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Financial Management Policy

The Financial Management Policy outlines the procedures for handling funds within the NGO, emphasizing transparency and accountability. It details the approval process for office and project expenses, travel reimbursements, and the responsibilities of various roles in financial decision-making. Additionally, it establishes protocols for financial record-keeping and consequences for unauthorized use of funds.

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Saini Lakhvindar singh
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16 views2 pages

Financial Management Policy

The Financial Management Policy outlines the procedures for handling funds within the NGO, emphasizing transparency and accountability. It details the approval process for office and project expenses, travel reimbursements, and the responsibilities of various roles in financial decision-making. Additionally, it establishes protocols for financial record-keeping and consequences for unauthorized use of funds.

Uploaded by

Saini Lakhvindar singh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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20.

Financial Management Policy


This policy ensures transparency, accountability, and responsible handling of
funds for office operations, projects, reimbursements, accountability, and ethical
handling of funds while supporting the NGO’s activities effectively.

20.1 Financial Decisions

1. Office In-Charge handles petty cash and minor expenses.


2. Assistant Director approves operational budgets within a set limit.
3. Executive Director approves major financial expenditures and submits
them for Board review if needed.

20.2 Office Expenses


1. Routine Office Expenses (stationery, utilities, small purchases) must be
approved by the Office In-Charge before procurement.
2. Any purchase exceeding INR 1,000 requires pre-approval from the
Assistant Director.
3. Any purchase exceeding INR 5000 requires pre-approval from the
Executive Director.
4. The Office In-Charge must maintain proper records and receipts of all
expenses for financial reporting.

20.3 Project Expenses


1. All project-related expenses (e.g., research, conservation activities,
awareness programs) must be pre-approved by the Assistant Director.
2. Budget proposals for projects must be submitted in advance, outlining the
estimated costs.
3. The Assistant Director will review and submit the final budget request to
the Executive Director for approval (if exceeding INR 10,000).
4. Project reports must include financial statements detailing all
expenditures and receipts.

20.4 Travel Reimbursement Policy


1. Employees and volunteers must obtain prior approval for work-related
travel from the Assistant Director. Special Consideration can be given with
authorization from the Executive Director.
2. Eligible travel expenses include Transport costs (bus, train, shared cabs,
fuel for official trips), Accommodation (if applicable and pre-approved) and
Food expenses (if applicable and within the daily allowance limit).
3. Reimbursement Process:
a. Submit the Travel Reimbursement Form along with all original
receipts within 7 days of travel.
b. The Assistant Director will verify and approve the request.
c. Approved reimbursement will be processed within 10 working days
via bank transfer or cash (as applicable).

20.5 Financial Record-Keeping & Reporting


 The Office In-Charge will maintain weekly financial records of all expenses
and payments.
 The Assistant Director will review project budgets and donor funds usage
on a Monthly basis.
 The Executive Director will conduct a quarterly annual financial review and
submit reports to the Board of Trustees (if applicable).

20.5 Unauthorized & Misuse of Funds: Any unauthorized expense or


misuse of funds will lead to disciplinary action, including Formal written
warning, Deduction from salary, Termination of employment or volunteer
position (in case of serious financial misconduct). Financial fraud or
intentional misappropriation of funds may result in legal action.

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