2.14 Financial Procedures |
Contents
1. General Principles
1.1 Changes to Procedures
The following procedures are the standard methods required at the time of publication. However, due to recent and ongoing changes it may be that different procedures are being followed. If you are aware of this situation please bring any variance to the attention of the Designated Manager who will assist with the structured introduction of the standard procedure.
1.2 Terminology
In line with the consistent approach used in The Continuum Group procedures manual the terms “Home” and “Resource” relate to an individual home, school, other service or department.
Where the terms “Manager” or “Line Manager” are not appropriate you will find the term Designated Manager. For each section where this is used the job title of the individual(s) appropriate to the specific procedure can be accessed by clicking Designated Manager.
1.3 Finance Department Correspondence
The Finance Department operates in more than one location. Please ensure that all correspondence for the Finance Department is addressed to the office that deals with the administration for your Resource.
1.4 Forms
It is the intention to formalise a standard set of financial forms for The Continuum Group. We are also developing electronic forms that will interact with our accounting software. Therefore in this release of the procedures forms are not named. In the meantime please use the forms that are issued to you by the Finance Department. If you require any guidance when completing the forms please contact the Finance Department.
The only exceptions to this are the forms used exclusively by the Fostering service.
1.5 Budgets
Budgets are approved by The Board and are issued periodically to those responsible; this is generally on an annual basis.
Budgets by themselves do not give Managers authority to incur expenditure. Authorisation levels for individual purchases must be adhered to, see Section; 1.6, Expenditure Authorisation
Budget holders cannot swap expenditure from one category to another. In exceptional circumstances this can only be approved by the Designated Manager before the transaction takes place.
Budgets must be adhered to both by category and overall. Any overspending must be approved by the Designated Manager before the transaction takes place.
Details of the costs included in the main budget categories as found on the Profit & Loss statements can be found in Section 11, Resource Budget Account Categories
1.6 Expenditure Authorisation
It is not permissible for the authority attached to a position to be sub-delegated by the holder of the position.
The authorisation limits set are for the total value for any expenditure commitment. The authorisation levels may not be bypassed by placing multiple orders or entering into contracts paid in instalments.
In view of the different services within The Continuum Group, scales of authority have been set for each specific service type and can be found in Section 8, Service Specific Procedures. Depending on the service that the purchase relates to authorisation values will be either inclusive or exclusive of VAT. The VAT status can also be found within the relevant section.
If an individual is unavailable to provide the necessary approval the next level of authorisation should be sought.
In circumstances where the individual is off site and unable to sign the purchase order authorisation can be given by e-mail, a print out of which should be attached to the purchase order.
When the appropriate individual is unavailable and purchasing approval is required urgently members of the Finance Department with authorisation limits for Central Expenditure can exercise their authority in other service areas.
In cases of emergency where an authorised individual is not obtainable the most senior member of Staff on-call should be made aware of the situation and verbally approve the expenditure. As soon as possible after the event a purchase order should be issued including details of the verbal approval.
1.7 Expenditure to be controlled centrally
The procedures in Section 2. 2, Centrally Controlled Expenditure: Operational Purchases should be followed for the following types of expenditure:
- Agency Staff
- IT Equipment and Software
- Long-term Agreements
- Mobile Phones
- Motor Vehicle Hire
- Property Repairs
- Training
1.8 Preferred Suppliers
It is the intention to formalise a list of preferred suppliers for services such as property repairs, electrical work, IT equipment etc. As a lot of our goods/services come from local suppliers this is an extensive project and will be carried out in the future.
1.9 Resource and Office Types
At present The Continuum Group operates with various systems of controlling budgets, petty cash and bank accounts. In order to incorporate all systems, individual procedures are specified where applicable. In these circumstances Profit and Cost Centres are not named within the manual, they can be identified by “Type”. This enables changes to be made to the systems Resources use without making amendments to the procedures.
If you are unsure which type of resource/office you work in please consult your Manager or the Designated Manager (See Section 10, Designated Manager)
1.9.1 Residential Homes, Family Assessment Centres and Schools
| Type | A1 | A2 | A3 | A4 | B1 | B2 | B3 | B4 |
| Resource Manager Controls Budget | Y | Y | Y | Y | N | N | N | N |
| Regional Manager Controls Budget | N | N | N | N | Y | Y | Y | Y |
| Individual Bank Account | Y | Y | N | N | Y | Y | N | N |
| Categorised Weekly Budget | Y | N | Y | N | Y | N | Y | N |
| Total Weekly Budget | N | Y | N | Y | N | Y | N | Y |
1.9.2 Central Offices
| Type | 01 | 02 | 03 |
| Director present full-time | Y | N | N |
| Director present part-time | N | Y | N |
| Regional office | N | N | Y |
1.10 Situations not covered by these procedures
Situations may arise in the future that will not be covered by this procedure. These should immediately be drawn to the attention of the Designated Manager via e-mail.
2. Centrally Controlled Expenditure
Designated Managers with authority to approve the expenditure detailed in this section must adhere to the limits as per the authorisation table in Section 2.3, Central and General Office Expenditure.
2.1 Fixed Assets
2.1.1 Capital Expenditure – Purchasing Fixed Assets
Capital expenditure is the purchase of goods with a long-term life span, known as “fixed assets”. Some examples are motor vehicles, furniture and kitchen appliances.
Requests for all purchases of fixed assets over £500 must be made via the Designated Manager who will obtain approval as per the authorisation tables in Section 2.3, Central and General Office Expenditure.
Once written confirmation that the expenditure has been approved is received, please refer to General Purchasing: Section 3.1, General Purchasing: Purchasing and Payment Summary for purchase and payment procedures.
Capital expenditure under £500
Purchases of fixed assets under £500 do not require written quotations. Please follow the procedures in Section 3.1, General Purchasing: Purchasing and Payment Summary
Capital expenditure over £500 and less than £1,000
Requests to purchase a fixed asset over £500 and less than £1,000 must be accompanied by a detailed written quotation from the preferred supplier.
Capital expenditure over £1,000
Requests to purchase a fixed asset over £1,000 must be accompanied by three detailed written quotations to enable comparison. If a preferred supplier is being used only one quotation is required.
2.1.2 Disposal of Fixed Assets
The Designated Manager must be made aware of all disposal of fixed assets.
2.2 Operational Purchases
The purchase and payment summary in Section 3.1, General Purchasing: Purchasing and Payment Summary also applies to the following expenditure unless the procedure is overridden as per the processes detailed below:
2.2.1 Agency Staff
All requests for agency Staff should initially be approved by the Regional or Operations Manager regardless of the expenditure authorisation limit of the Resource Manager.
An approved purchase order should be sent to the Finance Department detailing the name of the agency Staff and the hourly rate. At this stage the total value does not need to be completed.
On receipt of the invoice the Finance Department will match the invoice with the purchase order. A copy of the invoice will then be sent for approval as per the authorisation levels for the Resource, see Section 8, Service Specific Procedures.
2.2.2 IT Equipment and Software
The IT budget is held centrally. All requests for IT equipment, software and related goods/services must be made verbally or via e-mail to the IT Department who will, depending on the type of purchase, allocate who is to raise the purchase order.
Purchase orders must be approved as per the tables above in Section 2.3, Central and General Office Expenditure
Authorised purchase orders should be sent to the relevant Finance Department office.
2.2.3 Long-term Agreements
All requests for long-term agreements (such as pest control contracts) must be made by submitting a purchase order signed by the Resource Manager and forwarded to the Designated Manager for final approval.
2.2.4 Mobile Phones
To ensure that The Continuum Group policies regarding network providers, tariffs and additional equipment are adhered to, requests for mobile phones must be made using a purchase order signed by the Resource Manager and forwarded to the Designated Manager for final approval.
2.2.5 Motor Vehicle Hire
Where a company vehicle is not available, hire vehicles may be used for journeys in excess of 100 miles round trip for legitimate business purposes. In addition vehicles may be hired for lesser journeys where there is a specific requirement for a specialised vehicle and an appropriate company vehicle is not available.
Requests for hire vehicles must be made using a purchase order signed by the Resource Manager and forwarded to the Designated Manager for final approval.
2.2.6 Property Repairs
Requests for property repairs, improvements to properties or new installations, such as bathrooms, must be signed by the Resource Manager and forwarded to the Designated Manager for final approval.
Authorised purchase orders should be sent to the relevant Finance Department office.
Repairs over £500 and less than £1,000
Requests for repairs over £500 and less than £1,000 must be accompanied by a detailed written quotation from the preferred supplier.
Repairs over £1,000
Requests for repairs over £1,000 must be accompanied by three detailed written quotations to enable comparison. If a preferred supplier is being used only one quotation is required.
2.2.7 Training
The training budget is held centrally. All applications for training and courses must be made for via the Training Department who will raise the necessary purchase orders.
Requests for external trainers and training resources must be made using a purchase order approved as per the tables in Section 2.3, Central and General Office Expenditure
Authorised purchase orders should be sent to the relevant Finance Department office.
2.3 Central and General Office Expenditure
Please refer to Section 3, General Purchasing for purchase and payment procedures.
Purchase orders must be approved as per the following authorisation limits:
| Up To | Central and General Office Expenditure |
| 250.00 | Office Manager |
| 500.00 | Central Department Managers without budget control or Financial Controller |
| 750.00 | Property Manager |
| 1,000.00 | Central Department Managers with budget control or Management Accountant or Financial Accountant |
| 5,000.00 | Group Management Accountant or Group Financial Accountant or Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
3. General Purchasing
Wherever possible, monthly credit accounts should be set up with suppliers. These must be agreed with the Designated Manager, who will assist in setting them up.
Invoices should be addressed to the relevant Finance Department and should also quote the delivery address for goods/services and the purchase order number.
The procedures in Central and General Office should be followed for the following types of expenditure:
- Agency Staff
- IT Equipment and Software
- Long Term Agreements
- Mobile Phones
- Motor Vehicle Hire
- Property Repairs
- Training
Also all items of Capital Expenditure will be controlled and paid by Head Office. See Section 2.1.1, Centrally Controlled Expenditure; Capital Expenditure – Purchasing Fixed Assets
3.1 Purchasing and Payment Summary
Any individual item of expenditure that is not paid for via petty cash (see Section 5, Petty Cash) must have a purchase order issued and be approved as per the service specific authorisation levels, (see Section 8, Service Specific Procedures) prior to the purchase taking place.
The process for purchasing is:
- Purchase order to be completed
- Expenditure to be authorised
- Purchase order to be submitted to the supplier and Finance Department
- Goods/service received
- Copy of purchase order to be signed confirming satisfactory receipt of goods/service and sent to Finance Department
- Finance department to match the purchase order with the invoice and check for accuracy
- Payment to be raised by the Finance Department as per terms agreed with the supplier
All invoices that are payable on account will be paid by the relevant Finance Department office. Any supplier querying payment should be referred to the relevant office.
3.2 Fuel Cards
The usage and administration of Fuel Cards is in the process of being reviewed. In the meantime for all those currently using fuel cards, at the end of each calendar month receipts for all expenditure made on fuel cards should be sent to the Finance Department attached to the mileage log for each individual vehicle.
3.3 Credit Cards
The issue of credit cards and the setting of credit limits must be controlled by the Finance Department. Requests for credit cards must be made to the Designated Manager, who will assess the request and if appropriate action the application.
Credit cards may only be used to pay for goods and services properly incurred in the course of company business. Cards may only be used by the person to whom they were issued.
Each company credit card user is responsible for returning all receipts to the Finance Department at least monthly
4. Bank Accounts
The bank payment approval levels detailed in these procedures are those required at the time of publication. However, these can be subject to change. Relevant Staff will be kept updated with any changes made and the procedures will be amended at the earliest opportunity.
4.1 Changes to Bank Mandates
The following procedure covers changes to mandates only. In certain circumstances, such as a significant change of Directors, mandates need to be completely renewed. On these occasions the Finance Department will contact the bank for the necessary requirements.
Changes that are to be made to the bank mandates, including approval levels and adding signatories, must be authorised as follows:
Bank of Scotland
Any one Director and one other signatory
Barclays
Two officially appointed Directors, or one Director and the Company Secretary
N.B. Amendments to the Open Credit Facility, which allows approved Staff to collect cash, can be authorised by any two signatories.
HSBC
Any one Director and one other signatory
4.2 Management of Resource Individual Bank Accounts
Some Resources have an individual bank account the following procedures are for the management of these accounts only.
The individual Resource bank accounts are only to be used for drawing Petty Cash and to pay for food or household provisions. All income, payroll, direct debits, standing orders and supplier account payments must go through the main Company bank accounts.
Any other payments made through these accounts should be prearranged with a member of the Finance Department.
Details of all cheques should be recorded on your petty cash return, this includes where a cheque has been void.
The authorised signatories are normally the Regional or Operations Manager, Home Manager, Deputy or Assistant Home Managers and Senior Residential Care Workers. There is also an Open Credit Facility which allows other Staff that have been approved to collect cash as long as they hold an appropriately authorised cheque and Company identification.
Members of the Finance Department are also signatories and can issue instructions to the bank for urgent transactions. Please liaise with the Finance Department if an urgent situation occurs.
For details of cheque signatory limits please refer to Section 8, Service Specific Procedures
4.3 Management of Main Company Bank Accounts
These procedures are for the management of the main company bank accounts only. Refer to Section, 4.2 for management of the Resource’s individual accounts.
The authorised signatories are normally all officially appointed Directors, selected Directors by job title and senior Finance Staff. Other Staff that have been identified to the bank are able to collect cash as long as they hold an appropriately authorised cheque and company identification.
The following sections detail the authorisation requirements for the different type of payments at different office locations. The variations are due to the logistics of managing the transactions with the personnel that are available at the various sites. Please refer to Section 1.9, Resource and Office Types to identify the office types.
Before authorising a payment the signatory must be satisfied that the back-up documentation as been appropriately approved.
From time to time internal procedures will be implemented to compliment the bank mandates. Relevant Staff will be kept updated as and when necessary.
4.3.1 Office Type O1, Director present full-time
Cheques
| Value of Cheque | Signatory Requirements |
| Up to £10,000 | Any two A signatories or Any one A signatory plus any B signatory |
| Over £10,000 | Any two A* signatories or Any one A* signatory plus any A or B signatory |
Direct Debits and Standing Orders
| Value of Payment | Signatory Requirements |
| All Payments | Any one Director and one other signatory |
BACS
The following requirements are for Staff that have been set-up as users for BACS software.
| Value of Payment | Requirements |
| All Payments | Payment “created” by any one signatory Payment “authorised” by any one Director |
4.3.2 Office Type O2, Director present part-time
Cheques
| Value of Cheque | Signatory Requirements |
| Up to £1,000 | Any two signatories |
| £1,000.01 to £5,000 | Any one A signatory plus one other signatory or Any one A* signatory plus one other signatory |
| Over £5,000 | Any one A* signatory plus one other signatory |
Direct Debits and Standing Orders
| Value of Payment | Signatory Requirements |
| Up to £1,000 | Any two signatories |
| £1,000.01 to £5,000 | Any one A signatory plus one other signatory or Any one A* signatory plus one other signatory |
| Over £5,000 | Any one A* signatory plus one other signatory |
Internet Banking Payments
The following requirements are for Staff that have been set-up as users for internet banking.
| Value of Payment | Requirements |
| All Payments | Payment set-up by one user Payment “verified” by second user Payment “authorised” by any one signatory |
BACS - Payroll
The following requirements are for Staff that have been set-up as users for BACS software.
| Value of Payment | Requirements |
| All Payments | Payment “processed” and “signed” by one user Payment “submitted” by any one signatory |
BACS – Purchase Ledger
The following requirements are for Staff that have been set-up as users for BACS software.
| Value of Payment | Requirements |
| All Payments | Payment “processed” and “signed” by one user Payment “submitted” by any one signatory |
4.3.3 Office Type O3, Regional Office
This procedure is only relevant to Regional Offices that hold a cheque book for the main company bank account. Other Regional Offices that utilise the cheque book of their local Resource, such as a school, should follow the procedure for the Resource. See Section 8, Service Specific Procedures
Cheques
| Value of Cheque | Signatory Requirements |
| Up to £200 | Any one signatory for Petty Cash only N.B. This is only valid for the "Escort & Supervision" account |
| All other payments | Payments must be made by the Finance Department |
4.3.4 Office Type O3, Regional Office
This procedure is only relevant to Regional Offices that hold a cheque book for the main company bank account. Other Regional Offices that utilise the cheque book of their local Resource, such as a school, should follow the procedure for the Resource. See Section 8, Service Specific Procedures
5. Petty Cash
5.1 General Principles
It is not acceptable for any member of Staff to sub the petty cash. Good practice ensures that sufficient funds are available at all times.
The petty cash must be the responsibility of a member of Staff as delegated by the Manager. At any one time only one person should have access to the petty cash. On hand-overs the Staff taking over responsibility should sign the petty cash record showing acceptance of the balance of cash and total value of receipts.
If money is withdrawn from petty cash prior to expenditure a voucher for the advance must be signed. At all times the amount of cash plus the receipts/vouchers must equal the agreed float.
Deficit and surplus balances may signify that there is an error in the record keeping or calculations. If there is a difference please double check the paperwork and cash. Confirmed deficits and surpluses are not the responsibility of the Company; they are the responsibility of the person holding the petty cash.
All petty cash expenditure must be backed up with a Petty Cash Voucher, signed by both the issuer and the receiver of the cash (if this is the same person the voucher must be signed twice to signify this)and as far as possible a receipt or invoice.
The Petty Cash Voucher must clearly state what the expenditure is for. A description of “Household”, “Activity” etc. is not sufficient. Where applicable the voucher must also identify the young person, e.g. for clothing.
The Petty Cash must be held in a locked petty cash box in the safe or in a locked drawer in the office.
Each time the petty cash is reimbursed a petty cash return should be sent to the Finance Department accompanied by all petty cash vouchers (and if applicable receipts attached) and also receipts for cheques issued that are detailed on the return. The return should be authorised by the Resource Manager.
When electronic petty cash returns are introduced you will still be required to send a print out of the return and back-up documents to the Finance Department.
5.2 Resources
See Section 8, Service Specific Procedures
5.3 Office
An imprest system must be in place, i.e. the amount of cash plus receipts must equal the agreed float at all times. If for any reason your home is not operating in this way you must contact the Finance Department for assistance to adopt this system.
6. Employee Expenses
Expense claim schedules detailing cut-off dates for submission of claims are published annually. Expenses will be paid through payroll.
Expenses claims should be signed by the first Line Manager that has authority to approve expenditure, see Sections 2.3, Central and General Office Expenditure and Section 8 Service Specific Procedures, and verified that they are for legitimate business expenses. No further signature is required unless a single item of expenditure is over the Manager’s limit. In this case the expenses should be appropriately countersigned.
No member of Staff can approve their own expenses.
6.1 Out of Pocket Expenses
To reclaim expenses appropriately incurred in the course of company business, employees must submit a claim with receipts attached. If you are uncertain as to whether certain expenditure is claimable please check with your Manager before making the purchase.
6.2 Business Mileage
Mileage rates for both the use of company and personal vehicles are subject to change due to both Continuum Group policy and Inland Revenue regulations. For this reason they are not quoted here but will be supplied as and when changes are implemented.
Full details of each journey should be recorded on the expense claim, including the reason for the journey. If your travel has included multiple trips on the same day one entry on the claim form is acceptable.
7. Payroll
Payroll schedules detailing cut-off dates are published annually.
7.1 Salary Levels and Increases
Salary scales are approved by The Board and are periodically reviewed, this is generally done annually.
Salary levels for new employees and interim increases for current members of Staff should be authorised as follows:
| Stage | Authoriser |
| Initial recommendation | Line Manager |
| Approval | Director responsible |
| Final authorisation | HR Director (This may be delegated to HR Manager) |
HR should send a copy of the approved form to Payroll.
7.2 Payroll Types
The Continuum Group operates with various systems of processing payroll. In order to incorporate all systems, individual procedures are specified where applicable. These processes can be identified by “Type”. This enables changes to be made to when Staff are paid without making amendments to the procedures.
| Type | M1 | M2 | M3 | M4 | W1 |
| Paid monthly | Y | Y | Y | Y | |
| Paid weekly | Y | ||||
| Payment processed internally | Y | Y | Y | Y | |
| Payment processed by agents | Y | ||||
| Paid on the 5th | Y | ||||
| Paid on the 28th | Y | ||||
| Paid on the 30th | Y | ||||
| Paid on the last working day of the month | Y | ||||
| Paid on the Friday following the timesheet | Y |
7.3 Payroll Processing
Monthly payroll schedules detailing cut-off dates are published annually.
7.3.1 M1 (Paid monthly on the 5th of each month)
Timesheets should be completed by each member of Staff. Completed timesheets should be checked by the Line Manager and signed to verify that all the details are correct. Authorised timesheets should be sent to the Finance Department the day after the timesheet ends. For Homes, Schools and Family Assessment Centres the timesheet should be attached to a signed Manager’s Summary.
The Finance Department will ensure that all timesheets submitted for processing have been correctly completed and authorised.
7.3.2 M2 (Paid monthly on the 30th of each month)
Timesheets should be completed by the Line Manager for each member of Staff. Completed timesheets should be forwarded to the relevant Managers no later than two days after the timesheet cut-off. Managers should check timesheets against rotas, annual leave records, sickness records and house mileage sheets and sign to verify that all the details are correct. Duly authorised timesheets should be passed to the Finance Department no later than three days after the timesheet cut-off.
The Finance Department will ensure that all timesheets submitted for processing have been correctly completed and authorised.
A spreadsheet for each region/department will be prepared detailing all payments to be made to individual employees. The completed spreadsheet will be forwarded for authorisation by the Designated Manager.
The correctly authorised spreadsheets will be passed to the Payroll Processing agents no later than three working days prior to the intended pay date.
7.3.3 M3 (Paid monthly on the last working day of the month)
Timesheets should be completed by each member of Staff. Completed timesheets should be checked by the Line Manager and signed to verify that all the details are correct. Authorised timesheets should be sent to the Finance Department the day after the timesheet ends. For Homes, Schools and Family Assessment Centres the timesheet should be attached to a signed Manager’s Summary.
The Finance Department will ensure that all timesheets submitted for processing have been correctly completed and authorised.
7.3.4 M4(Paid monthly on the 28th of the month)
Timesheets should be completed by each member of Staff. Completed timesheets should be checked by the Manager and signed to verify that all the details are correct. Authorised timesheets for salaried Staff should be sent to the Finance Department as soon as possible after the last day of the month. Timesheets for bank Staff should be received by Finance by the 20th of each month. For Homes, Schools and Family Assessment Centres the timesheet should be attached to a signed Manager’s Summary.
The Finance Department will ensure that all timesheets submitted for processing have been correctly completed and authorised.
7.3.5 W1 (Paid weekly on the Friday following the pay period)
Residential Care Workers
Where issued, timesheets should be completed by each member of Staff. Completed timesheets should be checked by the Line Manager and signed to verify that all the details are correct. Authorised timesheets should be sent to the Finance Department the day after the timesheet ends. To ensure processing of the payroll is not delayed a completed and authorised Manager’s Summary must be submitted for Homes, Schools and Family Assessment Centres. The timesheets should be attached to a signed Manager’s Summary.
The Finance Department will ensure that all timesheets and Manager’s Summaries submitted for processing have been correctly completed and authorised.
Escort and Domiciliary Care Workers
Each Wednesday the Resource Manager is responsible for providing details to the Finance Department of hours worked and expense claims from the previous week for individual Staff that are to be paid.
8. Service Specific Procedures
8.1 Residential Care Homes
8.1.1 Expenditure Authorisation
Purchase orders should be approved as per the following tables.
Members of the Finance team with authorisation limits for Central Expenditure can exercise their authority in other service areas when the appropriate individual is unavailable. See Section, 2.3 Central and General Office Expenditure
| Up To | Type A Homes |
| 250.00 | Home Manager |
| 1,000.00 | Operations Manager Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are inclusive of VAT
| Up To | Type B Homes |
| 250.00 | Regional Manager |
| 1,000.00 | Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are inclusive of VAT
8.1.2 Cheque Signing Authority
Please also refer to Section 4.2, Management of Resources Individual Bank Accounts
Cheques should be signed as per the following table
| Value of Cheque | Signatory Requirements |
| Up to £1,000 | Any one signatory |
| Over £1,000 | Any two signatories |
8.1.3 Petty Cash
Please refer to Section 5.1, General Principles for petty cash
The audit Staff will carry out financial audits at random intervals. No advance notice of such an audit will usually be given.
Types A1, A2, B1, B2 (Have individual bank accounts)
Each home has a bank account from which petty cash should be drawn.
An imprest system must be in place, i.e. the amount of cash plus receipts must equal the agreed float at all times. If for any reason your home is not operating in this way you must contact the Finance Department for assistance to adopt this system.
Types A3, A4, B3, B4 (Do not have an individual bank account)
Petty cash to cover the standard weekly budget is issued automatically each week by the Finance Department for each occupied Home.
Requests for cash for exceptional costs over and above the weekly budget and relating to the home (e.g. birthday presents, soft furnishings) should be made to the Finance Department. Requests should be authorised as per Section 8.1.1, Expenditure Authorisation procedures and submitted to the Finance Department no later than 10:00am on Wednesday of the week prior to the week that cash is required.
The weekly budget plus any cash for exceptional costs is also defined as the “agreed float”. An imprest system must be in place, i.e. the amount of cash plus receipts must equal the agreed float at all times. If for any reason your home is not operating in this way you must contact the Finance Department for assistance to adopt this system.
Petty cash is made available for collection from the regional offices from 9:00am on Monday each week, except where Monday is a Bank Holiday when petty cash is available for collection from 2:00pm on Friday of the previous week. Collectors must sign for receipt of the cash.
Each week any amount not spent should be recorded and transferred from the weekly petty cash to house savings. At the end of each calendar month the total amount of cash in the house savings should be reconciled with the balance on the House Savings record, which should be signed and a photocopy sent to the Finance Department for their records.
8.2 Schools
8.2.1 Expenditure Authorisation
Purchase orders should be approved as per the following tables.
Members of the Finance team with authorisation limits for Central Expenditure can exercise their authority in other service areas when the appropriate individual is unavailable. See Section 2.3, Central and General Office.
| Up To | Type A Schools |
| 250.00 | Head Teacher |
| 1,000.00 | Education Manager Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are inclusive of VAT
| Up To | Type B Schools |
| 250.00 | Education Manager |
| 1,000.00 | Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are inclusive of VAT
8.2.2 Cheque Signing Authority
Please also refer to Section 4.2 , Management of Resources Individual Bank Accounts
Cheques should be signed as per the following table
| Value of Cheque | Signatory Requirements |
| Up to £1,000 | Any one signatory |
| Over £1,000 | Any two signatories |
8.2.3 Petty Cash
Please refer to Section 5, General Principles for petty cash
The audit Staff will carry out financial audits at random intervals. No advance notice of such an audit will usually be given.
Each school has a bank account from which petty cash should be drawn.
An imprest system must be in place, i.e. the amount of cash plus receipts must equal the agreed float at all times. If for any reason your school is not operating in this way you must contact the Finance Department for assistance to adopt this system.
8.3 Family Assessment Centres
8.3.1 Expenditure Authorisation
Purchase orders should be approved as per the following tables.
Members of the Finance team with authorisation limits for Central Expenditure can exercise their authority in other service areas when the appropriate individual is unavailable. See Section 2.3, Central and General Office Expenditure
| Up To | Type A Assessment Centre |
| 250.00 | Centre Manager |
| 1,000.00 | Operations Manager Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are inclusive of VAT
| Up To | Type B Assessment Centre |
| 250.00 | Regional Manager |
| 1,000.00 | Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are inclusive of VAT
8.3.2 Cheque Signing Authority
Please also refer to Section 4.2, Management of Resources Individual Bank Accounts
Cheques should be signed as per the following table
| Value of Cheque | Signatory Requirements |
| Up to £1,000 | Any one signatory |
| Over £1,000 | Any two signatories |
8.3.3 Petty Cash
Please refer to Section 5.1, General Principles for petty cash.
The audit Staff will carry out financial audits at random intervals. No advance notice of such an audit will usually be given.
Each assessment centre has a bank account from which petty cash should be drawn.
An imprest system must be in place, i.e. the amount of cash plus receipts must equal the agreed float at all times. If for any reason your home is not operating in this way you must contact the Finance Department for assistance to adopt this system.
8.4 Fostering
8.4.1 Expenditure Authorisation
Purchase orders should be approved as per the following tables.
Members of the Finance team with authorisation limits for Central Expenditure can exercise their authority in other service areas when the appropriate individual is unavailable. See Section 2.3, Central and General Office Expenditure.
| Up To | Fostering |
| 1,000.00 | Foster Manager Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are inclusive of VAT
8.4.2 Cheque Signing Authority
Please also refer to Section 4.2, Management of Resources Individual Bank Accounts
Cheques should be signed as per the following table
| Value of Cheque | Signatory Requirements |
| Up to £1,000 | Any one signatory |
| Over £1,000 | Any two signatories |
8.4.3 PAYMENTS TO FOSTER Carers
8.4.3.1 General Principles
Foster Carers are self-employed. Their bank details should be provided to the Finance Department on a Foster Carer Bank Details form (FHFF29).
Payroll software will be utilised purely as a database to produce payments to foster Carers and provide reports.
Rates of pay are quoted per week and will be banded as High, Medium or Low. The standard rates, generally published annually, will be approved by the Director responsible for Fostering and the Finance Director and provided to the Finance Department in order to facilitate payment.
The Foster Carer Payment Details form (FHFF34) must be signed by the foster Carer for each placement to evidence their agreement to the rate being paid to them. Occasionally a rate other than the standard rates will be agreed. For each exceptional situation the Foster Carer Payment Details form (FHFF34) must be authorised by the Director responsible for Fostering or the Designated Manager.
The Foster Carer Payment Details form (FHFF34) must also be completed when a payment rate is amended.
8.4.3.2 Pay Periods & Processing Dates
Pay periods will be weekly, Monday to Sunday.
Payment to foster Carers will be by BACS so that the money will be in their bank accounts on the Friday following the pay period.
For unplanned placements payment for the first pay period will be made on the second Friday following the pay period, along with payment for the second pay period. See examples below.
Where it is possible to administer, payment for unplanned placements will commence in-line with the schedule for planned placements.
Planned Placement
| Admission | Pay Period | Payment in account |
| 04/01/06 | 04/01/06 – 08/01/06 | 13/01/06 |
| 09/01/06 – 15/01/06 | 20/01/06 | |
| 16/01/06 – 22/01/06 | 27/01/06 | |
| 23/01/06 – 29/01/06 | 03/02/06 |
Unplanned Placement
| Admission | Pay Period | Payment in account |
| 04/01/06 | 04/01/06 – 08/01/06 | 20/01/06 |
| 09/01/06 – 15/01/06 | 20/01/06 | |
| 16/01/06 – 22/01/06 | 27/01/06 | |
| 23/01/06 – 29/01/06 | 03/02/06 |
The Company will only commence payments to foster Carers on receipt of an appropriately authorised Form (see below Fostering Placement Form)
8.4.4 SALES
8.4.4.1 Contractual Requirements
It is required that a Pre Placement Contract (PPC) is made between the Company and each Authority purchasing the services of the Company.
For each child/young person in our care there needs to be an Individual Placement Contract (IPC).
Wherever possible, an IPC (and necessarily therefore a PPC) should be in place prior to a child/young person being admitted (in the case of emergency placements this may not be possible). In the event that a child/young person is admitted without a signed contract, this should be rectified as soon as is practicable.
Continuum Group Pre Placement Contracts are to be signed on behalf of Continuum Group by the Director in charge of Fostering, or in his/her absence the Designated Manager
If a Local Authority’s own Pre Placement Contract is to be used it must be approved by the Director in charge of Fostering and the Designated Manager
Individual Placement Contracts are to be signed by the Fostering Manager or Director in charge of Fostering. In their absence the IPC can be signed by a Designated Manager
The signed copy of the contract should then be sent to Head Office.
8.4.4.2 Sales Invoicing
In order that invoicing is carried out in an efficient manner, the following reporting requirements must be followed.
For any placement reserved or child/young person admitted, a Fostering Placement Form (FHFF30) must be completed.
Unless there are exceptional circumstances, the form must be signed by the appropriate service purchaser signatory, before the young person is admitted. If there are exceptional circumstances, for example an “out of office hours” admission, the form must be signed and returned at the first available opportunity.
Notes on completion
- Start Date – This is the admission date or the reservation date as applicable
- End Date – To be completed if the placement is for a fixed term
- DOB – Young person’s date of birth
- Service Purchaser – It is important to enter the exact and correct name and address, as this information is critical for the placement contract.
- Invoicing information – Please wherever possible record all specific information, which will enable the invoice to go to the correct person and location.
- Further comments – to be used for any circumstance not covered in the body of the form. For example there may be a different rate negotiated for a reservation period.
- Fee to be paid to Foster Carer – The appropriate rate band should be circled. Under no circumstance should the actual value be recorded on this document
- Fee to be charged to the Service Purchaser – This information is mandatory and must be completed prior to submission to the service purchaser.
- Declaration – Please ensure that signatories sign, date and print their names.
Fostering Placement Amendment Form
A Fostering Placement Amendment Form (FHFF31) must be used wherever there is a change to the fees being paid/charged or to contract dates; for example, if a fixed term has been extended.
Notes on completion
- Please refer to the notes relating to the Fostering Placement Form to assist completion.
- Start Date of Amendment – this is when any change comes into force.
- Summary of Amendment – brief details highlighting the changes
Fostering Placement Transfer Form
Should the young person be transferred to another foster Carer a Fostering Transfer Form (FHFF33) must be completed.
Notes on completion
- Please refer to the notes relating to the Fostering Placement Form to assist completion
- Foster Carer Name – This is the name of the new Carer
- Previous Foster Carer’s Name – This is to assist in record consolidation. If for some reason this information is sensitive it can be omitted.
In the event that a child/young person is transferred to one of the Company’s homes a Fostering Placement Discharge Form (FHFF32) should be completed and the procedures for admission to residential care should be followed.
Fostering Placement Discharge Form
A Fostering Placement Discharge Form (FHFF32) must be used to ensure that all parties agree on the date that payments/charges should cease.
To prevent over payment to the Foster Carer in the event of an unplanned or short notice discharge the Foster Manager should contact the Finance Department by phone to inform them of the discharge as soon as is practicable. This should be followed up as soon as possible by an e-mail.
Notes on completion
- Date of Discharge – This is the date that the child/young person leaves our care
- End of Notice Period – If a notice period is in place this is the last date in respect of which fees should be paid
- Additional comments – This should detail any circumstances of the discharge that are relevant from a financial view point
8.4.4.3 Recovering Exceptional Costs
Agreement should be received in writing from the Child’s Social Worker for any exceptional cost that is to be recovered from the Service Purchaser.
8.5 Escort
8.5.1 Expenditure Authorisation
Purchase orders should be approved as per the following tables.
Members of the Finance team with authorisation limits for Central Expenditure can exercise their authority in other service areas when the appropriate individual is unavailable. See Section 2.3, Central and General Office Expenditure
| Up To | Escort |
| 250.00 | Escort Manager |
| 1,000.00 | Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are exclusive of VAT
8.5.2 Cheque Signing Authority
Please also refer to Section 4.2, Management of Resources Individual Bank Accounts
Cheques should be signed as per the following table| Value of Cheque | Signatory Requirements |
| Up to £200.00 | Any one signatory for Petty Cash only N.B. This is only valid for the "Escort & Supervision" account |
| All other payments | Payments must be made by the Finance Department |
8.5.3 Petty Cash
Please refer to Section 5.1, General Principles for petty cash.
The audit Staff will carry out financial audits at random intervals. No advance notice of such an audit will usually be given.
Each Resource has a bank account from which petty cash should be drawn.
An imprest system must be in place, i.e. the amount of cash plus receipts must equal the agreed float at all times. If for any reason your home is not operating in this way you must contact the Finance Department for assistance to adopt this system.
8.6 Domiciliary Care
8.6.1 Expenditure Authorisation
Purchase orders should be approved as per the following tables.
Members of the Finance team with authorisation limits for Central Expenditure can exercise their authority in other service areas when the appropriate individual is unavailable. See Section 2.3, Central and General Office Expenditure
| Up To | Domiciliary Care |
| 250.00 | Domiciliary Manager |
| 1,000.00 | Operations Director |
| 5,000.00 | Any one Director (not including Operations Directors) |
| 25,000.00 | Finance Director and Managing Director |
| 25,000.00 + | The overall expenditure value must be approved by The Board. Individual Purchase Orders can be signed by Finance Director or the Managing Director, backed up by The Board minutes |
N.B. Values are exclusive of VAT
8.6.2 Cheque Signing Authority
Please also refer to Section 4.2 , Management of Resources Individual Bank Accounts
Cheques should be signed as per the following table
| Value of Cheque | Signatory Requirements |
| Up to £200.00 | Any one signatory for Petty Cash only N.B. This is only valid for the "Escort & Supervision" account |
| All other payments | Payments must be made by the Finance Department |
8.6.3 Petty Cash
Please refer to Section 5.1, General Principles for petty cash.
The audit Staff will carry out financial audits at random intervals. No advance notice of such an audit will usually be given.
Each Resource has a bank account from which petty cash should be drawn.
An imprest system must be in place, i.e. the amount of cash plus receipts must equal the agreed float at all times. If for any reason your home is not operating in this way you must contact the Finance Department for assistance to adopt this system.
9. Sales
Due to the different structures of task allocation within the Continuum Group the individuals involved in the sales process are not identified within this procedure. Likewise forms are not identified or detailed instead the term “details” has been used to encompass all current forms that are in use.
These procedures also only cover recurring sales such as Residential Care, Education and Family Assessment. See Section 8.4.4 for Fostering Sales.
Details of job work to be invoiced for services such as Escort and Domiciliary Care services are provided to the Finance Department on an individual basis.
9.1 Contractual Requirements
It is required that a Pre Placement Contract (PPC) is made between the Company and each Authority purchasing the services of the Company.
For each child/young person in our care there needs to be an Individual Placement Contract (IPC).
Wherever possible, an IPC (and necessarily therefore a PPC) should be in place prior to a child/young person being admitted (in the case of emergency placements this may not be possible). In the event that a child/young person is admitted without a signed contract, this should be rectified as soon as is practicable.
Pre Placement Contracts issued by any company in the Continuum Group are to be signed on behalf of the Group by the Director in charge of the service, or in his/her absence the Designated Manager.
If a Local Authority’s own Pre Placement Contract is to be used it must be approved by the Director in charge of the service and the Designated Manager.
Individual Placement Contracts are to be signed by the Director in charge of the service. In their absence the IPC can be signed by a Designated Manager.
The signed copy of the contract should then be sent to Head Office.
9.2 Sales Invoicing
In order that invoicing is carried out in an efficient manner the Finance Department must be made aware of all changes to occupancy.
Details of new admissions must be signed by the appropriate service purchaser signatory, before the young person is admitted. If there are exceptional circumstances, for example an “out of office hours” admission, the details must be signed and returned at the first available opportunity.
Whenever there is a change to the fees or to contract dates; for example, if a fixed term has been extended, or if a young person is transferred to another Resource within the Group the Finance department must be informed. These details of new admissions must be signed by the appropriate service purchaser signatory
Details of discharges must be signed by the appropriate service purchaser signatory to ensure that all parties agree on the date that payments/charges should cease.
10. Designated Managers Listing
The job titles for Designated Managers are accurate at the time of publication.
Should the Group Financial Accountant, Group Management Accountant or Finance Director be unavailable please contact the Financial Controller or Management Accountant who will obtain authorisation on your behalf.
| Section | Topic | Designated Manager |
| General Principles | Changes to Procedures | Financial Accountant or Financial Controller or Management Accountant |
| General Principles | Budgets | Finance Director or Group Financial Acc. or Group Management Acc. |
| General Principles | Resource and Office Types | Financial Accountant or Financial Controller or Management Accountant |
| General Principles | Situations not covered by these procedures | Finance Director and Group Financial Acc. and Group Management Acc. |
| Centrally Controlled Expenditure |
Purchasing Fixed Assets | Financial Controller or Management Accountant |
| Centrally Controlled Expenditure |
Disposal of Fixed Assets | Financial Controller or Management Accountant |
| Centrally Controlled Expenditure |
Long-term Agreements | Financial Controller or Management Accountant |
| Centrally Controlled Expenditure |
Mobile Phone | Financial Controller or Management Accountant |
| Centrally Controlled Expenditure |
Motor Vehicle Hire | Financial Controller or Management Accountant |
| Centrally Controlled Expenditure |
Property Repairs | Property Manager or Management Acc. |
| General Purchasing | Monthly Credit Accounts | Financial Controller or Management Accountant |
| Payroll | Payroll Processing - M2 | Finance Director or HR Director or Managing Director |
| Service Specific Procedures |
Payments to Foster Carers | Finance Director or Group Financial Acc. or Group Management Acc. |
| Service Specific Procedures |
Fostering: Contractual Requirements (PPC) | Finance Director or Group Financial Acc. or Group Management Acc. |
| Service Specific Procedures |
Fostering: Contractual Requirements (IPC) | Financial Accountant or Finance Director or Group Financial Acc. or Group Management Acc. or Management Accountant |
| Sales | Sales: Contractual Requirements (PPC) | Finance Director or Group Financial Acc. or Group Management Acc. |
| Sales | Sales: Contractual Requirements (IPC) | Financial Accountant or Finance Director or Group Financial Acc. or Group Management Acc. or Management Accountant |
11. Resource Budget Account Categories
Below are details of the costs included in the main budget categories as detailed on the Profit & Loss statements. Depending on the type of Resource not all categories will be applicable.
Activities
The total amount spent on an activity including any amount spent on Staff (e.g. cinema tickets). This includes the purchase of refreshments while on an activity.
Purchases of fast food to be consumed outside of the home should also be allocated to activities, except when on a contact visit.
N.B. 50% of the cost of fuel (after taking into account school runs, contact visits and exceptional journeys) is also allocated to this category. This process is an accounting function and does not have to be detailed on petty cash or fuel card returns.
Clothing
This category shows the total spend on clothing for each Resource. Reports can also be produced for each young person as long as an individual account was set-up on the point of admission.
Consumable's
This includes household consumable's, cleaning materials, toiletries, personal hygiene items and medicines.
Depreciation
This is how the cost of fixed assets are allocated to the Profit and Loss account. Based on the group’s depreciation policy the costs of the asset is spread over its useful life.
Education – External Provider
The costs of providing education for young people who do not attend either main stream education or one of the Company’s education centres.
Food
This includes all food purchased for consumption in the home, packed lunches and school dinner money.
Holidays
This includes the costs of the holiday accommodation and activities while on holiday.
Miscellaneous Child Related
These are mostly rechargeable costs, but will also included any other child related expenditure not covered by the main categories
Miscellaneous Unit Overheads
This will include any expenditure not covered by the main categories.
Motor
As well as servicing, MOTs and repairs this category includes fuel costs.
Pocket Money
As well as budgeted pocket money amounts given as rewards and incentives are also allocated here.
Professional Fees
This category includes costs such as annual fees to the Regulatory Authority.
Rent, Rates and Insurance
This includes property rental; council tax or commercial rates where applicable and building, public and employers liability insurance.
Repairs
This includes repairs and general maintenance of property, other than motor vehicle repairs.
Staff Related Costs
Includes BUPA contributions, recruitment advertising, CRB checks and Staff travel.
Telephone, Post and Stationery
As well as office telephone, post and stationery costs, this category includes young people’s pay phone, mobile phone and phone card expenditure.
Training
Training costs are allocated centrally to the Training Department with each Resource being recharged with their budgeted training costs.
Utilities
This includes gas, electric and oil as applicable.
Wages and salaries
Includes employee’s pay, employer’s NI and pension contributions and fees for agency Staff.
End