Bank mandate

Financial controls exist on paper in a policy and in reality in the bank mandate. When the two differ, the mandate wins.

The mandate sets who can authorise payments, whether two signatures are required, and up to what value. Keeping it current when trustees change is a recurring task that charities routinely forget, sometimes leaving former trustees with live access.

Review the mandate whenever the board changes, and align it with your authorisation limits — see setting authorisation limits. Dual authorisation only protects you if the bank is actually enforcing it.