FINANCIAL REGULATIONS INDEX
Board of Trustees
The Board of Trustees of Active Stirling Limited
Active Stirling Limited, a company limited by guarantee. Charity Number SC037632 and Company Number SC298585. The company has a wholly owned subsidiary Active Stirling Trading Limited which is not a charity. Company number SC318814
Where company information is registered and available to the Public on request
Any process which has an element of financial activity either within the process itself or within its input or output.
General Data Protection Regulation (effective 25 May 2018)
Institute of Chartered Accountants of Scotland
Office of the Scottish Charity Regulator
1.1. The financial regulations of the Company form part of its overall system of financial and management control.
1.2. Compliance with the financial regulations is compulsory for all employees connected with the Company. It is the responsibility of the Chief Executive and Director of Governance to ensure that their employees are made aware of the existence and content of the Company’s financial regulations and that an adequate number of copies are available for reference within their area.
1.3. The Director of Governance is responsible for maintaining a continuous review of the financial regulations and advising the Board of Trustees of any additions or changes necessary.
1.4. The Company’s detailed financial procedures set out how the regulations will be implemented and are contained in a separate document. It is the responsibility of the Director of Governance to maintain the Company’s financial procedures, which should be available to all areas.
The Board of Trustees
2.1. The Board of Trustees has ultimate responsibility for the Company’s finances. Members of the Board of Trustees will include representatives acting on behalf of Stirling Council and the local community and businesses. Any personal or business interests that may conflict with their responsibilities to the Company should be declared and recorded in the Register of Interests. Their financial responsibilities are:
- to ensure the solvency of the Company;
- to safeguard the Company’s assets;
- to ensure the effective and efficient use of resources;
- to ensure that suitable controls are in place for the financial systems, which are working effectively;
- to ensure that the Company complies with all Company legislation and requirements of regulatory bodies;
- to approve annual and longer-term budgets and to approve the annual financial statements;
- to grant any security over the assets of the Company;
- to approve any significant borrowing in respect of, or refinancing of the Company;
- forming any subsidiary of the Company;
- the purchase of shares in any other Company, or the acquisition of business or interest in a joint venture, legal partnership or similar undertaking;
- to approve a proposal to effect administration, liquidation, dissolution or winding-up of the Company;
- to approve a material change in the nature of the business of the Company, or the discontinuance or termination of the business of the Company; and
- to approve the sale of all or substantially all of the business assets of the Company.
2.2. The Director of Governance is responsible for drawing up a timetable for final accounts purposes and will advise employees and the external auditors accordingly.
2.3. The audited accounts and management letter setting out the findings of the external auditors and their recommendations, if any, for improving the Company’s financial controls and procedures should be reviewed by the Board of Trustees and approved subject to necessary actions being taken, if required.
2.4. External auditors shall have authority to:
- access the Company’s premises at reasonable times;
- access all assets, records, documents and correspondence relating to any financial and other transactions of the Company;
- require and receive such explanations as are necessary concerning any matter under examination;
- require any employee of the Company to account for cash, stock or any other association property under his / her control; and
- access records belonging to third parties, when required.
2.5. Whenever any matter arises which involves, or is thought to involve, irregularities or fraud concerning cash, stock or other property of the Company, or there is any other suspected irregularity in the exercise of the activities of the Company, the manager concerned shall notify the Director of Governance or Chief Executive.
The Director of Governance or Chief Executive will then take steps as necessary by way of investigation and involvement of internal auditors, as required, and report the matter to the regulatory body where required. The Company should also ensure that a procedure for whistle blowing is in place and operating effectively. The Board of Trustees will be advised, as necessary.
2.7. A review of the appointment of external auditors will take place annually at a meeting of the Board of Trustees. The Board of Trustees will then make recommendations following advice received from the Chief Executive.
2.8. The primary role of external audit is to report on the Company’s financial statements and to carry out such examination of the statements and underlying records and control systems as are necessary to reach their opinion on the statements and to report on the appropriate use of funds. Their duties will be in accordance with advice set out in the code of audit practice set by ICAS and the Auditing Practices Board’s auditing standards.
2.9. Each year the Board of Trustees, with input from the Chief Executive and Director of Governance as required, will review the effectiveness of external audit and, provided the auditors’ work is of a sufficiently high standard and reasonably priced, they are likely to be reappointed, subject to a maximum of seven years.
2.10. If the Board of Trustees decides not to reappoint the external auditors, a competitive tendering exercise will be performed to appoint new auditors.
2.15. The Company may, from time to time, be subject to audit or investigation by external bodies such as HM Revenue and Customs, who have statutory rights of access.
The Chief Executive
3.1. The Chief Executive is responsible for the operational management of the Company’s affairs. He or she must assist the Board of Trustees in determining its strategic objectives and promote the achievement of such objectives through the effective deployment of the Company’s resources.
The Director of Governance
3.2. The day-to-day financial administration is the responsibility of the Director of Governance. They will be responsible to the Chief Executive for:
- financial and business planning;
- preparing future budget forecasts;
- ensuring the preparation of monthly management accounts and management information, monitoring and control of income and expenditure against budgets and all financial operations;
- reporting to the Board of Trustees at each meeting on the Company’s financial position;
- preparing the Company’s annual accounts and other financial statements and accounts which the Company is required to submit to other authorities;
- ensuring that the Company maintains satisfactory financial systems; and
- establishing and maintaining clear lines of responsibility within the Company for all financial matters.
The Senior Leadership Team
3.3. The Senior Leadership Team is responsible to the Chief Executive for the financial management in their areas. They are advised by the Director of Governance in executing their financial duties. The Director of Governance will also supervise and approve the financial systems operating within each area including the form in which financial records are kept.
3.4. The Senior Leadership Team is responsible for establishing and maintaining clear lines of responsibility within their areas for all financial matters.
3.5. Where resources are devolved to budget holders, the budget holder is accountable to their line manager within the Senior Leadership Team for his or her own budget.
4.1. Resources are allocated regularly, and at least annually, on the recommendation of the Board of Trustees.
4.2. The Director of Governance is responsible for ensuring that a revenue and expenditure budget for at least the next financial year is prepared annually for consideration by the Board of Trustees. The budget should also include sensitivity analysis and a cash flow forecast.
4.3. The Director of Governance is responsible for submitting revised budgets and projections for the period to the Board of Trustees, at their regular meetings, for their approval.
4.4. Capital expenditure will be authorised in accordance with the company’s authorisation plans and corporate priorities.
4.5. Where relevant capital expenditure will be supported by a business case setting out the rationale for the transaction.
4.6. The Director of Governance is responsible, in consultation with the relevant budget holder, for providing information concerning all capital expenditure to the Senior Leadership Team for monitoring purposes as part of the budget process.
4.7. The Chief Executive is responsible, in consultation with the Senior Leadership Team, for preparing business plans for ultimate approval by the Board of Trustees.
4.8. The Director of Governance will be responsible for coordinating the financial aspects of the Company’s Business Plans. In particular the Director of Governance requires to ensure that appropriate longer term financial planning is in place to support longer term business plans and strategies.
4.9. The control of income and expenditure within an agreed budget is the responsibility of the designated budget holder, who must ensure that day to day monitoring is undertaken effectively.
4.10. Budget holders will receive training appropriate to their role and should communicate any potential problems initially to the Director of Governance.
Basis of accounting
5.1. The financial statements are prepared on the historical cost basis of accounting and in accordance with the Companies Act 2006 and applicable accounting standards.
Format of the accounts
5.2. The accounts are prepared for each financial year ending 31 March, in the format required by United Kingdom accounting standards and Statement of Recommended Practice – Accounting and Reporting by Charities (SORP 2005).
5.3. The accounting reference date may be changed by the Board of Trustees, in accordance with company law.
Basis of consolidation
5.4. The group financial statements consolidate the financial statements of Active Stirling Limited and its subsidiary undertaking Active Stirling Trading Limited for each financial year. In common with many other companies of similar size and nature, the Company may use the services of its external auditors to assist with the preparation of the annual financial statements
5.5. The Director of Governance is responsible for consolidating and dispatching financial returns and other periodic financial reports to regulatory bodies such as OSCR and Companies House and other agencies as required. They are also responsible for liaising with the Company’s Financial Controller ensuring that all grants notified are received.
5.6. The accounts will be approved by the Board of Trustees and submitted to the Registrar of Companies, Companies House. The submission will be within nine months of the year end, i.e. by 31 December each year for a financial year end of 31 March.
5.7. The Director of Governance is responsible for the retention of financial documents. These should be kept in a form acceptable to the relevant authorities and comply with GDPR.
5.8. The Company is required by law to retain prime financial documents for six years. These include:
- accounts raised
- copies of receipts
- payroll records
- VAT records.