Union finance and
accounts
Beth Pearson & Carol Preece
What do you want to get
out of this session?
By the end of this session . . .
•
•
•
•
•
•
•
Treasurer responsibilities
Charity Law
VAT
Budgeting
Grant allocation and Sponsorship
Union forms and things
Finance and the website
Being a treasurer . . . .
•
•
•
•
•
•
•
Ensure the smooth running of the society/project
Prepare and maintain budgets for the year/events
Keep track of incomings and outgoings
Check weekly statement
Apply for funding
Inventory of equipment
Handover
Legal Bits
Charity Law
• Union expenditure must further the interests of the students in a way that assists in the
educational aims of the university. This includes providing facilities for recreation and leisure.
• Prevented from the use of the union's funds for purposes which are outside the objects of
the charity.
–
•
•
•
•
There is no objection to students joining together to collect their own funds for any purpose for
which union funds cannot be used.
All members must equally benefit from activities.
Members of a charity cannot be beneficiaries.
Cannot give money away, cannot donate money unless collected for that express purpose.
Accounts must be submitted to Companies House, Charity Commision, Durham University.
The latter of the two check we operate within the law.
Company Law
• Only allowed to operate within the boundaries the company was created for. Spend money in
furtherance of societies objectives and the Unions charitable objectives.
The Students’ Union Objects
The Union's charitable objects are the advancement of education of Students at Durham University for
the public benefit by:
– providing opportunities for the expression of Student opinion and actively representing the
interest of Students;
– acting as a channel of communication in dealing with Durham University and other external
bodies;
– promoting the interests and welfare of Students at Durham University during their course of
study, and representation, supporting and advising Students;
– facilitating the social, recreational and educational interests of its Membership, through
providing services and support for its Members;
– supporting the development of and cooperation between the Common Rooms;
– working with other Students' Unions and affiliated bodies; and raising funds for such purposes
as are charitable according to the laws of England and Wales and to make grants and
donations of such funds to other of such funds to other exclusively charitable bodies or to
apply such funds directly for such charitable purposes.
VAT
1,
Farmer sells tree for
£120
£20 VAT
Surplus £100.
2,
Tree bought for £120
Wood sold for £240
£40 VAT
Surplus = £80
Claim £20 back
Surplus = £100
3,
Wood bought for £240
Table sold for £360
£60 VAT
Surplus £60
Claim £40 back
Profit £100
• Exercise
VAT
• Society Accounts have been with the Union Finance
Department since October 2009.
• Societies accounting policies and procedures must be in line
with those of the Union, and accounts must be audited in the
same way.
• As the Union is VAT registered, Societies must account for VAT
in the same way.
• Some issues are clear, there are still a few grey areas.
VAT and Events
•
•
•
•
•
•
When planning an event, VAT must be taken into consideration in the budget.
If your event can be classed as a fundraising event, it may qualify for VAT
exemption.
A fundraising event is an event clearly organised and promoted primarily to raise
money for the benefit of your charity or qualifying body.
People attending or participating in the event must be aware of its primary
fundraising purpose.
If an event qualifies for the VAT exemption, then the exemption is mandatory. You
cannot charge VAT on supplies that are normally taxable at the standard rate, and
you therefore won’t be able to recover any VAT you pay out on purchases you
make in connection with them
For VAT exemption to apply, you cannot hold more than 15 events of the same
kind in your financial year at any one location. If you do, then none of the events
qualifies for the VAT exemption, not even the first 15.
BUDGETING FOR AN EVENT/ACTIVITY
• Planning - Preparing a realistic budget is a critical part of the
planning process for a successful event. To budget accurately, you will
need to calculate both the likely costs and the likely income. Once
projected costs and income are worked out, you can calculate your net
income and your breakeven point. You are then in a position to decide
whether or not your event is viable.
Income
•
•
•
•
Break down income by
source
Where possible base figures
on past experience
Calculate expected
attendance numbers
Set ticket price realistically
Expenditure
•
•
•
•
Identify all areas of
expenditure
Be generous when working
out costs – round up, not
down
Always err on the side of
caution – it is better to set a
conservative target and beat
it than set an over ambitious
target and fall short of it
Put aside a contingency
budget. Typically, allow an
extra 10 to 15% for
contingency funding
Union Finance
• The Union Finance Office Manages the
Administration and Accounting for Societies
• Each Society has a Department number in the
IRIS Exchequer Accounting System
• All Income and Expenditure is recorded within
the Department
• Transaction Reports are sent to each society
email address every Friday morning
Income
•
•
•
•
Pay in cash direct at reception
– Complete a Paying In Form @ reception
– Enter Values and not Numbers on form
– Your receipt will be date stamped. Marked ‘unchecked’ and signed by Receptionist
– Monies will be counted in Finance Office the next day
– Any discrepancies will be notified by email
– Transactions usually recorded in the account within 2 days
Online transfer
– Bank Account and Sort code can be requested from Finance Office
– Complete paying in slip at bank
– Always reference with Society name or department number
– Bank Account is checked daily online by finance staff
Sell tickets online
Sales invoices
– We will raise invoices on your behalf and chase debtors
– Invoices must be raised by us and recorded in the accounts system
– Complete an Invoice Request form
– Hand in to Reception or email to dsu.accounts@durham.ac.uk
– Invoice will be raised and sent out to Customer
Expenditure
How to make purchases:
• Purchase invoices
– Complete purchase order form with quote
– Invoice direct to us
•
Reimbursement of expenses to individual
–
–
–
–
–
Complete expenses form
Provide Valid Receipts/invoices
Authorised signature to be added
Expense Claims must be signed by an Exec member other than the claimant
Ensure bank details are entered correctly
Payment methods:
• Cash (up to £30)
• Online transfer (preferred)
Payment Deadline
 Deadline 10am on Tuesday
 Payments will credit recipient’s account on
Friday
 Forms received after deadline will be paid
the following week
Funding
• Grant Allocation
– Deadline for applications 27th Nov
– Criteria:
•
•
•
•
Training
Membership
Activities
Engagement
• Scholarships from University
– www.dur.ac.uk/undergraduate/finance/scholarships/extra/
• Grants from Colleges
• Sponsorship
Sponsorship
•
•
•
•
•
•
Contract = agreement
We can check over contracts
Don’t sell yourself short
You cannot be sponsored by another society
Sponsorship is VATable (ask for amount + VAT)
Fill in invoice request – we will invoice and
chase debt
Finance and the website
•
Transaction fee of 7.5%, min 30p, max £1.50
– No current transaction fee for membership
– If you are selling tickets through website, add note to promotional materials about transaction
cost
•
Each society has its own code, each accounting function has a code
•
Use your nominal code
– 56010 participation, entry fee, trip fee
– 56040 event, ticket, dinner
– 56021 membership
– I.e. 302-56021 membership for society 302
Contact us
• Reception open
– 9-4:30
• Student Activities Centre drop-in
– Mon/Thur 2-4:30
– dsu.adc@durham.ac.uk
• Finance
– dsu.accounts@durham.ac.uk
Did we cover
everything?
Feedback