Finance Policy for Helping Hand for Community Development
(HHCD)
Effective
Date:
01/10/2020
Last Updated: 30/09/2024
Helping Hand for Community Development (HHCD) is committed
to upholding financial integrity and transparency in all its operations. This
finance policy outlines the principles, responsibilities, and procedures that
govern the financial management of the organization.
1. Purpose
The purpose of this policy is to:
- Ensure
proper management and accountability of financial resources.
- Establish
clear guidelines for budgeting, expenditures, financial reporting, and
auditing.
- Support
HHCD’s mission by promoting efficient and effective use of resources.
2. Scope
This policy applies to all financial activities, including
but not limited to:
- Income
from donations, grants, and fundraising events.
- Expenditures
for programs, operations, and administration.
- Management
of cash, bank accounts, and other financial assets.
- Financial
reporting and auditing.
3. Financial Management Principles
3.1 Accountability and Transparency
- All
financial activities must be documented, authorized, and reported
accurately.
- HHCD
commits to full transparency in its financial dealings, ensuring donors,
partners, and stakeholders are informed about how funds are utilized.
3.2 Integrity
- Financial
decisions and transactions will adhere to ethical standards and comply
with all applicable laws and regulations.
3.3 Efficiency
- Financial
resources must be used effectively to maximize impact and minimize waste.
4. Budgeting
4.1 Annual Budget Preparation
- An
annual budget will be prepared by the finance team in consultation with
program managers and approved by the Governing Council.
- The
budget will align with HHCD’s strategic priorities and program goals.
4.2 Budget Monitoring
- Budget
performance will be reviewed quarterly to ensure spending aligns with
approved allocations.
- Variances
will be analyzed, and necessary adjustments will be made with approval
from the Governing Council.
5. Income Management
5.1 Sources of Income
- Income
sources include donations, grants, event fees, program fees, and other
fundraising activities.
- All
income will be properly documented, recorded, and deposited into HHCD’s
official bank accounts.
5.2 Donations and Grants
- Donations
will be acknowledged promptly, and funds will be allocated according to
donor instructions whenever specified.
- Grants
will be managed per grant agreements, with regular reporting to donors.
6. Expenditure Management
6.1 Authorization of Expenditures
- All
expenditures must be approved according to the organization’s approval
hierarchy.
- Expenses
must align with the budget and serve the organization’s objectives.
6.2 Procurement
- Procurement
of goods and services will follow a transparent process, including
competitive bidding where applicable, to ensure value for money.
- A
procurement committee will oversee major purchases.
6.3 Payment Procedures
- Payments
will be made only upon receipt of proper documentation, such as invoices
or receipts.
- Payments
exceeding a specified threshold must be approved by the Governing Council
or designated authority.
7. Cash and Bank Management
7.1 Cash Management
- Petty
cash will be maintained at a minimal level and used only for small, urgent
expenses.
- All
cash transactions must be recorded, and cash balances reconciled
regularly.
7.2 Bank Accounts
- HHCD
will maintain bank accounts in the organization’s name.
- Transactions
will require dual authorization from authorized signatories.
- Bank
reconciliations will be performed monthly.
8. Financial Reporting
8.1 Internal Reporting
- Monthly
financial reports will be prepared by the finance team and shared with
management for review.
- Reports
will include income, expenditures, and cash flow statements.
8.2 External Reporting
- Annual
financial statements will be prepared and audited by an independent
external auditor.
- Financial
statements will be shared with donors, regulatory bodies, and
stakeholders.
9. Reserve and Asset Management
9.1 Financial Reserves
- HHCD
will maintain a financial reserve to ensure sustainability during
unforeseen circumstances.
- Reserve
levels will be reviewed annually and adjusted as needed.
9.2 Asset Management
- All
assets will be recorded in an asset register and managed responsibly.
- Depreciation
and maintenance schedules will be implemented for fixed assets.
10. Fraud Prevention and Whistleblowing
10.1 Fraud Prevention
- HHCD
will implement controls to prevent fraud, including regular audits,
segregation of duties, and robust approval processes.
10.2 Whistleblowing
- Employees,
partners, and stakeholders are encouraged to report suspected fraud or
financial misconduct.
- Reports
will be investigated promptly, and confidentiality will be maintained.
11. Compliance
HHCD will comply with all financial regulations, including
tax laws and reporting requirements. Non-compliance will be addressed
immediately to avoid penalties or reputational damage.
12. Review and Amendments
This finance policy will be reviewed annually by the
Governing Council to ensure it remains relevant and effective. Amendments will
be approved by the council and communicated to all relevant parties.
13. Roles and Responsibilities
Governing Council
- Approves
the budget and financial policies.
- Oversees
financial performance and accountability.
Finance Team
- Prepares
budgets, financial reports, and statements.
- Manages
cash, bank accounts, and expenditures.
Program Managers
- Ensure
program expenditures align with budgets.
- Report
on program financial performance.
14. Contact Information
For questions or further details regarding this policy,
please contact:
Helping Hand for Community Development (HHCD)
Helping Hand for Community Development
(HHCD)
Headquarters: Nairobi, Kenya
Email: info@helpinghandfor.or.ke