Financial Responsibilities and Procedures at Imperial College Union

Your Basic Finance Tools

Your Basic Finance Tools Introductions Context & Financial responsibility eActivities Basics Income/expenditure types Transfers Designated Members Funds Authorising your transactions Financial codes VAT and suitable evidence

Context Imperial College Union is a registered charity Imperial College Union prepares its members to be tomorrow's leaders, by defending and enhancing the student experience at Imperial, through the provision of innovation services, representation and activities. Governed by Charity Commission & Education Act 1994 Reputation, funding and future of ICU at risk Learning financial procedures is a valuable skill

Financial Responsibility Cash handling ICU bank account Membership fees Contracts Inventory Liable for your actions for up to 7 years Frozen accounts

eActivities Basics eActivities run through

Expenditure Types Claims are used for smaller expenditures where you use your own money and need to be reimbursed by the Union from your group s accounts. Claim Preferred method of payment for ICU and most suppliers. PO is raised and approved on eActivites, then shared with the supplier. When the good are received you note this on eActivites, upload an invoice for the goods and the supplier receives the funds. Proformas can be used when necessary. Purchase Order Internal Charging Credit Card If purchasing goods/services from another group or from a Union department. Used where no other method of payment is acceptable to the supplier. Appointment needed. An Imprest is an advance of money to be used when services must be paid for in cash. The person receiving the Imprest must be a full member of the Union and becomes personally liable for the care of the amount. Receipts must uploaded to eActivities for all money not spent returned to the Union promptly. Imprest International Payments International bank transfers can be made when an overseas supplier requires payment.

Income Types Using a paying in book, you can use this method to pay in cash or cheques. If the outgoing committee don't have a paying in book, please contact union@imperial.ac.uk to order a new one. Banking Records Credit Notes Used when funds are expected back from a supplier from an already approved purchase order. Used when receiving payments from organisations/suppliers and they wish to raise a Purchase Order. On receipt of a Purchase Order you would then raise a Sales Invoice referencing their PO number, then when you have delivered goods/services the funds will be paid. If funds need to be paid before goods/services are delivered use a proforma invoice. Sales Invoices Shop Administration Each CSP has its own section on the Union Online Shop, services or goods can be listed here and funds will be paid to your CSP account with no admin needed. Internal ChargingIf charging another group or from a Union department for use of goods or providing services.

Transfers Internal Charges Used for charging another CSP, or department within the Union Members Funds Redistribution Used for saving of money in year within your accounts outside of a specific account code and allows you to redistribute funds between activity codes. Transaction Corrections Used when you need to move funds between different funding codes. Designated Members Funds Used for saving money across multiple years for an intended and known expenditure

Designated Members Fund Used to save for large purchases over multiple years/committees Can only be opened if you have a large purchase in mind, that will help achieve your CSPs aims & objectives Requires an application to DPFS to open Smaller, non-multiple year savings should be accumulated through a Members Fund

Value Added Tax (VAT) A tax that is assessed on the value added to goods and services Required if we want to reclaim VAT

Value Added Tax (VAT) Types of VAT: VAT Type (Income/Expenditure) Name Examples S1/P1 Standard Rated (20%) Most common anything not below SL/PL Reduced Rate (5%) Home energy (unlikely to be used) S0/P0 Zero Rated (0%) Most food items, books SE/PE Exempt Training and coaches typically sports related goods and services SN/PN No VAT Anything without a VAT receipt ST/PT Tours Specific for tours

Financial Coding Pre-defined list of codes relating to specific types of areas (i.e. Instructors, Travel Expenditure, Donations) Account Codes VAT Codes As mentioned earlier relates to which VAT type is being used Codes related to a specific activity/event, created by the CSP themselves. Good practice to make activity codes for big activities through the year to tidy up accounts Activity (Event) Codes Funding Codes Which pot of money the funds are coming from (i.e. Grant, SGI, College) Specific coding to determine where funds are sourced from (0 = External outside College and Union, 1 = College Outside the Union, within College) Consolidation Codes

Financial approval Expenditure value Approvals needed < 5 Reimbursements under 5 cannot be made 5 - 49.99 Club, Society or Project Chair or Treasurer Club, Society or Project Chair or Treasurer AND Management Group/Constituent Union Chair, Treasurer or Vice Chair 50 - 999.99 Club, Society or Project Chair or Treasurer AND Management Group/Constituent Union Chair, Treasurer or Vice Chair AND Union Deputy President Clubs and Societies/ Finance and Services 1000+

Types of Evidence Expenditure value Evidence 5 - 249.99 Basic VAT receipt 250 + Full VAT invoice

Feedback & Questions! https://tinyurl.com/26k95yej