2016/17 edition
Money In
imperialcollegeunion.org
Contents 02 04 05 06 06 06 07 08 11 13 16 19 21
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Contents Introduction Sources of Money Events Donations Sales of Equipment Sponsorship Banking Cash and Cheques Charity Collections Sales Invoices Online Sales Paperwork and approval Appendix Two - Transaction Codes
Tell us what you think of this training publication Š 2016 Imperial College Union Version 1 - 2 June 2016 imperialcollegeunion.org/training/training-feedback
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This manual will:
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1 Define the types of income that are available to Clubs, Societies & Projects
Provide volunteers with stepby-step instruction on how to use eActivities to process and record money coming in to Union accounts
Frequently Asked Questions How do I get the sponsorship money in to support my club’s activities? Refer to page 7
How do I raise a sales invoice? Refer to page 13
What should I do with the money I have received and where should I bank it?
Refer to page 8
Where do I get the paying in book from? Refer to page 8
What documents are required to raise a sales invoice? Refer to page 13
After I have paid money into the Union bank account, what do I do next?
Refer to page 10
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Introduction The ‘Money In’ training manual is designed to guide you through the specific processes and procedures for dealing with money coming into the Union via your Club, Society or Project. As a volunteer in a position of financial responsibility, ‘Money In’ will provide you with an understanding of the Union’s financial procedures which you are obliged to follow. This booklet is aimed at both Chairs and Treasurers of Clubs, Societies & Projects and any committee members who will regularly be dealing with the Union finance system on eActivities. Depending on the nature of your activities, you will have varying degrees of interaction with the Union regarding finances, however the information in this training manual is required reading.
Need help? If you have finance related questions or need any help, support or advice relating to your Club, Society or Projects finances, your first port of call should be your Management Group Chair or Treasurer. Their details can be found in Key Contacts for Volunteers. If they are unable to assist you, please contact the Deputy President (Finance & Services).
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Sources of Money Grant
Grant is money awarded to Clubs, Societies and Projects by the Union to support the main activities of your Club, Society or Project.
Self-Generated Income
This is money that a Club, Society or Project generates themselves and can be spent on any activity.
Harlington Trust
The Harlington Trust awards money for the purchase of equipment that will benefit your group for a number of years. Information for how to apply can be found at https:// www.imperial.ac.uk/admin-services/secretariat/about-thesecretariat/what-we-do/the-harlington-trust/
IC Trust
The IC Trust funds conferences, projects with a charitable or volunteering aim and Club & Society Tours (Tour funding is allocated through the Union, for more information see the Trips & Tours booklet). For information on how to apply visit https://www.imperial.ac.uk/admin-services/secretariat/aboutthe-secretariat/what-we-do/imperial-college-trust/
College
The College and its departments award various amounts to Faculty Unions, departmental societies and, through Sports Imperial, to sports clubs.
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Events Clubs, Societies and Projects are permitted to organise events to raise funds, for more information on these please see the training manual on Event Budgeting.
Donations A donation is money received as goodwill for which the donor receives no benefit as a result. You are required to provide a letter from the donor stating clearly that the money is a donation. If no such letter is provided, the income cannot be treated as a donation and will be liable for VAT. The letter should be headed with the donor’s name and address and should contain the following text: “We are pleased to donate the sum of £x to Imperial College Union, this is purely a donation and we do not expect anything in return”
Sales of Equipment All equipment used by Clubs, Societies and Projects is the property of the Union – if you wish to sell any equipment totalling more than £100 you must first obtain permission from the Deputy President (Finance & Services).
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Sponsorship Clubs, Societies and Projects may receive sponsorship from external organisations to help support their activities or events. Before you agree any sponsorship deal you must contact the Deputy President (Finance & Services) with the details of the proposed agreement and who will guide you through drawing up the sponsorship contract. We recommend following the steps below: Identification
Identify what benefits you can offer in exchange for their sponsorship such as enhancing their image, creating good relations with students and being associated with a good cause.
Selection
Start by looking at who has sponsored your group in the past and who sponsors similar groups. Then make a list of the most likely sponsors.
Proposition
Next you need to formulate a proposal – this should include what activity you are asking for sponsorship for, what you intend to do with the sponsorship money and what benefits you are offering the sponsor in return. Please be very precise in the wording of the proposal to avoid any misunderstandings. Remember - you are not allowed to commit to any agreement that extends beyond the end of current financial year (i.e. beyond 31 July.)
Negotiation
While you might get a straight yes or no from some of the companies you approach, others may wish to negotiate the terms. Be prepared for this and have some ideas on how you could make the proposal more attractive or if you would be prepared to accept a lower sponsorship amount.
Payment
Once you have reached an agreement with your sponsor, you will need to draw up a contract – get in touch with the Deputy President (Finance & Services) for assistance with drawing up the contract. Once the contract has been signed by both parties you should raise a Sales Invoice to the sponsor. Ideally you should get a purchase order number from the sponsor to quote on the invoice to ensure quick payment. Be prepared to chase the sponsor for the money.
For more information and advice on sponsorship, please see the Sponsorship training manual.
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Banking Cash & Cheques Occasionally, you may be required to take payments in the form of cash or cheques. These should either be paid into the bank immediately after collection or handed into the Union to be stored securely in one of the Union’s safes. Do not take money home with you – you are responsible for looking after your group’s money, if you lose it you will have to replace it! Contact the Union Finance Team if you need to store money in one of the Union’s safes. Banking your Clubs & Societies cash and cheques follows the process outlined below: Pay in money
Use your group’s paying in book at any Natwest branch.
Completed
The income details have been checked and posted to your finance pages
Submit Banking Record
Upload scan of paying in slips and enter details
In progress
The details of the income are being checked by Finance
Cheques All cheques must be made payable to Imperial College Union. You must only accept cheques if they are supported by a valid cheque guarantee card showing an amount greater than or equal to the value of the cheque. You should write the long card number, expiry date and guarantee amount on the back of the cheque together with your group’s name (for tracing bounced cheques).
Paying In Money The Union has one bank account for all Clubs, Societies and Projects and all money must be paid in full (without any deductions) into this account. Never pay money into your personal account. Each group should have its own triplicate Paying In Book - if you don’t have one please contact the Student Activities Centre. The paying in slip should be completed as shown below, placing carbon paper between the original and each of the two copies.
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Banking Cash & Cheques
Once you have completed the paying in slip take the book and the money to any branch of NatWest where the cashier will stamp each of the three slips, tear off the first copy and hand you the book back. Do not use the quick deposit box as the book must be stamped. You need to record the income which has been paid into the bank on eActivities within 3 working days after it has been banked. Login and navigate to Finance, then Income, then Banking Records. The screen below will appear. Enter the payingin slip number from the paying-in book and the date on which it was paid into the bank. Further down the page select the Paying-In Slip tab. Inside the paying-in book you will have a stamped duplicate paying-in slip, scan this paying-in slip and click Upload File to upload it.
1 Go to eActivities > Login > Finance > Income > Banking Records 2 Enter paying-in slip number and the date cash/cheque was paid into the bank 3 Select the Paying-In Slip tab 4 Scan in paying-in slip and upload by clicking Upload File
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Banking Cash & Cheques
Next, select the Banking Lines tab. Fill in all the boxes to describe what the income relates to and what account codes should be used. If the money which has been paid into the bank relates to more than one item then create multiple lines on the form. If you have received cash or a cheque in payment for a sales invoice you have created, then you MUST note the invoice number in the description box.
1 Go to eActivities > select Banking Lines tab 2 Input relevant account codes, using seperates lines for each item 3 Note any relevant invoice numbers in the description box for each item Income will automatically appear on the Club, Society or Project’s transaction pages once the online Banking Records form has been completed. The amounts will appear as temporary transaction lines in light blue. Once the amounts have been checked by the Union Finance Team for the correct VAT codes they will change to the standard white or grey background. Any queries which arise from the values changing between what was submitted (and appeared in light blue) and the final values should be directed to the Union Finance Team.
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Charity Collections Charity Collections can be a very worthwhile activity but there are some rules you need to remember to stay within the Law: AA Someone must be appointed as the collection organiser – they are responsible for ensuring the rules are followed. AA All money must be collected in sealed collection tins or buckets labelled clearly with the registered charity number and name of the charity the collection is for, together with the Union logo. AA Any publicity material must also contain the name and number of the charity. AA The collection organiser should keep a record of which buckets have been issued and to who, and each collector should be able to contact them easily in case of a query or problem. AA Only after the collection, when the tin or bucket has been returned, can the seal be broken and the money counted. NEVER take collection money home with you! You are personally liable if anything happens to it. Contact the Union Finance Team in advance of the collection to arrange storage.
Collection Permits You will almost certainly need to seek permission to carry out a collection, see the table below for more information – remember to speak to RAG. London Streets
Metropolitan Police (http://www.met.police.uk/charities/ streetcollection.htm)
Underground
Transport for London
Campus
Whoever is in charge of the building/area.
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Charity Collections
Banking the proceeds Following the process detailed earlier in this manual called Banking Cash & Cheques – use income code Charity Collections (410) so that we know this is money collected for Charity.
Donating the proceeds To donate the proceeds of a charity collection you will need to complete a Charity Donation request on eActivities. For more information on making donations see Charitable Donations in the Money Out training manual. For more information and advice on raising money for charity, please read the Charity Collections training manual.
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Sales Invoices Club, Society and Projects are able to sell goods and services to external customers or apply to them for sponsorship. In these cases, you will need to raise a Sales Invoice on eActivities to the customer you are dealing with. Sales Invoices cannot be issued without supporting documentation from the customer – e.g. a signed Sponsorship Contract or an official Purchase Order – this is so that the Union can prove that your group is owed this money if they later fail to pay. You will only be able to request a Sales Invoice if you are the chair or treasurer of a Club, Society or Project and you have completed the Key Information and Sales Invoices online quizzes. Raising Sales Invoices follows the process outlined below: Sales/Sponsorship
Agree details and get a PO from customer or signed contract for sponsorship
Request Invoice
Create a sales invoice on eActivities and attach the contract/purchase order.
Pending
The details of the invoice are being checked by Finance
Authorised
Your sales invoice has been approved.
Rejected
Your request has been rejected the reason will be shown
Send to customer
Send the sales invoice to the customer
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Sales Invoices
Login to eActivities and select Finance, Income then Sales Invoices. You will only be able to raise an invoice to a customer who already exists in the system – if you cannot find a customer please click Request a New Customer and enter the required fields and click submit – you will receive an e-mail when your customer is available to use.
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Sale Invoices
Complete all the customer details shown above (please remember to get a purchase order number and include it here wherever possible as it is easier for the customer to validate the Invoice). Once that is done a new section will appear which allows you to enter the description, quantity, amount, VAT code and account codes for each invoice line you wish to create. The VAT code will usually be Standard Rated (S1) – the major exceptions to this are Donations which is beyond the scope of VAT (SN), sports clubs core activities income which is Exempt (SE) as is any income for an event declared VAT Exempt by the Deputy President (Finance & Services).
1 Go to eActivities > Login > Finance > Income > Sales Invoices 2 Complete the customer details and purchase order number 3 Enter the description of the invoice including amount and VAT code
Credit Notes Credit notes are almost identical to Sales Invoices but are for cancelling all or part of sales invoices. You should use a credit note where you have raised a sales invoice incorrectly and need to cancel it and raise a new one, or where you have overcharged on the original invoice and wish to give the customer a partial credit.
Approval Process All requests for Sales invoices/Credit Notes have to be approved by the Union Finance Team, this should be done within 3-5 working days. You will receive an e-mail to your College e-mail address when the invoice has been approved, you will then be able to login to eActivities and download your invoice from Authorised Sales Invoices in the Sales Invoices section you raised the invoice from. You are responsible for sending the invoice to the customer and resolving any queries they might have. You will not be able to alter any invoices once committed. Changing invoice details can only be done by raising a credit note to cancel the original invoice, then raising a new invoice with the correct details. If you have an queries about Sales Invoices please contact the Union Finance Team.
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Online Sales Online Payments
Every Club, Society or Project is able to set up products in the online shop section of the Union’s main website, imperialcollegeunion.org using the Shop Administration function in eActivities. Setting up items in the online shop is the preferred method of taking payments as the person paying receives an automatic receipt from the system. More importantly, it is much easier for Club, Society or Project Treasurers as the system automatically generates lists of who has purchased which products, maximum numbers can be applied to avoid overselling and the potential for losing large amounts of money which doesn’t belong to you is avoided.
The money which is collected online appears directly in your Club, Society or Project’s accounts within three working days of purchase, making it very quickly available for you to spend. Taking payments for any membership fees MUST be done online as should all other payments except where it is not possible to do so.
Creating a new Product Any Committee Member of a Club, Society or Project can create a shop product on eActivities. To create a new product, log into eActivities and select your role in the Club, Society or Project for which you are requesting the product. Select Finance from the menu on the left, then click Income then click Shop Administration. A screen will appear (see the image on the next page) and it will default to the Create New Product tab. Please ensure you include a full description. When you have filled in the first set of fields, another set of boxes will appear. Here you can add the specific SKUs (Stock Keeping Units) for the product you are requesting. Think of the SKUs as the option for the product on sale. For example T-shirt sizes and colours or menu options for a formal dinner. This is where the information on price, quantity and VAT Rate will go; as well as designating the destination of your income and when you are finished click Submit Product. Remember that the minimum price for products in the online shop is £2.
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Online Sales
1 Go to eActivities > Login > Select role > Finance > Income > Shop Administration 2 Create New Product tab will appear 3 Fill in the Committee, Product Type, Product Name, Description, Small text and date boxes 4 SKU boxes will then appear; input price and quantity details in here
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Online Sales
Editing a Product You can edit existing products by selecting the Edit Submitted Products tab where you can change the selling dates and quantities for the products. When you are finished click the Submit button.
Purchase Reports and Summaries To view the sales of your online products select Finance from the top menu, then Purchase Summary, then select the Purchase Reports tab for detailed reports of who has purchased each item by product or SKU. You can also see a summary by selecting the Purchases Summary tab. This report provides a summary of sales for each product.
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Paperwork and approvals Paperwork and approvals Claim value
Approvals needed
< £5
Reimbursements under £5 cannot be made
Paperwork
£5 - £19.99
Club, Society or Project Chair or Treasurer
Basic VAT receipt
£20 - £249.99
Club, Society or Project Chair or Treasurer AND Management Group Chair or Treasurer
Basic VAT receipt
£250 - £999.99
Club, Society or Project Chair or Treasurer AND Management Group Chair or Treasurer
Full VAT invoice
£1000+
Club, Society or Project Chair or Treasurer AND Management Group Chair or Treasurer AND Union Deputy President
Full VAT invoice
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Appendix One - Transaction Codes This is comprehensive list of the codes that you may use on various items of documentation such as Banking Records, Claim, Purchase Orders, etc. Income Codes Code Name 430 Donations 520 Sales general 550 Sponsorship 580 Ticket Income 590 Travel 450 Goods and Services VAT Codes â&#x20AC;&#x201C; Income Code Name S1 Standard rated S0 Zero rated SE Exempt SN Outside Scope VAT Codes â&#x20AC;&#x201C; Expenditure Code Name P1 Standard rated P0 Zero rated PE Exempt PN Outside Scope
Expenditure Codes Code Name 600 Acts 605 Affiliation Fees 640 Consumables 650 Cultural Activities 655 Decorations 680 Entrance Fee Competition 675 Entrance Fee Conference 685 Equip purchase (not cap) 690 Equipment Hire 705 Goods for Resale 710 Ground Hire 725 Copyright & Royalties 730 Hospitality 735 Instructors 820 Printing Costs 825 Publicity 860 Stationery 870 Subscriptions 895 Travel Expenditure
Event Codes Code Name 00 General 21 Winter Tour 22 Spring Tour 23 Summer Tour 51-69 Event
Description Day-to-day transactions. A tour during the Christmas holidays or Spring Term A tour during the Easter Holidays or Summer Term A tour during the Summer Holidays or Autumn Term For example, Freshers Ball, Annual Dinner
Funding Codes Code Name 0 Grant 1 Self Generated 2 Harlington 3 IC Trust 4 College Grant
Description Union money allocated by your Management Group Your own money generated through your activities Money from the Harlington Grants Committee Money from the IC Trust Money from a Faculty or Department for a specific purpose
Consolidation Codes Code Name 0 External 1 College
Description Outside College and the Union Outside the Union, within College
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Imperial College Union Beit Quadrangle Prince Consort Road London SW7 2BB Registered Charity No: 1151241
Tel: 020 7594 8060 Fax: 020 7594 8065 Email: union@imperial.ac.uk Twitter: @icunion imperialcollegeunion.org