Ted Cassidy Memorial Award Winners

BF220EC6-DB93-4C67-B884-ED172A65A0BFSadly, Derby Community Accountancy Service lost our Honorary President, Ted Cassidy, in January 2021.

In memory of Ted, and to celebrate the great contribution he made to DCAS and our service users, it was decided to reward a local charity for playing their part in bettering the lives of the people of Derby.

We are pleased to announce that the winners of the Ted Cassidy Memorial Award 2021 for the outstanding contribution given by a charity to life in Derby, goes to Derby Refugee Forum.

Ferid Kevric is pictured here receiving the certificate on their behalf at our AGM last month. They also received a cheque from Mrs Una Cassidy.

Many congratulations to Derby Refugee Forum!

Introduction to PAYE

HMRC PAYE jpegAs an employer, you normally have to operate PAYE as part of your payroll. PAYE is HM Revenue and Customs’ (HMRC) system to collect Income Tax and National Insurance from employment.

You do not need to register for PAYE if none of your employees are paid £120 or more a week, get expenses and benefits, have another job or get a pension. However, you must keep payroll records.

Payments and deductions

When paying your employees through payroll you also need to make deductions for PAYE.

Payments to your employees

Payments to your employees include their salary or wages, as well as things like any tips or bonuses, or statutory sick or maternity pay.

Deductions from their pay

From these payments, you’ll need to deduct tax and National Insurance for most employees. Other deductions you may need to make include student loan repayments or pension contributions.

Reporting pay and deductions

If you run payroll yourself, you’ll need to report your employees’ payments and deductions to HMRC on or before each payday.

Your payroll software will work out how much tax and National Insurance you owe, including an employer’s National Insurance contribution on each employee’s earnings above £170 a week.

You’ll need to send another report to claim any reduction on what you owe HMRC, for example for statutory pay.

Paying HMRC

You’ll be able to view what you owe HMRC, based on your reports. You then have to pay HMRC, usually every month.

If you’re a small employer that expects to pay less than £1,500 a month, you can arrange to pay quarterly – contact HMRC’s payment enquiry helpline.

Other things to report

As part of your regular reports, you should tell HMRC when a new employee joins and if an employee’s circumstances change, for example they reach State Pension age or become a director.

You have to run annual reports at the end of the tax year – including telling HMRC about any expenses or benefits.

More details can be found here

State Pension Update

state pensionIn November 2018, State Pension age was 65 for men and women.  The State Pension age is regularly reviewed to make sure that the State Pension is affordable and fair.  People are living longer, and spending a larger proportion of their adult life in retirement than in the past.  State Pension age is gradually increasing for men and women, and will reach 67 by 2028.

Proposed new timetable for State Pension age increases

The government has announced plans to bring this timetable forward. The State Pension age would therefore increase to 68 between 2037 and 2039.

Your date of birth How the proposals affect you
On or before 5 April 1970 No change
Between 6 April 1970 and 5 April 1978 Your State Pension age is currently 67. It would increase to between 67 years and 1 month, and 68 years, depending on your date of birth
After 6 April 1978 No change. Your State Pension age remains 68

These proposed changes would have to be approved by Parliament before they are agreed.

When can I retire?

Your State Pension age is the earliest age you can start receiving your State Pension.  Use the link below to check:

  • when you’ll reach State Pension age
  • your Pension Credit qualifying age
  • when you’ll be eligible for free bus travel

Click here to start

Check your State Pension forecast to find out how much money you’ll get

Working after State Pension age

  • You can keep working past your State Pension age.
  • You can usually work for as long as you want to. ‘Default retirement age’ (a forced retirement age of 65) no longer exists.
  • You don’t pay National Insurance if you work past State Pension age.
  • You could pay tax – it depends on the size of your total income.

You can find more information here

Sick Pay and Holiday Pay

Sick Pay and Holidays jpegACAS answers questions about sick pay and holiday pay

Employees cannot get sick pay and holiday pay at the same time.

Taking holiday while off sick

An employee can take holiday (annual leave) while off sick. For example, if they: 

  • are not physically able to work, but physically able to take a holiday
  • have a mental health condition that might be helped by a holiday
  • are off sick long term and a holiday might help with their recovery

It’s up to an employee to request holiday while off sick. An employer cannot force an employee to take holiday while off sick.

If the employer approves the employee’s holiday request:

  • sick leave can be paused while the employee takes holiday
  • the employee should get holiday pay while they are on holiday

After the employee has taken the holiday, sick leave can continue if they’re still not well enough to return to work.

If an employee is sick on holiday 

An employee must report their sickness to their employer if they want to take any holiday as sick leave.

In this case the employee can:

  • get sick pay for the time they were sick (as long as they areentitled to sick pay)
  • keep the time they were sick to use as holiday another time

More information from ACAS can be found here

More information from the government can be found here

Charity Fraud Prevention Week – Taking Action

Charity Fraud Awareness Week 2021TAKING ACTION

If you suspect that your charity has fallen victim to insider fraud you should act promptly.

  • Refer to your response plan which should explain how, when and by whom the suspected fraud will be investigated, reported and resolved. It might include engaging external professional support.
  • Report the incident to your relevant national law enforcement agency. In the UK this is Action Fraud (England, Wales and Northern Ireland) or Police Scotland (Scotland only).
  • Report matters promptly to your charity regulator. For reports to the Charity Commission for England and Wales treat it as a serious incident. Use the online form to make your report, stating what happened and how you’re dealing with it.

BUILDING YOUR CHARITY’S DEFENCES

Checklist – Ask yourself:

  • Do we have a workplace culture in which fraud is never acceptable and everyone knows it? (An essential part of preventing fraud is to have the right ‘tone at the top’.)
  • Do we talk openly about fraud and is it clearly explained in our anti-fraud, bribery and corruption policy?
  • Is a whistleblowing policy promoted and supported widely within the organisation?
  • Are we developing standard operating procedures that reduce risk and encourage honesty? Are we making sure they are being followed?
  • Do we perform pre-employment screening of new recruits and in-service checks for established employees? Do we expect our partners to do the same?
  • Are we sharing our knowledge with other organisations so that known fraudsters cannot simply job-hop?
  • Do we offer support to employees in difficulty? (Desperation and dissatisfaction are common causes of fraud.)
  • Do we keep registers of gifts, hospitality and conflicts of interest? Are they transparent and reviewed regularly?
  • Do we provide mandatory anti- fraud and corruption training?
  • Is there a response plan for when an insider fraud does happen?

Charity Fraud Awareness Week 18-22 October 2021 – Insider Fraud

Charity Fraud Awareness Week brings together the charity and not-for-profit sectors from around the world to raise awareness and share good practice in tackling fraud and cybercrime.

Fraud HelpsheetGetting to know your staff

Performing proper due diligence in all staff and recruitment matters is an essential part of getting to know the people who work for you. It can greatly reduce the risk of insider fraud.
 

What is Insider Fraud?

This is when someone exploits their role or occupation for personal gain by deliberately misusing the organisation’s assets and resources. It often includes the abuse of trust.

Fraud can be committed by anyone, whether:

  • a trustee;
  • an employee (temporary or permanent); or
  • a volunteer.

This person may act alone or in collusion with someone else. Sometimes criminal gangs will deliberately seek out people ‘on the inside’ to help them commit fraud, for example by asking for information on how to bypass controls.

Warning Signs

Certain kinds of individual behaviour can be red flags for insider fraud. For example:

  • an aggressive or bullying manner that makes colleagues unwilling to challenge their behaviour;
  • a tendency to be over-protective of their work or to take on additional tasks beyond their job description;
  • asking to use someone else’s log-in details because they have forgotten their password;
  • an unwillingness to take holidays or be away from the office for more than a day or two at a time;

A very useful helpsheet, kindly prepared by Cifas and the Fraud Advisory Panel, can be downloaded here

Case studies of inside fraud in charities can be found here

Trustee Expenses and Payments

Trustee ExpensesThe concept of unpaid trusteeship has been one of the defining characteristics of the charitable sector, contributing greatly to public confidence in charities. This does not mean that a trustee can never receive any payment or benefit from his or her charity; there are sometimes good reasons why it can be in a charity’s interests to make a payment to a trustee. Trustee boards need, though, to minimise the risks to their charity’s reputation and operation.

Expenses are normally refunds by the charity of costs a trustee has had to meet personally (or which have been met on his or her behalf) in order to carry out trustee duties. In some cases, these expenses may be paid in advance. A refund of properly incurred expenses is not a trustee payment, nor does it count as any kind of personal benefit.

Some types of payment are often confused with expenses, when they are actually trustee benefits which HMRC will consider can be taxed as income. They can only properly be paid out of charity funds if there is suitable authority for doing so.

A charity can pay a trustee for the supply of any services over and above normal trustee duties. The decision to do this must be made by those trustees who will not benefit. They must decide that the service is required by the charity and agree it is in the charity’s best interests to make the payment and must comply with certain other conditions

More detailed information and guidance can be found in this document

Does Your Charity Need an AGM?

AGM imageNot all charities have members or need to have an AGM. The governing document should be checked to see if an AGM is required. A charitable company is only required to hold an AGM where stipulated in its articles of association. If the governing document does not require an AGM, the charity trustees may wish to call one (perhaps calling it a users’ meeting to avoid any confusion with a formal AGM).

Whether the charity is required to have an AGM or simply organise a users’ meeting, the charity trustees are only bound to act on decisions taken by the members where the governing document directs that those matters have to be decided at such a meeting. It is important that charity trustees are clear about the status and purpose of the AGM and that this is clearly communicated to those attending.

Unless the governing document states otherwise, the notice of the AGM will need to be sent to all the members of a charity and to any other people entitled to receive them. Some charities may be required to have an AGM or users’ meeting but not have a membership (for example, a village hall charity). In these cases, the instructions in the governing document about advertising the meeting must be followed. The governing document may state the number of days notice that must be given for calling an AGM. If it does not, reasonable notice should be given.

The commission recommend that copies of the charity’s annual report and accounts are either sent to each member, or made available at the venue prior to the start of the meeting (a company must send copies to all of its members). Anyone can by law request a copy of the accounts from the charity at any time. The charity is entitled to charge a reasonable fee for this.

The governing document may specify the information to be contained in the notice calling an AGM and company law imposes certain requirements in this respect. In all cases the commission recommend, as a minimum, that the notice calling the AGM sets out:

  • the date and time of the meeting
  • the venue
  • the details of the business to be considered (which will probably be mandatory items at this stage as members resolutions may not have been received)
  • an invitation to propose resolutions, and
  • if appropriate, requests for nominations (or the names of proposed nominees) for officers to be elected

More information and guidance can be found here

Job Description For A Charity Treasurer

treasurerClear role descriptions for trustees and specific officers on the trustee board will help your trustees understand their duties.

The Treasurer of a small community group or voluntary organisation may perform all duties concerned with dealing with money. So the treasurer may also, in effect, be the bookkeeper and finance manager. This job description will therefore need to be adapted according to the circumstances of your organisation.

Treasurer

Overall

  • Oversee the financial affairs of the organisation and ensure they are legal, constitutional and within accepted accounting practice.
  • Ensure proper records are kept and that effective financial procedures are in place.
  • Monitor and report on the financial health of the organisation.
  • Oversee the production of necessary financial reports/returns, accounts and audits.

Specifically

  • Liaise with relevant staff, committee members and/or volunteers to ensure the financial viability of the organisation.
  • Make fellow committee members aware of their financial obligations and take a lead in interpreting financial data to them.
  • Regularly report the financial position at committee meetings (balance sheet, cash flow, fundraising performance etc).
  • Oversee the production of an annual budget and propose its adoption at the last meeting of the previous financial year.
  • Ensure proper records are kept and that effective financial procedures and controls are in place, ie:
    • Cheque signatories
    • Purchasing limits
    • Purchasing systems
    • Petty cash/ float
    • Salary payments
    • Pensions
    • PAYE and NI payments
    • Others as appropriate
  • Appraising the financial viability of plans, proposals and feasibility studies.
  • Lead on appointing and liaising with auditors/an independent examiner.

If the Treasurer is expected to undertake all finance duties consider adding:

  • Undertake bookkeeping duties and/or oversee the finance volunteer ensuring posting and bookkeeping is kept up-to-date.
  • Maintain the petty cash system and regularly process petty cash claims.
  • Regularly carry out reconciliations/ oversee regular reconciliations by the finance volunteer.
  • Arrange payments to creditors as appropriate and arrange appropriate signatures on payments.
  • Make the necessary arrangements to collect payments from debtors and bank payments promptly.

Qualities

  • Knowledge and experience of current and fundraising finance practice relevant to voluntary and community organisations.
  • Knowledge of bookkeeping and financial management (as necessary).
  • Good financial analysis skills.
  • Ability to communicate clearly

As trustees, you share responsibility for governing your charity regardless of whether individual trustees have specific roles. For example, your charity may have a treasurer, but all the trustees are responsible for its assets and finances.