Financial Management and Procurement Policy
1. Policy Statement
Kidney Care for All CIC (KCA) is committed to sound financial management and transparent, ethical use of its resources. This policy sets out our approach to financial control, budgeting, spending, and procurement to ensure integrity, value for money, and compliance with all legal and regulatory obligations.
2. Objectives
This policy aims to:
– Ensure effective and accountable use of funds
– Protect the financial integrity of the organisation
– Define roles and responsibilities
– Promote transparency and fairness in procurement
3. Scope
This policy applies to:
– All directors (including Chairman, Treasurer, Secretary)
– Staff, volunteers, and any individuals handling funds
– Third parties involved in procurement or financial decisions
Part A – Financial Management
4. Roles and Responsibilities
– Board of Directors: Overall responsibility for financial oversight and approval of budgets and key decisions
– Treasurer: Maintains financial records, oversees reporting, reconciles accounts, and monitors financial controls
– Secretary: Assists in maintaining documentation and ensures records are filed appropriately
– All directors: Responsible for complying with this policy and reporting financial concerns
5. Financial Controls
KCA will operate the following financial controls:
– A dedicated bank account in the organisation’s name
– Payment only after authorization from two directors
– No blank cheques or pre-signed transactions
– Monthly bank reconciliations
– Segregation of duties where possible
6. Budgeting and Planning
– An annual budget will be prepared and approved by the Board before the start of each financial year
– Budgets must align with KCA’s objectives and funding agreements
– Spending will be monitored against the budget with quarterly reviews
7. Financial Reporting
– The Treasurer will provide quarterly financial reports to the Board
– An annual financial statement will be prepared for review and filing with Companies House and the CIC Regulator
– All financial documents will be securely stored and retained in accordance with legal requirements
Part B – Procurement
8. Principles
All procurement must adhere to the following principles:
– Value for money: Best use of funds, not necessarily the lowest price
– Transparency: Clear documentation and fair processes
– Impartiality: No conflict of interest in selection
– Accountability: Clearly recorded decisions and authorisations
9. Procurement Thresholds
Estimated Value | Required Process
Under £500 | One quote or price comparison sufficient
£500–£2,000 | Minimum of two written quotes
Over £2,000 | At least three competitive quotes or a formal tender process
Exceptions must be approved by the Board and documented with justification.
10. Authorisation of Expenditure
– All procurement must be authorised by at least two directors
– Expenditure must be within budget unless prior Board approval is obtained
– Any ongoing contracts (e.g., services or leases) must be approved by the Board
11. Conflict of Interest
– Individuals involved in procurement must declare any potential conflict of interest
– Anyone with a conflict must recuse themselves from the decision-making process
12. Ethical Purchasing
KCA will aim to:
– Use local suppliers where feasible
– Avoid suppliers with poor ethical, labour, or environmental records
– Consider sustainability and social value in procurement decisions
13. Review and Monitoring
This policy will be reviewed annually by the Board of Directors. Updates will be communicated to all relevant parties. Compliance with this policy is mandatory, and any breaches may result in disciplinary action.