governance%20policy

GOVERNANCE POLICY Scottish Association of Local Sports Councils

Updated by Board of Directors on:

27/08/2013

Governance Policy

Updated by Board at meeting on 27/08/2013

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SALSC is supported by

CONTENTS

Section 1: Introduction Mission Statement Objectives Vision Eligibility of Directors

Section 2: Governance Responsibilities

The Association (SALSC) Role of the Board Your Role as a Director

Section 3: Management Responsibilities

Role of the Chair Role of the Vice Chair Role of the Company Secretary Role of the Finance Director Role of the Chief Operating Officer

Section 4: Accounting, Income and Banking

Accounting Income Banking

Section 5: Expenditure

Budgets

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Virement Arrangements Purchases Obtaining Quotes Making the Purchase

Section 6: Expenses

Expense Reimbursement Phone Charges Travel

Section 7: Management Accounts and Monitoring Budgets

Recording and Reporting Grant Funding Document Retention Asset Management Procedures

Depreciation Policy Additional Funds Payroll Credit Card Payments Value Added Tax (VAT)

Section 8: Additional Matters

Fraud Insurance End of Year Examination of the Association’s Accounts

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SECTION 1: INTRODUCTION 1.1 The Scottish Association of Local Sports Councils (hereafter referred to as the Association) has a significant part to play in the future delivery of local grassroots sport in Scotland. Directors must ensure the association is effective, responsible and accountable. Its Directors are there to oversee and take responsibility for everything SALSC does. It is an important role and one not be taken on without an understanding of what is involved. 1.2 However, it is essential for Directors to find out what they should be doing or how they should carry out their duties. In addition, there is an increasing demand from external sources – Funders, Government, Local Authorities, Public – for any voluntary organisation to demonstrate their ability to perform to the highest standards. 1.3 This document is designed to provide advice and guidance on governance and financial procedures. It has been prepared to help Directors by:

(a) Providing information about the functions that SALSC performs;

(b) Assisting individuals to understand more about their roles and responsibilities and potential liabilities;

(c) Encouraging the development and improvement of practice.

1.4 Governance for volunteer organisations could be defined as: “The systems and processes concerned with ensuring the overall direction, effectiveness, supervision and accountability of an organisation.” 1.5 Governance does not mean management. As illustrated in the table below, governance is broadly about strategy and management is broadly about operations:

Governance Management

Overview of organisation as a whole Day-to-day operating of programmes and projects

Long-term direction Short to medium -term implementation of plans

Processes and frameworks for effective working Detailed planning and supervision

Accountable for actions and decisions Responsible for delivery

1.6 The lines between governance and management are easily blurred. This is because, while good operational management relies on sound direction and strategic planning, the development of a strategic, long-term plan depends on the results of good management.

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1.7 The main focus for any employed staff should be on operational matters, whilst the Board should focus on strategic matters. The intersection between the two, strategy and operations, is a crucial area for the efficiency and effectiveness of the organisation. Communication at this intersection should have special priority. Mission Statement 1.8 To provide a voice for sport in the community at local, national and international level and to develop international relationships through agencies such as ISCA, DGI, etc., particularly at local and community level. Objectives 1.9 The objectives of the Association are specifically restricted to the following:

(a) To be the voice for and maximise the potential of Local Sports Councils (hereafter referred to as LSCs) and associate organisations;

(b) To promote (1) participation in sport, (2) physical recreation and education and (3) health and

fitness at a local and national level;

(c) To promote and create partnership opportunities with other national agencies with similar aims;

(d) To promote and develop links with other countries committed to the ideology of ‘Sport For All’ and develop international relationships and opportunities with like-minded organisations.

1.10 All of the Association's income must be used to deliver these objectives and support the membership by any other means as identified and approved in advance by the Board. Vision 1.11 The vision of the Association, as set by the Board following extensive consultation with members and key partners, is outlined in the 2011-15 Business Plan. Eligibility of Directors 1.12 Individuals cannot become part of the Board of the Association if they:

(a) Have been convicted of criminal offences relating to the promotion, formation, management or liquidation of a company;

(b) Have been persistently in default of company legislation for filing accounts or other returns

(c) Have been found guilty of fraudulent trading;

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(d) Are disqualified from being company directors;

(e) People who have committed a serious offence against children;

(f) People who are under the age of 18 years

1.13 Nominated individuals from member LSCs can become Directors in two ways:

(a) Elected to the Board by a vote at an Annual General Meeting or Extraordinary General Meeting;

(b) Appointed by the existing directors in line with the Articles of Association. 1.14 The recruitment process will involve applications, interviews and the completion of a skills audit. 1.15 Directors of the Association will be unpaid but may claim expenses in certain circumstances. This is because the Association is established for public benefit and not for personal gain. 1.16 A common exception is where a Director is the best person to do a specific piece of work for the organisation, which would in any event be purchased or contracted out. In this case the member might be paid a one-off fee. 1.17 Good practice dictates there should certainly not be any routine remuneration for the time or effort given to the organisation in the course of a person's duties as a Director.

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SECTION 2: GOVERNANCE RESPONSIBILITIES 2.1 This section describes the governance responsibilities of the Association’s Board and its Directors. The aim of this section is to allow the Association to operate in a transparent and accountable manner, subject to the Articles of Association and monitoring at Annual General Meetings. The Association (SALSC) 2.2 The role of the Board is to ensure that the Association meets its objectives. To do this, the Board must ensure the Association is effective and well run. 2.3 Inappropriate financial operation can lead to grave consequences financially, legally and for the reputation of the Association. It is therefore imperative that the Association’s procedures are always observed. Failure to follow these procedures may result in disciplinary action (see SALSC’s Disciplinary, Grievance and Appeals Policy) and may also incur personal liability. 2.4 This helps to define what the Association should do, what it should not do, how it can be creative and how it needs to steer a course between different and sometimes competing interests to meet the objectives of the Association. 2.5 The Association can make a unique contribution to local grassroots sport by focusing on the achievement of its objectives. The Association is about making a difference for local sport within Scotland, promoting participation in sport and supporting the international concept of ‘Sport For All’. 2.6 Powers and responsibilities are contained in the Articles of Association and associated procedural documents. If things go wrong, it is the Association that will be called to account at the Annual General Meeting. Directors of the Association need to be aware of this and act in the best interests of the Association following all requirements of law and regulation. This is sometimes referred to as the need for ‘due diligence’. Role of the Board 2.7 In a word, the role of the Board is leadership. Leadership means setting the vision for the Association and running it in a way that will achieve these aims. There are many different tasks associated with this role and many different ways that it can be fulfilled. Rarely will the Board undertake this role in total isolation without support but it is important for Directors to be clear that they are in charge of the Association and they are ultimately responsible in law (i.e. legally liable) for what it does. 2.8 Directors must understand what they are responsible for. This document will give an idea of the breadth of issues that should be considered when establishing and/or running the Association. 2.9 In a situation of uncertainty it is imperative to seek advice rather than go ahead without being sure of doing the right thing.

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2.10 To enable the Association to meet its objectives, the Board should perform the following functions:

(a) Strategic planning is imperative and must consider short, medium and long term issues so the Association is clear in its purpose and direction

(b) Effective management of the Association ensures it operates efficiently and works within its

policies, budgets, any relevant good practice guidance and the law;

(c) All decisions taken are in line with and safeguard the ideals and purpose of the Association as laid out in the Articles of Association;

(d) Be guided by the objectives when making all decisions;

(e) Monitor, evaluate and review progress towards meeting the objectives;

(f) The Association fulfils all its legal obligations;

(g) Comply with the demands of external regulators;

(h) Maintain the values of the association;

(i) Provide sufficient guidance for volunteers and staff in performing their duties;

(j) Resources are safeguarded and used efficiently in line with the purposes for which they were

given;

(k) The Association is accountable financially and in other ways. 2.11 The functions listed above mean that the Association should focus on the ‘big picture’ ensuring that there is a good strategy in place to meet the objectives of the Association. The Board should, as far as possible, stay out of the day-to-day implementation of the strategy and, where possible, steer clear of making operational decisions. 2.12 It is usually the case that voluntary organisations work for the benefit of others and this puts them in a position of trust to do the right thing. This is always true with respect to any money given to the Association in furtherance of its objectives. 2.13 In fulfilling its roles and responsibilities the Board should work with and seek help from its own staff and volunteers, voluntary sector infrastructure and intermediary bodies, the public or private sector and any other relevant organisation or individual. For example, the Board of an organisation with staff would be foolish to try and set its vision for the next three years without involving the very people who would be delivering its work. Voluntary sector infrastructure and intermediary bodies (like VDS and SCVO) exist to support the sector so they are very well geared to assist.

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Your Role as a Director 2.14 An essential feature of associations within the voluntary sector is that responsibility is collective. Should there be any legal or financial repercussions from decisions made by the Association, then all Directors are jointly and severally legally liable. 2.15 It follows then that the behaviour of one Director is the concern of all the others and may possibly have to be explained or accounted for by them. This means that if Directors are absent from a meeting or series of meetings, they are still responsible for decisions made when they were not present. Their absence does not absolve them from responsibility or liability. 2.16 The message is do the right things and if you do it is unlikely that you or the Board will be taken to task for any errors that may occur. 2.17 There are 6 key elements that describe the core remit for individual Directors:

(a) Know and understand the duties and activities required to fulfil the role including the legal obligations that underpin them;

(b) Actively contribute to the work of the Board whatever your role may be;

(c) Prepare for and participate fully in meetings, training, planning sessions and reviews where

appropriate;

(d) Support and help each other and do whatever is possible to manage differences constructively;

(e) Seek to have constructive and respectful communication and coordination with the volunteers and paid staff and when necessary use the appropriate procedures for managing concerns about performance and for responding to grievances or complaints;

(f) Act with integrity, avoid conflicts of interest and be worthy of the trust invested in the role by

ensuring that all decisions are made solely in the interests of the Association.

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SECTION 3: MANAGEMENT RESPONSIBILITIES 3.1 This section describes the management responsibilities within SALSC and its Board. The aim of this section is to allow the Association to allocate managerial responsibilities to the appropriate people in order to comply with overall objectives. Role of the Chair 3.2 As the leader of the Association, it is the particular responsibility of the Chair to manage meetings effectively and in doing so to lead or guide the Board in making decisions. 3.3 Leadership should not be confused with control. Good leadership provides a framework that enables all Directors to take part in debate or discussion and make decisions in the best interests of the Association. 3.4 The effectiveness of the Chair depends in creating the right atmosphere where all views are expressed and differences enhance, rather than damage collective working. This will enable the Board to examine its own performance in an honest and open way. 3.5 The Chair is required to undertake specific tasks associated with:

(a) Running effective meetings ensuring thorough discussion, clear decision making and taking a casting vote when necessary;

(b) Ensuring that information and advice is made available to Directors in a timely manner;

(c) Resolving conflict within or on behalf of the Association;

(d) Taking action outside of meetings when a decision has to be made with urgency always staying in

line with the Articles of Association. 3.6 In addition the Chair may also take on other duties such as:

(a) Chairing sub-committees;

(b) Representing the Association at external meetings or events;

(c) Being actively involved in fundraising or public relations activities;

(d) Being a cheque signatory and/or as a signatory to funding applications;

(e) Taking part in the recruitment of staff and acting as a Line Manager to senior staff.

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Role of the Vice Chair 3.7 The Vice Chair should deputise for the Chair at meetings and (where authorised or requested by the Chair) at events and functions that the Chair is unable to attend. The Vice Chair should support the Chair in performing all duties and assume leadership responsibilities for the Association in the Chair’s absence. Role of the Company Secretary 3.8 The Company Secretary is, as far as the law is concerned, the ‘senior administrator’ responsible for ensuring that regulations are complied with. The duties of the Company Secretary include:

(a) Preparing the paperwork for meetings;

(b) Being familiar with and overseeing procedures for the operation of the Board e.g. organising the Annual General Meeting;

(c) Providing Companies House with the necessary information within the specified timescales e.g.

annual financial returns, changes in members of the Board and notification of where the Association’s records are kept.

3.9 Although the Company Secretary is responsible for carrying out particular duties, it is the Board that is expected to ensure the Association conforms to its legal obligations. 3.10 Unlike an Office Bearer, the Company Secretary need not be a member of the Board. A member of the volunteer or paid staff could hold the post. Role of the Finance Director 3.11 The primary role of the Finance Director is to assist the Board in its duty to ensure sound financial management and to meet its obligations to account for the finances. The duties of the Finance Director include:

(a) To manage the day-to-day financial operations of the Association and ensure the prompt progression of all financial and related business, ensuring that expenditure is consistent with the Association’s plans and the requirements of any funders;

(b) To advise the Chair and the Board on financial matters ensuring the financial integrity of the

Association;

(c) To advise on the viability of the Board’s financial strategy in the form of written comments on the annual accounts and budget submitted to the Board and the Annual General Meeting;

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(d) To present the budget for the forthcoming year to the first Board meeting of the new financial year;

(e) To ensure that the budget as a whole and individual budget headings are not overspent unless authorised by the Board;

(f) To present accounts showing expenditure to date against the headings of the approved budget to the Board;

(g) Helping to put together financial plans, reports and related policies and to oversee the preparation of accounts for audit;

(h) Liaising with the accountant, auditor or any other financial examiner;

(i) Ensure statutory returns are made to any relevant regulators;

(j) Being a cheque signatory and/or as a signatory to funding applications. Role of the Chief Operating Officer 3.12 In relation to the management of Board meetings, the primary role of the Chief Operating Officer is to make sure that the paperwork for meetings is in good order. The duties of the Chief Operating Officer in this respect shall include but will not be limited to the following:

(a) Helping the Chair to set the agenda;

(b) Taking the minutes at meetings of the Board and Working Groups;

(c) Taking the minutes at the Annual General Meeting;

(d) Being the contact point for correspondence;

(e) Sending out correspondence on behalf of the Association;

(f) Being a cheque signatory;

(g) Keeping the website up to date;

(h) Carrying out all duties as detailed within the job description.

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SECTION 4: ACCOUNTING, INCOME AND BANKING Accounting 4.1 The financial year shall commence on 1 November and end on 31 October. 4.2 All SALSC financial records shall be stored electronically using Sage software. The Finance Director will check Sage back-ups and oversee the maintenance procedure, month and year ends. Accounts shall be examined by an external agency recommended by the Board and approved by the membership annually and presented to the AGM for approval. Income 4.3 The procedure for dealing with income is as follows:

(a) Match income with an issued invoices from Sage;

(b) If necessary issue a receipt;

(c) Any receipt should be sequentially numbered;

(d) Cash or cheques to be banked immediately;

(e) Update Sage. 4.4 Membership fees will be set annually at the Annual General Meeting in line with the Articles of Association. Banking 4.5 All monies received on behalf of the Association shall be paid into a the current account of “The Scottish Association of Local Sports Councils” at a Bank, Building Society or other financial institution approved by the Board. 4.6 All cheques drawn against the Association’s account must be signed by TWO from the following positions preauthorised by the Board:

(a) Chair;

(b) Vice Chair;

(c) Finance Director;

(d) Audit Director;

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(e) Chief Operating Officer.

4.7 Cash, cheque books and other primary banking material must be stored in a lockable cupboard or safe. 4.8 Cash should not be held on the premises and must be paid into the Association’s account as soon as possible. 4.9 Banking of the takings should be done upon receipt and is the responsibility of the Chief Operating Officer.

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SECTION 5: EXPENDITURE Budgets 5.1 The draft Budget will be prepared by the Finance Director on behalf of the Board, with the assistance of the Chief Operating Officer and on recommendation by the Audit Working Group. 5.2 Once approved by the Board, budget alterations and/or deviations outside the approved expenditure can only be authorised by the Board. 5.3 The Finance Director will be responsible for overseeing the transfer of the approved budget to Sage and monitoring the management of said budget on a monthly basis. Virement Arrangements 5.4 Virement arrangements allow for the transfer of a surplus from one budget account to cover a deficit in another. 5.5 The virement rules, as they relate to the Association’s expenditure, are such that the Finance Director may, after agreement with the Board, transfer monies between any of the budgets provided that:

(a) There is no overall effect on the Board’s budget;

(b) The proposal will not result in additional commitments in future years that cannot be financed within SALSC’s financial plan;

(c) The proposed expenditure is in accordance with the approved policies and objectives of SALSC.

5.6 Budget transfers are subject to consultation with the relevant Working Group Chairs before the proposed transfer is referred to the Board for approval. Purchases 5.7 Any Director can make a recommendation or request to buy something on behalf of SALSC. 5.8 It is the responsibility of the Finance Director, upon receipt of a request, to initiate the authorisation process or to ensure that it is brought promptly to the attention of the relevant authority. 5.9 Once a request has been made, SALSC has to decide whether to make the purchase. 5.10 It is the responsibility of the Chief Operating Officer to determine the budget heading from which the purchase is to be drawn, in consultation with the Finance Director.

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5.11 If overspending of budget headings is required, the decision must be made according to the guidelines in 5.2 and principles outlined in 5.5 of this document. 5.12 It is the responsibility of the purchaser to make sure that the purchase is carried out in accordance with the guidelines in this and any other relevant SALSC policy and/or procedure. 5.13 As soon as each purchase is made any relevant documentation must be added to the Claims Expenses Form in order for the claim to be processed and reimbursed expediently. Should the necessary paperwork not accompany the Expenses Claims Form then SALSC reserves the right to withhold issuing a reimbursement payment until valid paperwork can be produced. Obtaining Quotes 5.14 The purchaser must always try to get the best deal for the purchase. For items of £1,000 or more three written quotes must be obtained. Making the Purchase 5.15 If the Chief Operating Officer agrees an invoice should be held for query, the supplier should be notified immediately by the purchaser. 5.16 It is the purchaser's responsibility to carefully check any goods for faults upon receipt. Faulty goods or goods not matching the description, or invoices disputed for any other reason, should under no circumstances be paid for. SALSC reserves the right to hold the purchaser personally liable for payments made for faulty or incorrect goods. 5.17 Payment to suppliers must always be in response to an invoice and never to a statement. If a statement showing any unpaid delivery is received and the invoice cannot be found, a copy must be requested from the supplier. 5.18 Incoming invoices should be processed within 14 calendar days and in any case before the due date indicated on the invoice unless queried. 5.19 Expense Claims Forms should be submitted to the Chief Operating Officer, consisting all supporting documentation (receipts, invoices). 5.20 Expense claims must be submitted as soon as possible after the expense was incurred, and in any case within the financial year in which authorisation was obtained. 5.20 Claims without invoices or receipts to support them will be considered by the Board on an individual basis. The Board will not authorise such claims in the absence of exceptional reasons. 5.21 Once the order has been completed, and the goods or services provided, the Chief Operating Officer is responsible for payment, for updating Sage and ensuring that the paperwork is filed.

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SECTION 6: EXPENSES 6.1 Expenses will be paid as follows:

(a) When attending a SALSC Board Meeting, all reasonable expenses incurred will be paid by SALSC;

(b) When attending a SALSC Working Group or SALSC Sub-Committee meeting, all reasonable expenses incurred will be paid by SALSC;

(c) When attending award ceremonies or Annual General Meetings of members with the purpose of presenting the Service to Sport Award on behalf of SALSC;

(d) When working for or on behalf of SALSC, actual expenses incurred will be paid by SALSC.

Expense Reimbursement 6.2 Reimbursement claims for all Board and Working Group members must be authorised by the Chief Operating Officer and one of either the Chair or Finance Director. 6.3 Claims for reimbursement will be paid by the end of each month unless the claim is for a large amount personally incurred whilst performing services on behalf of the organisation in which case payment shall be made earlier at the discretion of the Finance Director. 6.4 All reimbursement claims must have receipts attached and the claimant must sign the Expenses Claims Form. 6.5 Claims for expenses incurred in the previous financial year can only be made in the following financial year up to and including a date specified by the Finance Director. Once this date has expired, no further expenses claims can be approved. It is therefore the responsibility of Board and Working members to keep on top of claiming their expenses. Phone Charges 6.6 In the performance of their roles, Directors will be required to make calls for business relating to the Association to carry out their duties. The Association will not reimburse infrequent or minor phone usage but where costs exceed £10 every quarter reimbursement will be made through the Expenses Claims Form and on provision of copies of itemised accounts highlighting each call, who was called and the purpose of the call. Travel 6.7 Any rental vehicle must first be authorised by the Chief Operating Officer and Chair and is the responsibility of the individual to book.

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6.8 SALSC will reimburse staff and committee members 30 pence per mile when using their own vehicles. Only exact petrol costs will be reimbursed for rental vehicles used for SALSC business. 6.9 Reimbursement for petrol costs for rental vehicles should be made on the standard Expenses Claims Form. 6.10 SALSC will not be responsible for any mechanical or legal costs (i.e. parking tickets) incurred in the use of a vehicle for SALSC business. It is the responsibility of the individual to operate within the law. 6.11 Travel by train or bus should be by standard class and booked in advance to get the lowest fare where possible. 6.12 Air travel must be authorised by the Board before being booked by the Director. Any changes to tickets for personal reasons, which incur additional costs, are to be met by the Director.

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SECTION 7: MANAGEMENT ACCOUNTS AND MONITORING BUDGETS Recording and Reporting 7.1 On a monthly basis on receipt of the Association’s bank statement, the Chief Operating Officer will perform the reconciliation of the Association’s bank accounts on Sage Instant (2013 Edition). Once completed, the Chief Operating Officer will send the Finance Director the following:

(a) A scanned copy of all bank statements and correspondence received;

(b) A report of all cheques issued on behalf of the Association detailing the allocation of cheques to nominal ledger codes;

(c) A report from Sage detailing all reconciled transactions;

(d) A report from Sage detailing all unreconciled receipts;

(e) A report from Sage detailing all unreconciled payments;

(f) A variance report from Sage;

(g) The custom report devised by the Association and issued to Board and Audit Working Group

meetings. 7.2 The Finance Director will review this paperwork each month to ensure that:

(a) All payments in the month have been posted;

(b) All direct debits and standing orders have been posted;

(c) All outstanding Sage items matched against the bank statement are marked as reconciled;

(d) Any unreconciled items are followed up with an explanation;

(e) Any cheques that remain unpresented for more than one year are written back;

(f) The accounts are signed off each month by the Finance Director. 7.3 The aged debtors listing should be reviewed on a monthly basis by the Chief Operating Officer and Finance Director. 7.4 Any aged balances greater than 2 months should be followed up by the Chief Operating Officer either issuing a copy invoice or contacting them directly.

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7.5 Any outstanding invoices greater than 3 months should be referred to the Audit Working Group for further action. 7.6 Before any invoices or amounts deemed irrecoverable are written off, written authorisation must be obtained from the Board. 7.7 Management accounts will be prepared to coincide with Audit Working Group and Board meetings. 7.8 Management accounts will consist of:

(a) Income and Expenditure

(b) Budget Report with an explanation for significant variances; 7.9 Management accounts will be reviewed by the Chief Operating Officer, Finance Director and Chair prior to the Board meeting. 7.10 The management accounts will be presented by the Finance Director at the Board meeting. Grant Funding 7.11 The Association receives funding from a number of sources, primarily an investment grant from sportscotland on annual basis. Conditions are attached to each investment. 7.12 Income and expenditure linked to any funding must be accounted for using separate nominal ledger codes to ensure expenditure is made according to grant conditions and to simplify reporting to each grant giving body. Document Retention 7.13 All financial or legal documents will be safely stored for a period of 7 years. Records of accounts will be retained ad infinitum by the Association. 7.14 Electronic backups of the financial data are to be saved to a secure source off-site whenever the Chief Operating Officer updates the financial data. Asset Management Procedures 7.15 The Association will maintain a fixed asset register (on Sage) which will be managed by the Finance Director. 7.16 The fixed asset register will maintain an accurate record of assets owned by SALSC, a record of the location of the asset, the purchase date, cumulative depreciation and written down value.

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7.17 The Association will review the asset register annually and make the necessary depreciation adjustment. 7.18 Purchase of fixed assets should follow the procurement procedure. 7.19 Additions will be depreciated from their purchase date. 7.20 Disposals will be at the end of the year, taking effect from the date of the actual disposal. A physical inspection of the assets should be made by the Chief Operating Officer, Finance Director and Chair and agreed to the Fixed Asset register on an annual basis. 7.21 Disposal of items on the asset register must always be documented. Writing off items must be authorised by the Board. Depreciation Policy 7.22 Depreciation is calculated to write-off the cost of the fixed assets on a straight line basis over the expected useful life of the asset concerned. The annual rates of depreciation are as follows:

(a) Computer Equipment 33%

(b) Office Equipment 20%

(c) Sports Equipment 20% Additional Funds 7.23 The Association’s investment assets are to be invested in such a way as to maximise long term benefits to the Association’s membership, whilst maintaining sufficient liquidity to enable the Association to meet its day-to-day financial commitments. 7.24 Currently, any surplus funds are held within an Instant Access Savings Account with Santander. This is governed by the Association’s Reserve Fund Policy and any amendment must be agreed and signed off by the Board. 7.25 Any investment tagged for specific projects will be itemised separately in the nominal ledger in Sage. Payroll 7.26 Payroll is administered through sportscotland. Any changes to the salary details (for example joiner, leaver, and salary amendment) should be made on the appropriate form to sportscotland by the Finance Director.

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7.27 A formal notification from sportscotland should be received each month detailing payroll charges and information. 7.28 Sage needs to be updated with the monthly salary payment. 7.29 Monthly payroll information received from sportscotland should be filed. Credit Card Payments 7.30 The Association does not currently possess a credit or debit card. Value Added Tax (VAT) 7.31 The Association does not need to register for VAT purposes.

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SECTION 8: ADDITIONAL MATTERS Fraud 8.1 SALSC is absolutely committed to maintaining an honest, open and well-intentioned atmosphere – it does not tolerate fraud. 8.2 Examples of fraud could be theft or abuse of property; deception or falsification of records; corruption concerning procurement or tendering; wrongly claiming reimbursement of expenses; charging for goods and services not actually delivered or misuse of sick leave. 8.3 The Association encourages staff and Directors not to turn a blind eye to fraud but to report it to the Chief Operating Officer or other Directors. 8.4 The Association will take seriously any allegation or incidence of fraud. Insurance 8.5 The Audit Working Group is responsible for recommending adequate insurance cover and tendering every 3 years to ensure the Association is obtaining competitive rates. 8.6 Currently the policy in place with Perkins Slade covers the following:

(a) Civil liability (£5,000,000);

(b) Employers liability (£10,000,000). 8.7 The Association’s policy expires in September each year and has agreed a 3 year rate with its current provider due to expire in September 2014. End of Year Examination of the Association’s Accounts 8.8 The Audit Working Group is responsible for tendering every 3 years to ensure the Association is obtaining competitive rates for getting its accounts examined. 8.9 Currently the Association employs the services of Henderson Loggie in November each year to examine the Association’s accounts with an agreed rate set to expire in 2014. 8.10 The company hired to examine the Association’s accounts requires approval at the Association’s Annual General Meeting.

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