Internal Controls Policy

Purpose

This policy sets out the internal controls framework that ensures Towerblock Radio CIC's financial and operational activities are conducted properly, accurately and in compliance with policies and regulations.

Scope

This policy applies to all financial transactions, operational decisions and administrative processes within Towerblock Radio CIC.

Definitions

• Internal controls means the processes, checks and procedures designed to ensure accuracy, prevent fraud and ensure compliance.
• Segregation of duties means dividing responsibilities so that no single person controls all aspects of a transaction.
• Reconciliation means comparing records to identify and resolve discrepancies.

Responsibilities

The board is responsible for the internal controls framework. The Finance Lead implements and monitors controls. All staff and volunteers follow control procedures.

Policy Statement

Towerblock Radio CIC maintains a robust system of internal controls that ensures financial accuracy, prevents fraud, protects assets and supports compliance with legal and funder requirements.

Detailed Procedures

Financial controls

• Segregation of duties: the person who authorises payments is not the person who processes them. The person who reconciles bank statements is not the person who makes payments.
• Dual authorisation: all bank payments require two authorised signatories.
• Bank reconciliation: bank statements are reconciled to financial records monthly by a person not involved in payments.
• Expense review: expense claims are reviewed against the Expenses Policy before payment.
• Invoice matching: supplier payments are matched to purchase orders, invoices and delivery confirmation.

Operational controls

• Access control: system access is granted on a need-to-know basis and reviewed quarterly.
• Record keeping: all transactions are documented with supporting evidence.
• Review and approval: key decisions are reviewed and approved at the appropriate level per the Delegated Authority Policy.

Monitoring controls

• Monthly review: the Finance Lead reviews monthly financial reports for unusual transactions.
• Budget variance analysis: actual income and expenditure are compared to budget monthly.
• Audit trail: all financial transactions have a complete audit trail from initiation to payment.
• Independent review: an annual independent review or audit of accounts is conducted.

Reporting Process

The Finance Lead reports on internal controls at each board meeting, including any control failures or weaknesses.

Compliance Requirements

• Companies Act 2006.
• Community Interest Company Regulations 2005.
• Charity Governance Code (best practice).

Monitoring

Internal controls are reviewed at each board meeting. An annual controls review is conducted.

Review Cycle

This policy shall be reviewed annually.

Version Number

Version 1.0

Approval Section

Approved by: Towerblock Radio CIC Board Date: July 2026 Next review: July 2027

Related Policies

• Finance Controls Policy
• Financial Delegation Matrix
• Fraud Prevention Policy
• Procurement Policy

Website URL slug

/policies/internal-controls-policy

Meta Title

Internal Controls Policy | Towerblock Radio

Meta Description

Towerblock Radio CIC's internal controls policy covering segregation of duties, dual authorisation, bank reconciliation, operational controls and compliance monitoring.

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Governance

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