NECPT code of conduct
Trustees are committed to act at all times with integrity and solely in pursuit of the objectives of NECPT as specified in the Constitution. This Code of Conduct specifies how Trustees fulfil those duties.
Trustees have committed to support the Governance Principles set out in this document.
That means Trustees act with integrity, selflessness, objectivity, openness and honesty and are accountable through their leadership for the public reputation of the charity. In particular, private and personal interests do not influence decision taking and there is no personal gain from the position of Trustee.
Clause 7 of the NECPT Constitution deals with conflicts of interest and conflicts of loyalty and is quoted in full below:
Conflicts of interest and conflicts of loyalty
A charity trustee must:
1. Declare the nature and extend of any interest, direct or indirect, which he or she has in a proposed transaction or arrangement with the CIO or in any transaction or arrangement entered into by the CIO which has not previously been declared; and
2. Absent himself or herself from any discussions of the charity trustees in which it is possible that a conflict of interest will arise between his or her duty to act solely in the interests of the CIO and any personal interest (including but not limited to any financial interest). Any charity absenting himself or herself from any discussions in accordance with this clause must not voter or be counted as part of the quorum in any decision of the charity trustees on the matter.
In order to demonstrate openness and accountability Trustees each enter appropriate details.
The Register of Interests maintained by the Secretary to the Board.
Financial policies and controls
– Reserves Policy
On setting the reserves policy the trustees have taken into account guidance from the Charity Commission stating that small charities should consider financial risk for the possibility of unforeseen expenditure.
With this in mind the trustees will set a target minimum unrestricted reserve of £100 for NECPT which has been derived from the need to set aside a reserve for unexpected volunteer expenses.
This will be reviewed on an annual basis to ensure that the minimum reserve is adequate to suit the charity’s needs. Should the level of unrestricted reserve dip below the minimum level a strategy will be set to fundraise to the required level to mitigate against financial risk.
Policy & Procedure for Approving Expenditure & Payment of Suppliers
The following policy and procedures have been put in place based on the current charity size. Should the charity expand significantly the policy will be reviewed to ensure that the procedures are fit for purpose.
Any expenditure above £250 will be reviewed and approved by the board. Any expenditure below this can be reviewed and approved by the treasurer and 2 cheque signatories (of which are board members). All payments are currently paid by cheque and 2 signatories are required. It is the responsibility of the treasurer to ensure that any payments to suppliers are backed by relevant invoices and copies retained as evidence.
Substantial expenditure valued over £1,000 should be put out to competitive tendering with at least 3 quotes obtained and the supplier approved by the board.
Trustees may from time to time need to travel on behalf of the charity. In such cases they will be reimbursed for either mileage (at the set HMRC rate of 45p per mile) or for train fares. Travel of this nature must first be approved by the treasurer to ensure that there are sufficient unrestricted reserves in place.
Governance Policies
The principal references for further study in relation to this advice on NECPT governance are:
Constitution of North East Child Poverty Trust registered by the Charity Commission on 7 April 2015
The Charity Governance Code
Charity Commission Guidance:
The Essential Trustee: what you need to know, what you need to do
Charity Finance: Trustee Essentials
Charities and Risk Management
All Charity Commission documents can be accessed at:
Government UK Website