that could damage the Society’s reputation and impact upon the trust of our members.

Examples might include the awarding of a grant to an organisation at which a trustee is employed or hiring services from a company owned by the relative of a trustee.

Conflicts of interest could also arise when a trustee is connected to another body and must balance that loyalty with their duty to the charity.

Where any potential conflict of interest arises, the person concerned must notify the other trustees and recuse themselves from any decision-making process.

Roles and Responsibilities

Trustees (SOS Council)

SOS Council retains overall responsibility for the charity’s finances and will:

• approve the annual budget and accounts at the November Council meeting
• monitor financial performance at each meeting
• approve financial policies and significant financial decisions
• appoint the Independent Examiner and seek approval for the appointment by members at the AGM
• ensure financial risks are identified and managed

Treasurer

The Treasurer is responsible for:

• maintaining accounting records in Xero
• reconciling bank accounts
• preparing financial reports for trustee meetings
• submitting Gift Aid claims
• managing online banking and implementing dual-authorisation for payments over £500

Assistant Treasurer

• acts as second signatory
• supports reconciliations and payment authorisation
• provides separation of duties
• reconciliation of some records in the banking software

Reporting concerns

Anyone with a concern about financial management should report it to the Chair or Secretary of Council in the first instance. An investigation will then take place to establish the facts before any remedial action is recommended and taken.

This does not prevent any serious concerns from being reported directly to the Charity Commission.

Table of Delegated Authority

In all instances, authorisation must not be given by same person proposing the procurement. 

Approved by Council 7 July 2026

Clare Buckle – Chair of Council

Alan Swetman

Alan Swetman – Secretary 

This policy is available to all Council Trustees, officers, members/volunteers via the SOS website.

This policy and any links are to be reviewed by SOS Council annually from the above date.