Financial controls

Financial controls are procedures governing the management of a charity’s finances. 

Financial controls help the board ensure that:

• legal and other requirements are met (eg requirements set out the terms and conditions of grants given to the charity)
• funds given to the charity are safeguarded
• everyone in the charity understands their roles and responsibilities in relation to finance.

Financial controls can cover:

• the responsibility for maintaining financial records and preparing reports
• the basis on which trustees delegate responsibilities for financial matters – to staff, volunteers, sub-committees and agents
• the preparation of financial plans and budgets
• banking arrangements
• payment of staff and agents
• purchasing of goods and services
• procedures for authorising expenditure on behalf of the charity
• the duties and responsibilities of the treasurer
• procedures for handling incoming post and money received
• procedures for generating funds.