[Committee] VAT bites again

Fri Nov 4 21:32:54 CET 2011

Hi All

Thinking the pizza VAT receipt was an annoying, well you've seen nothing
yet.

Got an email back from the union about the weekend away, basically we need
lots of prayer and ideas. Lambourne end is not VAT registered, so we can't
claim the VAT back from the weekend away, however the ticket sales will be
taxed, so we loose out big time. The finance guy (Michael Foster) says
we'll have to raise prices to £52 to offset the loss. We can't just say
we'll lose out, he has to authorize the budget before we can pay Lambourne
End, so we have to do something.

To answer Tom's long email, we have 27 people signed up, we really need to
get 45 to break even!

Sorry for not thinking about this sooner.

Andy

---------- Forwarded message ----------
From: Michael Foster - ICU Deputy President (Finance & Services) <
dpfs at imperial.ac.uk>
Date: 4 November 2011 17:35
Subject: Re: [ICU-Club-Chairs] Financial Procedures
To: "Jack, Andrew" <andrew.jack09 at imperial.ac.uk>

 Hi Andrew,

 Thanks for sending this to me. I have a couple of comments.

 Firstly, if the venue is not VAT registered, then you can set the VAT as
zero-rated. However, as there is no VAT to reclaim, this will really hit
your bottom line. You will still need to pay VAT on your ticket income,
meaning you will actually end up making a loss of about £250 on this trip.
I would suggesting raising the ticket price to at least £52 – that is the
minimum price at which you don't make a loss.

 Secondly, in order for this invoice to be paid, it will need to have one
of our purchase order numbers on it. You will need to raise a purchase
order on eActivities and send it to Lambourne End for them to put it on
their invoice. However, you'll need to have your budget approved before the
purchase order can go through.

 Yours,

   **
*

  Michael Foster
Deputy President (Finance & Services)

Imperial College Union
Beit Quadrangle
Prince Consort Road
London SW7 2BB

t:   +44 (0) 20 7594 8060
m: +44 (0) 7746 816 705
e:  dpfs at imperial.ac.uk
w: imperialcollegeunion.org

*

  From: Andrew Jack <andrew.jack09 at imperial.ac.uk>
Date: Wed, 2 Nov 2011 14:09:35 +0000
To: "Michael Foster - ICU Deputy President (Finance & Services)" <
dpfs at imperial.ac.uk>
Subject: Re: [ICU-Club-Chairs] Financial Procedures

 Hi Michael Foster

 We (SCC Christian Union) have organised a weekend away for the weekend
after next (11-13 November). We are not going to place it in the online
Union shop, as people many will pay on the weekend its self. However, after
reading your email, I want to make sure that this is above board, so I have
completed the Excel document based on the budget I created. I am not sure
what to put in the Inc/Ex Vat column as the venue is not VAT registered.
They are a registered charity, no 1105063 and Company No 05067695. I have
attached their invoice as well.

 I appoligse if this is something I should have done earlier.

 Regards,

 Andrew Jack

On 2 November 2011 12:23, Michael Foster - ICU Deputy President (Finance &
Services) <dpfs at imperial.ac.uk> wrote:

>  Dear all,
>
>  Now that we've got through the first month of the new year, you will all
> be starting to ramp up your club's activities. Before you do though, there
> are a few thing you need to bear in mind:
>
>  *Points of Contact*
>
>  Your first point of contact for financial queries should, in all cases,
> be your *Management Group Treasurer*. Only if they are unable to answer
> your query should you come to me. *At no point* should Aziz be your first
> point of contact – you should only approach him under certain
> circumstances, as detailed below.
>
>  *Aziz's Hours*
>
>  Aziz is now working under a strict 'office hours' schedule. *His hours
> are 12.00 to 14.00 and 16.00 to 18.00*, *by appointment*, and *only for
> Management Group Chairs and Treasurers*. As club officers, your first
> point of contact should always be your Management Group, and then me. Only
> once you have gone through us can you approach Aziz. You will hopefully all
> understand that having to administer for 300 clubs can be a big work load,
> and this system ensures that the proper contact procedures are followed.
>
>  *Pro-forma Invoices*
>
>  Although we would like you to try and get credit from your suppliers
> whenever possible, we appreciate that sometimes this is not feasible – some
> companies will require payment before delivery/supply. If this is the case,
> they will provide you with a *pro-forma invoice*. This invoice should be
> placed in *Aziz's in-tray in the Student Activities Centre*. Please
> ensure that all the correct details are on the invoice, including Imperial
> College Union's address and the payment instructions. Once submitted, *you
> should allow one week until the invoice is paid*.
>
>  *Receipts without Claim Numbers*
>
>  Please remember, *every* receipt submitted through the online claims
> system must have the *unique claim number *written on it* by hand*. This
> is an essential step to prevent people fraudulently claiming twice with the
> same receipt. If this continues, we will very seriously consider *freezing
> the budgets of clubs* that repeatedly break this rule, and of *removing
> the ability of offending club members to make claims*. Regardless of the
> size of the claim, every receipt must have this number written on it.
>
>  *Claims for External Club Members*
>
>  The online claims system is only to be used for personal claims – *you
> should never be claiming money on behalf of somebody else*, either by
> entering their bank details or by transferring the money to them later. Any
> claims that your members make for other people will be rejected. If a
> member of your club is not a full Union member, and therefore does not have
> access to eActivities, *there is a separate process to reimburse them* for
> any expenditure they have made on behalf of the club. For details of this
> procedure, contact me.
>
>  *Contracts*
>
>  I have recently seen a good number of contracts made with external
> companies that have not been approved by me. *Any contract you make with
> an external company*, whether it is for sponsorship, venue hire or
> otherwise, must come through me before it is valid. *Contracts without my
> stamp and signature are not enforceable* and not worth the paper they're
> written on.
>
>  *Donations*
>
>  Some of you have approached me, concerned that money you bank that has
> been collected as a donation is having VAT deducted. In order for this not
> to happen, you will need to provide *a written statement* from the donor,
> stating *who* has donated it, *what* the donation is for, and that *nothing
> is expected in return*. If your club wishes to collect donations using
> the online shop, you may do this as long as you have a disclaimer in the
> product description. This could read: 'By purchasing this product, you are
> making a donation to [club] in order to support their activities for the
> year 2011/12. You also confirm that you expect nothing in return for this
> donation.'
>
>  *Internal Charging and Transfers*
>
>  These processes will be going online sometime this month, depending on
> our testing. Although they were previously covered by one form, there will
> now be two separate systems – one for *charging other clubs* for the
> services you provide, and another for *moving money around* in your own
> account.
>
>  *Event Budgets*
>
>  Whenever your club submits a product to the online shop for a trip or
> event, it needs to be approved by me before it goes live. In order for me
> to approve it, *I will need to see an event budget*. This ensures that
> your event is properly planned, and allows a certain degree of oversight on
> my part to ensure that big events are responsibly and sustainably run. You
> can find the event budget template at
> http://www.imperialcollegeunion.org/data/files/event-budget-template-1112-862.xlsx
> .
>
>  Yours,
>
>    **
> *
>
>   Michael Foster
> Deputy President (Finance & Services)
>
> Imperial College Union
> Beit Quadrangle
> Prince Consort Road
> London SW7 2BB
>
> t:   +44 (0) 20 7594 8060
> m: +44 (0) 7746 816 705
> e:  dpfs at imperial.ac.uk
> w: imperialcollegeunion.org
>  *
>
> _______________________________________________
> ICU-Club-Chairs mailing list
> ICU-Club-Chairs at imperial.ac.uk
> https://mailman.ic.ac.uk/mailman/listinfo/icu-club-chairs
>
>
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