Financial Policy

1. Purpose

The purpose of this financial policy document is to specify:

▪ The roles and responsibilities of every person at Lung Cancer Europe who has some involvement
in the management of Lung Cancer Europe’s finances;
▪ Financial planning and reporting that Lung Cancer Europe should undertake each year;
▪ Financial policies to be followed by every person in the organization.

2. Key Principles

The key principles underpinning the Financial Policy are:

Organizational Funds

• Organizational funds belong to Lung Cancer Europe. They should not be used for private purposes,
including private grants or loans;
• Funds should be carefully used in an effective way in the best interests of the organization;
• All Board members are responsible for the careful and honest use of funds; • Funds granted to Lung
Cancer Europe for a specific
Collective Accountability purpose will be used for that
purpose.
• All Lung Cancer Europe Board members have a collective responsibility for the financial health of
the organization and the careful and honest use of the organization’s funds;
• Everyone on the Board is also responsible for examining and questioning the regular financial
reports and formally approving it.

Transparency

• All financial documents and reports should be available to all members of the Board;
• Annual accounts should be available to all members;
• Generally there is no reason for the Board to withhold any financial
report from a member.
3. Roles and Responsibilities

3.1 President

In relation to Lung Cancer Europe’s financial policies and procedures, the President will undertake to:

• Ensure that all Lung Cancer Europe board members have a copy of the financial policy and have
read and understand them; Specify Lung Cancer Europe financial policy
• Ensure that the financial policy is implemented effectively;
• Ensure the Board meets regularly (at a minimum twice a year) to review and approve financial
reports;
• Liaise with Treasurer and Accounting agency to ensure financial reports are prepared each 3
months.
• Read and question financial reports;
• Act as a bank signatory.
3.2 Treasurer

In relation to Lung Cancer Europe’s financial policies and procedures, the Treasurer will undertake to:
• Remove second point "Request for
• Ensure that the financial policy is implemented effectively; funding.... as a treasurer responsibility as
• Request for funding in accord with the budgets this is now a function of the executive officer
• Liaise with President and Accounting agency on financial matters and bring any irregularities to
their attention urgently;
• Ensure an annual financial report and budget are prepared to be submitted to the Annual General
Assembly;
• Present financial reports to the Board on a regular basis and be able to answer questions on these
reports;
• Act as a bank signatory.

3.3 Board Members

In relation to Lung Cancer Europe’s financial policies and procedures, all Board Members will undertake
to:

• Read and understand the Financial Policy;

• Read and question the financial reports that are tabled at the Board meetings;
• Review and approve expenditure as appropriate.
• Follow the key principles of this financial policy

4. Financial Policy

4.1. Financial Planning

Should we assign responsibility
• A comprehensive budget for the organization will be prepared annually; for this task?
• A budget review will be undertaken quarterly to review actual financial status against projected
status.

4.2. Bank Account

• Lung Cancer Europe will hold a least one bank account;

• All income and expenditure must go through the bank account;
• The signatories to Lung Cancer Europe bank account will be the President, the Vice-President and
the Treasurer.

4.3. Income

• All income will be receipted and lodged into the Lung Cancer Europe bank account;
• No unbanked income will be used for petty cash;
4.4. Expenditure • All Income, no matter how small, should be banked by the end of the month.
• All expenditure must have an approved budget allocation;
• No expenses will be reimbursed unless the necessary documentation has been completed and
receipts submitted within the guidelines and the deadlines set within the travel policy;
• Expenses reimbursement of over 5 000 EUR must be authorized by at least two people with
signatory rights.
4.5 Spending Limits

• Expenditures not included in the budget should be approved by the Board; New addition:
• Incidental purchases on the
4.6 Accounting for Income and Expenditure Lung Cancer Europe credit
card require advanced
• All income and expenditure will be accounted for. approval by the Board;
• Electronic records will be kept using an appropriate system;
4.7 Reporting • A bank reconciliation should be carried out on a bimonthly basis during the year;
• The bank reconciliation should be checked by the Treasurer.
• A financial report containing information about Lung Cancer Europe’s income and expenditure will
be presented by the Treasurer on a three-monthly basis.
• The annual budget and financial report will be presented by the Treasurer to the members at the
Annual General Meeting.

4.8 Annual Accounts

• Lung Cancer Europe’s accounts will be examined by an independent, objective and qualified
person (audit) once a year;
• Annual accounts and budget will be presented and approved by members at the Annual General
Meeting.

4.9 Misuse of Funds

• Any suspected misuse or misappropriation of funds will be investigated by the President and
Treasurer;
• The investigation should follow fair procedures. Once completed and the facts clearly established,
the President/Treasurer will take appropriate action. Minor issues can be dealt with internally. For
serious offences, the matter will be referred to the appropriate authorities;
• The President will inform the Board and members of any serious offences and the action taken.

New addition:
4.8 Record Keeping (ahead of Annual Accounts)
• The following records are to be kept and maintained by Lung Cancer Europe]’s outsourced financial partner:
o Physical records: Receipts books, income file, expenses reimbursement file, bank statement file, tax
statements etc.
o Electronic records: Electronic records should be backed up on a regular basis.
• The files are to be kept in a safe and secure place known to and approved by the Treasurer and President;
• At the end of the financial year, the financial records for that year are to be archived and stored in a safe
place. These records should be kept for at least 5 years .