fbpx

Financial Management Policy

Financial Management Policy

Financial Management Policies
Download Now!

Policy

The CEO is responsible for the day-to-day financial management of [enter-your-company-name-here] and shall carry out this duty in a manner that shall promote and further [enter-your-company-name-here]’s financial strength and shall in no way threaten it. 

Procedure

To ensure the affairs are managed on a prudent basis, the CEO shall:

  • Ensure that [enter-your-company-name-here] does not incur  indebtedness not authorised by the Board
  • Develop an annual budget for consideration by the Board.
  • Record all financial transactions using standard accounting practices.
  • Utilise funds solely for the furtherance of [enter-your-company-name-here]’s purposes and priorities as approved by the Board.
  • Not allow ordinary operating expenses to become undischarged debts beyond a three-month period from when incurred. (unclear – delete)
  • Ensure that debts owed to [enter-your-company-name-here] are collected in a timely manner if they are considered collectable, and ensure that payments are made within 30 days of the due date.
  • Use restricted or tagged contributions for designated purposes only.
  • Not allow any one person alone to have complete authority over any of [enter-your-company-name-here]’s financial transactions.
  • At all times operate within [enter-your-company-name-here]’s approved budget and within [enter-your-company-name-here]’s policies.
  • Settle all pay-roll debts in a timely manner.
  • Not incur expenditure that is beyond [enter-your-company-name-here]’s ability to meet.
  • Ensure that the accounts are audited yearly by an approved auditor.
  • Comply with internal control requirements established by the Finance Committee.
  • Arrange insurance’s as required by the Board

Limits of Delegated Financial Authority

The CEO is authorised to spend up to [e.g.$5000] on unspecified budget items without obtaining permission from the Board or any Board member provided that such additional expenditure can be achieved within the broad budgeted limits established by Board and is consistent with the organisation’s goals and objectives.