THE ARTS SOCIETY AREA HANDBOOK 2022/2023
AREA FINANCES BACKGROUND Areas and Area funds, unlike individual Societies and their funds, belong to The Arts Society centrally. The accounts for each Area are consolidated and included in the Group Financial Statements for the Charity and its subsidiaries. The total Area income and expenditure is usually shown in note 2a to the Financial Statements and all Area funds are treated as Designated Funds. These are audited as part of the annual audit process, and although an Area will wish to present its annual financial position to its local Societies, there is no requirement for any form of independent examination: no expenses should be incurred for such an examination at Area level. Accordingly, ultimate responsibility for the management and control of these assets (funds), rest with the Trustee Board. As with any charitable funds: • they must only be used for purposes that are consistent with the charitable objects which all Area Support Teams should make sure they are familiar with. If Area Support Teams have any doubt whether particular proposed expenditure is consistent, they should immediately seek advice from the Finance and Resources Director; • they must be managed and controlled in the same way as any other significant asset or expenditure of the Charity.
FINANCIAL YEAR The financial year for The Arts Society and therefore all Areas is 1 January – 31 December.
BANKING Areas are required to operate one bank account which should be in the name of the Area. An imprest system operates for Area funds and any funds over and above the amount agreed with the Finance and Resources Director will be held in a ringfenced designated fund on behalf of each Area. Should the balance in the Area held bank account fall below the agreed imprest amount then a request should be made for a transfer of funds from the ringfenced designated fund. Similarly, if income is received which increases the balance to above the agreed imprest level then a transfer should be made to the centrally held designated fund.
RECORD KEEPING It is a legal and regulatory requirement for financial records to be maintained and kept for 6 years. The Area Treasurer (or equivalent) will be responsible for maintaining the financial records and reporting on the financial position to the Area Support Team and local Societies.
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