BACCN Finance Policy

The Board is responsible for managing the affairs of the Charity and, in doing so, may exercise all powers as set out in the Charity’s Articles of Association—its principal governing document. Each Board member shall hold a Director position at Companies House, assuming specific roles and responsibilities as outlined in the National Board Member Information Pack.

This Finance Policy outlines the key financial principles and governance structures required to ensure the effective operation and sustainability of the Charity. It also serves as a reference for Board members, providing guidance on the financial systems and controls necessary for sound financial management.

A supporting Financial Standard Operating Procedure (SOP) details the practical, day-to-day processes to be followed in implementing this policy. Day to day financial administration is delegated to the back-office service provider (BOSP). This finance policy applies to the entire Charity and any owned trading subsidiaries.

3. Accounts

3.1 The “terms of engagement” with the Charity accountants will be reviewed annually by the Finance Lead and agreed by the Board.

3.2 Annual accounts will be produced and circulated to the Finance lead and Chairperson 28 days prior to AGM. A verbal account will also be presented at AGM.

3.3 Annual accounts and records will be retained for a period of not less than 7 years. The accounts will be recorded within an accounting software package which will be backed up weekly into cloud storage.

3.4 The Finance Lead will arrange for the delivery of the books to the approved accountants no later than 4 months post year end to allow for timely accounting procedures.

3.5 Annual accounts will be submitted to the Charities Commission in line with required filing deadlines, currently 10 calendar months from year end i.e. 31st October following the financial year end of December.

4. Accounting Procedures

4.1 All invoices will be generated by the BOSP or auto generated by the utilised membership or event database / booking system. Membership subscriptions are to be managed via the website CRM, accessible to joining and existing members, with the membership fee collection being made by an appropriate UK licenced card facility collection service. Critical Care Unit (CCU) memberships will be invoiced on a proforma basis, as will corporate memberships. Conference delegate invoices will be issued on immediate payment terms and sponsorship invoices will be issued on 30-day payment terms (and this must also be paid before the event date). Other invoices will be issued on 30-day payment terms. Customers will be sent a reminder for non-payment after 30 days and 60 days, with a final reminder letter being sent after 120 days. Any debt not paid after 130 days will be brought to the attention of the Finance Lead for discussion and action. Where appropriate, suspension of supply of goods or services will be utilised as a method of credit control.

4.2 All invoices for payment will be sent to the BOSP for processing. Each invoice will be checked against supplied services / goods, and if correct payment will be made to the supplier within the agreed payment terms. Any discrepancies must be addressed with the supplier within ten (10) working days. Payments will be made by electronic transfer from the Charity’s bank to the recipient bank. Once processed, authority for electronic payment will be obtained in line with sections 4.6 and 4.7 and this authority must be obtained by email. Invoices will be filed, and payment recorded on the accounts database under the appropriate budget line.

4.3 Expenses will be paid in accordance with the Expenses Policy against a duly authorised expenses form submitted within fourteen (14) days of the expense claim. All expense forms will be processed by the BOSP and will be checked against the expense incurred. Any discrepancies will be addressed with the claimant within fourteen (14) days. No expenses will be paid unless accompanied by receipt, which must be itemised, and a VAT receipt wherever possible. Card receipts only will be accepted at the discretion of the Finance Lead or Chair of the Association. Lost receipts may be honoured at the discretion of the Finance Lead or Chair and a note made for reconciliation in the accounts. Payments will be made by electronic transfer from the Charity’s bank to the recipient’s bank. Once processed, authority for electronic payment will be obtained in line with sections 4.6 and 4.7 and this authority must be obtained by email. Expenses forms will be filed, and payment recorded on the accounts database under the appropriate budget line. Honoraria and expenses for specific events will be approved prior to these events by agreement of the Board.

4.4 Authorisation of expenditure for the year will take place via quorum approval from the Board on review of an annual budget and be recorded in the Board meeting minutes. All supplier contracts are covered by section 6. The annual budget must be reviewed and approved prior to the start of the budget year applicable.

It should be the recommendation of the Board that any expenditure / liability incurred that is in excess of 30% of the annual budget expenditure be brought to the attention of the membership as a whole.

4.5 For reasons of practicality it is however necessary to have measures in place to manage unplanned expenditure in a timely and efficient manner. Any single episode of unplanned expenditure up to £5,000 can be approved by the Finance Lead. Any unplanned expenditure between £5,000 and £10,000 must be approved by the Finance Lead and the Chair. Any unplanned expenditure over £10,000 must be referred to the Executive Board. Any instance of unplanned expenditure must be considered in line with the aims of keeping to the overall approved annual budget.

4.6 A debit card is in place for the Charity’s administrative overheads if required and will be held by the BOSP. However, where practicable, invoices will be requested and paid through the normal process as the debit card must not be used as a substitute for the normal systems detailed within this finance policy.

The Finance Lead may hold a Charity debit card for use in their role but will always abide by the expenses policy and the finance policy. The cards must not be used for non BACCN purchases.

4.7 A PDQ or virtual terminal is a device which allows for the receipt of payments to BACCN for goods and services. With it, payments will be received and banked in a timely manner which will improve accounting and transparency. The device which is fully mobile will be used for credit / debit card transactions at Conference and other events where there is a BACCN presence. The BOSP will be the holders of the access codes. The BOSP will be trained in the use of the equipment to facilitate transactions at external events. The equipment when not in use will be kept secure with the BOSP, and at any such external events the access codes will be kept separately. At those events, the BOSP will be responsible for the device and will be supported to this end by access to secure storage.

5. Business Activity

5.1 An annual budget will be set according to expenditure trends and strategic objectives as agreed at the board meeting held prior to the upcoming budget period. Budget lines will be established for accounting and monitoring purposes and reported upon at each board meeting by the Finance Lead to the Board.

5.2 Budget targets against Conference related income / expenditure will be set by the Conference Lead, in consultation with the Conference Project Manager and agreed by the Board. These will be reported upon by the Conference Lead to the Board.

5.3 All investment and business projects presented to the Board will be fully costed by the Finance Lead prior to approval by the Board.

5.4 The accounts and day to day bookkeeping will be carried out and maintained by the BOSP, with all financial activities and appropriate reconciliations carried out. The BOSP will prepare quarterly management accounts, and these will be submitted to the Finance Lead for review. The management accounts will include a budget v actual report, with significant variance analysis and in year monitoring to enable corrective actions to be taken.

5.5 The Charity will retain cash reserves inline with section 9 at all times. This amount is evaluated annually as part of the preparation and review of the annual accounts.

5.6 The Charity bank accounts will be maintained and monitored through monthly statements reconciled to invoices, receipts, and payments. Changes to the account, either opening, transfer, or closing must be with the agreement of the Board.

5.7 The choice of insurance broker and level of cover, excesses borne, claims procedures shall be reviewed by the Board on the advice of the Finance Lead. Adequate insurance will be maintained for contents, stock & assets, Employers Liability, Conference and Third-Party Insurance.

6. Tendering Policy and Procedure

6.1 The Finance Lead is responsible for commissioning agreements for the provision of services and goods in accordance with any annual budget and strategic plan. All contracts will identify payment terms and conditions, responsibilities, and performance indicators.

6.2. Tenders will be canvassed for the following levels of expenditure:

£10,000 and below – Authorisation by Board
£10,000 - £20,000 – Minimum of three quotes
£20,000 and above – Full tender with notice to members.

6.3. For Tenders above £20,000 the following procedure should be adopted. The Charity will compile a list of firms / individuals from whom a tender will be invited, and approach them directly and / or arrange for publication of the tender on the Charity website. Tenders will only be considered if:

Submitted to the Finance Lead via email, in a PDF format, bearing the words `Tender’ followed by the subject to which it relates.
They contain the relevant documents required in the tender and include the Contract Conditions and Terms and Conditions of the tenderer as applicable.
A written undertaking not to engage in collusive tendering or other restrictive practice is given.

6.4 Any questions regarding the tender posed by a tenderer, and its answer will be shared with other tenderers.

6.5 All tenders shall be addressed to the Chair. The Finance Lead will receive tenders and be responsible for their safe custody until the time appointed for sharing.

6.6 As soon as practicable after the date / time stated as the latest date / time for the receipt of tenders. The tenders will be shared with the Chair and other nominated members of the Board. A record shall be maintained to show:

The names of the firms / individuals invited.
The names of and number of firms / individuals who submitted tenders.
The total price(s) tendered.
The closing date and time.
The date and time of sharing.
All the names of the persons present at the sharing.

6.7 In considering which tender to accept (if any) the designated Board Directors will have regard to whether value for money will be obtained and whether the number of tenders received provided adequate competition. Tenders received after the due time / date will be considered only if the Chair or nominated Charity Director decides that there are exceptional circumstances which will be documented. Incomplete tenders will not be considered. Where the examination of tenders reveals errors which would affect the tender figure or content, the tender provider will be given details of the error and afforded the opportunity of confirming, amending, or withdrawing their offer. Necessary discussions with a tender provider, to elucidate technical points etc, need not disqualify the tender. Where only one tender is received the Charity must consider a wider audience to safeguard members’ assets. The Board shall, as far as practicable, ensure that the price to be paid is fair and reasonable. All tenders will be treated as confidential and retained for inspection for a minimum of seven (7) years.

6.8 Once the designated Charity Directors have reviewed the tenders, they shall present the best three (3) tenders to the full Board Directors who will vote to decide the winning tender. The designated Charity Directors may arrange for the best three (3) tenders to undertake a presentation if deemed necessary or prudent to assist with the Board’s decision-making process.

6.9 All successful / unsuccessful tender providers will be notified in writing by the Chair as soon as practicable once a decision has been made.

6.10 The timescale for receipt of tenders following invitation will be 21days.

7. Employees

7.1 Should the Charity employ staff, payroll will be managed by the BOSP’s selected payroll bureau or administration office. Following calculation of the monthly NI and PAYE contributions the required paying-in slip for HMRC will be forwarded to the Finance Lead for information and authority to pay. Payment to HMRC must be paid promptly to avoid surcharge. Any discrepancies will be addressed by the Finance Lead and reasonable measures taken to rectify any problems as soon as reasonably practicable. Payments will be made by monthly electronic transfer.

7.2 Employee salaries will be reviewed on an annual basis and where a salary increase is deemed appropriate the increase must be agreed by the Board and recorded in the Board Minutes. Any authorised increase will be actioned by the Finance Lead for payment in the next relevant payroll period.

7.3 Any additional authorised expenses will be paid at the time of claim and will follow the accounting procedures in 4.3 above.

7.4 The Chair will ensure that all employees are issued with a contract of employment, and sanction any variations to, or termination of contract of employment.

7.5 The designated Charity Trustee is responsible for day-to-day management of working within contracted hours and reporting of sickness absence and return to work. Both aspects should be reported promptly to the Finance Lead for action by the selected payroll bureau as required.

7.6 Overtime will not be paid, additional hours worked must be authorised before they are worked, by the Finance Lead.

7.7 Eligible employees will be enrolled into an appropriate Pension scheme by the CIO which will be compliant with UK Legislation

8. Grants

A key objective of the BACCN is to provide opportunities for nurses to further their education, skills, and personal and professional development in caring for critically ill patients. This is achieved via a number of routes:

8.1 Grants

The BACCN offers its members the opportunity to apply for a grant of up to a maximum of £1000. Funds may be used for attendance at conferences, practice development or towards research activity (e.g. transcription costs). The aim of these grants is to enhance skills, knowledge and competence in critical care nursing to improve patient care and outcomes. Grant applications are considered three times each year. A research and academic advisor and one other board member will review and consensus sought. If consensus cannot be gained, then a third Board member will be approached.

Grant applications will be open on a continuing basis.

A research and academic advisor will ensure that applications are reviewed on time to ensure that applicants are notified of the outcome within 6 weeks of submission.

Up to date details and application forms are available at https://www.baccn.org/grants/info/.

8.2 Research Awards

The BACCN is a non-commercial partner with the National Institute for Health Research (NIHR) and can support its members thorough research awards. These can be submitted at any time throughout the year. A minimum of two board members, including the research and academic advisor will review applications within a reasonable time scale and consensus sought. If consensus cannot be gained, then a third Board member will be approached.

Up to date details are available at https://www.baccn.org/grants/research-awards/

9. Working capital management, reserves and investment of surplus cash

9.1 Credit control should be managed by the Finance manager to ensure all debts are promptly paid within the required payment terms.

9.2 Payment of supplier invoices should be made in line with available payment terms.

9.3 Any purchasing and holding of stock should be managed at best levels whilst assessing holding costs, perishable risks and economies of scale.

9.4 The Charity shall at all times maintain adequate cash to service its operational needs.

9.5 A minimum reserve of cash should be maintained at all times. This level shall be reviewed at least annually and noted in the filing of the annual accounts. The level should cover as a minimum;

The forthcoming 12 months budgeted allocation for grants and scholarships
The forthcoming 6 months forecast costs for the regional committees
Sufficient funds to finance the forthcoming annual conference

9.6 An assessment of surplus cash should be made at least annually. The Board should review any surplus cash for opportunities to invest in interest bearing bank accounts where appropriate.

10. Investment policy

10.1 The Charitable Company is to maintain an active trading subsidiary, BACCN (UK) Limited, that organises conferences for nurses and other health professional in support of the charitable company’s objectives. When there are accumulated profits of the subsidiary these are gifted to the Charitable Company. This is to be reviewed annually as being deemed the most tax efficient structure under which to operate.

10.2 All other investment opportunities must be discussed and agreed at Board level, and in line with the powers dictated within the governing Articles of Association.

11. Policy Review

11.1 This policy shall be reviewed at least every five years by the Board.

11.2 Advice should be sought from competent sources where there are changes in legislation or codes of practice which may affect this policy