Restricted Funds Policy

Purpose

This policy sets out how Towerblock Radio CIC manages restricted funds, ensuring that they are used only for the purposes specified by the funder and are properly tracked and reported.

Scope

This policy applies to all restricted funds received by Towerblock Radio CIC, including grant funding, designated donations and ring-fenced project income.

Definitions

• Restricted funds means funds that must be used only for the purpose specified by the funder or donor.
• Designated funds means funds set aside by the board for a specific purpose (these are unrestricted but designated).
• Unrestricted funds means funds that can be used for general purposes.

Responsibilities

The board ensures restricted funds are managed correctly. The Finance Lead tracks restricted funds. Project leads deliver restricted fund activity.

Policy Statement

Towerblock Radio CIC manages restricted funds with integrity and transparency, ensuring they are used only for the agreed purpose, tracked separately, and reported accurately to funders.

Detailed Procedures

Identification

• Restricted funds are identified at the point of acceptance.
• The restriction is documented in the grant agreement or donation record.
• Restricted funds are recorded separately in the financial system.

Use

• Restricted funds must only be used for the purpose specified by the funder.
• Any proposed variation must be approved by the funder in writing before the expenditure.
• Restricted funds must not be used to cover general organisational costs unless the funder has agreed to full cost recovery.

Tracking

• Restricted funds are tracked separately from unrestricted funds.
• Income and expenditure are recorded against the specific fund or project.
• The Finance Lead reports on restricted fund balances at each board meeting.

Reporting

• Reports to funders must include accurate financial information about restricted funds.
• Reports must be submitted by agreed deadlines.
• Any unspent restricted funds must be returned to the funder unless otherwise agreed.

Designated funds

• The board may designate unrestricted funds for a specific purpose.
• Designated funds are tracked separately but remain unrestricted.
• Designations can be changed by board resolution.

Audit

• Restricted funds are included in the annual accounts.
• Restricted funds may be subject to funder audit.

Reporting Process

The Finance Lead reports on restricted funds at each board meeting. The board reviews restricted fund management annually.

Compliance Requirements

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

Monitoring

The Finance Lead monitors restricted fund income and expenditure monthly.

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

• Grant Management Policy
• Finance Controls Policy
• Funding Acceptance Policy
• Reserves Policy

Website URL slug

/policies/restricted-funds-policy

Meta Title

Restricted Funds Policy | Towerblock Radio

Meta Description

Towerblock Radio CIC's restricted funds policy covering identification, use, tracking, reporting, designated funds and audit of funds restricted to specific purposes by funders.

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Funding

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restricted funds, designated funds, funder requirements, grant management, financial tracking, CIC finance