Organisation: Think Cre8tive Group CIC
Date Adopted: 1 October 2025
Review Date: 1 October 2026
Responsible Officer: Finance Director / Board Treasurer
1. Policy Statement
Think Cre8tive Group CIC is committed to maintaining strong financial management and transparent use of resources. We aim to ensure long-term sustainability and accountability to funders, partners, staff, volunteers, and the communities we serve.
This policy outlines how we manage finances, maintain reserves, and ensure resources are used responsibly in line with our mission.
2. Objectives
- Ensure proper stewardship of funds in compliance with legal and regulatory requirements.
- Provide a clear framework for budgeting, monitoring, and reporting.
- Maintain adequate reserves to protect against financial risk and ensure continuity of services.
- Support long-term growth and stability through responsible financial planning.
3. Scope
This policy applies to:
- All income and expenditure, including grants, donations, trading income, and licensing fees.
- All staff, Directors, volunteers, and external contractors with financial responsibilities.
4. Finance Management Principles
Budgeting
- Annual budgets will be prepared and approved by the Board of Directors.
- Budgets will align with strategic and operational plans.
- Variances will be monitored quarterly and reported to the Board.
Income
- Income will be recorded promptly and accurately.
- Restricted funds will be tracked separately and used only for their designated purpose.
- Fundraising and licensing activities will comply with legal and ethical standards.
Expenditure
- Expenditure will be approved according to delegated authority levels.
- All payments will be supported by invoices or receipts.
- Procurement should consider value for money, sustainability, and ethical practice.
Financial Reporting
- Quarterly management accounts will be prepared for the Board.
- Annual accounts will be prepared in compliance with CIC and charity accounting standards.
- Funders will receive financial reports as per grant agreements.
5. Reserves Policy
Purpose of Reserves
Reserves are held to:
- Protect against unexpected financial shortfalls.
- Provide a buffer for delays in income (e.g. grant payments).
- Support continuity of key services during difficult financial periods.
Target Level of Reserves
- The organisation aims to hold 3–6 months of core operating costs in unrestricted reserves.
- This level will be reviewed annually in line with risk assessments.
Use of Reserves
- Reserves may only be used with Board approval.
- They will not be used to cover recurring deficits but may support restructuring or investment in sustainability.
6. Roles & Responsibilities
- Board of Directors: Overall responsibility for financial stewardship and approving reserves levels.
- Finance Director/Treasurer: Oversight of financial management, reporting, and compliance.
- CEO: Day-to-day financial oversight and responsibility for implementing policy.
- Staff/Volunteers: Compliance with financial procedures.
7. Monitoring & Review
- This policy will be reviewed annually by the Board.
- Levels of reserves will be reassessed each year to ensure they remain appropriate.
- Any significant risks or changes in funding will trigger an interim review.