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Introduction

The PCC is a charity which operates under charity law and the PCC members are trustees of that charity.

All PCC members are equally responsible for the financial affairs of the charity (not just the treasurer).

The PCC has a duty to ensure that it does not make any financial comitment which it cannot reasonable expect to afford.  It can only commit funds it does not have if it has a reasonable expectation that it can raise those funds in the time necessary.

In order to ensure that the PCC can exercise this responsibility without having to authorise every single payment a set of financial rules have been agreed by the PCC.  These are called its standing finaicial instructions.  These are reproduced below. 

Payments to PCC members

There are a number of requirements of charity law relating to payments made by the PCC to its members or any close relative or dependent of a PCCC member. 

1. No PCC member may be paid for carrying out their role as a trustee, though reasonable expenses may of course may of course be reimbursed.
2. Any payments made to PCC members or their close relatives or dependents must be disclosed in the PCC's annual report and accounts.  This includes any payments to a business controlled by the PCC member. 

The Budget

[Explanation of the Budget and Budget making process]

Standing Financial Instructions

1.    INTRODUCTION

This is a record of PCC procedural motions relating to the conduct of the PCC’s affairs.

2.    AUTHORITY TO COMMIT PCC FUNDS

1.  That no commitment may be made for expenditure over a £1000 without the prior minuted authority of the PCC. Any such order shall only be placed in writing and shall be signed by the Chairman & Secretary of the meeting that authorised the commitment, or two cheque signatories who were present at the meeting.

2.  No commitment may be made for expenditure over £100 except as provided in paragraphs 3 to 5 below.

3.  That budget holding committees (the Churchyard Committee, the Church Hall Committee or the PCC itself) may authorise expenditure of up to £1000 provided that the expenditure is contained in a delegated budget authorised by the PCC. 

4.  The standing committee is authorised to act for the PCC or any budget holding committee in an emergency.

5.  Any two persons who are authorised by the PCC to sign cheques are authorised to commit PCC funds for:

a)  items contained in a budget authorised by the PCC up to the value of £500.

b)  any non-budgeted items up to £100.

c)  salaries to PCC employees at rates of pay agreed by the budget holding committee working within a budget authorised by the PCC.

d)  any payments to the Bristol Diocesan Board of Finance in respect of benefice fees already paid into the PCC account.

e)  any payments to EIG for Insurance premiums contained in a budget approved by the PCC. 

f)  any payments from funds received by the PCC on condition that they are to be passed to another charitable organisation, provided that such payments do not exceed £500 and they comply with the restrictions of the donors.

g)  any non-budgeted items up to £500 where the commitment is to be funded from a donation already received by the PCC specifically given for that purpose.

h)  any transfers of funds between PCC accounts.

6.  Cheque signatories should always sign the requisition form to record their authorisation of the expenditure, for sums above requiring authorisation by a committee reference should also be made to the relevant minute or order on the requisition form.

3.     CASH PAYMENTS

a)  The number of cash payments should be minimised by use of cheques.

b)  Applications for reimbursement of expenses should be made using an expenses claim form to provide clear details of expenses incurred.

c)  That a petty cash system should be established for minor cash payments. This is to be held in the church safe. The amount held should not normally exceed £250 unless there is a specific requirement for large amounts of cash (e.g. float for church fete).

4.     FUND-RAISING EVENTS

a)  Those organising fund-raising events on behalf of the PCC should seek the prior authority of the PCC.

b)  Any restrictions on the use of the proceeds may only be made subject to the prior approval of the PCC.

c)  Free use of the church or the church hall is subject to the prior approval of the PCC.

d)  After the event, organisers should arrange with the vicar or churchwardens for money to be placed in the church safe as soon as possible. The money should be counted by the organisers first and should be accompanied by a form listing the total income received, any expenses taken for the proceeds, and any further payments which need to be made. Receipts for expenses should provided where available.

e)  Independent organisations holding events in church should do so on the basis that, all proceeds are paid to the PCC, or the PCC makes a charge for the use of the church, or the PCC decides to make a gift of the use of the church for the event.

5.    AUTHORITY TO SIGN CHEQUES

Cheques shall be signed by any two of the authorised signatories. Authorisations to transfer funds from any of the accounts held at the CBF to the PCC’s main account may be authorised by any one of the authorised signatories. 

6.    REVISIONS

The content of this based on motions approved by PCC May 2001 as amended in November 2001, May 2002, December 2002, March 2004 and September 2005.