Financial Policies and Procedures

A sustainable non-profit organization will have the following policies:

Budget Policy: Defines the responsibilities of the Board, Treasurer, Finance Committee and senior staff with respect to budget preparation, approval and monitoring.

Budget Monitoring Policy: Establishes the frequency, format, and content of monitoring reports. In addition, it indicates the direction of the Board with respect to major purchases, lease of premises and other key items, including financial risk management.

Cash Management Policy: Places requirements on the Executive Director to maintain cash balances and to report regularly on the cash position of the organization.

Banking Policy: Designates the individuals or positions in the organization who are authorized to make transactions on its behalf, and the procedures for authorizing these transactions (signing authority).

Accounting Policy: Addresses a number of elements such as the requirement for regular reconciliation of bank accounts, handling of incoming funds, administration of payroll and petty cash.

Money Management Policy or Investment Policy: Provides Board direction for ensuring surplus funds are invested prudently and earning interest as well as the borrowing of funds. It handles Trusts according to agreement.