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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

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Notice!!

HHCD org is a Non profit Organization based in Kenya registered under the NGO Coordination Board of Kenya under Reg.No. OP.218/051/19-096/11422

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