سياسة الإدارة المالية والرقابة الداخلية

Full text (English)

1. Purpose of the Policy

The purpose of this Financial Management and Internal Control Policy is to establish sound financial practices for ejabh organization. This policy ensures that financial resources are managed with transparency, accountability, and efficiency to support the organization's charitable mission. It provides guidelines for budgeting, financial reporting, internal controls, and oversight.

2. Scope of the Policy

This policy applies to the Board of Directors, officers, staff, contractors, and volunteers of ejabh organization who are involved in financial management or decision-making processes. It covers all financial transactions, including donations, grants, procurement, payroll, and program expenditures.

3. Guiding Principles

The financial management of ejabh organization shall adhere to the following principles:

• Accountability: Funds must be used for their intended purposes.
• Transparency: Financial activities shall be documented and available for review.
• Compliance: All transactions must comply with federal, state, and local regulations.
• Stewardship: Resources shall be managed efficiently to maximize program impact.

4. Budgeting

The annual budget shall be prepared by the Treasurer and Executive Director (if applicable) and reviewed by the Finance Committee. The Board of Directors must approve the budget prior to the start of each fiscal year. Any significant variances from the approved budget must be reported to the Board with explanations.

5. Financial Reporting

Accurate and timely financial reports are essential. The Treasurer shall present financial statements, including income and expenditure reports, balance sheets, and cash flow statements, at each Board meeting. Annual financial reports shall be prepared for external stakeholders, donors, and regulatory authorities as required.

6. Internal Controls

To protect the assets of ejabh organization and ensure reliability of financial records, the following internal controls shall be maintained:

• Segregation of Duties: No single individual shall have control over all aspects of a financial transaction.
• Authorization: All expenses must be approved according to the delegated authority matrix.
• Documentation: All transactions must be supported by invoices, receipts, and contracts.
• Bank Reconciliation: Monthly reconciliation of bank accounts shall be conducted by someone other than the person who manages cash.
• Asset Protection: Physical and digital assets must be safeguarded against loss, theft, or misuse.

7. Donations and Grants

All donations and grants shall be recorded promptly and accurately. Donor restrictions must be honored, and restricted funds shall be tracked separately. Acknowledgment letters and receipts shall be issued to donors in compliance with IRS requirements.

8. Procurement and Expenditures

All procurement activities shall follow fair and transparent processes. Competitive bidding shall be used for significant purchases. Expenditures must align with the approved budget and be supported by proper documentation. Personal use of organizational funds or assets is strictly prohibited.

9. Audit and Review

ejabh organization shall undergo an independent financial review or audit annually, as determined by the Board of Directors. The Finance Committee shall oversee the audit process and review recommendations to strengthen internal controls.

10. Fraud Prevention

Fraudulent activities, including misrepresentation, theft, or misuse of funds, are strictly prohibited. Any suspicion of fraud shall be reported immediately to the Board of Directors and investigated. Disciplinary action, including termination or legal proceedings, may result.

11. Recordkeeping and Retention

All financial records, including bank statements, invoices, receipts, and contracts, shall be retained for a minimum of seven (7) years. Records must be organized, accessible, and protected against unauthorized access.

12. Enforcement and Compliance

Violations of this policy will be addressed by the Board of Directors. Disciplinary actions may include termination of employment or volunteer service, removal from the Board, or referral to legal authorities as appropriate. Compliance with this policy is mandatory for all individuals involved in financial management.

13. Review and Amendment

This policy shall be reviewed every two (2) years by the Finance Committee and the Board of Directors. Amendments must be approved by a majority vote of the Board.

Source: ejabh.io/financial-management-and-internal-control-policy