Financial clarity secured
Staying agile has always been a priority for our charity and how we look after our finances has been an important area of focus in recent weeks.
As we navigate our way around the Covid-19 lockdown and examine the implications for our charity, two key team members have been working hard to ensure we stay on track.
Trustee Deepak Rajput has been given the go-ahead to assist in the revamp our financial procedures with the result that there is more clarity overall.
This is no mean feat for a well-established charity like ours where up until 15 years ago, the accounts were still being entered manually in giant ledgers.
The accounting structure has now been modernised and Deepak, helped by former committee member Andrew McGunnigle, spent many hours updating procedures to achieve transparency.
Recent decisions taken include:
- Putting administrator Karen Leitch in charge of bookkeeping, dealing with invoices and paying suppliers
- The appointment of an accountant to produce our monthly and annual accounts, supply management reports and to assist with budgeting
The charity’s finance committee has continued to meet during the Covid-19 lockdown and use both video and telephone conferencing to continue management of the charity’s finances.
Deepak said: “We recognised we needed a strong analysis of our finances. We have changed forever how our situation is reported to the trustees. This means they are more aware than ever of our cash flow and what we have available to spend on our holidays for disadvantaged children.
“They are fully briefed and kept up to date on our income and expenditure. Our income has dropped, just like many other charities, but our actions recently have already proved crucial in making sure our financial infrastructure is strong.
“What we have achieved should not be underestimated. Charities the size of ours often make the mistake of being fearful of attending to their infrastructure. They think their supporters expect the money to go solely to the good work the charity has been set up for.
“They forget that good admin or accounting systems are the backbone of all good charities, as they are for all good companies.
“Many charities end up with poor structures in place which means they cannot show that agility like we can.
“Just like we updated our IT systems which made us ready for the switch to home working within days after the Covid-19 lockdown, changing our approach to how we report our financial situation is vital to our future and is part of good governance.”