Financial Policy Document

FINANCIAL POLICY DOCUMENT

Organization Name:   Policy Number:

Effective Date:   Review Cycle:

Purpose

This Financial Policy Document establishes binding rules and procedures for the fiscal management of the organization, including budget preparation, expenditure approval, procurement, asset capitalization, travel and expense reimbursement, internal controls, record retention and audit compliance. All employees, contractors and officers are required to comply with the provisions set forth herein.

Scope

This policy applies to all organizational units and activities funded by organizational resources, including restricted funds, grants, and capital projects. The policy governs financial decision-making by employees, managers, and officers.

Definitions

For purposes of this policy, the following definitions apply: "Capital Asset" means any tangible or intangible property with a life expectancy greater than one year and a value at or above the capitalization threshold; "Immediate Supervisor" means the manager with direct oversight of the employee incurring obligations; "Procuring Officer" means the individual authorized to execute purchases on behalf of the organization.

Authority and Delegations

The Board of Directors vests authority for the administration of this policy in the Chief Executive Officer and delegates operational authority to the Chief Financial Officer (CFO). The CFO shall establish administrative procedures to implement approval matrices and controls. Any delegation of authority must be documented in writing and signed by the delegating officer.

Responsibilities

Responsibilities under this policy are allocated as follows. Each role must ensure compliance with procedures, maintain records, and cooperate with audits.

 Chief Financial Officer — overall administration, reporting, and control oversight

 Finance Manager — day-to-day accounting, payment processing, reconciliations

 Department Heads — pre-approval of departmental expenditures and budget compliance

Budgeting

The budgeting cycle shall require departments to prepare annual budgets for CFO review and Board approval. Material variances must be reported monthly. Unauthorized over-expenditure of budget lines is prohibited.

Expenditure Approval & Procurement

All expenditures must follow the approval matrix. Competitive bidding is required for purchases above the competitive_bidding_threshold. Single-source procurement requires prior written justification and CFO approval.

Petty Cash and Payments

Petty cash funds are for minor expenditures only and must be reconciled monthly. Payments shall be made only upon valid invoice or authorized purchase order and subject to two-person approval for amounts above the single_approval_threshold.

Travel, Entertainment, and Employee Reimbursements

Reimbursements require original receipts and an approved expense report submitted within the expense_submission_period. Per diem rates shall be set in the administrative procedures. Travel expenses must be reasonable and necessary to conduct organizational business.

 Original receipts required for all reimbursable expenses

Asset Capitalization and Disposal

Capital assets meeting or exceeding the capitalization threshold must be recorded in the fixed asset register, depreciated in accordance with approved schedules, and disposed of only with CFO approval and appropriate documentation.

Internal Controls, Segregation of Duties and Audit

The organization maintains segregation of duties to reduce risk of error or fraud. Reconciliations, approvals and disbursements shall be performed by separate individuals where practicable. Internal and external auditors shall have unrestricted access to records for audit and compliance verification.

Conflict of Interest and Ethics

Persons involved in procurement, contracting or financial approvals must disclose any actual or perceived conflicts of interest immediately. Failure to disclose a conflict may result in disciplinary action, up to and including termination.

 By checking this box, I acknowledge the conflict of interest provisions and agree to disclose any relevant conflicts in writing.

Policy Exceptions and Amendments

Exceptions to this policy require written justification and approval by the CFO and the Chief Executive Officer. The Board must approve any substantive amendment to this policy.

Non-Compliance and Remedies

Violations of this policy may result in corrective action, restitution, suspension of approval authority, and reporting to governing bodies as required. The organization reserves the right to recover funds lost through negligence or willful misconduct.

Acknowledgment

By signing below, the signatories attest that they have the authority to approve this policy, that they have reviewed its contents, and that they will implement and enforce its provisions within their respective responsibilities.

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