Lambeth and Croydon North
report re £1000 donation
13 November 2014
I have examined excel spread sheets bank statements and vouchers/invoices presented to me by the branch
treasurer for the year to date and prior.
The spread sheets represent an
analysed cash/cheque book for the bank account combined/consolidated with an
analysed account of pure cash transactions.
The donation from Robert Mason is recorded as a cash receipt on 1st March 2014. Rather than banking this
amount it was kept as a cash float for paying expenses prior to the May elections.
I HAVE FOUND NO EVIDENCE TO SUGGEST FUNDS HAVE BEEN USED OTHER THAN ON APPROPRIATE BRANCH EXPENSES.
HOWEVER
1) failure to fully inform the committee and members of the financial transactions has led to unnecessary mistrust.
2) the Treasurer has failed to comply with the rules by not submitting annual branch accounts for the year to 31st
December to Head Office (HO)
3) the Treasurer has failed to complete and return to HO the quarterly donation reports
.
Forms for submission of these reports are sent to treasurers ahead of the quarterly deadline and must be completed and returned even if
donations are NIL. The £1000 donation in contention was not reported to HO in the quarter received but only in the current quarter after the start of my investigation.
4) good practice requires that all monies received are paid into the bank account and any cash required is drawn out in separate transactions.
This ensures that there is a full audit trail.
5) good practice also dictates that records are kept up to date shortly after events not much later.
6) officers have admitted pre-signing blank cheques to enable speedy completion of transactions but this should be avoided in future. If absolutely necessary the cheques should have written at the head ‘not to exceed £x’.
This will limit any potential loss if misused or stolen.
7) whilst proper financial accounts will combine all branch transactions separate records should be maintained for the bank account and for cash transactions.
8) there was a large payment in May for Carnival Security for which there are no receipts.
Knowing the facts of what occurred that day I can understand why this happened but proper receipts must be obtained in future.
9) certain expenses were reimbursed to the Chairman, seemingly, with the approval of the committee. Such approvals should be minuted or expense vouchers signed by other committee members to record such approval.
Going forward I suggest that the treasurer meets with the full committee and one of the ROs for an open book exercise whereby all records may be examined and questions raised to ensure they are completely happy with past transactions.
I suggest that more openness and team working should avoid problems in future.
NEC Member
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