This page will help you prepare for your Community Asset Transfer CAT application, by looking at your organisation’s finances.
Where you are now?
- Do you have someone appointed to look after your finances?
- Does your group have a bank account with appropriate signatories?
- Do you have a reserves policy, are you complying with it and what does it cover?
- Do you have someone with the ability to apply for grant funding (if necessary)?
- Have you got money that is ‘ring fenced’ by grant conditions? In other words, can it only be used for a specific purpose, from a grant provider?
- Do you need to review your financial procedures? Or if your organisation is new how will you set these up?
- How will the committee/board be regularly informed of the financial situation of the organisation and are there controls in place to monitor income and expenditure?
- Would your procedures allow you to take on a large scale project, for example, building an extension and keeping within budget?
Planning finances for the future
As part of your CAT application you will need to do a financial projection for the next five years; three years in detail, two years outline.
Have you considered what the financial needs of this project are? These can include:
- Information about the running costs
- Your plans to cover administration costs
- An affordable pricing structure for hirers
- On-going maintenance or replacement plan, for example, redecoration of building, replacement of kitchen, replacement roof, electrical wiring, boiler maintenance or replacement
- How will you build up sufficient reserves to sustain the asset?
- Are you planning applications to other bodies for capital to extend or improve the asset?
- Have you got experts to help you get accurate costing, so you can start to predict future expenditure/commitments?
- Have you built in contingencies in your financial plans to deal with emergencies?
- The CAT application includes a finance template that you will need to complete