1. Purpose
The purpose of this policy is to establish a framework for the management of Esharelife Foundation’s finances to ensure that all financial transactions are conducted with integrity, transparency, and accountability.
2. Scope
This policy applies to all trustees, employees, and volunteers involved in the financial management and operations of Esharelife Foundation.
3. Responsibilities
Board of Trustees: Overall responsibility for financial management, including approval of budgets, financial plans, and policies.
Treasurer: Oversight of financial activities, ensuring accurate and timely financial reporting.
Finance Manager/Officer: Day-to-day management of financial transactions and record-keeping.
Employees and Volunteers: Compliance with financial policies and procedures.
4. Budgeting and Planning
Annual Budget: An annual budget will be prepared by the Finance Manager/Officer and approved by the Board of Trustees before the start of each fiscal year.
Financial Planning: The charity will engage in regular financial planning to support strategic objectives and ensure sustainability.
5. Accounting Records
Record Keeping: Accurate and complete financial records will be maintained in accordance with legal requirements and generally accepted accounting principles (GAAP).
Document Retention: Financial documents, including receipts, invoices, and bank statements, will be retained for a minimum of seven years.
6. Internal Controls
Segregation of Duties: Key financial responsibilities will be divided among different individuals to reduce the risk of error or fraud.
Authorization of Transactions: All financial transactions must be authorized by designated personnel according to the established approval limits.
Access Controls: Access to financial systems and information will be restricted to authorized personnel only.
7. Banking and Cash Management
Bank Accounts: The charity will maintain bank accounts in its name only, with the Board of Trustees approving the opening and closing of accounts.
Signatories: All bank transactions require dual signatories from a list of authorized individuals approved by the Board of Trustees.
Cash Handling: Cash receipts will be promptly recorded and deposited into the bank. Cash payments will be minimized and only used when necessary.
8. Income
Receipting: All income, including donations, grants, and other revenues, will be promptly recorded and acknowledged.
Grant Management: Grants will be managed according to the terms and conditions specified by the funders, with appropriate documentation maintained.
9. Expenditure
Payment Procedures: Payments will be made by check, electronic transfer, or other approved methods. All payments must be supported by appropriate documentation.
Expense Claims: Employees and volunteers may claim reimbursement for legitimate expenses incurred on behalf of the charity, subject to the approval of the Finance Manager/Officer and in accordance with the expense policy.
10. Financial Reporting
Monthly Reporting: Monthly financial reports, including income and expenditure statements and balance sheets, will be prepared and reviewed by the Treasurer and Board of Trustees.
Annual Financial Statements: Annual financial statements will be prepared in accordance with legal requirements and audited by an independent auditor.
11. Audit and Compliance
External Audit: The charity will undergo an annual external audit by a qualified auditor to ensure financial statements are accurate and comply with applicable laws and regulations.
Internal Reviews: Periodic internal reviews of financial controls and procedures will be conducted to identify and mitigate risks.
12. Risk Management
Risk Assessment: Regular financial risk assessments will be conducted to identify potential threats to the charity’s financial health.
Mitigation Strategies: Appropriate strategies will be implemented to mitigate identified financial risks.
13. Training and Development
Training: Trustees, employees, and volunteers involved in financial management will receive appropriate training to ensure compliance with this policy and effective financial stewardship.
Continuous Improvement: The charity will continuously seek to improve financial controls and procedures based on best practices and feedback from audits and reviews.
14. Review and Approval
This policy will be reviewed annually by the Board of Trustees and updated as necessary. All trustees, employees, and volunteers will be provided with a copy of the policy and will be required to acknowledge their understanding and acceptance of it.
By implementing this Financial Controls Policy, Esharelife Foundation commits to maintaining high standards of financial integrity, ensuring that all resources are managed responsibly and transparently to achieve the charity’s mission and objectives.