Table of Contents
1. Introduction
2. Financial Governance
3. Budgeting
4. Accounting Policies and Procedures
5. Financial Reporting
6. Internal Controls
7. Procurement Policies
8. Asset Management
9. Payroll Management
10. Fund Management
11. Audit and Compliance
12. Risk Management
1. Introduction
This Finance Manual provides guidelines and procedures for managing the financial activities of SURE. It aims to ensure transparency, accountability, and compliance with all applicable laws and regulations.
2. Financial Governance
- Board of Directors: Responsible for overall financial oversight.
- Finance Committee: Assists the Board in financial planning, budgeting, and monitoring.
- Chief Financial Officer (PRESIENT/TREASURER): Manages day-to-day financial operations.
- Audit Committee: Oversees internal and external audits.
3. Budgeting
- Annual Budget: Prepared by the PRESIENT/TREASURER in consultation with department heads and approved by the Finance Committee and Board.
- Budget Monitoring: Monthly review of actual vs. budgeted performance, with necessary adjustments.
- Revisions: Budget revisions allowed with approval from the Finance Committee.
4. Accounting Policies and Procedures
- Accounting Standards: Follow Indian Accounting Standards (Ind AS).
- Books of Accounts: Maintain accurate and complete records using double-entry accounting.
- Chart of Accounts: Maintain a detailed chart of accounts to categorize all financial transactions.
- Cash Management: Implement strict cash handling procedures to prevent fraud.
5. Financial Reporting
- Monthly Reports: Prepare and review monthly financial statements.
- Quarterly Reports: Submit quarterly financial reports to the Finance Committee.
- Annual Reports: Prepare annual financial statements and submit them for external audit.
- Compliance Reports: Ensure timely submission of statutory reports, including income tax returns and FCRA returns.
6. Internal Controls
- Segregation of Duties: Ensure no single individual has control over all aspects of a financial transaction.
- Authorization: Implement a system of approvals for all financial transactions.
- Reconciliation: Regular reconciliation of bank statements and financial records.
- Audit Trails: Maintain clear records of all financial transactions to ensure traceability.
7. Procurement Policies
- Procurement Process: Define clear procedures for procurement, including vendor selection, purchase orders, and payment processing.
- Competitive Bidding: Require competitive bids for purchases above a specified threshold.
- Vendor Management: Maintain a list of approved vendors and conduct regular performance reviews.
- Conflict of Interest: Ensure no conflicts of interest in the procurement process.
8. Asset Management
- Asset Register: Maintain a detailed register of all fixed assets.
- Depreciation: Apply consistent depreciation policies as per Indian Accounting Standards.
- Inventory Management: Regular inventory checks to ensure accurate records.
- Disposal of Assets: Follow a formal process for disposing of obsolete or damaged assets.
9. Payroll Management
- Payroll System: Implement a reliable payroll system to manage employee compensation.
- Statutory Deductions: Ensure compliance with all statutory deductions, including EPF, ESI, and TDS.
- Salary Disbursement: Process salary payments through bank transfers.
- Records: Maintain detailed payroll records for each employee.
10. Fund Management
- Grant Management: Ensure proper management of grants and compliance with donor requirements.
- Fundraising: Develop and implement fundraising strategies to secure financial support.
- Donor Reporting: Provide regular financial reports to donors, as required.
- Bank Accounts: Maintain separate bank accounts for different funds, if necessary.
11. Audit and Compliance
- Internal Audit: Conduct regular internal audits to review financial practices and compliance.
- External Audit: Engage an external auditor to perform an annual audit of financial statements.
- Compliance: Ensure adherence to all applicable laws and regulations, including FCRA, Income Tax Act, and GST laws.
12. Risk Management
- Risk Assessment: Regularly assess financial risks and develop mitigation strategies.
- Insurance: Maintain adequate insurance coverage for assets and liabilities.
- Contingency Fund: Establish a contingency fund to address unexpected financial challenges.