The purpose of this Finance Policy is to define clear guidelines for the sound and transparent management of the organization’s financial resources. It aims to ensure accurate record-keeping, responsible fund utilization, regulatory compliance, and overall financial integrity.
This policy applies to all financial operations, including budgeting, accounting, reporting, auditing, and fund management activities. It extends to all employees, volunteers, consultants, and stakeholders engaged in financial processes on behalf of the organization.
- Transparency: All financial activities will be accurately recorded, openly reported, and clearly disclosed.
- Accountability: Individuals with financial responsibilities are accountable for the proper use and reporting of funds.
- Compliance: All financial activities will adhere to applicable laws, regulations, and accounting standards.
- Efficiency: Financial resources will be managed effectively to advance the organization’s mission and objectives.
4. Financial Management Responsibilities
4.1 Board of Directors/Trustees
- Approves the annual budget.
- Reviews quarterly financial reports.
- Monitors financial controls and compliance.
- Provides direction on financial planning and risk mitigation.
- Reviews and endorses major financial decisions.
4.3 Chief Financial Officer (CFO) / Finance Manager
- Oversees daily financial operations.
- Ensures the accuracy and maintenance of financial records.
- Prepares financial statements, budgets, and audit reports.
4.4 Project Managers / Department Heads
- Manage project-specific budgets in line with approved allocations.
- Ensure proper utilization of funds in accordance with policy guidelines.
- Conducts the annual external audit.
- Verifies compliance with accounting standards, laws, and best practices.
5. Budgeting and Financial Planning
An annual budget outlining estimated income and expenditures shall be prepared and approved by the Board prior to the start of each fiscal year.
Any revisions to the approved budget must be reviewed and endorsed by the Finance Committee and the Board.
A minimum reserve level shall be maintained to cover unforeseen contingencies or emergencies. The Board will review this level annually.
5.4 Project and Program Budgets
Each program or project must have an approved budget before implementation. Expenditures will be monitored regularly against these budgets.
Income may include grants, donations, fundraising proceeds, government aid, and other lawful sources.
Donations will be accepted only from sources aligned with the organization’s values and mission. Contributions that conflict with these principles may be declined.
All grants will be documented, and compliance with donor conditions will be strictly maintained. Required financial reports will be submitted as per grant agreements.
All organizational funds will be deposited into designated bank accounts in the organization’s name.
Surplus funds will be invested prudently to preserve capital and generate appropriate returns. Investment decisions require Board approval.
All expenditures must follow the established delegation of authority and approval procedures to ensure accountability.
A petty cash fund may be maintained for minor operational expenses. Records must be kept and reconciled monthly.
All expenses must be supported by valid documentation (receipts, invoices, etc.) and submitted for approval according to internal protocols.
No single individual shall have complete control over any financial transaction. Duties will be divided to minimize the risk of errors or fraud.
Transactions will require approvals at multiple levels, based on value thresholds, to maintain checks and balances.
The finance department will conduct regular internal audits to monitor compliance. Findings will be reviewed by the Finance Committee and Board.
An independent external audit will be conducted annually, and the resulting report will be shared with relevant stakeholders and regulators.
9. Reporting and Documentation
Quarterly and annual reports, including balance sheets, income statements, and cash flow statements, will be prepared and presented to the Board.
Reports detailing fund utilization will be shared with donors in accordance with specific reporting requirements.
All financial records—including receipts, invoices, and contracts—will be securely stored and made available during audits or official reviews.
Potential financial risks such as mismanagement, fraud, or market instability will be identified and addressed through proactive mitigation measures.
Strict internal controls, regular audits, and effective reporting systems will be maintained. Any suspected fraud must be reported immediately to the Finance Committee and the Board.
11. Compliance and Legal Obligations
The organization will comply with all relevant tax, labor, and financial regulations, ensuring timely submission of required filings and reports.
All necessary steps will be taken to maintain the organization’s tax-exempt and non-profit status, including adherence to legal and regulatory obligations.
This policy will be reviewed annually by the Finance Committee to ensure its effectiveness and relevance. Any amendments must be approved by the Board of Directors prior to implementation.
Through strict adherence to this Finance Policy, The HEAL Foundation demonstrates its unwavering commitment to ethical, transparent, and responsible financial management.