1. Purpose
1.1. To define roles and responsibilities for every person in the organisation who deals with financial management or procedures.
1.2. To define the financial planning and reporting that FAIR should undertake each year.
1.3. To lay out financial policies to be followed by every person in the organization.
2. Key Principles
The key principles on which all FAIR Financial Policy is based are:
2.1. Organisation Funds
2.1.1. Organisational funds belong to FAIR. They should not be used for private purposes, including private grants or loans.
2.1.2. Funds should be carefully used in an effective way in the best interests of the organisation.
2.1.3. All Board, Staff and members are responsible for the careful and honest use of funds.
2.1.4. Funds granted to FAIR for a specific purpose will be used for that purpose.
2.2. Collective Accountability
2.2.1. All Board members and staff of FAIR have a collective (shared) responsibility for the financial health of an organisation.
2.2.2. Each person has specific financial responsibilities. Some responsibilities are larger than others, for example the Treasurer and Administration Officer. However everyone on the Board and all staff dealing with finances must share responsibility for the careful and honest use of the organisational funds
2.2.3. Everyone on the Board is also responsible for examining and questioning the monthly/quarterly financial report and for formally approving it.
2.3. Transparency
2.3.1. All financial documents and reports should be available to all members of the Board and all staff members with financial duties.
2.3.2. Annual accounts should be available to all members.
2.3.3. Generally there is no reason for the Board to withhold any financial report from a member.
2.4. Separation of Duties
2.4.1. This principle states that no one person covers all financial tasks. Where ever possible, financial tasks are split between two or more people.
2.4.2. Usually one person will DO the task and another person will CHECK the task is done correctly.
2.5. Roles and Responsibilities
2.5.1. Chairperson
In relation to FAIR’s Financial Management policies and procedures, the Chairperson will undertake to:
a. ensure that FAIR has written financial policies and procedures adopted by the Board.
b. ensure the Board and staff have a copy of the policy,, have read them and understand them.
c. ensure that financial management policy is implemented effectively.
d. ensure a two-year Budget is prepared and approved by the Board.
e. ensure the Board meets regularly to review and approve financial reports.
f. liaise with Treasurer and Financial Committee to ensure financial reports are prepared.
g. read and question quarterly financial reports.
2.5.2. Treasurer
In relation to FAIR’s Financial Management policies and procedures, the Treasurer will undertake to:
a. ensure financial management policy is implemented effectively.
b. liaise with Chairperson on financial matters and bring irregularities to attention urgently.
c. ensure a two-year Budget is prepared and approved by the Board.
d. ensure financial reports are prepared for the Board and check their accuracy.
e. present financial reports to the Board and answer questions on them.
f. check the monthly/quarterly Bank Reconciliation against the Bank Statement
2.5.3. Financial Committee
In relation to FAIR’s Financial Management policies and procedures, the Secretary of the Financial Committee will undertake to:
a. liaise with the Chairperson on financial matters.
b. meet quarterly to review and approve financial reports prior to the Board meeting.
c. check the quarterly bank reconciliation against the bank statements.
d. as appropriate carry out spot checks on procedures and financial documents.
2.5.4. Board Members
In relation to FAIR’s Financial Management policy and procedures, Board Members will undertake to:
a. attend Board meetings regularly.
b. read and understand FAIR’s Financial Policy and Procedures.
c. learn to understand the financial budgets and financial reports.
d. read and question monthly/quarterly financial reports that are tabled at the Board meetings.
e. if in agreement and warranted, approve FAIR’s Annual Budget.
f. if in agreement and warranted, approve these financial reports and specifically the payments.
2.5.5.Director
In relation to FAIR’s Financial Management policies and procedures, the Director will undertake to:
a. manage the organisation’s financial systems efficiently.
b. prepare the annual budget in consultation with the Chairperson and Treasurer.
c. check all invoices before signing and authorising payments.
d. on a monthly basis check Payments file to ensure accounts for the month have been paid.
e. check monthly Bank Reconciliation against the Bank Statements.
f. assist with preparation of monthly financial reports.
g. inform Treasurer if any budget line is close to budget.
h. ensure all financial records are kept up to date.
2.5.6. Administration Secretary
In relation to FAIR’s Financial Management policies and procedures, the Administration Secretary will undertake to:
a. bank all monies immediately upon receipt, or on the first available bank day should payment be received after bank hours.
b. make all payments to service providers on the required due dates.
c. ensure appropriate documents are attached to payments and file them.
d. ensure that proof of payments are be retained by FAIR and sent to recipients.
e. take responsibility for cash box and petty cash recording.
f. backup all financial data on a weekly basis.
g. carry out monthly bank reconciliation, prepare monthly Income and Expenditure reports, and submit to Director for presentation at monthly Board meetings.
3. Financial Policy Summary
3.1. Financial Planning
3.1.1. A full organisation budget will be prepared annually
3.1.2. A budget review will be undertaken after six months
3.2. Bank Account
3.2.1. FAIR will hold a bank account
3.2.2. All FAIR income and expenditure must go through the FAIR bank account
3.2.3. The signatories to the FAIR bank account be the Director and the administrator.
3.2.4. Two signatories are required on each cheque
3.3. Income
3.3.1. All income is receipted
3.3.2. All income is banked into the FAIR bank account
3.3.3. No un-banked income is used for petty cash
3.3.4. All monies will be banked immediately upon receipt, or on the first available bank day should payments be received after bank hours.
3.4. Expenditure
3.4.1. All expenditure must have an approved budget allocation.
3.4.2. No blank cheques are to be signed by any cheque signatory.
3.4.3. All payments over $50 are to be paid by bank transfer.
3.4.4. Every payment must have an invoice or receipt attached.
3.4.5. Payments to be authorised by the director.
3.4.6. Payroll records are to be kept for all salaries and wages.
3.4.7. The office petty cash total amount not exceed $200.
3.5. Accounting for Income and Expenditure
3.5.1. Income and Expenditure is to be accounted for on a monthly basis
3.5.2. Electronic records are kept using the Excel format.
3.5.3. Income and expenditure data is entered into the cashbook on a regular basis
3.5.4. A bank reconciliation is carried out monthly.
3.5.5. The bank reconciliation is to be checked by the Director and the Finance Committee.
3.6. Reporting
3.6.1. A monthly bank reconciliation report is prepared and printed. This reconciliation is reviewed and checked by Director and Finance Committee. It is to be attached to the bank statement and filed
3.6.2. Monthly Income and Expenditure reports to be prepared and filed by the Secretary.
3.6.3. Quarterly financial reports are presented by the Treasurer at quarterly Board meetings.
3.6.4. After approval by the Board and signed by the Treasurer, the quarterly report should be filed.
3.7. Record Keeping
The following records are to be kept and maintained by staff. The files are to be kept in a safe and secure place known to and approved by the Treasurer and Chairperson:
3.7.1. Physical records: Receipts books, cheque books, income file, payment voucher file, bank statement file, IRD, NPF and ACC files, Monthly Income and Expenditure file.
3.7.2. Electronic records: The Excel cashbook is to backed up on a weekly basis onto a diskette or USB Drive (Data Pen).
3.7.3. At the end of the financial year, the financial records for that year are to be archived and stored in a safe place.
3.8. Annual Accounts and Audit
3.8.1. Annual Accounts are to be prepared
3.8.2. Annual Accounts are to be audited
3.8.3. Annual Accounts are to be presented to members at the Annual General Meeting
3.9. Misuse of Funds
3.9.1. Any suspected misuse or misappropriation of funds will be investigated by the Board Chairperson and the Treasurer.
3.9.2. Once completed and the facts clearly established, the Chairperson / Treasurer will take appropriate action. For minor issues this may be kept to internal disciplinary action. For serious offences, the matter will be referred to the Police.
3.9.3. The Chairperson will inform the Board of any serious offences and the action taken.
3.10. Board Volunteerism
3.10.1. FAIR Board members agree to work for the organisation in the spirit of volunteerism
3.10.2. No Board meeting allowances will be paid
3.10.3. All work done for FAIR by Board members will be unpaid
Notes:
* FAIR is a Public Benefit Organisation and this policy must be implemented in accordance with the laws of the Republic of South Africa where the organisation is registered and offices are based.
** Various Company laws, Reserve Bank provisions and Financial Intelligence Centre Act provisions pertaining to management of funds and the transferring of same, are applicable to FAIR, and strict adherence to these regulations is imperative.
Agreed and adopted by the FAIR Board on 31 August 2012.
FAIR 