Why it is Important
Good management of a charity’s finances and other assets enables it to succeed in delivering its charitable aims.
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Finance Policies and Procedures are essential when managing risks as an organisation and provide the framework to help you to do that, so that you don’t have to waste time making small routine decisions on finance and can focus on your real work.

In addition a Scheme of Delegation shows what authority the board has delegated to committees, other volunteers or staff under the powers of the Constitution. It also ensures that trustees are able to fulfil their legal and constitutional duties, through levers which enable them to delegate, monitor and if necessary, withdraw the delegated authority if it is considered in the interests of the charity and its beneficiaries.

Key points

• Structures for managing the finances; policies, guidelines and processes are in place as a priority for consideration
• Control systems which outline who is responsible for what and who has authority to do what, again a priority for consideration
• Carry out checks, reviews and scrutiny on the practice for those control systems and how they are implemented
• Manage the risks with particular acknowledgement of the highest risks, for example that might include who can order goods or complete payroll.
• Have access to independent professional advice
• Ensure that risk is managed to protect yourself against personal liability or responsibility for misuse of funds and assets. 

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Links for more information
 
NCVO, National Council for Voluntary Organisations
Sample Schemes of Delegation
https://knowhow.ncvo.org.uk/tools-resources/board-basics/model-documents-and-templates/sample-schemes-of-delegation
 
CVS Falkirk
Sample Financial Procedures Policy
https://www.cvsfalkirk.org.uk/resource-library-organisation-support/
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