Bank Accounts

5.1 Only the Commission can authorise the opening of bank accounts.

5.2 The Executive Team will designate appropriate persons to authorise payments from the organisation’s bank accounts (the authorised signatories). Any changes to the list of authorised signatories must be authorised by the Executive Team and a letter must be written to the bank, signed and authorised in accordance with the Bank mandate.

5.3 The organisation does not operate a bank overdraft and must ensure that all of its bank accounts remain in credit at all times. The Head of Finance must ensure that sufficient cash is claimed from DLUHC each month through Grant-in-Aid to remain cash positive.

5.4 All funds surplus to immediate requirements are invested in interest bearing accounts. (see 5.18).

5.5 Payments from the organisation’s bank current account of less than £500 will be made online by BACS transfer or faster payment, or by cheque or other approved instrument as appropriate, signed (or authorised securely online) by any one of the authorised signatories. Similarly transfers from deposit accounts of less than £500 will be made by an appropriate approved instrument signed by any one of the authorised signatories. For payments or transfers of more than £500, the cheque or approved instrument will be signed (or authorised securely online) by any two of the approved signatories.

5.6 Banking arrangements must be reviewed annually and a comprehensive review, usually leading to competitive tendering for banking services, must be undertaken at least every five years.

Business charge card procedures

5.7 Business charge cards (“GPC cards”) are issued to three employees (one for each office) to make the purchases of low value goods and services (not usually available under traditional purchasing channels) more efficient and cost effective. There are strict rules about what can and can’t be purchased with a GPC card and they must not be used to bypass standard purchasing procedures. The cards must not be used for personal use.

5.8 The staff that cards are issued to and the individual transaction and monthly card limits imposed are determined by the CEO. The use of any business charge card is governed by the terms and conditions which each card holder must sign upon receipt. This form will be countersigned by the Head of Finance and retained by the Finance Team.

5.9 For every purchase using a GPC card, each supplier is attached to a merchant category. The following merchant categories are blocked for all GPC cards: automotive fuel; restaurants and bars; and cash withdrawals (with the exception of the Coventry and York cards which are only to be used to top up petty cash). If there is any reason why a card needs to be used for a blocked category, then the Head of Finance should be contacted and can temporarily unblock a category, if appropriate.

5.10 In addition to the blocked categories, GPC cards should not be used for the following: purchasing capital items; purchasing alcohol; travel & subsistence. Travel & subsistence should normally be purchased using the Corporate Travel Management account wherever possible, and if not, can be reclaimed by staff through the normal expenses process.

5.11 GPC cards can only be used to purchase IT equipment at the request of the IT Team.

5.12 GPC cards can be used to purchase items through the internet but cardholders must ensure that the site is secure (the web address must begin with https://).

5.13 Cardholders can purchase items on behalf of other staff as long as the expenditure satisfies these rules and has been appropriately authorised by a Budget holder.

5.14 Every month each cardholder will receive a card statement from the Finance Team detailing the purchases for the month. The cardholder is required to review the statement and sign it to confirm it is correct (or an email to their line manager is also considered acceptable). Receipts from the suppliers should also be attached to the form (electronic copies are acceptable). If the purchase was made via the internet then a transaction receipt should be provided. The cardholder’s line manager will sign the statement or email the Finance Team as evidence for authorisation of the expenditure. The statement and all the relevant forms and receipts must be forwarded to the Finance Team by the last working day of the month.

5.15 The Head of Finance will check to confirm that all statements have been received from all the cardholders and have been certified and that all the necessary receipts have been attached.

5.16 The totals from the statements will be matched to the direct debit drawn upon the Commission’s bank account and then posted on to the Finance system.

5.17 All failures to supply receipts will be investigated by the Head of Finance, who will recommend appropriate action under the LGSCO’s existing policies. The CEO will review repeated offences with a view to withdrawing the card.

Investing surplus funds

5.18 The organisation operates a current account, a sweep (deposit) account and an investment account in which it invests its surplus funds. The Commission’s investment principle is to invest without risk in a AAA rated bank. The bank is instructed to sweep the current account daily and deposit surplus funds of more than £1,000 to an interest-bearing sweep account. Conversely, if the balance on the current account has dropped below £1,000 the bank automatically transfers money from the sweep account into the current account. The bank carries out these daily transactions without reference to the organisation.

5.19 The monthly receipt of grant from DLUHC is paid into the current account, on or around the 9th of each month, subject to the Grant-in-Aid application.

5.20 The Head of Finance will assess immediate cash requirements and arrange for the transfer of any money which is not immediately required to an interest-bearing account.

5.21 Transfers from any Commission account can only be made into another account in the name of the Commission, and will only be carried out at the request of two of the authorised signatories.

Bank reconciliations

5.22 The Management Accountant reconciles all bank accounts every month, and signs them as evidence of completeness. The Head of Finance signs the bank reconciliation as evidence of review.