Gathering evidence of spend

Once your project is underway, you will need to keep evidence of all your project expenditure.

Here’s the information you will need to supply along with the invoice:

1. For salaries, either a copy of the union’s payroll extract and/or copy invoices for those seconded or self-employed. You will need to include for those on the payroll, details of all ‘on-costs’ (i.e. employer’s National Insurance and Pension contributions).
2. A copy of the supplier’s invoice for all purchases of supplies or services. Remember that ULF does not cover VAT!
3. For travel and subsistence claims, where there will be a large number of small transactions, you will need to provide a summary document for each individual, based on reconciliation to your union’s finance system. The detail should be kept and will be subject to audit.

As you might imagine, this can amount to quite large sums of money so good systems will really help you. Part of your contract is that you will keep this information because when you are audited you will need to produce all invoices and receipts.

Remember that your quarterly claims are based on what has actually been spent – not what you’ve ordered.

The 10-Year Rule

In common with most funds, financial records must be kept for long after the work is complete. In the case of ULF, this period is for at least 10 years. One of the other considerations with ULF is therefore where, and how, you will keep this information securely for that length of time.

Again in common with other funds, you need to keep original documentation (including all travel and subsistence receipts) along with details of the method you have used to make calculations, such as if you have apportioned the cost of rent. Make sure everyone knows from the start that you will need this type of evidence – it can take an age to collect it otherwise.

• For Salaries and Purchases – the originals of all documents supplied with invoices
• For Travel & Subsistence – all original supporting documentation to the summary supplied with your invoices, for each individual
• For Office Running Costs or any other ‘apportioned’ charge, the calculation or basis of the apportionment
• An inventory of all capital equipment with a value greater then £2,500 (excluding VAT)
• Quotations for all purchases (all inclusive of VAT):
  1. For all purchases over £500 and up to £2,500 written records of verbal quotes
  2. For all purchases over £2,500 and up to £10,000 - 3 written quotes
  3. For all purchases over £10,000 written tenders from at least 3 suppliers
  4. Where unions have ‘preferred suppliers’ written evidence of the assessment / selection procedure
  5. In those instances where a purchase is not made solely on the basis of lowest price, the reasoning must be included with the quotations

The ULF Finance Officer can provide further help and support in meeting the financial monitoring requirements of ULF.