Management accounts (including year to date actual/year to date budget/original budget/re-forecast).
A narrative finance report explaining variance and the projections in the re-forecast.
Additionally, the following tools are important elements in a board ensuring effective financial governance:
Written finance procedures including a procurement policy.
Board member(s) with specialist financial skills.
Reserves policy – what type and what quantity of reserves the organisation should have. The charity trustees of all registered charities are required to explain their policy on reserves in their annual report, and should state the level of reserves held and explain why they are held. More detailed reporting is expected of larger charities with an income over £500,000.
3–5 year business plan.
Sensitivity analysis – numerical analysis of risk in the planned activities.
An annual management letter from the auditors.
Regular reviews of bank mandates.
This resource is aimed at supporting charities to ensure the proper procedures and policies are in place to manage the charity’s resources effectively and, where appropriate, to make changes to their charity. Published: by the Charity Commission of Northern Ireland, 2014.
The Resilient Heritage Strength Checker is a diagnostic tool designed for voluntary and community sector organisations and social enterprises based in the UK that either have, or are looking to take on, responsibility for heritage. Published: 2016.
The Charity Commission has designed these 15 questions to help charity trustees carry out a review of the charity's plans and decide what they need to focus on. Published: March 2017.
This guidance is written for trustees of charities of all sizes and types, whether they are companies, trusts or associations to help them develop a reserve policy. Published: January 2016.