Before embarking upon the process of presenting the financial management policy for NGOs, it is important to outline the roles and responsibilities of the staff involved in developing and updating the policy. Usually, the Board of Directors or the NGO Board Members have appointed a financial committee to develop a draft financial management policy which is further discussed, improved and authorized by all the members of the Board. The NGO director and the finance officer are primarily responsible for ensuring that the policy is fully implemented within the organization. They can also give recommendations to the board members for any modifications in it.
Inside the financial management policy, something of the following can be written:
“1.2 Updating the NGO Financial Management Policy
The update of the manual is the responsibility of the finance committee consisting of concerned authorities from finance & accounts as well as project head and approved by the chief functionaries of organization. The committee must ensure that:
a) The manual is kept up-to-date
b) The manual continues to set out the procedure that must be followed in the operation of the system and procedures
c) Sufficient copies of manuals are available
d) Amendments to the manual are properly authorized and communicated to concerned parties immediately. It is envisaged that, it may be necessary to amend the manual every year to accommodate any changes. The finance committee must ensure that there is a list of all the persons to whom the manual has been issued so as to ensure that the amendments issued are completed promptly.
Each amendment to the procedures manual must be given a unique code and dated, the finance manager is responsible for ensuring that each procedure issued has been properly amended.
1.3 Responsibilities of User Staff
All personnel with a role in the management of organization’s financial operations are expected to uphold the policies in this manual. It is the intention of organization that this accounting manual serves as our commitment to proper, accurate financial management and reporting.”