Common Finance Mistakes v2

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Common Finance Mistakes

imperialcollegeunion.org

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Contents Contents & Introduction

2

Income

3

Expenditure

9

Invoicing

21

Other

27

Your notes

30

Introduction Time and time again the Union Finance Department encounters many similar mistakes when dealing with Club, Society & Project financial matters. This booklet provides examples of the most frequent errors so that hopefully you can avoid these mistakes.

Š Imperial College Union 2011 Version 2.0 - 24 June 2011 Common Finance Mistakes Page 2 imperialcollegeunion.org/training


Income Income Forms Submitted Late In this case, money was paid to the bank on 19 March, but the Income Form was not handed in until June.

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Income cont... Donations When income for a donation is received it must be accompanied by a letter to confirm it is a donation, otherwise VAT will be incurred.

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Income cont... Correct Donation Letter This is a good example of letter confirming a donation.

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Income cont... Refund of Deposits If a deposit is paid and then refunded to your Club, Society or Project as a cheque, this requires paying in to the bank. This is a good example:

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Income cont... Adding-up Cheques/Cash on Paying-in Slips Make sure that the cheques and cash being paid into the bank are added-up correctly. This is an example of what happens if this is not done correctly:

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Income cont... Income paid in six months late In this example the income from a Christmas Concert was paid in on 06 June

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Expenditure Correct VAT Invoice This is a good example of a VAT invoice:

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Expenditure cont... Ensure Claim Form Totals are Correct & Obtain Proper VAT Receipts Make sure to add the amounts correctly. In this case, the claim was not added properly hence the cheque was written out for ÂŁ25.79 instead of ÂŁ39.24.

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Expenditure cont... Also note that you should always get proper VAT receipts or invoices when you make a purchase. The ones below are not VAT receipts as they don’t have a detailed breakdown of how much money is VAT. By law, suppliers are supposed to provide VAT receipts so can always demand one if you are not automatically provided with one.

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Expenditure cont... Two Requests for Payment A request to use the Union Credit Card and a request for a cheque for the same payment. The company would have been paid twice.

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Expenditure cont...

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Expenditure cont...

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Expenditure cont...

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Expenditure cont... Correctly Filling in Forms Make sure the amounts on the Claim Forms and Invoices are the same. In this case, the cheque was written for a different amount.

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Expenditure cont... Invoices with Purchase Orders Make sure that the Invoices received do not exceed the value of the Purchase Orders. This will be handled in the future by the eActivities PoP system.

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Expenditure cont...

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Expenditure cont...

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Expenditure cont... Correct VAT Invoice for parking

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Invoicing Contracts Make sure that sponsorship contracts are signed and that a signed copy is retained by the finance department.

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Invoicing cont...

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Invoicing cont...

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Invoicing cont...

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Invoicing cont...

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Invoicing cont... Wrong VAT amount on invoice

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Other Club, Society or Project Invoices Invoices should only be issued from Imperial College Union. Clubs, Societies and Projects must not create and send their own invoices.

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Other cont... Misspending Money Do not pay your tuition fees using Club, Society or Project money!

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Other cont...

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Notes

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Notes

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Imperial College Union Beit Quadrangle Prince Consort Road London SW7 2BB

Tel: 020 7594 8060 Fax: 020 7594 8065 Email: union@imperial.ac.uk Twitter: @icunion imperialcollegeunion.org


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