Financial
Management
NGOs need to keep the development and maintenance of
proper financial management strategies a priority.
CPS’s finances shall be managed to ensure
appropriate use of funds and accountability to
members and donors. To this end, CPS will:
- Comply
with business accountability and auditing practices generally accepted within
the financial community
- Set
up appropriate financial systems and employ qualified persons to administer and
manage these systems
- Conduct
annual audits
- Have
clear policies on loans and staff advances
- Develop
a policy regarding the receipt of outside honoraria and/or remuneration in
order to avoid inappropriate payment
- Set
up mechanisms to ensure procedures for purchasing goods and services are free
from vested interests of individuals in our organization and that they are cost
effective
- Prepare,
monitor, and adhere to realistic project and organizational budgets.
Appropriate consultation should occur and any amendments be recorded whenever
it is necessary to make budgetary changes
- Formally
and publicly charge members for any attempt at fraud, theft, or
misappropriation
- Ensure
wherever possible that the funding base of the organization is diversified
- Minimize
fund-raising and administration costs
- Develop
and implement mechanisms to monitor the use of staff time
- Ensure
that fund provided are used for intended purpose only
- Conduct
periodic cost-benefit analyses of project and review resources allocations in
the light of these analyses
- Provide
clear and transparent accounting to the broader membership and/or constituency
of the organization
