Finance & Operations Policy

1. Overview and Scope

This policy applies to all ASAT Labs financial transactions, procurement activities, asset management, and travel expenses. It ensures transparent, accountable, and efficient use of organizational resources.

Establish clear financial management and accountability standards
Ensure transparent and competitive procurement processes
Maintain comprehensive asset and inventory management
Provide clear guidelines for travel and expense reimbursements
Ensure compliance with legal, regulatory, and donor requirements

Authority: This policy is approved by the Board of Trustees and implemented by the Executive Leadership Team.

2. Financial Management Framework

Stewardship ASAT Labs is committed to responsible stewardship of all financial resources through transparent and accountable management practices.

Financial Principles

Accountability: Clear responsibility and oversight for all financial decisions
Transparency: Open and accessible financial reporting to stakeholders
Efficiency: Optimal use of resources to maximize mission impact
Compliance: Adherence to legal, regulatory, and donor requirements
Sustainability: Long-term financial health and viability

Financial Controls

Segregation of duties in financial processes
Dual authorization for significant expenditures
Regular reconciliation and review procedures
Independent audit and oversight mechanisms
Comprehensive documentation and record keeping

3. Budgeting Process

Annual budgeting ensures strategic allocation of resources aligned with organizational priorities and mission objectives.

Budget Development Cycle

Strategic Planning: Align budget with strategic objectives and priorities
Department Submissions: Detailed budget requests from all departments
Review and Analysis: Finance team evaluation and consolidation
Leadership Review: Executive team review and adjustments
Board Approval: Final budget approval by Board of Trustees
Implementation: Budget rollout and communication to departments

Budget Categories

Personnel Costs: Salaries, benefits, and contractor fees
Program Expenses: Direct costs for educational programs and activities
Operations: Facilities, utilities, insurance, and administrative costs
Technology: IT infrastructure, software licenses, and equipment
Capital Expenditure: Major equipment and facility improvements
Contingency: Reserve funds for unforeseen circumstances

Budget Monitoring

Monthly budget vs. actual reporting
Quarterly budget reviews and forecasting
Variance analysis and corrective actions
Budget amendments for significant changes

4. Financial Approval Authority

Clear approval limits ensure appropriate oversight while enabling efficient operations.

Approval Authority Levels

Department Heads: Routine operational expenses within approved budgets
Finance Director: Moderate value transactions and budget adjustments
Executive Director: Significant expenditures and strategic investments
Board Chair: Major financial commitments requiring board oversight
Board of Trustees: Ultimate authority for all financial decisions

Approval Requirements

Dual Authorization: Significant transactions require two signatures
Budget Alignment: All expenditures must have approved budget allocation
Documentation: Proper justification and supporting documents required
Emergency Procedures: Expedited approval process for urgent requirements

Important: Exceeding approval authority without proper authorization may result in disciplinary action and personal liability for unauthorized expenditures.

5. Financial Reporting

Comprehensive financial reporting ensures transparency and enables informed decision-making by stakeholders.

Regular Reports

Monthly Management Accounts: Budget vs. actual, cash flow, key metrics
Quarterly Board Reports: Financial position, performance, and forecasts
Annual Financial Statements: Audited accounts and annual report
Grant and Donor Reports: Specific reporting for funded projects

Key Performance Indicators

Program expense ratio (maximize direct program spending)
Administrative cost ratio (minimize overhead costs)
Fundraising efficiency ratio (optimize fundraising return on investment)
Cash reserves (maintain adequate reserves for operational stability)
Revenue diversification across funding sources

Reporting Standards

Compliance with UK accounting standards (FRS 102)
Charity Commission reporting requirements
Donor and grant-specific reporting formats
Regular management reporting for operational decisions

6. Accountability Framework

Roles and Responsibilities

Board of Trustees: Overall financial oversight and governance
Audit Committee: Independent review of financial controls and reporting
Executive Director: Strategic financial management and leadership
Finance Director: Day-to-day financial management and compliance
Department Heads: Budget management within approved allocations
All Staff: Responsible use of organizational resources

Internal Controls

Monthly bank reconciliations and cash management
Segregation of duties in financial processes
Regular review of financial procedures and controls
Annual risk assessment and mitigation planning
Whistleblowing procedures for financial concerns

Best Practice: We maintain adequate financial reserves to ensure organizational sustainability and resilience during challenging periods.

7. Procurement Policy

Transparency All procurement activities follow transparent, competitive, and fair processes to ensure value for money and ethical practices.

Procurement Principles

Value for Money: Best combination of quality, price, and service
Transparency: Open and fair procurement processes
Competition: Competitive tendering where appropriate
Integrity: Ethical conduct and conflict of interest management
Sustainability: Environmental and social responsibility considerations

Procurement Approach

Low Value Purchases: Single quote with best judgment and budget approval
Moderate Value Purchases: Multiple written quotes for comparison
Significant Purchases: Comprehensive quote analysis and senior approval
Major Procurements: Formal tender process with structured evaluation
Strategic Investments: Full tender process with board oversight

Procurement Process

Needs Assessment: Clear specification of requirements
Market Research: Identify potential suppliers and options
Quotation/Tender: Obtain quotes according to threshold requirements
Evaluation: Assess quotes against criteria (price, quality, service)
Award Decision: Select supplier and document rationale
Contract Management: Monitor performance and delivery

8. Vendor Selection Process

Vendor Evaluation Criteria

Technical Capability: Ability to meet specifications and requirements
Financial Stability: Evidence of financial health and sustainability
Experience and References: Track record in similar projects
Quality Standards: Certifications and quality management systems
Price Competitiveness: Value for money assessment
Ethical Standards: Compliance with our values and code of conduct

Vendor Registration

Maintain approved vendor database with key information
Annual review of vendor performance and compliance
Due diligence checks for significant new vendors
Conflict of interest declarations from procurement staff

Preferred Suppliers

Framework agreements for frequently purchased items
Educational and charity sector specialists
Local suppliers to support community development
Sustainable and ethical suppliers aligned with our values

9. Quotation and Tendering Process

Quotation Requirements

Written Quotes: All quotes must be in writing (email acceptable)
Specification Clarity: Clear and detailed requirements specification
Comparable Basis: Ensure quotes are for identical requirements
Validity Period: Minimum 30 days validity for quote acceptance
Terms and Conditions: Clear delivery, payment, and warranty terms

Tender Documentation

Invitation to tender with clear instructions
Detailed specification and requirements
Evaluation criteria and scoring methodology
Terms and conditions of contract
Submission deadline and format requirements

Evaluation Process

Evaluation Panel: Minimum two people for tenders over £10,000
Scoring Matrix: Weighted criteria for objective assessment
Documentation: Record evaluation rationale and decisions
Due Diligence: Reference checks and financial verification

Emergency Procurement: In exceptional circumstances, normal procurement procedures may be waived with senior leadership approval and subsequent reporting to the Board.

10. Procurement Approvals

Approval Workflow

Requisition: Purchase request with business justification
Budget Check: Verify budget availability and allocation
Procurement Process: Follow appropriate quotation/tender procedure
Evaluation: Assess options and recommend preferred supplier
Approval: Obtain required authorization based on value
Purchase Order: Issue formal purchase order to supplier
Receipt and Payment: Verify delivery and authorize payment

Contract Management

Contract Register: Maintain record of all active contracts
Performance Monitoring: Regular review of supplier performance
Contract Renewals: Timely review and renewal processes
Dispute Resolution: Clear procedures for handling disputes

Special Procurement Categories

Professional Services: Additional qualification and reference checks
IT Equipment: Security and compatibility requirements
Educational Materials: Curriculum alignment and age appropriateness
Facilities and Maintenance: Health and safety compliance

11. Asset & Inventory Management

Asset Control Comprehensive tracking and management of all organizational assets to ensure security, maintenance, and optimal utilization.

Asset Management Principles

Complete Recording: All significant assets recorded in comprehensive register
Regular Tracking: Periodic verification of asset location and condition
Proper Maintenance: Scheduled maintenance to extend asset life
Security: Appropriate security measures for valuable assets
Disposal Controls: Proper authorization and documentation for disposals

Asset Register Requirements

Unique asset identification number
Description, make, model, and serial number
Purchase date, supplier, and acquisition details
Current location and responsible person
Warranty information and maintenance schedule
Insurance coverage and depreciation details

Asset Verification

Annual Stocktake: Complete verification of all recorded assets
Quarterly Spot Checks: Random verification of high-value items
Location Updates: Prompt recording of asset movements
Condition Assessment: Regular evaluation of asset condition

12. Asset Categories and Management

IT Equipment

Laptops and Computers: Individual assignment with usage agreements
Tablets and Mobile Devices: Secure configuration and remote management
Network Equipment: Professional installation and maintenance
Software Licenses: Compliance tracking and renewal management
Data Security: Encryption, backup, and access controls

Educational Equipment

Robotics Kits: Component tracking and maintenance schedules
STEM Tools: Age-appropriate assignment and safety protocols
Laboratory Equipment: Calibration and safety compliance
Workshop Tools: Safety training and usage monitoring
Audio-Visual Equipment: Professional setup and maintenance

Furniture and Fixtures

Office furniture and classroom equipment
Specialized educational furniture and storage
Safety equipment and emergency supplies
Recreational and sports equipment

Asset Allocation

Personal Assignment: Individual responsibility for assigned assets
Department Allocation: Departmental custody and accountability
Shared Resources: Booking systems for shared equipment
Loan Agreements: Formal agreements for temporary assignments

13. Asset Tracking and Maintenance

Tracking Systems

Asset Tags: Unique identification labels on all assets
Digital Register: Comprehensive database with search capabilities
Location Tracking: Real-time location updates and movements
Mobile Access: Field verification via mobile applications

Maintenance Procedures

Preventive Maintenance: Scheduled maintenance based on manufacturer recommendations
Repair Management: Prompt repair of damaged or faulty equipment
Warranty Tracking: Monitor warranty periods and claim procedures
Service Records: Complete documentation of all maintenance activities

Asset Disposal

Disposal Authorization: Proper approval for asset disposal
Data Security: Secure data wiping for IT equipment
Environmental Compliance: Proper disposal of electronic waste
Disposal Documentation: Record disposal method and certification

Innovation: We use QR codes and mobile apps for efficient asset tracking and real-time inventory management.

14. Travel & Expense Policy

Travel Guidelines Clear guidelines for business travel and expense reimbursement to ensure cost-effective and accountable travel arrangements.

Travel Authorization

Pre-approval Required: All business travel must be pre-approved
Business Justification: Clear business purpose and expected outcomes
Cost Comparison: Comparison of travel options and costs
Budget Allocation: Confirmed budget availability for travel expenses

Travel Standards

Economy Class: Standard class for all flights under 6 hours
Advance Booking: Minimum 14 days advance booking for best rates
Reasonable Accommodation: Mid-range hotels with business facilities
Ground Transport: Most cost-effective option (public transport preferred)

Travel Booking

Use of approved travel agents or booking platforms
Corporate rates and discounts where available
Travel insurance coverage for all business trips
Emergency contact information and itinerary sharing

15. Travel Allowances and Per Diem

Daily Allowances (Per Diem)

Domestic Travel: Reasonable daily allowances for meals and incidentals
High-Cost Areas: Enhanced allowances for expensive locations
European Travel: Competitive rates aligned with EU standards
International Travel: Appropriate allowances for global destinations
Accommodation: Mid-range business hotels within reasonable limits
Documentation: Receipts required for significant expenses

Reimbursable Expenses

Transportation: Flights, trains, buses, taxis (with receipts)
Accommodation: Hotel rooms within approved limits
Meals: Business meals and per diem allowances
Communications: Business calls and internet access
Conference Fees: Registration and material costs
Parking and Tolls: Necessary travel-related fees

Non-Reimbursable Expenses

Personal entertainment and leisure activities
Alcohol unless part of business entertainment
Personal shopping and souvenirs
Fines and penalties (parking, speeding, etc.)
Personal insurance and medical expenses
Expenses for family members or personal guests

16. Expense Claims Process

Expense Submission Requirements

Timely Submission: Submit within reasonable timeframe of expense incurrence
Original Receipts: Required for all significant expenses
Business Purpose: Clear description of business justification
Accurate Records: Complete and accurate expense details
Approval: Manager approval before submission to finance

Expense Categories

Travel and Transport: All travel-related expenses
Accommodation: Hotel and lodging expenses
Meals and Entertainment: Business meals and hospitality
Office Expenses: Stationery, printing, and supplies
Professional Development: Training and conference expenses
Communications: Phone, internet, and postal expenses

Approval and Payment

Manager Review: Line manager approval for compliance
Finance Verification: Finance team review for accuracy
Payment Processing: Timely payment following approval
Query Resolution: Prompt resolution of any queries

Digital Receipts: Electronic receipts and mobile expense apps are acceptable for submission and processing.

17. Audit and Compliance

Internal Audit

Regular Reviews: Periodic audit of financial processes and controls
Risk Assessment: Annual risk assessment and mitigation planning
Process Improvement: Recommendations for enhanced controls
Compliance Monitoring: Ongoing monitoring of policy adherence

External Audit

Annual independent audit of financial statements
Compliance with charity and regulatory requirements
Management letter recommendations and responses
Board oversight of audit process and outcomes

Compliance Framework

Legal Compliance: UK charity law and company regulations
Regulatory Compliance: Charity Commission requirements
Donor Compliance: Grant terms and donor restrictions
Tax Compliance: VAT, PAYE, and corporation tax obligations

Record Keeping

Long-term retention of financial records as required by law
Secure storage of sensitive financial information
Regular backup of digital financial records
Access controls for confidential financial data

18. Contact Information

Finance Director: finance@asatlabs.org

Procurement Team: procurement@asatlabs.org

Asset Management: assets@asatlabs.org

Travel & Expenses: expenses@asatlabs.org

Accounts Payable: payables@asatlabs.org

Budget Queries: budget@asatlabs.org

Audit Committee: audit@asatlabs.org

Emergency Finance Contact: Available 24/7 for urgent financial matters