Finance Documents Review

Log of amendments to the financial documents of Freegle Ltd

Finance Policy, Finance Procedures, Finance Role Remits, Paying People in Freegle Guidelines, Conflicts of Interest Procedure, Contract for Services, Finance Sub Committee Remit.

Finance Policy

• 12th October 2020 Amended section 7 to record the current (improved) processes involved in presenting accounts. Also amended Section 7 to allow more than one bank account. Development group discussed, polled and recommended the changes to the Board, who agreed to adopt.

Finance Procedures

• 25th June 2024 Added Section 12. Approval of End of Year Accounts

12.1 At the April 2024 board meeting, the following process for approving the Year end accounts was agreed:

During the relevant Financial Year, the AGM votes to dissapply the need for an audit for that year's accounts Shortly after the end of the Financial Year, a draft set of accounts are produced by the Treasurer and reviewed by the Finance Subcomittee The draft End of Year Accounts are issued to the auditors who produce a report which is incorporated into the accounts The draft End of Year Accounts and report are approved via a vote held at a Freegle Board Meeting The approved End of Year Accounts are submitted to the Financial Conduct Authority The approved End of Year Accounts are shared at the next AGM for information Notes: Note 2. Disapplying the need for an audit is done in-line with FCA rules 7.2.12 - 7.2.17 - https://www.handbook.fca.org.uk/handbook/RFCCBS/7/2.html Note 3. FCA rules 7.2.21 - 7.2.24 require that even if a report is produced (as opposed to a full audit), it must be produced by a qualified auditor if certain criteria are met Note 4. Freegle Rules 23a requires that the accounts are provided to the AGMproval of Year End Account. This was drawn up by Craig, Finance Director.

• 10th August 2015 Added section 11.Tendering to the document. This was discussed and polled on Development Group, then recommended to the Board who agreed to adopt it.

• 30th September 2015 Added section 12.Reserves to the document. This was agreed by the Board on 29th July.

• 4th December 2015 Amended section 11.4 from 11.4 A contract will be set up for all paid work over £100 (Contract for Services) and Directors will follow agreed procedures when discussing and deciding on paid work (Conflicts of Interest Procedure) to 11.4 A contract (Contract for Services) will be set up for all paid work over £250 for new suppliers, and the smaller of £1000 or 10% of total current bank balances for suppliers with a pre-existing relationship. Directors will follow agreed procedures when discussing and deciding on paid work (Conflicts of Interest Procedure). Discussed and polled on Development Group, approved by the Board.

• 28th May 2016 Amended section 5 from:

5.1 Under certain special circumstances, the Treasurer, in accordance with authority of the Board (4.1) can issue up to £50 float to an individual for them to disburse within guidelines set down and agreed by the Board at that time.

5.2 Special circumstances may include but are not limited to Freegle Volunteers who anticipate incurring incidental costs associated with an event or activity on behalf of Freegle nationally.

5.3 This float will be the sole personal responsibility of the person to whom it is issued and all expenditure must be accounted for with a proper receipt. Receipts will be returned each month to the Treasurer and any unspent funds will be returned along with outstanding receipts to the Treasurer at the end of the agreed period of the float issue.

5.4 Freegle Ltd will not operate any ongoing petty cash systems.

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5.1 Under certain special circumstances, the Treasurer, in accordance with authority of the Board (4.1) can issue up to £300 float to an individual for them to disburse within guidelines set down and agreed by the Board at that time.

5.2 Special circumstances may include but are not limited to Freegle Volunteers who anticipate incurring incidental costs associated or an event or activity on behalf of Freegle nationally, or work provided under and agreed within a Contract of Service where the Board agrees the contractor can receive payment in advance for specific activities and/or expenses.

5.3 This float will be the sole personal responsibility of the person to whom it is issued and all expenditure must be accounted for with a proper receipt. Receipts will be returned each month to the Treasurer and any unspent funds will be returned along with outstanding receipts to the Treasurer at the end of the agreed period of the float issue. Where the float is on a pre-paid debit card the float remains with the on-line statement returned showing remaining funds. It is the role of the Director of Finance to periodically review the spend on these cards with those who are holding them. Card holders will be encouraged to check with the board before they spend if they are not sure the spend is in line with pre-agreed categories. Should any spend be outside of agreed categories the board may ask the card holder to reimburse freegle the sums not approved.

5.4 Recharging of the funds on the pre-paid cards will be done periodically in line with pre-agreed limits set out in section 5.1.

5.5 Freegle Ltd will operate a ongoing float via an authorised prepaid debit card subject to the rules above, it will not operate any ongoing petty cash system.

This proposed change was outlined by the Board in a message to Central on 12th May 2016 and then, following no dissent, was adopted by the Board at their meeting on 26th May 2016.

• 19th August 2018 Amended section 13 (approved by Board at July 26th meeting) from:

11.3 If a piece of work or service required exceeds payment of £10k, the Board will seek at least 2 quotes from interested parties, and if in excess of £20k will seek at least 3 quotes, including from external parties if practicable. The Board will decide on the best person or company to deliver the work based on which is in the best interests of Freegle.

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11.3 If a new piece of work or service exceeds payment of £11k, the Board will seek at least 2 quotes from interested parties, and if in excess of £22k will seek at least 3 quotes, including from external parties if practicable. These limits were set in April 2018 and will rise in line with consumer price inflation each year. For renewal of an existing contract, the Board can extend the contract for the same value (plus inflation) without the requirement for new tendering. The Board will decide on the best person or company to deliver the work based on which is in the best interests of Freegle.

• 14th November 2018 Amended section 8 to add the ability for the Board to issue a specific multipay card. Discussed and polled on Development Group, recommended to the Board who agreed to adopt it.

Contract for Services

Amended complete model document uploaded March 2021. This was adopted when all contracts were reviewed in Feb/March/April 2021.