SSSF-NGO Financial Management Policy

1. Purpose

The purpose of this financial policy is to provide a clear framework for the financial management of SSSF-NGO. This policy is designed to ensure financial integrity, transparency, accountability, and the responsible use of all funds in line with the organization's mission and legal obligations.

2. Scope

This policy applies to all staff, volunteers, board members, and any other individuals acting on behalf of SSSF-NGO who are involved in financial transactions or have access to the organization's financial information.

3. Key Principles

Transparency: All financial transactions will be recorded accurately and made available for review by authorized personnel and external auditors.
Accountability: All individuals are accountable for the proper handling of the organization's funds and assets.
Compliance: The organization will comply with all local, state, and federal laws and regulations governing non-profit organizations.
Segregation of Duties: Financial duties will be segregated to ensure that no single person has control over all phases of a financial transaction (e.g., authorization, execution, recording).

4. Financial Management and Budgeting

An annual budget will be prepared by the management team and approved by the Board of Directors.
The budget will serve as the primary tool for financial planning and control.
All spending must be within the approved budget. Any significant deviation or unbudgeted expenditure must be approved by the Board of Directors.
The budget's implementation will be monitored monthly or quarterly, with reports submitted to the Board.

5. Cash and Bank Management

All funds received by the NGO will be deposited into a designated bank account within a reasonable timeframe, not to exceed two business days.
Cash transactions will be kept to a minimum. All cash receipts must be immediately recorded and secured.
All bank accounts will require at least two authorized signatories for withdrawals and transfers.
Bank statements will be reconciled with the accounting records on a monthly basis.

6. Expenditure and Procurement

All expenditures must be for the purposes of the NGO's mission and must be properly authorized.
Approval Limits:
- Expenditures up to [$500] can be approved by the [Executive Director].
- Expenditures between [$501] and [$2,000] require approval from [Executive Director] and [Treasurer/Board Member].
- Expenditures over [$2,000] require approval from the Board of Directors.
All payments must be supported by a purchase order, invoice, or other official documentation.
For major purchases or contracts, a competitive bidding process will be used to ensure the best value for money.

7. Income and Fundraising

All donations, grants, and other income will be promptly recorded in the accounting system.
A receipt will be issued for all donations received.
The organization will maintain a clear record of all grants, including grant agreements, reporting requirements, and usage restrictions.

8. Accounting and Reporting

The organization will maintain a complete and accurate set of accounting records, using the [Accrual/Cash] basis of accounting.
Monthly or quarterly financial reports, including a Statement of Financial Position (Balance Sheet) and a Statement of Activities (Income Statement), will be prepared for review by the Board of Directors.
The organization's fiscal year will run from [e.g., January 1st to December 31st].

9. Asset Management

A register of all physical assets valued over a specific threshold (e.g., [$500]) will be maintained, including details on the item, value, location, and date of acquisition.
The Board of Directors must approve the disposal of any significant assets.

10. Internal Controls

Access to financial records and banking accounts will be restricted to authorized personnel.
Regular reviews of financial reports and procedures will be conducted.
All financial documents will be filed and stored securely.

11. Annual Audit

An independent external audit of the organization's financial statements will be conducted annually. The audit will be presented to the Board of Directors for approval.

12. Policy Review

This policy will be reviewed and updated by the Board of Directors on an annual basis to ensure its continued relevance and effectiveness.