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Finance Policy

1. Trustees’ financial responsibilities

The trustees of West Pennine Villages u3a are responsible for:

Trustees are jointly responsible for keeping full financial records. These include those of the u3a and all the interest groups, sub-groups etc. where appropriate. A copy of this policy will be given to all trustees on their election/appointment to the committee and made available to members on the website.

The policy will be kept under review and revised as necessary. The annual review should reflect changes to working practice which have developed or been adopted since the last review.

2. Banking

2.1. Bank accounts

2.2. Online banking

Where online operation of the bank accounts is in place only trustees approved by the committee will have access to this facility. The security of the online system is in line with the arrangements offered by Natwest and PayPal and in accordance with the mandated approval limits.

The Treasurer is permitted to make online payments without prior reference to the other signatories. Whenever an online payment exceeding £50 is made the Treasurer must report this payment to the other signatories.

2.3. Payment by bank cards

Payment using West Pennine Villages u3a debit cards should be approved by the Treasurer prior to use. All such payments must be supported by an invoice or receipt made out to West Pennine Villages u3a.

2.4. Personal debit or credit cards

The use of personal debit or credit cards for interest group activities should be actively managed. Permission must be sought from the Treasurer and/or the committee where a group feels that there is no other viable way to make payments.

Prior approval must be given by the committee for equipment and other items to be purchased for the use of West Pennine Villages u3a or specific interest groups. In these circumstances, it may be appropriate for a member to purchase the equipment themselves and then claim the cost as a personal expense claim.

3. Group finances

Interest groups are expected to be self–financing and may collect such sums of money as the group members and leadership agree necessary to undertake their activities. The group funds belong to the u3a. Groups are permitted to make any reasonable expenditure deemed necessary by the group members and the group convenor. Purchases involving significant amounts must first be authorised by the Treasurer and/or the committee. The Treasurer, Group Coordinator and Group Convenor(s) should agree what records they need to keep of the group’s transactions in order to:

3.1. Allow group leaders to maintain cash floats and receipts

Group Convenors should retain a small float to cover the day to day operating costs of their group. This amount, usually £10, will be agreed with the Treasurer

The process for the handover of cash and cheques to be paid into West Pennine Villages u3a bank account will be determined by the committee. The receipt process should be adequate to protect the interests of u3a members, group leaders, the u3a and any individual receiving or paying monies on behalf of the u3a. This is of particular importance where cash is involved.

3.2. Payments

The committee will inform relevant group leaders as to the approved process for paying for expenses other than out of pocket expenses deducted from interest groups meetings income.

3.3. Social activities

3.4 Ticket purchase for events

Where the u3a purchases tickets for an event on behalf of members the organiser must ensure all members wishing to attend have paid the full ticket cost to the u3a prior to the u3a purchasing tickets. Examples of such events are theatre trips, garden visits, social evenings involving meals etc.

Event organisers should note if tickets are purchased without first collecting members money in the event of the member not attending the organiser, and not the u3a, will be responsible for any loss incurred. Exceptions to this rule may be agreed by the Treasurer to a total value of £500 per event. Above this value the purchase must be agreed by the committee or tickets only purchased on behalf of members who have paid in full.

When an organiser receives cash from a member to protect the interests of both the member and organiser a written receipt should be given. The u3a will provide organisers with receipt books.

3.5 Ticket refunds

The trustees should ensure a fair and equitable policy on refunds for ticketed events to protect the interests of event participants, group leaders, organisers and the u3a. Examples of such events are theatre trips and social outings. To obtain a refund a member should:

  1. Inform the organiser as to why the member is unable to attend
  2. In the event of being unable to attend an event the ticket may be passed to another u3a member. The cost being a private matter between those members
  3. Provided the u3a does not incur a financial loss a full refund for non-attendance will be given
  4. If the u3a is able to obtain a full or partial refund this will be passed to the member
  5. If the u3a incurs a financial loss no refund will be possible

3.6 Payments to other charities

In line with charity law, a u3a cannot raise funds for another charity that does not have similar charitable objectives. West Pennine Villages u3a will make payments to speakers who have indicated they intend to donate their fee to a specific charity but not direct to their nominated charity.

4. Expenses policy

Out of pocket expenses incurred by volunteers who are involved with running the u3a will be reimbursed. Expense claims must be submitted with receipts. Expense claims will be authorised by the committee and no committee member should authorise their own claim. Expenses will include, with committee approval, attendance at the Trust’s AGM and Conference or national/regional workshops.

Expense claims should reflect the cheapest travel option available. Travel by car will be reimbursed at the current HMRC approved rate for the actual mileage travelled. Car parking and congestion charges can be reclaimed (with receipts) but parking or other fines will not be allowed.

Overnight accommodation will only be allowed in exceptional circumstances and will need the prior agreement of the executive committee.

5. Membership fees and membership of more than one u3a

The membership fee is reviewed on an annual basis. West Pennine Villages u3a is committed to keeping the membership subscription as low as possible to ensure the u3a remains accessible to all members.

For u3a members who can evidence membership of another u3a, West Pennine Villages u3a will offer a reduced membership fee.

6. Asset register

An asset register is maintained by the Treasurer which records all assets held including their initial purchase price, date of purchase, estimated nominal value and location.

It should be noted that under a receipts and payments reporting system, all assets are fully written off against receipts in the year of purchase. The register is reviewed annually.

7. External speakers, instructors and guest presenter fees and expenses

For the purpose of this policy an individual external to West Pennine Villages u3a (WPV), who is not a member of the u3a movement, is referred to as a Guest Presenter (GP). Examples would include speakers, IT specialists, instructors for physical activities such as tennis, yoga, Pilates etc.

Members of the u3a movement may not charge nor be paid a fee. GPs may be paid a reasonable fee and/or expenses depending on their topic, experience, background, distance travelled and perceived value for money to the WPV membership. WPV is not permitted to make donations to other charities. Should a GP request a charitable donation WPV will facilitate a collection at the event

The Convenor or person organising the event should gain the committee’s approval before agreeing any fees and/or expenses. Failing to do so may result in WPV being unable to pay the amount requested.

Ideally the GP will sign a receipt and/or provide an invoice for any sum paid to him/her. However, recognising this is often not practicable WPV will accept an email, in advance of the event, of the amount to be paid. Payments will usually be paid by the treasurer via BACS

Where the GP is a professional instructor delivering a class to a named u3a group, for example Pilates, yoga, or tennis the instructor will charge the group members directly, including any charges for room hire. WPV does not involve itself with such arrangements. If the instructor is delivering a demonstration to an open u3a event, for example an Open Day, a fee or expenses may be paid.

For regular events that are open to all WPV members, for example monthly Speaker Meetings, the committee may choose to arrange an annual budget with the group Convenor. The intention here is to avoid the Convenor needing to repeatedly refer to the committee on the matter. The Convenor will provide the committee with a budget report prior to all committee meetings.

8. Reserves and Accruals

West Pennine Villages u3a should maintain an adequate level of reserves to allow the u3a to operate for 12 months. While annual operating costs are generally low the trustees feel it prudent to maintain the reserves detailed below:

To cover annual operating costs and contingencies £1000. The reserve amount should be held in the u3a deposit account.

To cover annual fees payable to the Third Age Trust funds are accrued (ring-fenced) throughout the year:

* Beacon fees are payable per member to the Third Age Trust

** Membership Subscriptions (Capitation Charge) are payable per member to the Third Age Trust

For accounting ease, the accrual figure is rounded to £8.00 per member

In common with all other u3as West Pennine Villages u3a is obliged to pay the above fees to the Third Age Trust annually on April 1st. These fees are collected as part of the Members Subscription to West Pennine Villages u3a, accrued through the year and ring-fenced to ensure the monies are available when due. Social account activities are excluded from these figure as they are high cost, for example theatre visits and days out, and are entirely self-financing. However there may be occasions when it is prudent to accrue Social or Theatre group funds on a month by month basis.

The u3a current account should be maintained at a level adequate to cover day to day expenses and a small emergency buffer. The Treasurer should ensure adequate funds are available at all times with a minimum balance of no less than £1000 held in the current account. The Treasurer may move any surplus above this figure to the deposit account without reference to the committee.

When TAT invoices are due for payment the Treasurer may, after reference to the other account signatories, transfer the necessary funds from the deposit account to the current account. The Treasurer should report this transfer to the committee but does not need the committee’s prior approval.

Date approved24/11/2019Date of review11/02/2026
ReviewerTreasurerDate of next review01/11/2026