Controls and processes
It is very important to ensure that an event's financial controls and processes are established early and ingrained into the organising team. Controls and processes enable event organisers to be proactive with managing their finances.
Controls and separation of duties
As a matter of best practice all financial transactions within an event should have tight controls and processes in place.
There must be an appropriate separation of duties within the finance team and other staff involved with cash and financial dealings. For example a single employee should not be able to sign off an invoice, set up a payment and then process that payment.
Examples of some of the controls that should be put in place include:
- Two signatories on cheques/payment runs/online payments
- Two authorisers of investments
- Where an event has a large cash surplus it is prudent to split investments between two or more banks
- The person raising a payment should never be the person to sign it off
- There should be a clear expense claim process
- Expense claims should always be signed off by the direct manager.
Policies and procedures (before and during the event)
To be effective policies need to be clear and concise.
Examples of some activities that may require a policy include:
- Corporate hosting
- Supplier payments
- Expense claims
- Credit cards
- Travel, accommodation and meals (if employees are required to travel).
Delegations / Financial roles and responsibilities
It is important to clearly define each employees delegated authority limits and responsibilities. The delegations should include areas such as:
- Spending limits
- Executing contracts
- Signing off invoices
- Capex purchases.
These limits are likely to vary depending upon the seniority of the employee.