1. Introduction

Runners Media CIC is committed to managing restricted funds with full integrity, transparency, and in accordance with funders’ terms. Restricted funds are grants, donations, or sponsorships received for a specific purpose, project, or activity. This policy outlines how we record, manage, monitor, and report restricted funds to ensure they are used exactly as intended.

---

2. Definition of Restricted Funds

Restricted funds are financial resources provided to Runners Media CIC with clear conditions attached—usually for a particular project, outcome, timeframe, or geographic area. These conditions are usually outlined by:

• Funding agreements or contracts
• Grant award letters
• Donor instructions
• Partner Memoranda of Understanding (MoUs)

Such funds cannot be used for general operating costs or other purposes unless explicitly authorised by the funder.

3. Principles of Restricted Fund Management

We follow these key principles:

• Transparency – Clear records of fund sources, conditions, and usage.
• Accountability – Funds are only spent on agreed activities.
• Compliance – Full adherence to funding agreements and reporting standards.
• Segregation – Restricted funds are tracked separately from unrestricted income.
• Ethical Use – All spending reflects the values and mission of Runners Media CIC.

---

4. Allocation and Tracking

• All restricted funds are recorded in our accounts under a dedicated fund code or project line.
• Budgets are prepared in advance and linked directly to the activities outlined in the funding agreement.
• Spending is monitored against this budget and reviewed regularly by the Directors.
• Surplus restricted funds are not transferred into general reserves unless approved by the funder and documented in writing.

5. Use of Restricted Funds

Restricted funds may be used for:

• Delivering agreed project activities.
• Covering direct costs outlined in the funder’s budget (e.g. staffing, equipment, venue hire).
• Project-specific evaluation, promotion, or community engagement.
• Reporting and audit costs (if included in the original grant terms).

They may not be used for:

• Unrelated operational costs.
• Staff bonuses or personal benefits.
• Other projects not outlined in the original proposal.

---

6. Reporting and Compliance

• Submitting timely and accurate progress and financial reports to funders.
• Maintaining clear and auditable financial records for every restricted grant.
• Informing funders immediately of any risks, changes, or underspend.
• Returning any unspent or misallocated restricted funds if required.

7. Roles and Responsibilities

• Directors: Ensure restricted funds are used and reported responsibly.
• Finance Lead or Treasurer: Maintains clear financial tracking and prepares reports.
• Project Leads: Ensure delivery aligns with project objectives and agreed budget.

---

8. Fund Closure and Surplus Handling

• Upon project completion, any remaining restricted funds will be handled according to the funding agreement.
• If allowed, small surpluses may be reallocated to similar activities, but only with written permission from the funder.
• All documentation related to closure and reporting will be retained for at least six years.