Purpose
This document is intended to ensure clarity regarding the spending of Farset Labs money, through direct purchases or through expenses claims. It outlines the general procedures that must be adhered to, and the approvals that must be obtained prior to spending money.
Spending of Money by Directors
Purchases and expenses must be approved before they are performed.
The table below outlines the number of directors required to approve any given transaction.
| Value of Purchase | No. of Directors Required |
|---|---|
| Less than or equal to £50 | 1 |
| Greater than £50, less than or equal to £100 | 2 |
| Greater than £100, less than or equal to £250 | 3 |
| Greater than £250 | Unanimous |
For significant purchases (~£500 or more), or parts of systems that may be considered as a single purchase, it is advised that directors prepare a justification document for discussion and approval. This should include at least one alternative system/option. This document should be linked to and included in the next Directors Meeting agenda, whether is was approved or not.
Exceptions to approval limits:
- Payment of expected bills (Rent, Gas, Electricity, etc.)
- Recurring and expected purchases (Tuck shop stock)
- Emergency purchases (Purchases where there is no choice, the requisite number of directors are unavailable, and the purchase cannot be delayed. e.g. Plumbers)
Spending Related to Externally Funded Programmes
In cases where funding and approval are sought and received from an external body and based on a reasonably itemised proposed budget, which is agreed by the majority of Directors, and does not include core company funds, approval to purchase is already implied when actioning said budget.
Spending of Money by NEMs
NEMs cannot spend company money without prior approval by company directors. When money is requested to be spent, there are two options:
- Submission of a purchase request via email to admin@farsetlabs.org.uk The item will be purchased by the directors if approved.
- Purchase of a pre-approved item using personal funds, followed by submission of an expenses claim on Xero.
The table below outlines the number of directors required to approve any given transaction.
| Value of Purchase | No. of Directors Required |
|---|---|
| Less than or equal to £50 | 1 |
| Greater than £50, less than or equal to £100 | 2 |
| Greater than £100, less than or equal to £250 | 3 |
| Greater than £250 | Unanimous |
For significant purchases (~£500 or more), or parts of systems that may be considered as a single purchase, it is advised that NEMs work with a sponsoring Director to prepare a justification document for discussion and approval. This should include at least one alternative system/option. This document should be linked to and included in the next Management Meeting / Town Hall agenda, whether is was approved or not.
Travel Expenses
Expenses for travel may be reclaimed if the travel is company related, and pre-approved before being undertaken. Approval must be obtained prior to travel otherwise expenses are incurred at the traveller’s risk. Member/NEM travel expenses require the approval of a single active director. Director travel expenses require the approval of a director other than the requester.
The repayment table for travel expenses is shown below.
| Type of Transport | Reimbursement (per trip) |
|---|---|
| Public Transport | Lowest cost up to £50 (Per person) |
| Private Car | Up to £50 @ £0.45 / mile (Per vehicle) |
| Taxis | Up to £20 @ £2.50 / mile (Per vehicle) |
Claim Guidelines
- Approval for purchases/travel must be obtained by emailing admin@farsetlabs.org.uk
- Purchases/travel must not be performed prior to approval.
- Expenses claims may be rejected if unapproved
- Repayment may be requested for unapproved direct purchases
- Receipts from purchases using company cards must be photographed and entered into Xero using the ‘Spend Money’ form. Spend Money step by step guide
- Receipts from personal expenses must be photographed and entered into Xero using the Expenses Claim procedure. Expenses step by step guide
- All photographs of receipts must be clear, and show the entire face of the receipt. If there are terms and conditions on the reverse of the receipt, this must also be photographed.
- All paper receipts must be retained and stored on site.
- On submission of an expenses claim, an email notification should be sent to admin@farsetlabs.org.uk (There is no automatic notification in Xero)
- Expenses claims may not be approved on Xero by the person submitting them.
- If an expenses claim is submitted correctly, then on receipt of an email notification Farset Labs will endeavour to repay approved expenses within seven days.
Repayment Guidelines
It is the responsibility of those approving and issuing reimbursements to ensure that:
- Expenses incurred are in the best interests of the Charity.
- Approval has been sought within an appropriate time frame.
- Reasonable effort has gone to minimise cost to the Charity.
- Documentation is complete with original receipts being filed.