Online Banking Policy - Compass Disability Services

1 Date updated: 10/08/2011 By whom: Paula Ingrey Version number: 3 Location: Z:\ Compass Files\Strategic & Governance - Gov\Policies\Policies in Force - Version Controlled\ Online Banking \ Online Banking Online Banking Policy Compass Disability Services Units 11 12 Belvedere Trading Estate Taunton, TA1 1BH August 2011 Review Date: August 2014 Introduction Compass Disability Services has a responsibility to conduct its business efficiently. The establishment of, and the strict adherence to, sound financial management policies is an integral part of the organisation. It is essential that Compass Disability Services control all operational risks as far as is possible. This should include the participation of all those involved directly or indirectly with the Banking arrangements for the organisation.

2 This Policy aims to detail responsibilities, risk management, internal controls, and audit requirements associated with the use of Online Banking . Responsibilities The ultimate responsibility for the implementation of this Policy lies with the Chief Executive Officer (CEO). Each of the following will have a role associated with Online Banking and have a duty to observe the highest standards of probity and are expected to behave diligently at all times. Online Banking is accessed by means of the internet with each user having a personal username, password and memorable information, each is expected to keep this confidential at all times. Each person has specific responsibilities as defined in the Online Banking Procedure: The Chair of the Board of Trustees The Treasurer of the Board of Trustees Other Trustees with designated signatory responsibilities.

3 The Chief Executive Officer The Operations Manager The Finance Officer Risk Management The increase in available technology, such as Online Banking , offers considerable benefits but also increases potential risks. It is vital that the benefits outweigh the risks and that any risk is minimised through effective management. Compass Disability Services will endeavour to manage the risks associated with Online Banking through the completion of an Annual Date updated: 10/08/2011 By whom: Paula Ingrey Version number: 3 Location: Z:\ Compass Files\Strategic & Governance - Gov\Policies\Policies in Force - Version Controlled\ Online Banking \ Online Banking Online Banking Risk Assessment. This will be the responsibility of the Finance Officer who will report any concerns identified to the CEO.

4 Internal Controls As a charitable organisation, Compass Disability Services , as detailed in the organisation s Articles of Association, has an obligation to use the funds available to further its aims and for public benefit. It is also necessary in some cases for funds to be used for specific purposes (restricted funds). It is vital that controls are in place to ensure that this happens. The Finance Officer is responsible for ensuring that there are effective procedures in place to manage and monitor the ordering and delivery of goods for the organisation. The Finance Regulations details the responsibilities of the CEO and the Board of Trustees in relation to the management and control of expenditure. All invoices will be coded by the Finance Office, signed by the budget holder and authorised by the Operations Manager for invoices less than 2500 or the CEO for invoices over 2500 prior to the Finance Officer being able to input payments Online .

5 A designated Finance Support Worker will be able to carry out the duties of the Finance Officer in their absence. The Finance Officer will compile a Payment Report detailing the Payee, a brief description and the amount due that will be made available to the CEO, (or to the Chair of the Board of Trustees when the CEO is not authorised, payment to an immediate family member) for the first level of Online authority. Once the CEO has completed the first level of Online authority the payment will need to be authorised Online by either the Chair of the Board of Trustees, the Treasurer of the Board of Trustees or another Trustee who has designated signatory responsibilities to enable the payment to be processed. The hard copy of the invoice will need to be authorised by the person completing the Online authorisation on their next visit to the office.

6 No person shall be permitted to give Online authority for a payment to themselves or to a member of their immediate family. Payroll Payroll will be calculated and input Online by the Finance Officer who will produce a Banking Report and Sage Payroll Report that will be authorised by the Operations Manager. This will then feed in to the first level of Online authorisation as detailed above. Date updated: 10/08/2011 By whom: Paula Ingrey Version number: 3 Location: Z:\ Compass Files\Strategic & Governance - Gov\Policies\Policies in Force - Version Controlled\ Online Banking \ Online Banking Audit Requirements The Treasurer of the Board of Trustees will be responsible for completing regular internal audits to ensure that the procedures are fully followed and that any loopholes are identified and processes agreed to cover them.

7 In accordance with statutory requirements, when appropriate, the organisation will seek the Services of an external auditor on an annual basis who will verify that the agreed procedures are being complied with. Third Party Bank Account Compass Disability Services operate a bank account into which monies can be paid by third parties for management for other individuals and organisations. This bank account is known as the Banking Service. These monies never become the property of Compass Disability Services , but the Policy of safeguarding this money especially in the process of Online Banking arrangements, as outlined in this Policy , still applies. The procedures by which this will be done are outlined in the Finance Procedures for the Banking Service.

8 Policy Revisions This Policy will be reviewed every three years and amended as necessary, or earlier in accordance with any forthcoming legislation. All employees should pass suggestions or recommendations for the revision of any aspect of the Policy through normal channels to the Chief Executive. Further Reading Finance Regulations Articles of Association Online Banking Risk Assessment Online Banking Procedures Finance Procedures Banking Service