Bank accounts
TRAs must open a bank account in the name of the association. The bank account cannot be in the name of any one particular committee member, but there will need to be a named postal address for the statements to be sent to.
Each TRA should have three bank account signatories from the committee. This should be the Lead committee members (Chair, Treasurer, Secretary, Vice Chair)
There’s a wide range of community bank accounts available and each TRA committee will need to determine the most suitable provider to meet their needs. Some things to consider are:
» Location of bank branch, if a counter service is required. We advise TRAs not to use cash wherever possible. Accounts that offer debit cards as a means of payment are much more suitable and provide an easier audit trail for maintaining good control of the finances.
- Any account fees.
- The option of a savings account to earn interest on the funds the TRA hold.
- This guide does not constitute financial advice, but to get you started with some options, the following banks provide community bank accounts:
- Bank of Scotland Treasurers’ Account
- Barclays Community Account
- Co-operative
- Lloyd’s Treasurers’ Account
- Metro Bank Community Account
- NatWest Community Account
- RBC Community Account
- Santander Treasurers’ Current Account
- TSB Club, Charity and Trust Account
- Unity Trust
Financial management
All payments require two authorised signatures. The signature holders cannot be related to each other or be from the same household. The committee may authorise further committee members to be signatories as appropriate and can provide a contingency in case some committee members are not available or are away.
We encourage TRAs to open internet bank accounts as this can make receiving payments and paying invoices much easier as well as keeping a regular record of all balances up-to-date. You will need to ask your bank for an account which offers dual authorisation (2 people to approve payments). These are often called Community or Treasurer’s Account. Most high street banks offer this facility.
If cheques are used, blank cheques should never be signed in advance.
Any invoices paid by cheque should be marked ‘paid’ and have the cheque number, date and initials of the person signing the cheque. The person who makes out the cheque must, at the same time, complete the cheque stub, date, amount, payee, and brief description. Cheque stubs should always be kept in a safe place.
All accounts, including the cash book, petty cash book etc. should be kept up to date and made available for inspection at each committee meeting.
A record of accounts should be kept for six years and be made available for inspection by the committee or by the council’s independent consultant responsible for conducting the annual verification of TRA accounts.
Petty cash
Petty cash is intended to be used for small items (e.g., costing up to £15). Anything more should be paid online directly from the bank account to create an audit trail.
Petty cash payments should be made on petty cash vouchers accompanied by a detailed explanation and receipt. All receipts to be stapled to the completed petty cash voucher and kept in the petty cash box together with any cash balance.
All monies drawn for petty cash purposes should be authorised by the treasurer. Petty cash needs to be kept independent or separate from other income you receive. Do not mix other income such as hall hire deposits with the petty cash.
Paying-in money or cheques
All cash received needs to be banked as soon as possible. A receipt should be issued for all items of cash received.
A record of all payments into the bank account should be kept with the date, amount, payee, description, and type of income or transaction. The bank paying in book should be used for this purpose.
Payments
All payments over £50 should have prior consent of the committee.
Payments should only be made if supported by a proper invoice or receipt.
Committee members should inform the Chair of any conflicts of interest. A conflict of interest is where your personal interest and the interest in the benefit of the TRA clash.
Card readers
Card readers are a quick and convenient way for your TRA to receive payments for hall bookings, take deposits, or pay for events. They reduce the need for TRAs to use cash, which saves time and reduces the risk of fraud and loss. They also track transactions making it easier to keep accurate records of TRA income.
There are a wide range of providers on the market. Below are some examples of current card reader companies. This does not constitute financial advice and TRAs should be aware that most companies levy a fee for each transaction, as well as an initial purchase price for the card reading machine.
- Square reader
- Zettle
- Revolut Reader
- Worldpay
- SumUp