Finance

Administrative and Financial Policies Manual

The Administrative and Financial Policies Manual ensures the financial accountability of the organization. The policies achieve the following:

• Help ensure that the mission of the organization is achieved
• Ensure the continued liquidity of the organization (sufficient cash to meet obligations)
• Maintain the long-term solvency of the organization (assist in risk management with timely and accurate reporting to the Board)
• Achieve and document compliance with laws and restrictions

To ensure the success of the organization, it is necessary that its assets are safeguarded and that its financial activities are properly reported to the board of directors. Timely and relevant reporting provides the board with the financial information necessary to budget and plan for the organization’s future. The policies also provide an ongoing opportunity to evaluate performance of plans over accounting periods with consistency and accuracy. The set of standards and controls detailed in the policy manual ensure the conformity of reporting necessary to understand the financial health of the organization while at the same time ensuring that the assets and obligations are correctly reported.

The financial systems outlined in the manual will detail rules for:

1. Authority and responsibility over the financial reporting process
2. Access to assets and accounts
3. Financial budget, planning and reporting activities
4. Summarizing, categorizing, and reporting financial transactions
5. A system of internal control
6. The process of financial risk management

Each member of the board has a fiduciary duty to the organization to safeguard its assets and ensure compliance with the law and the rules of the organization.